Ex-Post Social Review Name & Location of Sub-project: IDA Geothermal Power Plant. & Tuzla-West in Çanakkale Province Project Sponsor: Yerka Elektrik Üretim A.Ş. (The Group Company of Yılsan Yatırım Holding) Project cost: 55,934,000 USD Installed generation capacity: 11.75 MWe Preparation Date: 27/02/2019 Key Dates of Implementation: The company has the “Electricity Generation Pre-Licensed” from “The Republic of Turkey Electricity Market Regulation” with a license number ÖN/7775- 2/03891 of 11.75 MWe capacity. “EIA not Required” decision certificate from the public authority (Provincial Directorate of Environment and Urbanism of Çanakkale Governorship) has been granted for the resource research and drilling on 29th September 2016. The company submitted the Project Information File (PIF) and obtained “EIA not Required” decision for the power plant facility on 3rd of August 2018. “Batı Çevre Mühendislik Danışmanlık Özel Eğitim Arıtma Taahhüt San. ve Tic. Ltd. Şti” prepared the “Project Description File” of the investment project. Consent for non-agricultural use approval is obtained from “Çanakkale Governorship, Directorate of Food, Agriculture and Husbandry dated 28th November 2017. The company purchased the lands from land owners between 2012 and 2018. The investor holds public benefit decision for the location of Yerka-3 well. The public benefit decision is dated as 19th January 2017 and it covers only the Yerka-3 well location. The well location doesn’t cover the plant area. The company works with a consultancy company (Royal Haskoning) within the scope of preparing a “Partial ESIA” including Public Consultation Meeting feedbacks and a Share holder Engagement Plan in 2019. The partial ESIA will be completed and shared within Q1/2019. Project Components and Land Requirements: The IDA GPP project components and land requirements are summarized below in the table. The company purchased 52,090.30 m2 land for permanent usage. No public lands are used. Table 1: Project Components and Land Requirements Permanent Temporary Component 2 2 Total (m2) Purchased (m ) Eased (m ) Rental (m2) Power Plant 16,096.19 - - 16,096.19 Wells 33,968.98 - 5,000 38,968.98 Piping* - - - - Road 2,025.13 - - 2,025.13 Total 52,090.30 - 5,000 57,090.30 * The company is still planning the pipeline routes of the injection and reinjection wells and they are still working on it. Following the final decision on the pipeline routes, requirement of the additional land acquisition become certain.. The anticipated method for the land take will be direct purchase from the landowners for the pipelines. 16,096.19 m2 land for power plant, 33,968.98 m2 land for drilled wells and 2,025.13 m2 land for access roads were purchased from the land owners.. The project components, their purchase years and number of PAPs are given in the table below. Table 2: Project Components and Purchase Years Project Components, Purchase Years and Number of PAPs Project Component Purchase Year Number of PAPs Well Area 2012,2016,2017 5 Power Plant Area 2018 2 Road Area 2018 1 As seen from the tables above, no easement process occurred during the land acquisition process. The company is still planning the pipeline routes of the wells and they are still working on it. The company has a tendency to purchase the land via mutual negotiations. The company uses 5,000 m2 area as rental. The total area of the land is 10,498.16 m2 and approximately 48% of the whole land is used as rental. The other 5,498.16 m2 area is used by landowner and only 5,000 m2 area is used by company as rental. The land has just one owner and the rental agreement has been signed with one person. The duration of the rental agreement is 1 year and that agreement is refreshed every year. Project Impacts: General Information IDA-JES GPP project is located within the boundaries of Tuzla-West in Çanakkale Province, Turkey. The figures given below show the boundaries of Tuzla-West license and the location of wells within it. Çanakkale province is located in the west of Turkey. Figure 1. The location of project shown with red dot on map The licensed area is 972.33 ha in size and the license number is “JEOTERMAL – IR 17/26”. Figure 2: The location of Tuzla-West license area and the location of the wells The closest residences to the project site are Tuzla and Taşağıl villages. The distances of Tuzla and Taşağıl villages to project site are approximately 2.5 km and 3.5 km respectively. The total land acquired by the company is 52,090 m2. There will be no need for additional access roads and existing roads will be followed for the construction of the 22 km. energy transmission line (ETL) that will also be built by the company. The anticipated date for the installation of the ETL is June 2019. High voltage works are carried out by TEİAŞ and medium voltage works are carried out by UEDAŞ. The details of the ETL works will be shared by the company when they have completed studies. During the site visit on November 12th, 2018, company stated that there will be no land acquisition since the ETL will follow the existing road. After ETL is built, ownership will be transferred to TEIAS. The investor purchased the lands via direct purchasing negotiations with the landowners. The negotiations of land purchase for wells started in 2012 and continued in 2016 and in 2017. The areas for the facility and access roads were carried out in 2018. The investor intends to purchase the 5,000-m2 area that has been currently used as rental for Yerka-3 well location. Furthermore, no formal (ie. share croppers) or informal users (such as grazers, herders etc.) exist on the lands. The company obtained the “Nonagricultural Use Permit” from “Çanakkale Governorship Provincial Directorate of Food, Agriculture and Husbandry for the project. The project site does not reside within the Large Plain Protection Area. So that, the same public authority stated that “There will be no negative impact to agricultural lands around”. The permit was obtained on 28/11/2017. The lands were acquired from 9 different landowners. Thus, the total number of project-affected person (PAP) is 9. The land acquisition details of the IDA GPP project is given in that table below.as seen from the table, the purchased lands are croplands. Those croplands are both irrigated and dry lands. Table 3: Land Acquisition Details of the IDA GPP Total Acquired # District Section Point Plot Status Area Type of Area (m2) (m2) Lands 1 Kocaköy I16D19D 234 1 Purchased 18.755,53 18.755,53 Cropland 2 Kocaköy I16D19D 234 26 Purchased 2.392,88 2.392,88 Cropland 3 Kocaköy I16D18C 234 27 Purchased 3.803,40 3.803,40 Cropland 4 Yukarıköy I16D19D 129 6 Purchased 5.478,61 5.478,61 Cropland 5 Yukarıköy I16D19D 129 5 Purchased 3.538,56 3.538,56 Cropland 6 Acıdere I16D19D 129 1 Purchased 8.983,85 8.983,85 Cropland 7 Acıdere I16D19D 129 2 Purchased 3.140,13 3.140,13 Cropland 8 Acıdere I16D19D 129 3 Purchased 2.099,79 2.099,79 Cropland 9 Acıdere I16D24B 129 4 Purchased 1.872,42 1.872,42 Cropland 10 Yukarıköy I16D19D 130 10 Purchased 2.025,13 2.025,13 Cropland 11 Taşağıl I16D19D 139 4 Rental 10.498,16 5.000 Cropland Land has been acquired for the wells, the geothermal power plant and its associated facilities. The company holds one public benefit decision (Yerka- 3 well location) for land acquisition. However, all the lands required for the project have been acquired via negotiated settlements. The company has tendency to acquire the lands by mutual agreement with the villagers. Only public benefit decision is performed for the location of Yerka-3 well. The owner of that location is a disabled person and a guard needs to be attended by court to be able to purchase the land from the owner. A legal guard was attended for that disabled person but the investor pointed out that the purchasing of the land directly from the attended guard needs other legal processes that should be concluded. The purchase and selling conditions for the guard are heavy in law. Thus, the company has an intention to purchase the land by using the decision of public benefit given by “Special Provincial Administration”. The company will purchase the land under the observation of Special Provincial Administration of Çanakkale so that the legal processes will be easier and more beneficial for both side. The investor also prefers acquiring other lands by mutual negotiation without requiring expropriation. Prior to land acquisition, lands were rented from the villagers for the drilling of exploration wells the duration of that rental agreements were one year. All of the lands were purchased from landowners. There are 8 title deed owners that own 10 parcels. The land acquisition (only permanent) summary is given below in the table. There are no any renters or other users whom are not shareholders. That 10 parcels occupy 52,090.30 m2 area, which were permanently acquired. Most of the landowners are living in the vicinity and continue their lives by farming on their other existing lands. There is a landowner, who lives a city other than Çanakkale and no other renters and/or users are benefiting economically. Table 4: Land Acquisition Summary (Only Permanent) IDA GPP Land Acquisition Summary (Permanent) Total Parcels Total PAP Female Male Means of Acquisition On-going Court Case 10 8 - 8 Mutual Negotiation None No trees were cut during the land acquisition and well drilling process. The company has sensitivity to every kind of tree cutting including olive trees. There are no seasonal workers, who can be impacted by the project activities and no limitations on access to pasture land exist in the vicinity. Discussions with landowners, who sold their lands and the village headman-Mukhtar, show that there is no livelihood loss since Project Affected Persons (PAPs) have additional income sources and were provided with satisfactory land purchase prices. The PAPs have additional lands, which enable them to provide additional income. The project has not caused any physical displacement. Land Acquisition Approach IDA GPP has only 9 different landowners who are subject to permanent and temporary land take (rental agreement). The investor purchased the lands via direct purchasing from the landowners within the scope of mutual negotiation. Prior to land acquisition; lands were rented from the villagers for the drilling exploration process of wells. Rental fees were also negotiated and agreed with villagers. The land acquisition for well locations started in 2012. The investor uses the land of Yerka-3 well location as rental and the rent price for the location was negotiated with the owner. The “Special Provincial Administration” concluded the decision of public benefit for the location of Yerka-3 well. The investor also preferred acquiring other lands by mutual negotiation without requiring expropriation. Thus, they have no tendency to aggrieve the villagers and landowners in the vicinity. The owner of that rental land is a mentally disabled person. The company has shown great effort to protect the rights of the disabled owner of Yerka-3 well location as his father has insisted the company make payment to him instead of his disabled son. By refusing to pay the father, the company has covered all legal costs for a guardian to be appointed to the mentally disabled owner for the payment to be made on his behalf. When the unit prices for land purchased by the company in 2018 are analyzed, the prices vary between 62 TL/m2 and 93 TL/m2 as seen from the Table 4 below. According to our market price investigation performed at www.sahibinden.com and www.hurriyetemlak.com, which are some of the most reliable real estate market websites, prices of agricultural lands close to power plant site range between 14 TL/m2 and 24 TL/m2 which indicates that the investor has purchased lands above the market value and did not aggrieve the landowners. The investor proposed above mentioned rates, which has resulted in the villagers being satisfied with the compensation received. The purchase years and the unit prices of the croplands acquired by the investor are listed below in the Table 4. The actual unit prices of lands in the vicinity are given below in Table 5. Table 5: The Year and The Unit Prices of Lands Purchased by Investor Unit Price Year of # Village Section Point Plot Name (TL/m2) Purchase 1 Kocaköy I16D19D 234 1 Landowner 32 2017 Kocaköy I16D19D 234 26 Landowner 10 2012 3 Kocaköy I16D18C 234 27 Landowner 16 2012 4 Yukarıköy I16D19D 129 6 Landowner 20 2012 5 Yukarıköy I16D19D 129 5 Landowner 27 2016 6 Acıdere I16D19D 129 1 Landowner 70 2016 7 Acıdere I16D1 1 9 2 Landowner 67 2018 8 Acıdere I16D19D 129 3 Landowner 83 2018 9 Acıdere I16D24B 129 4 Landowner 93 2018 10 Yukarıköy I16D19D 130 10 Landowner 62 2018 The landowners did not purchase new lands in the vicinity, whereas the majority has invested in buying house and apartment flats elsewhere. There is an increment year by year in land prices purchased by the company. As an example, the unit price paid to landowner in 2017 is 32 TL/m2 as seen from the table above. Nevertheless, the prices in 2018 are getting considerably higher than the price in 2017. A villager, who is one of the old men in the village and has close relationships with the landowners, has stated that the landowners, who sold their lands in 2012, 2016 and 2017 are satisfied with their land unit prices that they have sold to the company. He also stated that, the company purchased the lands in these years above market values. An interview carried out with a landowner, who is the brother of another landowner, stated that his brother is satisfied with the land purchase fee paid by the investor in 2016. The landowners, still proceed farming and husbandry activities in their villages after having sold their lands. The landowners still perform their farming activities and produce agricultural products such as tomatoes, green beans, lettuce, egg-plant, cucumber, cauliflower, olive and its oil etc. So that, all landowners continue their lives and none of them was mistreated by the company. In order to compare the unit prices in close settlements of GPP, an actual market price list (Table 5) for lands, which are close to facility, is prepared through www.sahibinden.com and www.hurriyetemlak.com web pages that are rich in selling croplands in the vicinity. The list is tabulated below in Table 5. The settlements close to facility are Taşağıl, Tuzla, Yukarıköy and Çamköy villages of Ayvacık district. Accordingly, the unit prices have been investigated at those settlements. According to the table, actual unit prices are changing between 14 TL/m2 and 24 TL/m2 as of January 2019. It is clear that, the investor has purchased the lands from landowners above market values. It is seen that, the acquisition prices are sufficient for the landowners to cover a new land purchase and its related transaction costs, and therefore is in line with the replacement cost requirement of the World Bank’s OP 4.12. Table 6:The actual unit prices of lands close to GPP Unit Prices of Croplands close to IDA GPP Property of Unit Price No. Province District Village Land (TL/m2) 1 Çanakkale Ayvacık Taşağıl Cropland 14 2 Çanakkale Ayvacık Tuzla Cropland 24 3 Çanakkale Ayvacık Tuzla Cropland 21 4 Çanakkale Ayvacık Tuzla Cropland 13 5 Çanakkale Ayvacık Tuzla Cropland 19 Çanakkale Ayvacık Yukarıköy Cropland 15 7 Çanakkale Ayvacık Çamköy Cropland 23 Impacts and Figures of Land Acquisition The investor has acquired 52,090 m2 area for the IDA GPP including wells and the facility. The company has a tendency to purchase 5.000 m2 rental area in 2019 for the location of Yerka-3 well by mutual agreement with the owner. The company has one year rental contract with the landowner. No trees are cut because of the project. No informal users have been reported on the acquired lands. There are no seasonal workers, who can be affected by the activities of project and there have been no limitations on access to pasture land in the vicinity. None of the PAPs that have sold lands have been worse off due to the investment. The landowners are satisfied with the project and the fees taken from the investor for their purchased lands. During the site visit on 12th of November, 2018, there was a consultation with the village headman Mukhtar and the other landowners, whether any resettlement has occurred due to the project and they declared that no resettlement has been realized. During the site visits to the facility, interviews were performed with a landowner, who is one of the landowners who sold his cropland to the company, village headman and the villager, who is one of the old men in the village and has close relationships with the landowners. According to their statements, the landowners are very pleased to have sold their croplands to the investor and they stated also that the company paid them higher prices than the available market prices. However, the villagers continue their agricultural activities in other croplands that they own. They are also interested in husbandry in order to sustain their livelihoods. A landowner and his relative sold lands to company and they have other croplands in the vicinity to sustain their economic livings. According to our investigations, the demographic properties of Ayvacık District are reported as below;  The population of Ayvacık is 32,136 according to the data in 2017. 16,063 of the total population is male, and 16,073 of it is female. The share of the female population in total population is 50,02%; the male population rate is 49,98%.1  According to a document prepared by “Chamber of Civil Engineers” in Turkey, the population of villages close to power plant are as follows; Tuzla-625, Taşağıl-67, Yukarıköy-644 and Çamköy-802 As seen from the table below, an entitlement matrix for the land acquisition is prepared. Table 7: Entitlement Matrix Project Category of Project Componen Affected Entitlement Additional Provisions Impact t Person Company has purchased the Permanent Cash compensation at full lands from formal landowners Power loss of Formal replacement cost regarding above market price values. The Plant agricultural Landowners all economical values prices paid are sufficient to lands cover transaction action costs. Company has purchased the Permanent Cash compensation at full lands from formal landowners Well loss of Formal replacement cost regarding above market price values The Locations agricultural Landowners all economical values prices paid are sufficient to lands cover transaction action costs. Company uses the location of Yerka-3 well as rental. The Temporary The rental agreements are landowner is disabled person Well loss of Formal based on prices negotiated at and after attending a guard by Locations agricultural Landowners the needs/requests of court to that person, the lands landowners company will perform the proper payment to be made on his behalf. Upon the request from the The trees have not transferred Power villagers, the company has yet. They will be transferred in Plant and No Loss of No Affected agreed to transfer some trees appropriate season and Well Trees Person on the acquired land to new conditions so that they will be Locations locations survive while transferring. Furthermore, the company is still planning the pipeline routes of the injection and reinjection wells and they are still working on it. No negotiation with the possible landowners of the pipeline routes has started yet. As stated by the village headman and the landowner, who sold his land to investor, the landowners each have more than one agricultural land and continue their agricultural activities. Besides these, 1 https://www.nufusu.com/ilce/ayvacik_canakkale-nufusu 2 http://www.imo.org.tr/resimler/dosya_ekler/827bf3b3c722af7_ek.pdf?tipi=2&turu=X&sube=8 none of the villagers has made investments on new lands; instead of making new land investments, the landowners invest in buying houses and flats elsewhere. There were 50 workers during drilling works; there will be 60 workers during power plant construction phase and 24 workers in the operation period of facility. The company hired one person from the local people around and intends to hire both qualified and unqualified locals during the operation period of facility. The company has not prepared a social document assessing the social impacts of the project yet. The drilling of the production and reinjection wells have already been completed. A partial ESIA assessing the social impacts of the project components that have not been built will be provided in addition to an environmental and social due diligence for the wells. The company has also carried out several CSR (Corporate Social Responsibility) activities such as renovation of the buildings of Elementary Schools in the vicinity and establishing a small greenhouse in the project site that will be made available to students to grow crops. The investor within the scope of CSR activities carries out the roof and school walls renovation and the painting of those schools. The company also has a permission from the public authority, “Directorate of National Education” within greenhouse for the students’ utilization for crops growing. However, an activity within that scope has not been started yet. No death or injured accidents occurred in well exploration and drilling activities of the project according to the given statement by investor. An occupational accident and illness form used by the company is shown in Annex 1 of this document. Public Awareness, Consultations, and Communication : The company has not performed any consultation meetings in the area of influence of the project and there is no designated staff to engage with the community and other stakeholders. However, the company has established good relations through other managerial and site staff who work on site. The site staff of company always listen the requirements of landowners and villagers in the vicinity and working on mutual satisfaction. The site engineer (Mrs. Merve Aydın) has close relationships with the people. She follows and solve the proposals and needs coming from landowners. The company always prefers a mutual agreement way when they meet the needs of villagers. The villagers/landowners can contact with Mr. Mithat Yıldırım, the company representative whenever they want through phone. The stakeholder engagement plan (SEP) will be prepared in Q1/2019. Identification of Vulnerable People: There is one vulnerable person (disabled person), who is the landowner of Yerka-3 well location. The investor uses the land of Yerka-3 well location as rental and the rent price for the location was negotiated with the owner. The “Special Provincial Administration” concluded the decision of public benefit (expropriation) for the location of Yerka-3 well. The company has shown great effort to protect the rights of the disabled owner of Yerka-3 well location as his father has insisted the company make payment to him instead of disabled son. By refusing to pay the father, the company has covered all legal costs for a guardian to be appointed to the disabled owner for the payment to be made on his behalf. The company has a tendency to purchase that land by mutual agreement with the landowner but beside this, the investor pointed out that the purchasing of the land directly from the attended guard for the disabled person needs other legal processes that should be concluded. Thus, the company has an intention to purchase the land by using the decision of public benefit given by “Special Provincial Administration”. When the company acquires the land by using expropriation, the legal purchasing processes between guard and the company will be coordinated by the “Special Provincial Administration of Çanakkale”. Thus, the following court legal processes that should be concluded after the appointment of guardian will be followed and finalized under the supervision of “Special Provincial Administration of Çanakkale”. Grievance Redress: The grievances coming related to the project are notified directly through company staff. There are no serious complaints. The company also has a mechanism to collect the complaints and suggestion from their website (http://www.yilsanholding.com/en-US/contact-form/627281). The responsible personnel in charge is Mr. Mithat Yıldırım. His phone number is 0530 962 72 53. The villagers can reach him whenever they request, moreover they can reach the site personnel as well. The people can also apply to official authorities such as district governor or city governor when they have complaints about investment project. The investor prepares a website that consist of grievance form, in which the people can fill and share their complaints easily. Furthermore, TSKB has also shared the Grievance and the Close Out Forms and informed about the importance of registering the grievances coming from the employees and villagers. The company hanged that grievance forms to the visible clear locations. TSKB informed the company that registered complaints should be kept in written format. The company has also shared those grievance forms with the Mukhtar/village headmen who should deliver the forms to reach more people around and to make them visible as public in order to keep the coming complaint in written form. In this way, a communication channel for stakeholders and any person affected from the project will be provided. The company is going to create an efficient grievance mechanism that enables the complaints keep in written format and allows the affected people/communities to come forward if they want to submit an inquiry, complaint or suggestion. Because, during the drilling activities, the villagers and employees reached the company staff via phone or face to face conversation personally or by way of Mukhtar verbally. However, the company takes prompt and corrective actions to solve the complaints received. Figure 3: Grievance and Close-Out Forms that are used by the company Annex 1: Occupational Accident and Illness Form used by the Company