RP1627 UIP2 selected water supply and wastewater (WS/WW) sub-projects in Kharkiv, Kirovograd, Kramatorsk, Ternopil, Zhytomyr, Kyiv, Kolomyia, and Donetsk Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine RESETTLEMENT POLICY FRAMEWORK MARCH 2014 1. Glossary of Key Terms Cut-off date Refers to a day on and beyond which any person who occupies land or assets on land, required for project use, will not be eligible for compensation. The date is often the day when the assessment of persons and their property in the project area commences. Compensation means payment in cash or in kind of the replacement value of the acquired property and/or impacted assets. Entitlements with respect to a particular eligibility category are the compensation and other forms of assistance provided to impacted persons in the respective eligibility. Grievance procedure The processes established under law, local regulations, or administrative decision to enable property owners and other impacted persons to redress issues related to acquisition, compensation, or other aspects of resettlement. Involuntary land acquisition means the process whereby a person is compelled by government or a government agency to alienate all or part of the land he/she owns or possesses, to the ownership and possession of the agency, for public purpose in return for a consideration. Land acquisition means the taking of or alienation of land, buildings or other assets thereon for the purpose of the project. Market value means the most probable selling price or the value most often sought by buyers and sellers. It assumes buyers and sellers have reasonable knowledge, act competitively and rationally are motivated by self-interest to maximize satisfaction and both act independently and without collusion, fraud or misrepresentation. Project affected person (PAP): a person who loses assets and/or usage rights and/or income generation capacities (e.g. land, structure, crops, businesses) because these assets/rights/capacities are located in the land to be acquired or used, for needs of the project. Relocation means the physical moving of PAPs from their pre-project place of residence, place of work or business premises. Replacement value means the amount that will be paid to replace the value for the land and all assets on it, without any deductions for depreciation. Resettlement Policy Framework (RPF) refers to the present safeguard instrument (document) which is the overall Policy Framework for Compensation, Resettlement and Rehabilitation of PAP for the project implementation. The Policy Framework describes the process and methods for carrying out resettlement under the project, including compensation, relocation and rehabilitation of Project Affected Persons. Resettlement Action Plan (RAP) means resettlement action plans prepared for specific micro-projects. Resettlement means all the measures taken to mitigate any and all adverse impacts for the Project on PAPs property and/or livelihoods, including compensation, relocation (where relevant), and rehabilitation. Regional Project Implementation Team (RPIU) refers to the unit that each utility participating in the project has established, using their existing staff to prepare the tender documents, prepare technical specifications, lead procurement process according to the World Bank guidelines, lead FM according to the World Bank guidelines, supervise physical works, environmental and social assessment, monitoring and evaluation, prepare of the progress reports, etc. 2 2. PROJECT DESCRIPTION The objective of UIP2 is to improve the quality and efficiency of water supply, sanitation in targeted municipalities. It builds on the on-going UIP and the World Bank’s long-term engagement in the municipal services sector. The Project will support improvement in high-priority municipal services on a demand-driven basis in selected cities. At the time of preparation of the RFP, detailed technical plans for proposed water supply and wastewater systems sanitation works have not been completed. The activities of the proposed the rehabilitation program not expected significant greenfield activities, all construction takes place within existing urban areas. Most activities are confined within existing sites and buildings. The pipelines are usually placed along streets. In urban areas, most of the lines are placed underground and no permanent land occupation is caused. The planned water and wastewater systems rehabilitation sub-projects not expected to have any permanent adverse economic or social impacts. 3. OBJECTIVES AND BASIC TERMS OF PREPARATION OF THE RPF As part of the preparation of the project, the Government of Ukraine requires a Resettlement Policy Framework (RPF) to address the needs of Project Affected Persons. The RPF is written to the standards of the Government’s own policy on Resettlement and the policy of the World Bank, in its OP /BP 4.12. The borrower will also be required to prepare one or several Resettlement Action Plans (RAPs) upon availability of the detailed site-specific technical designs. The main purpose of this Resettlement Policy Framework is to describe and clarify the policies, principles, procedures and institutional arrangements that will be followed in order to minimize and mitigate negative social and economic impacts that may be caused by this project. The RPF is formulated to establish and clarify the resettlement principles, organizational arrangements and design criteria to be applied to construction and rehabilitation works which will be implemented after project approval. The Resettlement Action Plans (RAPs) consistent with the RPF will subsequently be prepared and submitted to the World Bank for approval when relevant and specific information on the project activities becomes available. Such information includes the detailed technical design, which allows for the identification of the exact needs for land acquisition. The individual RAPs to be prepared will specify the case-specific procedures to be followed and the actions to be taken to properly compensate and/or assist affected people. The RAPs will identify the full range of people affected by the project and justify their displacement after consideration of alternatives that would minimize or avoid displacement. Involuntary resettlement can potentially cause severe long-term hardship, impoverishment, and environmental damage unless appropriate measures are carefully planned and carried out. For these reasons, the overall principles for this Resettlement Policy Framework on involuntary resettlement are the following: (a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. (b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (c) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. 3 4. PRINCIPLES GOVERNING RESETTLEMENT PREPARATON AND IMPLEMENTATION A major principle of the RPF is to displace as few people as possible (minimizing resettlement). This principle is to be followed all project activities. Land acquisition under the project may be needed for construction of the new objects needed for improvement of the water and wastewater systems in some cities. Temporary use of land will be needed for water and wastewater pipelines rehabilitation. Compensation will be governed by the following general principles: – All possible steps will be taken to minimize acquisition of privately owned land and to avoid acquisition of businesses, through careful selection of the needed plots. – Related to the above, the project will use municipally owned land as much as possible. – In case land acquisition is necessary, the property and inheritance rights of affected people will be respected and procedures specified in the RPF document and relevant RAP will be followed. – The preparation and implementation of the land acquisition and compensation plan will be done in a transparent manner with the participation of affected persons and relevant institutions. – Valuation of land, businesses, and other assets for which compensation is given will be based on full replacement cost. Compensation for the temporary use of land during construction is established in the following Regulations of the Cabinet of Ministers of Ukraine: – Regulation of the Cabinet of Ministers of Ukraine of 17.11.1997 No.1279 "On Size of and Procedure for Calculation of Agricultural and Forestry Losses Subject to Compensation" and Appendix “Procedure for Calculation and Compensation of Losses to Land Owners and Land Users" approved by Regulation of the Cabinet of Ministers of Ukraine of 19.04.1993 No.284. The principles of land acquisition and compensation for losses need to be applied to all types of rights including ownership rights and third party rights, such as lease rights, business rights and easement rights. The amount of compensation is determined in accordance with the expert valuation of assets liable to compensation in accordance with Item 3 of the procedure of assessment and compensation for losses to land owners and land users approved by Resolution of the Cabinet of Ministers of Ukraine No. 284 of 19 April, 1993. The law on exploration also include the option of easements over parcels of land to provide access to other land used for a public project, or a lease of parcel of land which is needed for a specific period of time (for a temporary use of the land). The land is to be restored to the original condition before being given back to the owner. Compensation to land owners for the withdrawn (purchased) land is based on the fair market price of the land plot at the moment of withdrawal. The market price of the land depends on its quality, average yield, and is calculated with a capitalization period of 33 years. This corresponds to the World Bank ’s requirement of “replacement value” as it enables the person to purchase similar land. The acquisition price shall include the market value of the land plot and property located thereon, as well as the full amount of losses suffered by the owner as a result of the land plot acquisition, including lost benefits. Following an agreement with the owner of the land plot to be purchased, the authority that took a decision on the land purchase for public needs State district administration will provide the owner either with another land plot of equal to the plot within the same district that is taken or with monetary compensation for the land (para 5 Clause 12 Law of Ukraine “On allocation (condemnation) of plots of land, other objects of private estate property situated thereon, for public purpose”). If the owner of land plot and/or property voluntarily agrees, he (she) may be provided with another land plot or property of a higher value, in which case the owner shall pay the difference in the land plot and/or property values, or of a lower value, in which case the difference shall be paid to the owner. In order to ensure that the 4 owner has voluntarily agreed to be provided with a land plot or property of a higher value, an independent external party (community leader, owner’s lawyer/notary, etc.) would witness the negotiation on the land/property swap to make sure that the owner is not forced to accept land plot and/or property swap for higher price and owners have the right to refuse such land plot and/or property swap proposal from Utilities. The agreement with affected owners of land plots and/or property should be confirmed through a verifiable written record or a "no coercion" clause that will be verified by an independent third party. The amount of compensation is calculated separately for each specific plot of land according to the Regulation of the Cabinet of Ministers of Ukraine of 17.11.1997 No. 1279, where on page 2 it gives a table with the prices paid per 1 hectare of land set for different regions and for different land use purposes (building structures, tillage, haymaking, pastures, plantation, etc.). Any infrastructure facilities such as roads, heat supply pipes, and communication networks disrupted by project activities will be replaced. Compensation, land registration and land transfer issues shall be resolved in mutual understanding with owners whenever possible without seeking court intervention. Affected people will be provided replacement land or compensated at replacement value, without deduction for depreciation or for any other purpose, before construction begins in the area of the affected land. These principles apply to all affected persons regardless of the severity of impact and whether or not they have legal title to land or assets. Particular attention shall be paid to the needs of vulnerable groups among those affected. 5. RAP PREPARATION, REVIEW, AND APPROVAL Upon availability of the information on the exact amount and type of land to be allocated, and the number of people affected, the Resettlement Action Plans for the project sites will be prepared. The steps to be undertaken for each individual Resettlement Action Plan include: 1) Screening process. The goal of screening is to identify and consider resettlement issues as early as possible. The RAP will address in detail all compensation issues for PAPs. 2) Identification of Project Affected Persons. Under the WB’s OP/BP 4.12, PAPs are defined as those who are affected by project activities which result in: – Relocation or loss of shelter; – Loss of assets or access to assets; and/or – Loss of income source, business or means of livelihood, whether or not the affected person must move to another location. All PAPs irrespective of their status or whether they have formal titles, legal rights or not, or encroaching illegally on land, are eligible for some kind of assistance if they occupied the project area before the cut-off date. Persons who take occupancy in the area after the socio-economic study are not eligible for compensation or any form of resettlement assistance. The World Bank’s OP/BP 4.12 guidelines require compensation for lost or impacted assets and replacement costs to both titled and non-titled landholders and resettlement assistance for lost income and livelihood. In this project, the absence of formal titles will not constitute a barrier to resettlement assistance and rehabilitation. 5 All persons, whose land and/or properties, and businesses are acquired for the project, are defined as project affected persons and are eligible for compensation (or alternative forms of assistance). They include the following categories: - Landowners who lose all or part of their land, structures or other fixed asset. - Landholder without recognizable rights (squatters). - Tenants of public/municipal land. - Informal vendors temporary displaced as a result of project works. - Public owners (state, municipality). Persons using areas for shelter. 3) Preparation of the Resettlement Action Plan. The approval and implementation of each Resettlement Action Plan by the World Bank is required prior to initiation of works in the area of the affected land or people. Public consultation and participation during RAP preparation and implementation will be carried out. The consultation will be conducted with the affected persons and they will receive explanations on the proposed ways of compensation. The land lessees will be informed in written form and consulted individually to figure out the most appropriate way of compensation. The consultations will afford PAPs the opportunity to contribute to both the design and implementation of the project activities and reduce the likelihood for conflicts. For the project to be successful, effective and close consultation with local communities is essential. Besides broader public consultations with communities, particular attention will be paid to consultation with potentially affected individuals. 6. LAND ACQUISITION AND CATEGORIES OF AFFECTED PEOPLE Categories of affected persons may include (i) persons who have a legal title over land and property and those without it, and (ii) people temporarily losing access to land or assets (for example during the construction works) or those permanently losing access or assets. The land that may be needed for the project is divided into the following categories: – Land not subject to compensation: municipal land, public use land on which no squatter or users are found; – Land subject to compensation: land held fully or in part by private persons, commercial entities or institutions for commercial activities; – Restoration of shelter or livelihoods for land being occupied or used for shelter and/or livelihoods by squatters or people with no title. Based on the type of land that may be allocated for or temporarily used by the Project and data provided by participating municipalities on the current use of land, the following categories of affected persons and compensation measures were identified (see Table below). Table: Affected persons and compensation measures Category of affected persons Compensation measures Private land owners Will be provided with acceptable replacement land of equivalent productive value or compensation at full market value of the land; with compensation for damages, which would be calculated to ensure it would be equal to the replacement value. The acquisition price shall also include the full amount of losses suffered by the owner as a result of 6 the land plot acquisition, including lost benefits. The market price of the land depends on its quality, average yield, and is calculated with a capitalization period of 33 years. This corresponds to the World Bank’s requirement of “replacement value”. Landholder without recognizable rights Compensation in accordance with Regulation of the Cabinet (squatters) of Ministers of Ukraine of 17.11.1997 No. 1279, of 19 April 1993, No 284. The land needed for Project activities is not expected to be informally or illegally used. If such a case occurs, however, the actual landowner would be compensated for any land acquired and the user would be compensated for crops, structures or other fixed assets, and business losses or other damages. Tenants of public/municipal land The leasers e.g. commercial companies or other tenants losing their land will be notified by respective municipal administrations at the request of the utility, 3 months in advance to allow reallocating the activities if any or removal of the movable property to avoid income losses. Lease agreements will be amended according with the Law to reflect area of land to be withdrawn for the project. Affected leasers will be also provided with options for alternative land for lease with equivalent value. Informal vendors temporary displaced Will be provided with an alternative place for trade as a result of project works acceptable to them and supported in relocating in case of need or will be compensated for the loss of income and damages to the asset occurring as the result of displacement by project works and until their income is re- established. The period of displacement will be kept as short as possible. The compensation measures will be applied to the temporary displacement of business. Public owners (state, municipality) Will transfer land with no compensation to the utilities for the purposes of the Project. Persons using areas for shelter In order for the project not to create a social problem for the squatters on the land, an alternative solution for these peoples needs to be negotiated with the municipality either through compensation or through alternative social housing if it is available. Easements/servitudes The easements over parcels of land will determine to provide access to other land used for a public project, or a lease of parcel of land which is needed for a specific period of time (for a temporary use of the land). The land is to be restored to the original condition before being given back to the owner. The budget for all resettlement expenses will be provided by the Borrower. 7 7. LEGAL FRAMEWORK FOR RESETTLEMENT Land Acquisition and Resettlement The following legal framework shall be used for the land acquisition purposes: – The Constitution of Ukraine (Art. 13, 14, 41) stipulating that “no one shall be unlawfully deprived of the right of property. The right of private property is inviolable and “The expropriation of objects of the right of private property may be applied only as an exception for reasons of social necessity, on the grounds of and by the procedure established by law, and on the condition of advance and complete compensation of their value. The expropriation of such objects with subsequent complete compensation of their value is permitted only under conditions of martial law or a state of emergency” (Art. 41). – Land Code of Ukraine (1 January 2002) (especially Articles 92,144-149). – The Civil Code of Ukraine (16.01.2003, No. 435-IV), determining the procedure for termination of the ownership rights for immovable property due to the acquisition or alienation of lands on which the property is located for public needs; and regulating issues related to protection of ownership rights. – The Code of Administrative Proceedings of Ukraine (06.07.2005), determining the way proceedings related to acquisition of land plots for public needs are conducted, e.g., legal courts make judgments about the cases of forced alienation of land plots, and other immovable property objects located on these plots, for public needs within two months from the moment of claim filing. – Law of Ukraine “On allocation (condemnation) of plots of land, other objects of private estate property situated thereon, for public purpose” dated 17.11.2009 No. 1559-VI. – Law of Ukraine “On regulation of urban planning” dated 19.05.2011 No. 3395-VI. – Law of Ukraine "On Land Assessment (Valuation)" dated 11.12.2003 No. 1378-IV. – Law of Ukraine "On Local Self-government in Ukraine” dated 21.05.1997 No. 280/97-ВР. – Law of Ukraine "On Land Lease" dated 06.10.1998 No.161-XIV. – “Procedure for Calculation and Compensation of Losses to Land Owners and Land Users" approved by Regulation of the Cabinet of Ministers of Ukraine of 19.04.1993 No. 284. – Regulation of the Cabinet of Ministers of Ukraine of 11.10.2002 No. 1531 “On Expert Valuation of Land Parcels”. – Law of Ukraine “On Valuation of Property, Property Rights and Professional Assessment Activities in Ukraine”. – Word Bank Operational Policy for Resettlement (OP/BP 4.12). Temporary Land Use during Construction Compensation for the temporary use of land during construction is established by the Regulation of the Cabinet of Ministers of Ukraine “Procedure for Calculation and Compensation of Losses to Land Owners and Land Users” dated 19.04.1993 No. 284. 8 Gaps between Ukrainian legislation and the requirements of the Word Bank Operational Policy for Resettlement (OP/BP 4.12) Ukraine Laws and WB OP/BP 4.12 Measures to Bridge the Gap Regulations Only registered All affected structures/buildings are The consultation with the structures/buildings are compensated for damages/ demolition owners of properties compensated for caused by a project at replacement cost (structures or buildings), damages/demolition caused by agreement with owners on a project (agreement with compensation value for owner) damages or demolition Only official land users are Lease tenants whether registered or not Valuation of land, compensated for loss of (including landholder without businesses, and other income/business recognizable rights (squatters)) are assets for which compensated for income/business losses compensation is given will regardless of the registration be based on full replacement cost/market value. The official land users, lease tenants (including squatters) are compensated for income/business losses regardless of the registration No specific provisions for the Time bound implementable Resettlement The resettlement action plan process of resettlement planning Action Plan needs to be prepared before (RAP) will be prepared and its specific tools including the disbursement of compensation before the disbursement of preparation of any plan related compensation and prior to to land acquisition and initiation of works in the area resettlement of the affected land or people. The RAP must be submitted to the World Bank for approval when relevant and specific information on the project activities becomes available. Such information includes the detailed technical design, which allows for the identification of the exact needs for land acquisition. The individual RAPs will be prepared to specify the case- specific procedures to be followed and the actions to be taken to properly compensate and/or assist affected people and communities. The RAPs will identify the full range of people affected by the 9 project (screening process) and justify their displacement after consideration of alternatives that would minimize or avoid displacement. The preparation and implementation of the land acquisition and compensation plan will be done in a transparent manner with the participation of affected persons and relevant institutions Socially vulnerable groups WB policy requires rehabilitation for Will be provided with (examples may include elderly income/livelihood, severe losses, and for additional forms of persons living alone, people with expenses incurred by the PAPs during assistance such as in access the relocation process to schools and hospitals (in disability, persons and case of moving to different households living below the village or town where access poverty line to new social institutions is required) or other assistance as needed (for example, such as a one-time lump- sum payment) on a case by case basis. The decision on such assistance will be following a request from the affected vulnerable person. The request may also be presented by a local community leader on behalf of the affected vulnerable person. The additional assistance, if it will be requested, would only be small amounts of money to offset the additional cost of transportation to places of social services from their new location Decisions regarding land Discussion and consultation with PAPs, Affected people are to be acquisition and resettlement are information on quantification of affected identified and recorded as discussed only between the items, value of assets, entitlements, and early as possible. All landowners and the Land compensation/financial assistance persons, whose land and/or Acquisition Authorities. amounts are to be disclosed to the PAPs properties, and businesses prior to project appraisal are acquired for the project, 10 are defined as project affected persons and are eligible for compensation (or alternative forms of assistance). Consultations and discussions with affected people, local authorities on valuation of land and properties, principles of resettlement and steps. All possible steps should be taken (thorough technical design of the project) to minimize acquisition of productive land and to avoid resettlement. The public should be fully informed prior to project appraisal and this processes should be transparent No specific plan for public Public consultation and participation is Public consultation and consultation is provided under the integral part of WB’s policy which is a participation during RAP the Ukrainian laws. continuous process at concept, preparation and preparation, implementation and finally at implementation will be post implementation stage carried out. They afford PAPs the opportunity to contribute to both the design and implementation of the project activities and reduce the likelihood of conflicts. For the project to be successful, effective and close consultation with local communities is essential. Besides broader public consultations with communities, particular attention will be paid to consultation with potentially affected individuals, households, lease tenants (and squatters), businessmen. All activities and procedures will be formally documented No specific requirements to the Transparent and easily accessible to the In the early initial grievance mechanism for out of PAPs mechanism with multiple consultations with PAPs, the court addressing of the information uptake channels and tracking affected persons must be system for the complaints received needs informed on the grievance 11 concerns raised by the PAPs to be established and communicated to mechanism to be used the PAPs during project implementation. The grievance procedure shall be introduced at the local level during public hearings and the grievance procedure mechanism shall be available for local population at self-government bodies of the districts concerned as well as published on the web site. If grievances or subjects of disputes of which fail to be settled, the land owners/land users may go to court. A court ruling will be binding on both parties Replacement value is The method of replacement valuation of Private land owners will be determined by a valuation assets must be used. Compensation provided with acceptable commission must be based on the full replacement replacement land of cost as much as possible. equivalent productive value or compensation at full market value of the land; with compensation for damages, which would be calculated to ensure it would be equal to the replacement value. The acquisition price shall also include the full amount of losses suffered by the owner as a result of the land plot acquisition, including lost benefits. The market price of the land depends on its quality, average yield, and is calculated with a capitalization period of 33 years. This corresponds to the World Bank’s requirement of “replacement value.” The owner will be compensated for the land as well as the inventory. In addition, the owners will be compensated for cost related to the replacement of the 12 business and the loss of business during replacement. Business should be relocated in a way that will not result in lower income for the owner. Negotiated procedure will be carried out with tenants and an agreement on compensation will be achieved. Persons (private and public) entitled to be compensated for land losses or damages shall be paid in full before the implementing agency starts construction works on the land in question. In the case of disagreement, the case shall be resolved in the court under Ukrainian laws In case the gaps identified above are affecting the processes described in this RPF the WB OP/BP 4.12 provisions will be followed. 8. ELIGIBILITY CRITERIA FOR VARIOUS CATEGORIES O F AFFECTED PEOPLE PAPs will be entitled to compensation based on the status of their occupation of the potential project area. Under the WB’s OP/BP 4.12, PAPs are defined as those who are affected by project activities which result in: – Relocation or loss of shelter; – Loss of assets or access to assets; and/or – Loss of income source, business or means of livelihood, whether or not affected person must move to another location. All PAPs irrespective of their status or whether they have formal titles, legal rights or not, or encroaching illegally on land, are eligible for some kind of assistance if they occupied the project area before the cut-off date. Persons who take occupancy in the area after the socio-economic study are not eligible for compensation or any form of resettlement assistance. The World Bank’s OP/BP 4.12 guidelines require compensation for lost or impacted assets and replacement costs to both titled and non-titled landholders and resettlement assistance for lost income and livelihood. In this project, the absence of formal titles should not constitute a barrier to resettlement assistance and rehabilitation. It will be important to set a cut-off date at an early stage of the preparation process in order to avoid speculation and illegitimate claims at a later stage. An appropriate cut-off date will be the time when the assessment of persons and their property in the sections of the project is carried out. 13 The establishment of cut-off date is required to prevent opportunities invasions or migration into the chosen land thereby posing a major risk to the project. The local authorities will play a crucial role in identifying users of land since most of them would have acquired the customary rights to use the land on their authorization. Affected Parties and Entitlements All persons, whose land and/or properties, and businesses are acquired for the project, are defined as project affected persons and are eligible for compensation (and/or alternative forms of assistance). They include the following categories: - Landowners who lose all or part of their land, structures or other fixed assets. - Landholder without recognizable rights (squatters). - Tenants of public/municipal land. - Informal vendors temporary displaced as a result of project works. - Public owners (state, municipality). - Persons using areas for shelter. Owners of public land e.g. municipal councils will not be eligible for monetary compensation from the project. Public land will be transferred to the utilities at no charge. The project will, however, identify significantly affected tenants and users of public land and offer alternatives for land use or lease by these groups. Based on current assessments, it is not expected that there will be significantly affected tenants/users of public land. Nevertheless, provisions for significantly affected users and tenants are included in the Entitlements matrix in the effect such groups is identified in the course of the project. The Matrix of Entitlements appears at the end of this document. The precise number of affected persons (public owners, businesses and tenants) will not be known until the detailed technical design is completed. It is expected that most affected persons will receive acceptable replacement land, which will be identified and made available before land acquisition occurs. All affected persons entitled to be compensated for land losses or damages and loss of income will be duly compensated before commencement of the project works on respective territories. In the areas subject to informal occupancy or use the user would be supported in relocating or compensated for fixed assets, business losses or other damages. 9. METHODS OF VALUING AFFECTED ASSETS/INCOME Each asset will be enumerated and inscribed on a register. Values for each types of asset will be pre-printed, shown to the affected person, and set against the type and number of such losses that the individual will sustain. The total compensation for that category of loss will be shown, and the total of all losses shown as well. The inventory and evaluation will be signed and a copy given on the spot to the affected person. The form will say, and the affected person will be notified, that the inventory will not be official until a second signed copy, verified by project supervisory staff, is returned to the affected person. At that time, a copy of the grievance procedure will also be given to the affected person. Grievances related to any aspect of the project will be addressed through negotiation, which will aim at achieving a consensus settlement. The grievance procedure shall be introduced at the local level during the public hearings of RPF and further public hearings of the RAP. Land users who are not satisfied with the result of the valuation can appeal to the court, following procedures set forth by Ukrainian law and WB policy OP/BP 4.12. The ruling of the court also determines who pays the cost of litigation. 14 In case no alternative location could be provided prior to start of project works and impact is produced on the informal vendors’ means of livelihoods, they are entitled to a compensation package. In case the compensation is not enough to rehabilitate for the income loss caused by the project other methods or alternative forms of assistance will be identified in course of the RAP reparation. 10. PROCEDURES FOR DELIVERY OF ENTITLEMENTS AND RESPONSIBILITIES OF EACH ACTOR Each RAP will include detailed information regarding the amount of compensation and processes of compensation as described in this RPF. The utility will disclose the RAP through mass media and public authorities. Specialists from the regional project implementation unit (RPIU) will then directly contact land users whose plots are to be affected to inform them about the results of the evaluation, transfer of land and compensation procedures, and the construction process. Following an agreement with the owner of the land plot to be purchased, the authority that took a decision on the land purchase for public needs will provide the owner either with another land plot of equal value to the plot within the same district that is taken or with monetary compensation at replacement value for the land (para 5 Clause 12 Law of Ukraine “On allocation of plots of land, other objects of private estate property situated thereon, for public purpose”. The amount of compensation is calculated separately for each specific plot of land according to the Regulation of the Cabinet of Ministers of Ukraine of 17.11.1997 No.1279, where on page 2 it gives a table with the prices paid per 1 hectare of land set for different regions on one side and for different land use purposes (building structures, etc.). Land users are compensated in accordance with the "Procedure for Calculation and Compensation of Losses to Land Owners and Land Users" approved by Regulation of the Cabinet of Ministers of Ukraine of 19.04.1993 No. 284, which also specifies the rights and access to compensation of losses for land owners and users. Relocation shall be managed by the local authorities and monitored by the borrower through the RPIU. Funding for monetary compensation will be provided by the utility, transferred to the local administration and paid by the local administration. No construction will occur near the affected land plots if compensation for land acquisition or displacement has not been completed. 11. GRIEVANCE MECHANISM It must be emphasized that the risk of complaints and grievances will be reduced to a minimum owing to the fact that affected persons to be displaced will be involved in the evaluation committee and will have an opportunity to reach consensus during joint discussion. Should such consensus not be reached, affected persons may submit prejudicial claims to local authorities against the decisions of the evaluation commission. If potentially affected persons oppose the location of the proposed land or structures, they can register an objection during the discussions and design plan. Once the Resettlement Action Plan has been adopted with respect to the relevant land plot, affected persons can negotiate with utility and local self-governments or executive a compensation for the lease of land prior to the commencement of civil works in the vicinity of the affected land plots. Grievances related to any aspect of the Project will be addressed through negotiation, which will aim at achieving a consensus settlement. PAPs may follow the procedures outline below: – Grievance will be submitted by the affected person through one of the existing channels for grievances established by the utility (hot line, written grievance form delivered by post or in person to the office of the utility) and/or the municipality (call-centre, written grievance form delivered by post or in person to the office of the municipal administration). 15 – If no understanding or amicable solution is reached, or affected person does not receive a response, the affected person can appeal to the CPMU. A person has been designated by CPMU to register claims and grievances and attempt to resolve them at the local level. Contact details for this person within CPMU will be shared with PAPs at public meetings and will be included in the RAP. Record of the grievances shall be performed and submitted to the Bank at agreed timeframe. – If an affected person is not satisfied with the decision received, he/she can as a last resort appeal to a court of competent jurisdiction. – The grievance procedure shall be introduced at local level during the RFP’s public consultations and further public hearings of the RAP. 12. BUDGET AND FUNDING ARRANGEMENTS As for now there is no possibility to estimate the budget of the resettlement due to the following reasons: – there is no final data on the resettlement and land allocation required for the project; – the losses of the livelihoods shall be compensated based on the most recent average daily rate that will be determined close to the expected displacement dates. Utilities shall be responsible for resettlement and land allocation financing. The exact amount will be identified upon evaluation and consultations with the land owners. The land evaluation process will be conducted in accordance with Ukrainian legislation. 13. METHODS FOR CONSULTATION WITH, AND PARTICIPATION OF, AFFECTED PEOPLE Consultation is to be done for both for the Resettlement Policy Framework, which sets the key parameters by which resettlement will be carried out, and the individual RAPs which will be done for each sub-project. Resettlement Action Plans will be disclosed at public meeting with affected persons as well as through local media or Utilities’ websites. Public consultation and participation is essential because they afford PAPs the opportunity to contribute to both the design and implementation of the project activities and reduce the likelihood for conflicts as well as increase benefits being realized by PAPs. Stakeholders for this purpose of this project shall be defined as all those people and institutions that have an interest in the successful planning and execution of the project. This includes all persons and institutions positively and negatively affected by the Project. Records of public consultations will be kept by the RPIU. The consultation process shall ensure that all those identified as stakeholders are consulted. Information about the Project will be shared with the public, to enable meaningful contribution by stakeholders and to enhance success of the Project. 14. MONITORING ARRANGEMENTS The Borrower shall designate a person in the CPMU to monitor land acquisition procedures and report to the World Bank any irregularities and shortcomings in implementation of the Resettlement Action Plans or any unexpected negative impacts on affected persons. The RPIU will cooperate closely with municipal authorities monitoring resettlement and compensations of PAPs in their respective sub-projects. For resettlement, each six months the CPMU will select a random sub- project with resettlement, visit, and report on the progress of resettlement. The results will be summarized in a 16 report to the Bank which uses key performance indicators selected by the Project and agreed in the RAP as reporting topics. Qualitative comments on resettlement progress will also be provided. The resettlement and compensation measures site must be finished before the construction phase of the project. 15. TEMPLATE FOR SPECIFIC ABBREVIATED RESE TTLEMENT ACTION PLANS The abbreviated resettlement plan is required for all operations that entail involuntary resettlement unless otherwise specified. Where impacts on the entire displaced population are minor or fewer than 200 people are displaced, an abbreviated resettlement plan may be agreed with the Borrower. An abbreviated plan covers the following minimum elements:7 1) a census survey of displaced persons and valuation of assets; 2) description of compensation and other resettlement assistance to be provided; 3) consultations with displaced people about acceptable alternatives; 4) institutional responsibility for implementation and procedures for grievance redress; 5) arrangements for monitoring and implementation; 6) a timetable and budget. http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTOPMANUAL/0,,contentMDK:20066696~menuPK:4564185~pag ePK:64709096~piPK:64709108~theSitePK:502184~isCURL:Y,00.html 17 16. ENTITLEMENTS MATRIX Element Project Category of Entitlement Impact Project Affected Persons (PAP)s Land The leasers e.g. commercial companies Construction of the new withdrawal Land users, or other tenants losing land will be notified facilities-pumping stations, for including by respective municipal administrations at sludge treatment plants, permanent informal or illegal the request of the utility, 3 months in wastewater treatment plants use users advance. Lease agreements will be modified according with the law to reflect area of land to be withdrawn for the project. Affected leasers, losing their land, will be provided with options for alternative land for lease. The land needed for this type of project activities is not supposed to be informally or illegally used. If such case occurs however the user will be compensated for loss of structures or other fixed assets and business losses or other damages at replacement cost Public Owner Transfer the land with no compensation to (State or the utilities for the purposes of the Project Municipality) Rehabilitation of the Land Informal vendors Will be provided with an alternative place pipelines withdrawal temporary for trade and supported in relocating in for displaced as a case of need or will be compensated for temporary result of project the loss of income and damages to the use works asset occurring as the result of displacement by project works. The period of displacement will be kept as short as possible. In case no alternative location could be provided prior to start of project works and impact is produced on the informal vendors’ means of livelihoods, they are entitled to a compensation package (agreement with owner; calculated based on the expert valuation; compensation at replacement cost) 18 Land easement/servitudes Land Land owners The easements over parcels of land will withdrawal determine to provide access to other land for used for a public project, or a lease of temporary parcel of land which is needed for a use specific period of time (for a temporary use of the land). The land is to be restored to the original condition before being given back to the owner 19