13
1. SOUTH CAUCASUS PIPELINE EXPANSION PROJECT GUIDE TO LAND ACQUISITION AND COMPENSATION - GEORGIA Applicable from April 1 st , 2014

Guide to Land Acquisition and Compensation (Georgia), 2014€¦ · BP-MX30ZZ-EV-REP-0009-000 SOUTH CAUCASUS PIPELINE EXPANSION PROJECT Guide to Land Acquisition and Compensation (Georgia),

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Page 1: Guide to Land Acquisition and Compensation (Georgia), 2014€¦ · BP-MX30ZZ-EV-REP-0009-000 SOUTH CAUCASUS PIPELINE EXPANSION PROJECT Guide to Land Acquisition and Compensation (Georgia),

1.

SOUTH CAUCASUS PIPELINE – EXPANSION PROJECT GUIDE TO LAND ACQUISITION AND COMPENSATION - GEORGIA

Applicable from April 1st

, 2014

Page 2: Guide to Land Acquisition and Compensation (Georgia), 2014€¦ · BP-MX30ZZ-EV-REP-0009-000 SOUTH CAUCASUS PIPELINE EXPANSION PROJECT Guide to Land Acquisition and Compensation (Georgia),

BP-MX30ZZ-EV-REP-0009-000 SOUTH CAUCASUS PIPELINE EXPANSION PROJECT Guide to Land Acquisition and Compensation (Georgia), 2014

This document is the Guide to Land Acquisition and Compensation prepared in April 2014 for the South Caucasus Pipeline Expansion (SCPX) project activities in Georgia. This document updates the original version of the GLAC issued in 2012 to account for updates to the Project design and land and crop compensation rates and is applicable to land acquisition and compensation undertaken from April 1st, 2014 onwards. It was prepared by SCP Co. based on inputs from international and Georgian independent consultants specialised in land acquisition. It is intended to provide affected land owners and land users, as well as local authorities and the public at large with practical information pertaining to the land acquisition and compensation process that the project will involve. It includes a summary description of the project; the presentation of its land requirements; the key principles that SCP Co. commit to apply to the land acquisition and compensation process; details on compensation rates and the different stages in the process; and a description of the grievance procedure. This document is also available on the Reports and Publications page at www.bpgeorgia.ge . Inquiries in relation to this document can be addressed to the following address or telephone number: SCP Co BP Georgia office 24 Sulkhan Tsintsadze Street (formerly 38 Saburtalo Street) 0160 Tbilisi Tel: 259 34 00 (switchboard)

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THE SCPX PROJECT The SCP Company is planning to develop an expansion to the South Caucasus Pipeline (SCP). Called “SCPX”, this project aims at increasing the capacity of the existing SCP pipeline, which originates in Sangachal near Baku in Azerbaijan and ends at the Georgia Turkey border between Akhaltsikhe (Georgia) and Posof (Turkey). SCP has been in operation since 2006 and transports gas produced in the Azerbaijan field of Shah Deniz located in the Caspian Sea. The expansion project involves new sections of pipeline and associated facilities, which will be constructed at different locations in both Georgia and Azerbaijan. In Georgia, the work will involve two new sections of pipeline, shown in red on the sketch below. The first section will start at the border with Azerbaijan and will end to a location to the north-west of Marneuli (a distance of approximately 63 km). This pipeline loop will generally be parallel to the existing SCP pipeline. After this point the increased gas flow will continue in the existing SCP line. In Akhaltsikhe and Adigeni municipalities an additional 2.5km of pipeline will be constructed from the pressure reduction and metering station to the Georgian-Turkish border.

In addition, there will be three new permanent above-ground facilities. Two of these facilities (a compressor station (CSG1) near the Azerbaijan – Georgia border in Gardabani municipality, and a pressure reduction and metering station (PRMS) near the Georgia -Turkey border in Akhaltsikhe municipality) will be located adjacent to existing facilities. A new compressor station (CSG2) will be constructed in Tsalka municipality. Construction works began in 2013 and operations are expected to begin in 2018.

Compressor stations 1 and 2 - Gardabani & Tsalka Municipalities Compressor stations are required to ensure that the gas flows efficiently through the pipeline. These stations will occupy an area of 95 hectares (CSG1) and 115 hectares (CSG2). They will not be located adjacent to settlements. The compressor station located in Tsalka municipality will also require a new access road, starting from the Millennium Road and terminating at the compressor station site. Pressure reduction and metering station - Akhaltsikhe Municipality The new pressure reduction and metering station is required to increase the capacity of the existing facilities as the amount of gas will increase significantly. It will be located next to the existing site and will occupy a total surface of approximately 33 hectares. Temporary facilities associated with above ground installations Construction of the three above ground installations will require some additional land adjacent to the facilities to be used temporarily for storage and fabrication activities as well as construction camps. These areas will be fully reinstated when construction is completed. Pipeline The new sections of pipeline will be generally parallel to the existing SCP route, with a few deviations necessary for technical reasons. The first section of pipeline will terminate with a pigging station (necessary for maintenance of the pipeline) in Tetritskaro municipality. The second section of pipeline, known as the ‘Interconnector’, will connect to an export pipeline in Turkey to deliver gas to Europe.

1

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The pipeline will be buried under one metre of earth or more, and the land will be restored after construction. A temporary construction camp will be required to house workers and will be located approximately 5km north of Rustavi. The pipeline and associated facilities will be built to the highest international standards. During the construction period, and continuing into operations, there will be a programme of regular surveillance to ensure that everything is working well.

PROJECT LAND REQUIREMENTS The project has to acquire land needed for (1) the construction and operation of the pipeline, (2) for the construction and operation of above ground installations, and (3) for temporary facilities, which will be used for the construction period. The SCPX estimated land requirements are outlined in the following table. These numbers may vary slightly as the technical design is being refined.

SCPX Land Requirements Approximate Land Area

Pipeline: Land Purchase Corridor

283 hectares

AGI sites: [CSG1, CSG2 (including access road), PRMS, one pigging station and one block valve]

255 hectares

Construction Camps: Pipeline and facilities

41 hectares

Temporary construction facilities AGIs and pipeline

133 hectares

PIPELINE CONSTRUCTION CORRIDOR AND RESTRICTIONS ZONES Land required for construction and operation of the SCPX pipeline includes:

- A “Construction Corridor”, which is 36 metres

in width, and will be needed for the three years

of construction; in most cases, part of the

Construction Corridor is on land that is part of

the BTC / SCP corridor previously purchased

by BTC Co. and SCP Co.;

- “Restriction Zones”, established in

conformance with Georgian regulations, which

include Zone 1 (8 metres in width or 4 metres

on either side of the pipeline) and Zone 2 (30

metres in width or 15 metres on either side of

the pipeline).

In Zone 1, building construction, tree planting, deep ploughing, and use of explosives are prohibited. In Zone 2, construction of habitable buildings is prohibited. In addition, Zone 3, 500 m in width, is a so called “consultation zone”, where SCP Co. has

to be consulted regarding development applications to ensure minimal risk to the pipeline and resultant risk to surrounding communities. There are no restrictions on individual landowners in this zone. PIPELINE LAND PURCHASE CORRIDOR SCP Co. will purchase the SCPX Land Purchase Corridor, which includes:

- The Construction Corridor; - Restriction zones 1 and 2.

Dependant on design requirements and the location of the SCPX pipeline in relation to existing SCP and BTC pipelines the width of the Land Purchase Corridor will vary:

- Where SCPX will be running parallel to an existing pipeline (either BTC or SCP), the width of the Land Purchase Corridor will be either 31 m or 36 m;

- In the few instances where the SCPX pipeline deviates from existing pipelines, the width of the Land Purchase Corridor will be 41 m.

During the construction of the pipeline and subsequent land reinstatement, landowners and land users will not be able to access the Land Purchase Corridor and will lose any income generated by the affected plot for the period of construction and reinstatement (three years). Any annual or perennial crops that were grown in the construction corridor will be removed before construction. The Land Purchase Corridor will be purchased by SCP Co. from its current owners and will remain in SCP Co.’s ownership after reinstatement and for the life of the Project until decommissioning. After construction and reinstatement are complete, the Land Purchase Corridor will be handed back to its former owners for agricultural use, subject to re-use restrictions defined by Georgian law. Through this hand back process, former owners from whom SCP Co. purchased land in the Land Purchase Corridor will be entitled to recover a usage right over the Land Purchase Corridor, henceforth owned by SCP Co. Any agricultural use of the Land Purchase Corridor will be subject to the restrictions applicable in Zones 1 and 2. SCP Co. will be able to access Zone 1 and Zone 2 land at any time for surveillance and maintenance of the pipeline, and any damage that may occur in respect of such access will be compensated to land users. Land required on a temporary basis for pipeline, AGI or Facilities construction will generally be leased from current landowners for the duration of construction and reinstatement, based on lease agreements. In specific cases, this land may also be purchased.

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ABOVE GROUND INSTALLATIONS Land permanently required for Above Ground Installations will be purchased by SCP Co. Its usage will not be handed back to former users after construction is complete. ORPHAN LAND In some cases, the purchase of the pipeline Land Purchase Corridor may leave sections of land on either side that will not be required for the Project and would normally not be purchased. If, however, agricultural activities on these sections of land cannot normally be continued, because of size, shape or access issues, they may qualify as so-called “orphan land”. Depending on the situation:

- either these plots will be purchased by SCP

Co. together with the rest of the plot if the

impediment to farming is permanent (for

example in the case of permanent facilities),

- or if agricultural activities can resume normally

after construction, only crop losses

experienced during construction will be

compensated.

Whether a parcel qualifies as “orphan land” will be transparently reviewed on a case-by-case basis based on a request to be lodged by the landowner to SCP Co. The following criteria will be considered in this review:

- Size, dimensions and shape of the orphaned

part of the plot;

- Access restrictions and whether these will only

last for the duration of the construction period

or will be permanent;

- Size and nature of mechanical equipment

typically used for cultivation on this plot and

whether such equipment reasonably can be

used given the size, shape and dimensions of

the orphaned part of the plot;

- Restrictions to irrigation or drainage during the

construction period and/or further.

KEY COMPENSATION PRINCIPLES The key compensation principles that SCP Co. commits to for SCPX are the following:

- Land acquisition will be carried out in

compliance with Georgian law, the Host

Government Agreement, and will be guided by

international requirements (specifically those

of the International Finance Corporation);

- Losses will be compensated at replacement

value;

- Any land used by the project on a temporary

basis will be reinstated to its previous

condition by SCP Co.;

- SCP Co. will seek to reach negotiated

settlements with affected landowners and land

users wherever possible;

- Affected landowners and land users will have

access to a transparent grievance mechanism;

- Vulnerable people affected by the land

acquisition process will be identified and

specifically assisted as needed.

COMPENSATION FOR PRIVATE LAND Pipeline Land Purchase Corridor Individuals registered as owners of private land in the Land Purchase Corridor will be identified based on the National Public Registry, with relevant verifications where warranted. They will receive compensation for affected land at replacement value (see compensation rates in Section 4 of this GLAC).

3

In summary – What is the Land Purchase Corridor?

- The Land Purchase Corridor (31, 36 or 41 m in width) will be purchased by SCP Co. before construction and will remain in SCP Co.’s property for the life of the pipeline;

- Agricultural use in the Land Purchase Corridor will be handed back to former owners after construction and reinstatement are completed (3 years), subject to restrictions applicable in Zone 1 and 2;

- Land required on a temporary basis for pipeline construction will be leased for the duration of construction

In summary – What is Orphan Land? - Orphan land is land that is located outside

of the normal purchase area but is made uneconomic by the acquisition of part of the plot.

- Orphan land may be eligible to either purchase if the disruption to agriculture is permanent or compensation for temporary losses if the disruption is for the construction period only.

- Land owners who deem their land may qualify as orphan will have to lodge a request to the SCP Co. Land Acquisition Team, which will be transparently reviewed on a case-by-case basis.

COMPENSATION

PRINCIPLES

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Orphan Land Non affected land adjacent to the Land Purchase Corridor may be compensated if it qualifies as “orphan land” based on a case-by-case review of a request by the landowner to SCP Co. Above Ground Installations and Construction Camps The same compensation rules that are described above for the Pipeline Land Purchase Corridor will apply to private land permanently affected by Above Ground Installations except that such land will not be handed back after construction and reinstatement are complete. Land purchased permanently for construction camps will also be compensated based on the same compensation rules, and will be handed back after construction and reinstatement. Land Needed on a Temporary Basis Such land will be leased from its current owners and a rent will be paid by SCP Co. Land will be reinstated before it is handed back to its owner. COMPENSATION FOR CROPS OF PRIVATE LAND OWNERS AND LAND USERS Pipeline Land Purchase Corridor In the Construction Corridor (meaning the 36 m wide corridor that is actually disturbed by construction), annual crops will be compensated on the basis of one year of harvest at market value. Perennial crops will be compensated at replacement value. Within the strip of land that is part of the Land Purchase Corridor but is not in the Construction Corridor, agricultural activities can continue normally and neither annual nor perennial crops will be compensated. Crops in orphan land will be compensated as needed based on a case by case review of actual impacts. Above Ground Installations The same rules that are described above for the Pipeline Land Purchase Corridor will apply to private land permanently affected by Above Ground Installations. Land Needed on a Temporary Basis Annual crops will be compensated for one, two or three harvests depending on the actual length of occupation by temporary facilities (between take over and hand over). Perennial crops will be compensated at replacement value. LESSEES ON STATE AND MUNICIPAL LAND Individuals holding a registered lease right on State or municipal land affected by the Project will not be compensated for land but will be compensated for crops if applicable.

COMMUNAL LAND High mountain pasture land registered in the name of a village will be compensated to that village according to the same rules as private land. Individual users of communal land will be compensated for crops, if applicable, but not for land. UNREGISTERED OWNERS AND USERS Individuals, who are good faith owners or users of affected land but have been unable to register their rights, will be assisted to register their rights in land, as relevant.

BASIS OF COMPENSATION RATE CALCULATION All affected assets will be compensated at replacement value (market value plus transaction cost) in conformance with international requirements. Current market value of land and crops has been subject to research by independent Georgian valuers hired by SCP Co. For annual crops, maximum yields observed in each municipality were considered. Rates arrived at by these specialists were accepted by SCP Co. 5% has been added to all rates to cover all indirect transaction costs that may be experienced by landowners. COMPENSATION RATES FOR PRIVATE LAND Rates arrived at using the process described above were compared with rates paid in 2002-2003 during the land acquisition carried out for the BTC / SCP pipelines. It appeared that in some municipalities, rates proposed for SCPX were actually lower than those paid in 2002-2003 (which were not based on market value research). Where this was the case, SCP Co. has decided to align the SCPX rates with the BTC/SCP rates, so that no SCPX rate will be lower than rates paid in 2002-2003 for BTC/SCP.

4 COMPENSATION RATES

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Final SCPX rates for land are the following:

Price zone Location (SCPX kilometric point)

SCPX Compensation Rate (GEL/ha)

Zone 1 KP0 to KP19.999 88,410

Zone 2 KP 20 to KP 49.999 153,405

Zone 3 KP 50 to KP 63 71,400

Zone 4 CSG2 53,101

Zone 5 PRMS & Interconnector 55,545

All zones Pasture land 21,420

Zones 1, 2 and 3 are in Gardabani and Tetritskaro municipality. Zone 4 is in Tsalka municipality and Zone 5 in Akhaltsikhe and Adigeni municipalities. COMPENSATION RATES FOR ANNUAL CROPS AND TREES Compensation rates calculated per the methodology detailed above are presented in Appendix 1. COMPENSATION RATES FOR OTHER ASSETS Other assets that may be affected, such as buildings, channels, drains, hydraulic structures, etc. will be valued on a case by case basis.

LAND ACQUISITION AND COMPENSATION PROCESS IDENTIFICATION AND FIELD INVENTORY SCPX with support from a contractor [Association for the Protection of Landowner Rights (APLR)] will first identify affected land parcels in the land register, which is publicly available from the National Agency of the Public Registry, to ensure that land plots which may be affected by the project are properly registered in public registry according to Georgian legislation.

A team (including a representative of the Project Land Acquisition Team) will visit all potentially affected landowners and users identified from the Land Register as owning or using land that falls within the Land Purchase Corridor and at AGI sites. To ensure an objective evaluation of the land inside the Construction Corridor, aerial images, video and photo recordings of the land may be taken in advance where needed. The team will meet with landowners/users to explain the process on an individual basis and will physically visit the affected plot in the presence of the affected landowner and/or land user to carry out a detailed inventory and inspection of the land, development and enhancements, and crops on the affected parcel of land. The purpose of this process is to make a written record of all assets and crops. The inventory agreement will be submitted to the landowner and/or land user for signature and will further form the basis for calculating the compensation offer. The following details will be recorded for all plots within the Land Purchase Corridor:

- Annual Crops

- Perennial fruit bearing trees / plants

- Pasture

- Developments and enhancements (e.g.

fences, buildings, irrigation / drainage, water

sources, power supplies, and roads)

- Details of asset (size, age, type, construction

materials).

The inventory process is scheduled to be completed by end 2012. COMPENSATION CALCULATION Based on the agreed inventory, the compensation will be calculated for land and standing annual and perennial crops, according to applicable entitlements and rates as detailed above in section 4 of this GLAC. The land plot inventory will measure and/or count crops and plants, which have been planted in a manner consistent with standard agricultural practice. Developments and enhancements on land, as well as any structure, shall be valued on a case-by-case basis. OFFER AND NEGOTIATION Once the compensation that is owed to a landowner or user has been calculated, the owner or user will be notified in writing (either in Georgian or Russian language) of the offer. The offer will be based upon the land inventory, the entitlements and rates described above.

5

In summary – Compensation Rates: - Compensation rates are based on the

“replacement value” (market value + transaction cost) in conformance with international requirements.

- Compensation rates for land are calculated based on the current market value observed in each of the affected municipalities.

- Where the current market value was lower than the 2002-2003 BTC/SCP rates, the BTC/SCP rates will be applied.

- Compensation rates for crops are based on maximum yields and maximum prices observed in the affected municipalities.

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The Project Land Acquisition Team will then arrange a meeting to discuss the offer and attempt to reach agreement. If an agreement cannot be reached after a first round of negotiation, a second negotiation meeting will be arranged at a later date in the presence of a notary in case of necessity. Negotiations will be confidential, but the landowner/user may invite outside advisors or other assistance if desired. Representatives of independent groups may also be present to witness the negotiation. All efforts will be made to reach a mutually acceptable agreement, but in situations where the negotiation cannot be settled at this stage a suitable document will be developed by the notary, confirming that good faith negotiations failed. In such situations, either the pipeline will be rerouted to avoid the land parcel, or the authorization to exert Necessary Right-of-Way shall be sought from the local Court in accordance with the Civil Code of Georgia. ESTABLISHMENT OF LEGAL DOCUMENTATION Once an agreement on compensation is reached, a series of legal documents will be developed for signature by both parties (SCP Co. and the affected landowner or land user):

- Division act (allowing to subdivide the land

parcel) required to allow SCP Co. to acquire

only the part of the parcel located within the

Land Purchase Corridor;

- Consent of the household to sell the part of

the land parcel that is located within the Land

Purchase Corridor, which is required where

the land is registered in the name of the

household rather than one particular

individual.

SCP Co. will implement the process of establishing these legal documents (division act and consent) and pay all transaction and legal costs incurred. Once all the documentation required to complete the sale of the land parcel is ready, the landowner will be contacted to receive confirmation of the time and place of closing the transaction and making payment. Payment will typically take place within approximately one month after SCP Co. is notified by the relevant authorities that the documents are complete. CONTRACT COMPLETION AND PAYMENT The part of the land parcel falling within the Land Purchase Corridor will be purchased by SCP Co. using a sale/purchase contract. Owners and users will be notified of the time and location proposed by SCP Co. to sign this contract. It will usually be signed in the local office of the Agency of the National Registry or notarized in case the owner cannot physically be present. All costs associated with this legal process will be paid by SCP Co.

Once the landowner or land user has signed the contract and it is registered according to legislation, payment will be made by wire transfer in Georgian Lari into a bank account in the name of the landowner or land user. A temporary account will be set up where necessary. The landowner will be asked to vacate the land within one week after payment is effective. No “last minute” negotiation will take place at the time of payment. If the landowner no longer wishes to sell the land at the agreed price, a further meeting will be held at a later date, in the presence of a notary, and the disagreement will be documented accordingly. LAND EXIT AGREEMENT AND HAND BACK Where the right to use land for agricultural purpose is to be handed back to the former owner or user (Pipeline Land Purchase Corridor only), the Project Land Acquisition Team and the construction contractors will carry out an exit inspection with the previous land owner/user of all his/her land that was used during the construction period. The aim of this inspection is to ensure that the land has been left in a suitable state such that previous agricultural activities may be resumed on the land, subject to safety restrictions stipulated by Georgian law. Subject to the consent of the former land owner, the usage right of the affected land plot will be handed back free of charge to him/her for agricultural activities. During the exit inspection the landowner/user will also be provided with the information in respect of permissible and restricted activities on the land plot, and contact details of the team responsible for the long-term monitoring of the project. The land exit agreement will include this information and will be signed by the construction contractor and the affected landowner or land user, and by SCP Co. as a witness. This agreement will confirm that all parties are satisfied with the quality of the reinstatement.

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DISPUTES AND GRIEVANCES FAILED NEGOTIATIONS If the compensation negotiation process is not successful, there are two possible options:

- Either, if this is technically possible, the

pipeline will be rerouted to avoid the plot of

land for which no compensation agreement

was reached; in such cases, negotiations will

take place with the landowner/user(s) whose

land will be affected by the new route of the

pipeline;

- Or SCP Co. will apply to the relevant Court for

Necessary Right of Way in conformance with

the Civil Code (article 180). If Necessary Right

of Way is granted by the Court, a new round of

negotiations will take place to seek agreement

on compensation; otherwise a new application

will be made to the Court to rule on

compensation amount.

GRIEVANCE PROCEDURE The project will apply best endeavours to resolve any grievances related to the project through an amicable settlement, rather than through the judicial system. An amicable grievance procedure has been developed by BTC/SCP according to the following principles:

- Any grievance will be registered and

acknowledged receipt of within 7 calendar

days of its receipt, responded to by SCP Co.

within 30 calendar days of its receipt, and

tracked until it is closed;

- The grievance procedure will include a first

level of review of grievances internal to SCP

Co.; within 30 days of receipt SCP Co. will

review the grievance, check available

documentation, do verifications in the field if

needed, and propose a resolution to the

complainant;

- If this proposed resolution is not acceptable to

the complainant, SCP Co. will propose to the

complainant to address the grievance to an

external mediation body, which will in turn

review the grievance, hear both parties, and

propose a resolution; if this resolution is

accepted by SCP Co, it will be proposed in

writing to the complainant and will henceforth

become binding to SCP Co.;

- If this second proposed resolution is not

acceptable to the complainant, either party will

be able to resort to Justice;

- The process will be free of charge to the

complainant.

This grievance procedure remains optional, at the discretion of the complainant, and will not prevent complainants from exercising their rights under Georgian law, including by applying to a Court of Law at any stage. In case of a complaint, the initial application by the complainant will be made to SCP Co. The following avenues are available to lodge a complaint:

- to SCP Co. Land Officers or Community

Liaison Officers, verbally or in writing;

- to SCP Co. offices in writing, at the following

address:

SCP Co - BP Georgia office 24 Sulkhan Tsintsadze Street (formerly 38 Saburtalo Str.) 0160 Tbilisi Tel: 259 34 00 (switchboard)

6

In summary – Land Acquisition Process:

1. Identification and field inventory

2. Compensation calculation

3. Compensation offer and

negotiation

4. Establishment of legal documents

5. Contract signature and payment of

compensation

Pipeline AGIs

6. Construction 6. Construction

7. Reinstatement

8. Land exit and handback

In summary – Grievances:

- An amicable grievance procedure will be established by SCP Co. to handle any grievance related to the SCPX land acquisition and compensation programme in an amicable manner rather than applying to Justice.

- Any grievance will be acknowledged receipt of in writing within 7 calendar days and a first resolution will be proposed by SCP Co. within 30 calendar days.

- If the complainant is not satisfied with the proposed resolution, he or she will be able to apply to an external mediator, who will also propose a resolution after relevant hearings and verifications.

- If the complainant is still unsatisfied, he or she will be able to apply to Justice (and would be able to apply to Justice at any time in this process anyway).

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APPENDIX 1 – COMPENSATION RATES FOR CROPS ANNUAL CROPS

Gardabani

Crop Compensation Rate

(GEL/ha) - 2014

1 Wheat 2,160

2 Barley 1,610

3 Maize 2,610

4 Broom 3,987

5 Hay 532

6 Cabbage 19,809

7 Cucumber 44,929

8 Tomato 66,750

9 Aubergine 57,816

10 Beetroot (vegetable) 26,123

11 Onion 27,690

12 Watermelon 38,257

13 Potato 23,009

14 Radish 9,914

15 Spinach 4,665

16 Mellon 11,430

17 Lucerne 1,116

18 Capsicum 16,000

19 Carrot 24,765

20 Garlic 45,628

21 Beans 9,812

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Akhaltsikhe

Crop Compensation Rate -

2014 (GEL/ha)

1 Winter wheat 1,610

2 Spring wheat 1,610

3 Barley 1,520

4 Oat 2,080

5 Maize 2,240

6 Straw 270

7 Hay 520

9 French beans 24,570

10 Cabbage 88,736

11 Cucumber 81,164

12 Tomato 159,152

13 Carrot 90,710

14 Beetroot 75,500

15 Onion 38,340

16 Spring onion 67,000

17 Capsicum 37,800

18 Sweet pepper 36,400

19 Radish 2,800

20 Garlic 27,000

21 Potato 25,669

22 Kidney beans 4,014

23 Lucerne 1,120

24 Aubergine 59,220

25 Salad 46,110

Tsalka

Crop Compensation rate 2014

(GEL/ha)

1 Winter wheat 1,760

2 Barley 1,470

3 Hay 570

4 Cabbage 35,400

5 Potato 20,216

6 Tomato 52,800

7 Onion 30,530

8 Garlic 76,000

9 Onobrychis 1,750

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COMPENSATION RATES IN GEL PER TREE FOR PERENNIAL CROPS (TREES)

Gardabani Tree / crop Non-bearing1 Low-yielding

2 Mature-yielding

3

1 grape 100 208 229

2 Apple 100 1,276 5,215

3 Pear 100 910 3,402

4 Cherry 100 597 1,250

5 Sweet cherry 100 1,943 6,426

6 Peach 100 321 1,596

7 Walnut 100 5,363 17,500

8 Plum 100 896 2380

9 Wild Plum 100 228 1,838

Akhaltsikhe Tree / crop Non-bearing1 Low-yielding

2 Mature-yielding

3

1 grape 100 242 266

2 Apple 100 1,191 4,865

3 Pear 100 914 3,297

4 Cherry 100 587 1,229

5 Sweet cherry 100 1,910 6,318

6 Peach 100 316 1,574

7 Walnut 100 5,433 16,096

8 Plum 100 896 2,380

9 Wild Plum 100 224 1,575

10 Currant 5 15 32

Definitions: 1 Non-Bearing – covers the period prior to the beginning of fructification.

2 Low-yielding – covers the period from the beginning of fructification until mature yielding, and from

the beginning of aging until the end of fructification. 3 Mature-yielding – covers the period from mature yielding until the beginning of aging.

For clarity, please also refer to the following table showing the amounts of average annual yields (kg) of a single tree over the periods of low yielding and mature yielding.

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Municipality Perennial crop (tree) Average annual yield per tree during its low-yielding period (kg)

Average annual yield per tree during its mature-yielding period (kg)

Gardabani

1 Grape 2.5 4.0

2 Apple 55.0 175.0

3 Pear 35.0 105.0

4 Cherry 12.5 35.0

5 Sweet cherry 25.0 90.0

6 Peach 22.5 95.0

7 Walnut 35.0 100.0

8 Plum 40.0 85.0

9 Wild plum 27.5 105.0

Akhaltsikhe

1 Grape 2.5 4.0

2 Apple 55.0 175.0

3 Pear 35.0 105.0

4 Cherry 12.5 35.0

5 Sweet cherry 25.0 90.0

6 Peach 22.5 95.0

7 Walnut 35.0 100.0

8 Plum 40.0 85.0

9 Wild plum 17.5 35.0

10 Currant 4.9 10.5