CAREC Transport Corridor 1 (Bishkek-Torugart Road), Project 1

Resettlement Plan

The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s members, Board of Directors, Management, or staff, and may be preliminary in nature.

Resettlement Plan Project Number: G0123 July 2011

Kyrgyz Republic: CAREC Transport Corridor 1 (Bishkek-Torugart Road), Project 1 [409.060 to 411.915 km and 417.060 to 418.915 km]

The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

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TABLE OF CONTENTS Page

EXECUTIVE SUMMARY 1 I. INTRODUCTION 3

A. BNT Road Rehabilitation Project 3 B. This RP 3 C. The Project 3 D. Resettlement-Related Project Implementation Conditionalities 4

II. IMPACTS ASSESSMENT AND AF/AP CENSUS 5

A. Impacts Assessment Activities 5 B. Impacts Status 5 C. AF/AP Census 7 D. Summary of Impacts and AF/AP Census 8

III. SOCIO-ECONOMIC SURVEY 9 A. Kara-Suu and Kara-Bulun Village 9 B Specific socio-economic information on the AP 9

IV. LEGAL FRAMEWORK AND ENTITLEMENTS 12 A. Relevant Provisions of Kyrgyz Republic Laws and Regulations 13 B. ADB Policy 14 C. Reconciliation with ADB Policy 14 D. Resettlement Principles for the Project 15 E. Compensation Eligibility and Entitlements 15

V. GRIEVANCE REDRESS MECHANISM 18

A. Grievance Redress Functions and Process 18 B. The Local Points of Contact 18 C. The Grievance Redress Group (GRG)

VI. CONSULTATION AND PARTICIPATION AND DISCLOSURE 20

A. Consultation and Participation Undertaken 20 B. Disclosure 21

VII. IMPLEMENTATION ARRANGEMENTS 22

A. Institutional Setup 23 B. Implementation Schedule 24

VIII. BUDGET AND FUND FLOW 25

A. Compensation Rates Calculation 25 B. Costs Assessment 25

IX. MONITORING 28

A. Internal Monitoring 28 B. External Monitoring 28

ANNEX 1: List of Affected HHS and their Property Loss 29 ANNEX 2: APs Livelihood Ranking 31 ANNEX 3: Resettlement Information Booklet 32 ANNEX 4 Methodology for the Valuation of Impacts 36 ANNEX 5: Terms of reference for the GRC 44 ANNEX 6 Minutes of the Final Consultation Meetings 49

List of Tables

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Table 1: RP Entitlement Matrix ................................................................................................. 1 Table II.1: Buildings losses .......................................................................................................... 6 Table II.2: Fences Relocation ...................................................................................................... 6 Table II.3: Tree losses ................................................................................................................. 7 Table II.4: Business Impacts ....................................................................................................... 7 Table II.5: Summary LAR Base-line Information ..................................................................... 8 Table III.1: Demographic and Employment Status………………………………………………10 Table III.2: Level of Adult Education………………………………………………………………10 Table III.3: Indicative Cash Income and Sources……………………………………………......11 Table IV.1: Comparison of ADB Policy with Kyrgyz Laws ........................................................ 15 Table IV.2: RP Entitlement Matrix ............................................................................................. 16 Table VI.1: Summary of C&P .................................................................................................... 20 Table VII.1: Agencies and Their Responsibilities ..................................................................... 23 Table VIII.1: Building Compensation Costs .............................................................................. 25 Table VIII.2: Fences Relocation Costs ...................................................................................... 26 Table VIII.3: Tree Losses ........................................................................................................... 26 Table VIII.4: Business Impacts Compensation Costs .............................................................. 26 Table VIII.5: Severe Impacts Allowance Costs…………………………………………………..26 Table VIII.6: Vulnerable People Allowances Costs .................................................................. 27 Table VIII.7: Reallocation Allowances Costs ............................................................................ 27 Table VIII.8: Summary Compensation Costs ........................................................................... 27 Table IX.1: Compensation/Rehabilitation Unit Rates……………………………………………33

List of Figures

Figure 1: Project Location (400 km to 439 km) …………………………………………….. ….. 4 Figure 2: Institutional setup…………………………………………………………………….. ...23 Figure 3: RP Implementation schedule……………………………………………………………24

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Abbreviations

ADB Asian Development Bank AH Affected household AP Affected people BNT Bishkek-Naryn-Torugart CAREC Central Asia Regional Economic Cooperation COI Corridor of impact CRBC China Road and Bridge Corporation DDR Due diligence report EA Executive Agency GRG Grievance Redress Group IOL Inventory of losses IPIG Investment Project Implementation Group JOC Japan Overseas Consultants LAR Land Acquisition and Resettlement NSC National Statistics Committee RP Resettlement plan RMS Road Management Services (MOTC unit at Oblast level) RMU Road Maintenance Unit (lowest MOTC unit at Rayon Level) MOTC Ministry of Transport and Communications OSPF Office of Special Project Facilitator PRC People’s Republic of China RC Reinforced concrete ROW Right of way

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EXECUTIVE SUMMARY

A. The Project and Relative Impacts 1. This RP for Grant 0123-KGZ: CAREC Transport Corridor 1 (Bishkek-Torugart) Project 1 covers two road sections: (i) 409.060 km to 411.915 km in Kara-Suu village; and (ii) 417.060 km to 418.915 km in Kara-Bulun village. The Project does not require land acquisition. Impacts are minimal and involve the demolition of 3 small stores and some 1,750 m of fences and the clearing of 211 trees. In all the affected parties are 46 (45 private and 1 public). Given these impacts the Project is re-classified as “B” for Resettlement. B. Eligibility to compensation and compensation entitlements 2. The RP defines a compensation eligibility and entitlements framework fitting the ADB Resettlement Policy of 1995 and local law. Based on the framework the APs entitled to compensation or at least rehabilitation provisions under the Project are: • All APs losing either land covered by legal title/traditional land rights, legalizable or without legal

status1; • Tenants and sharecroppers whether registered or not; • Owners of buildings, crops, plants, or other assets attached to the land; and • APs losing business, income, and salaries.

3. Compensation eligibility will be limited by a cut-off date to be set on the day of the end of the impacts survey and AP Census (24 June 2011). APs who settle in affected areas after the cut-off date will not be eligible for compensation. 4. The compensation entitlements for AP affected by the Project are detailed in Table 1 below:

Table 1: RP Entitlement Matrix

Impact type

Eligible APs Entitlements Note

Land

Titled AP Not Applicable All land affected is public and within the ROW. It will not be acquired nor compensated

Buildings Owner Replacement Rate compensation based on cost of materials, labor, transport of materials, and reinstallation of facilities

Determined by the independent evaluator. The compensation will be deduced of the salvaged materials of the original public bus sheds rented to the shop owners and of the rent unpaid by them.

Trees Owner Compensation based on the value of the tree wood to be calculated based on tree diameter. Each affected tree will also be replanted by the environmental program under MOTC in 2012..

Determined by the independent evaluator. Tree replanting will be possible only in 2012 as the 2011 planting season was finished by the time of the finalization of this RP. It will entail land reparation, provision of seedlings, planting seedlings and irrigation for 3 years

Fences Owner Compensation for fence relocation + eventual damages

Determined by the independent evaluator.

Business Shop owner Compensation of business income lost for the period of business stoppage (due to new shop construction and business re-establishment) based either on tax declaration/patent fee or, if this is unavailable, minimum non-taxable income

The compensation will be given for 3 months (2 months for shop reconstruction and 1 month for shop re-establishment).

1 APs with land title would be entitled to receive land compensation but no such AP is affected by the Project; APs without legal title

will not receive land compensation but will be entitled to compensation of all other losses.

2

Severe impacts Allowance

AP suffering >. 10% income losses

One month allowance based on minimum subsistence level

Minimum subsistence level for Naryn province is 3,595 Som per month (NSC, 19/01/11). This allowance applies to 3 affected shop owners only.

Vulnerable people allowance

AH below poverty line or headed by women/ disabled

One month allowance based on minimum subsistence level

The KGZ poverty line is set at Som19,417.2/year per capita or Som1,618/month (Dec 2010).

Free assistance for legal registration of the new businesses

Allowance for this assistance is included in the buildings compensation costs

Relocation allowance

Relocated shop-owners

A cash allowance sufficient to pay house or shop relocation expenses

The cash allowance amounts to Som3,000 (sufficient for a truck and gasoline per 1 day)

Unexpected impacts due to construction work If found eligible by the GRG these impacts will be compensated as per the entitlements above.

C. Grievance Redress Mechanism 5. The RP details a grievance redress mechanism set up to allow the APs to complain for decisions, practices or activities arising from project implementation. Based on this mechanism, the aggrieved APs will be assisted by a Grievances Resolution Committee inclusive of members of the AP communities and of their elected leaders. The grievance redress mechanism entails four stages process:

• Local (Village). The grievances will be first lodged at the level of the complainant village community. The complainant will report his case to the local point of contact (LPC) who will be officially appointed on behalf of MOTC to promptly process and respond to AP’s queries and complaints. The LPC will seek a solution by consultation with local RMU, IPIG personnel, the selected AP representatives and the supporting NGO.

• Regional Level. If within 15 days the complaint is not solved, the AP assisted by the LPC, the selected AP representatives, a representative of the Ombudsman office in the Project areas and the supporting NGO will raise its grievance to MOTC’s regional office (the Road Management Service).

• Central Level: If within additional 15 days the grievance is still not resolved at the regional level, the complainant will further raise the issue to MOTC’s headquarters in Bishkek again with the support of the LPC, AP representatives, a representative of the Ombudsman Office in the project areas, and supporting NGO.

• Court of law: if within additional 15 days the grievance is still not resolved at central level the complainant has the option to present his/her case to the appropriate court of law.

D. Consultation, Participation and Disclosure 6. RP preparation has entailed intensive Public information and consultation. The RP will be disclosed on the ADB (in English) and MOTC (in Russian) websites. A summary pamphlet in Russian and Kyrgyz was disclosed on ADB website and to the AP. E. Budget and Financing 7. The total budget for the compensation/rehabilitation program detailed in the RP amounts to Som803,741.

I. INTRODUCTION

A. CAREC Transport Corridor 1(Bishkek-Torugart ) Project 1 1. The Government of the Kyrgyz Republic has received a grant from the Asian Development Bank (ADB) to implement the CAREC Transport Corridor 1 (Bishkek-Tourgart Road) Project (the Project). The Project, with the Ministry of Transport and Communications of the Kyrgyz Republic as the Executing Agency (EA), was appraised in 2008 and its preparation entailed a careful assessment of potential land acquisition and resettlement (LAR) impacts. The assessment carried out at that time indicated that the scope of civil works covering a 14-m wide formation The formation entailed the repaving of a 7 m wide carriage way, shoulders, and drainage ( about 14 m wide in all). would not have caused any LAR impact. Based on that conclusion the Project was classified as category C for resettlement. 2. The mobilization for civil works commenced in April 2010. Without ADB’s knowledge, during implementation there changes in the engineering design were introduced to address road safety concerns. These changes resulted in a widening of the civil works formation from an average of 14 meters to 21 meters in Kara Suu village (km 409 to km 412) and Kara Bulun village (km 417 to km 419). These increases in the civil works formation width entailed unanticipated impacts on a few shops, trees, and fences. 3. After learning of these unanticipated impacts in late August 2010, ADB initiated proper due diligence and a policy dialogue with the Government to address the need of compensating the affected people in accordance with ADB’s safeguards policy. Following the establishment of a policy understanding with the Government through a few missions in late 2010, ADB worked closely with the EA to develop an action plan for the preparation and implementation of this resettlement plan (RP). This RP has been prepared in accordance with ADB’s Involuntary Resettlement Policy (1995) and national legislations and regulations in the Kyrgyz Republic. This RP is addressing impacts classified as category B for resettlement.

B. This RP 4. This RP fits the ADB Involuntary Resettlement Policy (!995)2 and Kyrgyz Republic law and regulations and policies related to LAR. This document is officially approved by the Government of Kyrgyzstan and identifies resettlement impact of the specific subsections of the ADB Package in Kara Suu Village (km409+060 to 411+915) and Kara Bulun Village (km417.060 to km 418.915). 5. The goal of this RP is to ensure that people who inevitably lose their land and/or assets will remain the same or even better living standard as that of the without project situation. All the policies and compensation measures used in this RP are aimed at achieving this goal.

C. The Project 6. Project 1 (km 400 to 439), financed by an ADB grant of $20 million, is located at At-Bashy Rayon, Naryn Oblast. The package starts from the bridge over At-Bashy River and heads in a South-Westerly direction towards the Torugart Customs Post. The road goes through predominantly unpopulated pasture land apart from the two villages of Kara-Suu and Kara-Bulun. The general scheme of the Project 1 is shown on Figure 1 below.

2 The Project was appraised in 2008. Since this date precedes the approval of the current ADB’s Safeguards Policy Statement of 2009 Resettlement issue for the project remain regulated by the ADB Involuntary Resettlement Policy of 1995.

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II. IMPACTS ASSESSMENT AND AF/AP CENSUS

A. Impacts assessment activities 9. The impacts assessment for the RP was carried out between 14 March 2011 and 24 June 2011. This last date has been selected as the Impacts and compensation eligibility cut-off date. Impacts occurred or detected after this date will be handled by the Grievance Resolution Group (GRG) and compensated if found valid and eligible by the GRG. A Special interdepartmental commission (land acquisition committee) was established by the Kyrgyzstan government on 24 February 2011 for the Bishkek – Torugart Project 1. The MOTC safeguard team and supervision consultant prepared at the end of the survey a list of households whose properties are affected by project activities. The list was then submitted to the Government interagency committee established for this project. The committee visited and verified all the listed households and verified impacts. The committee also assessed all the availability of documents from each affected household and determined their legal status and eligibilities. An appointed independent evaluator calculated the cost of the affected properties to determine the compensation by the Government. B. Impacts Status 10. The road impacts within the existing right-of-way (ROW)3 are as follows: a) Kara-Suu Village (2.855 km in length, from km 409.060 to km 411.915). The clearing

the ROW will affect 27 households with structures and/or trees within the ROW. The affected assets are: i.) a small shop; ii.) 167 trees of various sizes; and iii.) 245 m of wooden fences, 890 m of barbed-wire fences and 20 m of metal fence . The small shop has been already demolished.

b) Kara-Bulun Village (1.855 km in length, from km 417.060 to km 418.915). Similarly, this subsection will affect 18 private AH and 1 public facility (a primary health center). The affected assets are: (i) 2 small shops, (ii) 44 trees of various sizes; and (iii) 225 m of wooden fence, 142 m of barbed-wire fence and 50 m of metal fence. Of the buildings, one affected shop has been already demolished. All shops, however, have suffered income losses due to the disturbance caused by the civil works and to the fact that their owners had to stop shop activities to build replacement stores.

B.1 Land Impacts 11. As all civil works are within the ROW owned by MOTC, no land acquisition is necessary. B.2 Impacts on Buildings and Related Issues. 12. The civil works will affect 2 small shops in Kara Bulun Village and one shop in Kara-Suu Village. The shoo in Kara Suu village has been already demolished. The other two buildings in Kara Bulun are still standing. Details on the buildings including construction type and dimensions are detailed in table II.1. 13. The three stores have been built by their owners in 20054 in three public bus stop areas which where rented to them by the Territorial Unit of MOTC.5 At the time of the initial occupation each bus stop area included a small public shed in cement . These sheds where

3 The ROW is 26m in width as per the reserve zone in the affected villages. All items in the ROW will be cleared except for

one shop which is partly outside of the ROW and will not be affected by civil works.. 4 Two shops (“Nur” and “Adis”)where built by their current owner. Shop “Bakhtiar” was built by another person and then sold

to Ms. Bakthiar in 2008 5 The rent agreement was cancelled because the renters stopped paying their dues. The renters however were not evicted

in consideration of the difficult living conditions in a remote area and a harsh environment..

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either demolished or incorporated in the new structures when the shop owners constructed the new buildings. In addition two of the shop owners ,Nur and Bakhtiar shop, failed to pay their rent dues for 2 and for 4.years respectively. Shed demolition and non-payment of rent puts the shop-owners in a situation of illegality and according to the law makes them un-eligible to compensation. The sheds, in fact, belonged to the State and not to the APs. 14. Notwithstanding the above, the Government has agreed to preserve their livelihood by compensating the affected buildings at replacement cost .This decision has been taken in consideration of the fact that the shop owners reside in a remote area with harsh living conditions. To allow the compensation, however, the shop-owners’ have to re-establish their legal status by complying with Government regulation requiring that materials salvaged from the demolition of a public building are to be restituted to the Government and by paying their rent dues., Compensation for the shops, therefore, will be deduced of the value of the assumed materials. salvaged from the original sheds and of the value of unpaid rent. The details of the situation described above are outlined below in Table II.1. Table II.1: Buildings losses Location Shop Area

(Sqm) Bus Shed Area

(sqm)*

Due rent deduction (Som)

Kara Bulun Shop Nur 33.80 22.00 1,000 (2 years)Shop2 Bakhtiar 27.56 22.00 4,000 (4 years)Kara Suu 22.00Shop Adis 29.74 0TOTAL

* Based on a conversion from cubic meters (The sheds documentation gives a measurement of 65 cubic meters) and assuming 3 m high walls B.3 Impacts on Fences 15. In all 245 m of wooden fence, 890 m of barbed-wire fence and 20 m of metal fence in Kara Suu village and 225 m of wooden fence, 142 m of barbed-wire fence and 50 m of metal fence in Kara Bulun village will have to be relocated. In general the relocation is not expected to cause damages to the fences but in case this happens appropriate compensation for this potential impact has been taken into account in the fence relocation allowances provided to the APs (see chapter 8). The total length of fences to be relocated is detailed below in Table II.2 Table II.2: Fences Relocation

Item type Length (m) Kara Suu Wooden Fences 245Barbed wire 890Metal 20Subtotal 1,155Kara Bulun Wooden Fences 225Barbed wire 142Metal 50Subtotal 417Grand Total 1, 572

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B.4 Impacts on trees 16. The trees affected in Kara Suu village are 167; those in Kara Bulun village are 44. All affected trees are wood-non productive trees of different types and dimensions. The number of trees affected by divided by growth stage is detailed below in table II.3. Table II.3 Tree losses

Title Dimensions of trees by volume, m3

Total No. of trees

<0,3 0,3-0,6 0,6-0,9 0,9-1,2 >1,2

Kara-Suu village: no. of trees 129 19 17 1 1 167Kara-Bulun village: no of trees 11 14 6 8 5 44Total: 140 33 23 9 6 211

B.5 Business Losses 17. In all the shops affected are 3. Of these, 1 is in Kara Suu Village and has been already demolished (September 2010). The other 2 are in Kara Bulun. Village and are still standing. All shops suffered or will suffer income losses due to the fact that that their owners had or will have to interrupt business activities to reconstruct their stores. All business are legal since they pay the patent fee. Based on the entitlements for the Project, business stoppage will be compensated with 3 months of the store’s average net-income (2 months corresponding to the period needed to reconstruct a similar store and 1month for losses related to business losses due to business re-establishment).The stores monthly net-income rates was assessed by the independent valuators (see annex 4). The income losses of the affected stores are detailed in Table II.4 Table II.4: Business impacts

Business/business location Net monthly income (Som) Kara Bulun Shop Nur 37,266.33Shop Bakhtiar 15 033.87Kara Suu Shop Adis 30,471.07

C. AH/AP CENSUS C.1 Distribution of Affected Households 18. In all 45 private households (AH) and 1 public party are affected by the project,.This includes 27 private AH in Kara Suu and 18 private AH (+1 public party) in Kara-Bulun (see Table 1):

a) Kara-Suu Village. There are 48 households with houses and/or farmlands along the BNT road in the village. However, the project will only affect 27 (141 individuals) of them, One household out of these is no longer existing (the single component of household No. 18 has deceased).

b) Kara-Bulun Village. There are 38 households with houses and/or farmlands along the BNT road in the village. However, only 18 (86 individuals). Private households and 1 public facility (a primary health center) are affected by the project.

C.2 Severely Affected People

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19. Based on ADB Policy, “Severely Affected People” are all affected parties losing more than 10% of their income due to direct impacts of the project. The AP belonging to this category are the 3 affected shop owners. C.3 Vulnerable People 20. Vulnerable People are defined as AH that are poor, are headed by a woman or are headed by a disabled person. The data on poverty were obtained through an assets-based survey subdividing the AP in three categories: well-off, middle class and poor6. According to the survey (see Appendix 2) the poor AH are 24. This includes all AH headed by a woman. C.4 Gender Composition of the APs 21. The number of male APs is 107. The number of female APs is 120. C.5 Indigenous Peoples Issues 22. No indigenous people as defined by the relevant ADB policy are affected by the project. All APs are ethnic Kyrgyz. D. Summary of Impacts and AF/AP census 23. Table II.5 summarizes land acquisition and resettlement (IAR) requirements, as indicated in the table, there is no land acquisition at all. Annex 1 pressents the list of affected households with details regarding their property losses. Out of the 27 private affected households in Kara-Suu Village, one (Jumakadyrov Medet , No. 3 in Annex 1) has properties at both sides of the road and one is no longer existed (died, No. 18 in Annex 1).

Table II.5: Summary LAR base-line Information Village Kara-Suu Kara-Bulun Total Land acquistion Area 0 0 0

Affected HHs 0 0 0 Relocation of shops No. 1 3 3

Affected HHs 1 2 3 Cutting down tress No. 357 53 410

Affected HHs 10 7 17 Shifitng wooden fences

Length (m) 245 225 470 Affected HHs 11 4 15

Shifting barbed fences

Length (m) 890 142 1,032 Affected HHs 14 3 17

Shifting Metal fences Length (m) 20 50 70 Affected HH 1 1 2

Total without double counting

Affected HHs 27 18 45 Affected AP (individuals) 141 86 227 Public health center 0 1 1

6 The indicators used for the definition of poverty are based on local perceptions of the way specific assets underline standards of living. These indicators are: (i) house condition (main criteria); (ii) livestock heads; (iii) car ownership; and (iv) availability of agricultural equipment. Based on these indicators, three livelihood categories were defined:

a) Wealthy::households with a new house built in the last 10 years or a house in good condition, a car of German or Japan origin, agricultural equipment (tractor, etc.), small livestock in the number of 70-80 heads or more, 10-20 big cattle and the same number of horses.

b) Well off: households with an average house,10- 30 heads of small animals, up to 5 cattle and 1-2 horses, and a car of old Russian type and no agricultural equipment.

c) Poor: households with no house or a bad house, a maximum of 1-2 big animals and 10 small animals, no car, no agricultural equipment.

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III. SOCIO-ECONOMIC SURVEY A. Profiles of Kara-Suu and Kara-Bulun Villages

1. Kara-Suu Village

24. Kara-Suu Village is located at km 409.200 – km 412.100 along the BNT Road and it is administered by Kara-Suu District in Naryn oblast. The village is at 2,457 meters above-sea level. 25. The village has 1062 households with 5404 residents. The population is engaged mainly in livestock farming. They keep cattle, horses and small animals (sheep and goat). Standard of living is very low though it is considered to be a little bit better than in neighboring villages. Houses are built mainly from adobe bricks without anti-seismic requirements. 26. In search of a living, there are 156 migrants from the village. Out the 156 migrants, there are 34 and 122 international and domestic migrants respectively. The former are in Russia and Kazakhstan and most of the latter are in Bishkek. 27. Out of the 1062 households, 871 (82%) with 4,491 people (83.1%) are considered below poverty level as per Kyrgyz standards7. Out of the 1062 poor households, 236 (22.2%), 426 (40.1%), 209 (19.7%) and 171 (18.0%) belong to Poverty Category I. II, III and IV respectively8.

2. Kara-Bulun Village

28. Kara-Bulun Village is administered by Kara-Koun District in Naryn Oblast. The village is along km 417.100 – km 419.120 of BNT road and it is 2,578 meters above-sea level. 29. Kara-Bulun is the second largest village in Kara-Koun District. There are 340 households and 1,618 residents. The houses are built mainly from sun-dried bricks (adobe bricks) without anti-seismic requirements. The population is engaged mainly in livestock farming. 30. Standard of living is low in comparison with other villages of the region. Out of the 340 households, 234 (68.8%) with 1,223 people (75.6%) are acknowledged as living below poverty level. Out of the 234 poor households, 132 (56.4%), 66 (28.2%), 33 (14.1%) and 3 (1.3%) belong to Poverty Category I. II, III and IV, respectively. 31. The poor households include: 132 families of this category; 2 category – with income from Som371 to Som975.80/man/month, number of families – 66; 3 category – with income from Som975,81 to Som1,526.90/man/month, number of families – 33; 4 category – with income above Som1,526.90/man/month – 3 families (Note: exchange rate: $1=Som45.40 as of 5 June 2011). B. SPECIFIC SOCIO-ECONOMIC INFORMATION ON THE AP

B.1 Demographic, Employment and Education Status 32. A survey was carried out in March and June by consultants. The survey targeted 47 households with 228 persons, including a few non-affected households. General demographic and employment status are given in Table III.1. The survey highlights that: 7 KGZ poverty line is Som19,417.2 ($413 equivalent) annually or 1618som $34.4 equivalent per month (Dec 2010) 8 Category I: the underprivileged (the poorest of poor, the submerged tenth) with a per capita monthly income of

below Som370; Category II: extreme poverty with the per capita monthly income of Som371 to Som976; Category III: poor the per capita monthly income is Som976-1,527; and Category IV: relative poverty with the per capita monthly income of over Som1,527, but below poverty line.

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a) The average household size is 4.85, ranging from 1 to 7. b) Population is gender balanced with males and females account for 50.4% and

49.6% respectively. c) The average age is 28.2 and each household has 2.23 (46.1%) students and

preschool kids. These two figures further indicate that the two villages are young communities if the sample households are representative.

d) Farming (livestock and crop husbandry) is the predominant employment sector. e) All people aged above 50 are pensioners.

Table III.1: Demographic and Employment Status

Indicator Qty % Household 47 Population by gender

Male 115 50.4 Female 113 49.6 Total 228 100.0

Population by employment

Farmer 81 35.5 Salary earner 18 7.9 Disabled 1 0.4 Retired/aged 23 10.1 Students 74 32.5 Pre-school kids 31 13.6 Total 228 100

HH size 4.85 Student & pre-school kids per HH 2.23 46.1 Aged (over 60) per HH 0.49 10.1 Pensioner Total 33 14.5 Per HH 0.70 14.5

33. Thanks to free education, all schooling aged children are attending schools and adult literacy is 100%. Table III.2 presents the adult education data of from the sample households. As indicated, females are slightly better educated as their rate of high school/university education is 10%, while it is only 3% for males.

Table III.2: Level of Adult Education

Level of education Male Female Total Qty % Qty % Qty %

Elementary school 6 9.1 3 5.0 9 7.1 High school 1 1.5 6 10.0 7 5.6 Schooling adult 3 4.5 4 6.7 7 5.6 Secondary school 55 83.3 47 78.3 102 81.0 University 1 1.5 0 0.0 1 0.8 Total 66 100.0 60 100.0 126 100.0

B.2 Housing Conditions 34. The average housing are is 82 square meters per household. Except two tenants, all households have their own houses. Houses, as mentioned when presenting the profiles of the villages, are simple: 84.5% of houses were built from sun-dried clay bricks and only 15.5% of houses were built of fire bricks.

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B.3 Farmland Resource and Animals 35. On average, each household has 0.207ha of farmland of self ownership. Farmland is almost exceptionally for potato production and for self-consumption. There was no one reported any income from potato during the census in March, but one household did reported a small income from potatoes during a control survey in June 2011. 36. As pasture lands are the dominant environment conditions in the areas, animals are the major source of livelihood of local population and every household keep a certain number of big (cattle and horse) and small (sheep and goat) animals: (i) a wealthy household keeps 30-70 heads of small animals and up to 15 heads of big animals; (ii) a fairly well off or middle class household keeps 10- 30 heads of small animals, up to 7 heads of big animals; and (iii) a poor household keeps a maximum of 1-2 big animals and 10 small animals

B.4 Income Sources 37. A control survey was conducted to verify the census data to reassess the income of affected households and the affected shops. The control survey did reveal that the income data of the census were incomplete. Table III.3 presents the cash income and sources of six ordinary households obtained from the control survey. Due to limited sample households, the income data in the table are just indicative. As shown in the table, pensions are the most important cash income for ordinary households, and it is followed by salary and animals. Interesting is, animals do not contribute much to local people’s cash income although they could titled as herders.

Table III.3 : Indicative Cash Income and Sources

Source Monthly income (som) % HH % Pension 20342 52.2 5 83.3 Salary 13700 23.6 2 33.3 Cattle 8200 21.1 5 83.3 Potato 1200 3.1 1 16.7 Total 43442 100 6 100 Per capita 1357.6 Data of 6 HHs (32 persons) out of a total of 10 control HHs. The remaining 4 households are the shop owners.

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IV. LEGAL FRAMEWORK AND ENTITLEMENTS 38. The legal framework of the Project is based on ADB Involuntary Resettlement Policy (1995) and the legislation of the Kyrgyz Republic. In case there are any differences between requirements set by the legislation of the Kyrgyz Republic and ADB Policy, the latter should take precedence9.

A. Relevant Provisions of Kyrgyz Republic Laws and Regulations a. The National Constitution 39. The Constitution of the Kyrgyz Republic (June 27, 2010), Article 12 provides that:

• the Kyrgyz Republic recognizes diversity of ownership forms and guarantees the equal legal protection to private, state, municipal and other types of ownership article 12, clause 1).

• Land can be in private, municipal and other types of ownership with an exception of pasturelands that cannot be held in private ownership (article 12, clause 5).

• Ownership is inviolable and no one can be dispossessed of its property arbitrarily. The property can be acquired by the state against the person’s (party’s) will only based on the court’s ruling (article 12, clause 2)

• Acquisition of property for the public purposes, as defined in the national laws, can be carried out only through the court’s ruling and with the fair and prior payment of the compensation for the affected property as well as other costs (article 12, clause 2).

b. Civil Code (8 May 1996, # 16; last amended 12 October 2009)

40. The Civil code provides that: a party whose rights are violated can claim full

compensation for the losses, unless the national legislation or the agreements (contracts) prepared in line with the national legislation indicate the contrary (article 14, clause 1). The Civil Code also specifies that the compensable losses include:

i. Costs that the party concerned has incurred or was going to incur in order to reinstate the party’s right (article 14, clause 2)

ii. Losses or damages of the property (article 14, clause 2)

iii. Lost profit that the party was supposed to receive under the normal conditions, if the party’s rights were not violated (opportunity costs) (article 14, clause 2)

c. Land Code (2 June 1999, # 45; last amended 26 May, 2009) 41. The Land code provides that:

• land can be acquired (purchased) for the state and public purposes based on agreement between the authorized body and land owner or land user. In case the land owner or land user disagrees with the acquisition (purchase), the authorized body can within 2 months turn to the court with the request to carry

9 In case the international agreement, ratified by the Jogorku Kenesh (National Parliament) of the Kyrgyz

Republic, specifies the norms different from those set out in the civil legislation, then the norms of the international agreement applies (articles 6, Civil Code 1999).

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out the acquisition with the payment to the owner or land user the compensation for the land (article 68, clause 1.

• When determining the compensation for the land being acquired, it (compensation) should reflect the market value of the right to the land and associated structures, losses that the land owner or land user incurs and liabilities to the third parties (article 68, clause 3).

• When acquiring the land for the state or public purposes with the consent of the land owner or land user, owner\user can be allocated replacement land with the value of this land to be counted towards compensation for the land acquired.

42. It should be also noted that the Land Code specifies instances when the right to the land and associated structures can be terminated. These include:

(i) Failure to use the land according to its targeted purpose10; (ii) Land needed for state or public purposes; (iii) Non-use of land provided for agricultural use for three years; (iv) Non-use of land provided for non-agricultural productive purposes for a period

stipulated in the original provision (v) Non-payment of land taxes (vi) Non-payment of social taxes (vii) Annulment of license for mining on the basis of the Kyrgyz Republic’s mining law.

43. The decision of a court is required to officially terminate the rights to the land and associated structures for instances 1 through 4.The acquisition of the land under instances 1 through 4 (above) can be effected only after compensating the costs of the rights termination and associated costs (article 49, clause 4). 44. According to article 49, clause 1, the land owners or user can, unless the legislation, land title or lease contract indicates to the contrary, has the right to:

• Use the land at its own description and in accordance to the targeted purpose of the land (article 49, clause 1, sub-clause 1)

• Build the structures on the land, according to its targeted purpose, following the established procedures and meeting architectural, construction, environmental, sanitary, fire safety and other requirements (article 49, clause 1, sub-clause 6)

• Claim the compensation, as specified by the legislation of the Kyrgyz republic (article 49, clause 1, sub-clause 5.)

45. Finally the Land Code (article 78, clause 2) also specifies the use regime with regards to the lands of common use. It particularly indicates that lands of common use in settlements/towns/villages (e.g. roads, streets, squares, sidewalks, driveways, park bands, boulevards, mini parks, water bodies, etc) cannot be in private ownership, and only in exceptional instances can be rented by the authorized state body to legal entities and individuals for maximum of 5 years. The authorized state body may permit construction of light weight structures on the lands of common use (clause 78, clause 3). 10 The use of land according to its targeted purpose is the use of the land according to the purposes specified in

the title, lease agreement, or other officially endorsed documents (Article 2, clause 30, Land Code 1999). The rights to the land can be terminated in case of the failure to use the land according to its targeted purpose. The termination of rights, however, can be ruled only by the court (Article 67, clause 1, Land Code 1999).

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d. Law on Roads (2 June 1998, # 72, last amended) 46. According to the Law on Roads (article 4) the roads of common use can be only in state ownership and cannot be sold or held in private ownership. The same Law (article 27) also provides that unless prior permit is given by the State Traffic Inspection and the Ministry of Transportation and Communication, the following activities are prohibited on the roads of common use and the right of way (article 27) to, among others:

• Organizing trading outlets along the roads • Building kiosks, pavilions and similar structures

47. The arbitrary use of the lands of roads can be discontinued without compensating the illegal user(s) the costs incurred for the duration of the unauthorized use of these lands (article 23). e. Regulation on Assets Valuation 48. The valuation of the assets is carried out on the basis of the Temporary rules for the valuators and valuation companies (Government Resolution, as of 21 August 2003, # 537), Valuation standards for the valuators (Government Resolution, 03 April 2006, # 217) and other provisions of national legislation. B. ADB Policy 49. ADB’s policy11 on involuntary land acquisition and resettlement, relevant to this project, includes the following principles:

i. Involuntary resettlement should be avoided where feasible. ii. People affected should be informed fully and consulted on resettlement and

compensation options. i. The absence of a formal legal title to land by some AP should not be a bar to

compensation or rehabilitation of non-land assets; ii. particular attention should be paid to households headed by women and other

vulnerable groups, such as indigenous peoples, and appropriate assistance provided to help them to improve their status.

C. Reconciliation with ADB Policy 50. ADB’s policy on involuntary LAR is aimed at avoiding involuntary resettlement wherever possible; minimizing involuntary resettlement by exploring project and design alternatives; enhancing, or at least restoration, the livelihoods of all affected persons in real terms relative to pre-project levels; and improvement the standards of living of the affected poor and other vulnerable groups. 51. In compliance with ADB’s policy, affected persons (APs) in a project area could be of three types: (i) persons with formal legal rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such land that are recognized or recognizable under national laws; and (iii) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognizable claims to such land. Involuntary resettlement requirements apply to all three types of APs.

11 Involuntary Resettlement Policy, ADB, 1995

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52. A comparison between ADB’s Safeguards Policy Statement and Kyrgyz legislation is tabulated below:

Table IV.1: Comparison of ADB Policy with Kyrgyz Laws

ADB policy Kyrgyz Legislation Comments Reconciliation provisions When an ADB financed project causes resettlement impacts a RP is to be prepared

Under the Kyrgyz procedures appropriate documentation on impact and valuation is to be prepared but such a documentation does not have the format of an RP.

Different practice without legal content

An RP has been prepared for this project

APs must be fully informed and consulted on compensation and /rehabilitation options

Requires AP consultation and information disclosure prior to the start of Project activities.

Basically no difference

The APs were consulted in the process of preparing this RP and in handling complaints to MOTC and ADB12. This RP will be disclosed to them.

Lack of formal land title should not be a bar to rehabilitation and at least compensation for non-land losses

LC and Civil Code provide for land or other assets compensation only for AP with legal land status and registered assets..

Different legally and in practice

This RP provides for compensation at replacement rates based on authorized valuation, for all non-land assets losses regardless of legal land occupancy status and asset registration status.. However no land compensation is provided to APs without legal land occupancy status..

APs should be timely compensated

Clause 66 of LC stipulates that land acquisition of land plot for state and public needs is made after compensation of losses and disbursement of entitlement.

Basically no difference in case of titled land users.

This RP stipulates that non-essential civil works will re-start only after the 2011 construction season.

APs should be compensated/assisted, so as to maintain their pre-project livelihood

Compensation given for land, house and other assets to legal but not to illegal land users/asset owners. No special rehabilitation allowance is given either to legal/illegal APs.

Small difference for titled land users registered asset owners. Major difference for untitled land users unregistered asset owners

All AP irrespective of legal status will receive compensation for non-land assets and general rehabilitation for income losses directly caused by the Project. In addition they will receive special allowances for severe impacts, vulnerable households and relocation costs..

D. Resettlement Principles for the Project

53. Based on the above analysis of national legislation provisions and ADB policy, the broad resettlement principles for this Project shall be the following:

• Involuntary resettlement is to be avoided or at least minimized. • If impacts are unavoidable appropriate compensation/rehabilitation will be

provided so as to preserve the APs living standards. • APs should be fully informed and consulted on LAR compensation options and

implementation.

12 There were complaints to MOTC and then ADB regarding property loss and compensation arrangements since

Sept 2010 when project construction started. These complaints to ADB were separately handled by the Office of Special Project Facilitator (OSPF) of ADB prior to the finalization of this RP.

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• APs’ socio-cultural institutions should be supported/used as much as possible. • Compensation will be carried out with equal consideration of women and men. • Lack of formal legal land title should not be a bar to compensation or at least

rehabilitation. • Particular attention should be paid to households headed by women and other

vulnerable groups, and appropriate assistance should be provided to help them improve their status.

54. All APs will be entitled to a combination of compensation and necessary assistances reflecting type of property lost and livelihood status. The APs will be entitled to the following five types of compensation/assistance: (i) compensation for loss of trees at replacement value based on an authorized valuation by an independent evaluator and planting of new trees; (ii) compensation for moving the affected fences based on cost of needed labor, (iii) income losses from temporary disruption of business operations; (iii) assistance for relocation of structures; and (iv) special assistance to vulnerable households among the APs.

E. Compensation Eligibility and Entitlements

a. Eligibility 55. APs entitled for compensation or at least rehabilitation provisions under the Project are:

• All APs losing either land covered by legal title/traditional land rights, legalizable or without legal status13;

• Tenants and sharecroppers whether registered or not; • Owners of buildings, crops, plants, or other assets attached to the land; and • APs losing business, income, and salaries.

56. Compensation eligibility will be limited by a cut-off date to be set on the day of the beginning of the AP Census and DMS, this date for the Project is 24 June 2011. APs who settle in affected areas after the cut-off date will not be eligible for compensation.

b. Compensation Entitlements 57. The entitlements for AP affected by the Project are detailed in Table IV.2 below:

Table IV.2: RP Entitlement Matrix

Impact type

Eligible APs Entitlements Note

Land

Titled AP Not Applicable All land affected is public and within the ROW. It will not be acquired nor compensated

Buildings Owner Replacement Rate compensation based on cost of materials, labor, transport of materials, and reinstallation of facilities


Trees Owner Compensation based on the value of the tree wood to be calculated based on tree diameter. Each affected tree will also be replanted by the environmental program under MOTC in 2012.

Determined by the independent evaluator. Tree replanting will be possible only in 2012 as the 2011 planting season was finished by the time of the finalization of this RP. It will entail

13 APs with land title would be entitled to receive land compensation but no such AP is affected by the Project;

APs without legal title will not receive land compensation but will be entitled to compensation of all other losses.

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land reparation, provision of seedlings, planting seedlings and irrigation for 3 years

Fences Owner Compensation for fence relocation + eventual damages Determined by the independent evaluator

Business Shop owner Compensation of business income lost for the period of business stoppage (due to new shop construction and business re-establishment) based either on tax declaration/patent fee or (f this is unavailable minimum non-taxable income



AP suffering >. 10% income losses

:A 1 month allowance based on minimum ssubsistence level

Minimum subsistence level for Naryn Province is 3,595 Som per month (NSC, 19/01/11). This allowance applies to 3 affected shop owners only

Vulnerable people allowance


A 1 months allowance based on minimum ssubsistence level

The KGZ poverty line:is set at 19,417.2 soms/year x capita or 1,618 Som/month. (Dec 2010)






The cash allowance amounts to 3000 Soms (sufficient for a truck and gasoline x 1 day)

Unexpected impacts due to construction work If found eligible by the GRG these impacts will be compensated as per the entitlements above..

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V. GRIEVANCE REDRESS MECHANISM A. GRIEVANCE REDRESS FUNCTIONS AND PROCESS 58. A grievance redress mechanism will be available. Its objective is to allow an AP appealing any disagreeable decision, practice or activity arising from assets compensation and other matters in the process of implementing this RP. The GRM involves a 4 stages appeals process as follows:

• Local (Village). The grievances will be first lodged at the level of the complainant’s village community. The complainant will report his case to the Local Point of Contact (LPC) who will be officially appointed on behalf of MOTC to promptly process and respond to AP’s queries and complaints. The LPC will trigger the action of the Grievance Redress Group (GRG) which will assess the situation and seek a solution through consultation with complainants, local Roads Maintenance Unit (RMU) the Naryn Ombudsman, IPIG personnel, the selected AP representatives and the supporting NGO. After consulting with IPIG the representative of the RMU will take the final decision on the complaint cases and decide whether the complaint is eligible or not.

• Regional Level. If within 15 days the complaint is not solved, the AP assisted by the LPC, the selected AP representatives, the Naryn Ombudsman and the supporting NGO will raise its grievance to MOTC’s regional office the Road Management Service). After consulting with IPIG the representative of the RMS will take the final decision on the complaint cases and decide whether the complaint is eligible or not.

• Central Level: if within additional 15 days the grievance is still not resolved at Regional Level the complainant will further raise the issue to MOTC’s headquarters in Bishkek again with the support of the LPC, AP representatives, the Naryn Ombudsman, and supporting NGO. The representative of the IPIG will decide on the eligibility of the complaint case.


B. THE LOCAL POINT OF CONTACT

59 The LPC is a locally based person, officially designated by MOTC and trained on RP issues, who is tasked with monitoring RP implementation and timely responding to queries and complaints from APs. Upon receipt of a complaint, the LPC is to meet the aggrieved person within 3 working days and document factors that prompted the complaint. The LPC should then immediately relay the complaint to RMU and convey a grievance resolution meeting with the complainant and the Grievance Redress Group members appropriate for the appeal level of the complaint. The main functions of the LPC are:

i) Delivery of timely information on RP progress to IPIG and RMU ii) Documentation of the queries, concerns and complaints iii) Communication of the queries, concerns and complaints of APs to the ayil okmotu,

RMU, RMS of BNT and IPIG.

C. THE GRIEVANCE REDRESS GROUP (GRG) 60. In order to efficiently and rapidly mobilize the human resources needed to implement the above scheme MOTC has established a Grievance Redress Group (GRG). The GRG is tasked with all activities needed to assess the validity of the complaint assess the scope of eventual impacts, propose eventual compensation needed and instruct/facilitate the functioning of the Grievance Redress mechanisms. The GRG is composed at different levels of appeal by the following individuals/officers:

a. Local level

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LPC Head of ayil okmotu Representative of the RMU Ombudsman of Naryn Oblast 3 representatives of AP (to be selected after the Public consultation) Supporting NGO

b. Regional Level

LPC Representative of the RMS Representative of the RMU 3 representatives of AP (to be selected after the Public consultation) Ombudsman of Naryn Oblast Supporting NGO

c. Central Level

Representative of IPIG Representative of the RMS Representative of the RMU 3 representatives of AP (to be selected after the Public consultation) Ombudsman of Naryn Oblast Supporting NGO

61. At each level of appeal the GRG will be assisted as needed by the professional capacity needed to solve each specific case. This will include among others:

• Representatives of the local governments • Representatives of the State Agency for Architecture and Construction • State registration Services • Agricultural Department experts • State Agency for Environment and Forestry • Ministry of State Property • Ministry of Foreign Affairs

62. The Project will also cover compensation costs for impacts found eligible by the GRC.

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VI. CONSULTATION AND PARTICIPATION AND DISCLOSURE 63. RP reparation involved public consultation, public participation and information dissemination tasks which became particularly intense in the last phases of RP finalization.

A. Consultation and Participation Undertaken 64. Table VI.1 below summarizes the scope and extent of consultation and participation (C&P) activities undertaken during RP reparation. .

Table VI.1: Summary of C&P

Date Activity Agencies/individuals Consulted

Participants No

Main Topics

7, July 2011 Kara Bulun (10-13 am)

RP Consultation Villages’APs 30-40 (13 APs)

Questions and answers led to*: Explanation of ADB Policy and of content of

the information pamphlet. Explanation of how and when impacts under

the RP will be compensated . Discussion of valuation methodology and of

unit compensation rates where possible Discussion of other issues related to dust

problem/road safety/parking space/houses access re-establishment.

Explanation of grievance mechanisms and election of AP representatives.

7 July 2011 Kara Suu (Afternoon)

RP consultation Villages’ APs About 40 (15 APs)

Questions and answers led to*: Explanation of ADB Policy and of content of

the information pamphlet. Explanation of how and when impacts under

the RP will be compensated . Discussion of valuation methodology and of

unit compensation rates where possible • Discussion of other issues related to dust problem/road safety, parking space, houses access re-establishment.

• Explanation of grievance mechanisms and election of AP representatives.

March 2011 AP census Initial IOL

Villagers Village parliaments

100 Project brief Progress of civil works ADB's decision for halting construction ADB's decision for a RP ADB's policies requirements on

involuntary resettlement KYG's policy on LAR

April IOL by LAR Assessment committee

Government agencies Oblast government Villagers

50 KYG's policy on LAR Losses of APs

May ADB's review mission Socioeconomic data collection

MOTC NGO Villagers

30 ADB's policy requirements on involuntary resettlement

KYG’s policies on LAR Income loss of APs GRM

June, 2011 Village profile collection Additional SES

Two village parliaments District government APs Non-APs

50 Project brief ADB's decision for a RP ADB's policy on involuntary resettlement KYG's policy on LAR

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RP preparation status Income losses of APs GRM

Feb-May 2011

DDR preparation (for sections outside the villages)

Two villages 10 Project brief LAR impact outside the villages ADB's decision for a RP for the two

villages Sept 2010- May 2011

Handling of complaints

NGO Villagers, MOTC Oblast government Village parliaments

50+ Entitlement matrix ADB’s policy requirements on

involuntary resettlement KYG’s policies on LAR ADB accountability mechanism Problems arisen and their likely

consequences

B. Disclosure

65. This RP will be disclosed in English on the ADB website and in Kyrgyz and Russian on MOTC website and in the local government offices in the affected villages and at the offices of MOTC (Headquarters and regional offices). Based on this draft RP, a Resettlement Information Pamphlet was also prepared (Annex 5). The Pamphlet summarizes key information from this RP including: impacts policy principles, compensation entitlements, unit compensation rates. The Pamphlet has been distributed both in Russian and Kyrgyz language to all APs, NGOs, village parliaments and local governments prior to the RP consultation.

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VII IMPLEMENTATION ARRANGEMENTS

A. INSTITUTIONAL SETUP 66. Several agencies and parties were involved and will be involved in this RP preparation and implementation. These include MOTC, the LAR Interdepartmental Commission, the supervision consultants, and civil society organizations. Their role is described in the text below. Figure 2 describes the functions of the different agencies/parties involved in TRP preparation and implementation. A.1 MOTC 67. As the EA MOTC has overall responsibility on the preparation and implementation of this RP. Specific management of resettlement tasks has been assigned to the IPIG. Within the IPIG issues related to safeguards (including resettlement, environment and social assessment) are assigned to a Safeguards Unit composed by three officers. The Safeguards Unit is tasked with the management of all activities related to RP preparation and implementation, including supervision and coordination of the impacts surveys, hiring and supervising of the independent asset valuator, RP disclosure, management of public consultation, grievance redress, compensation agreements signing, RP implementation monitoring, and distribution of compensation payments. In project areas MOTC will manage RP tasks thorough the Roads Maintenance Unit (RMU) at Rayon level and the Roads Management Service (RMS) at Oblast level. A.2 LAR Interdepartmental Commission 68. .Based on Kyrgyz Republic law MOTC has established in March 2011 an Interdepartmental Commission. The Commission includes the Local Governments in affected areas and all major Government agencies involved with Land administration, buildings regulation, environmental regulation, disbursement of public finances and international development assistance. The agencies represented in the Interdepartmental Commission are: i) the State Agency for Architecture and Construction; ii) the State Registration Services; iii) the State Agency for Environment and Forestry; iv) the Ministry of State Property and v) the Ministry of Foreign Affairs. These agencies are called in by MOTC based on their specific responsibilities to review and approve the work carried out for specific RP tasks such as land measurement, identification of legal status of affected properties, identification of APs, assessment of buildings and structures or trees and endorsement of agreements with foreign institutions. A.3 Supervision Consultants and Independent Assets Valuator 69. The supervision consultants established a three person RP team formed by an International resettlement specialist, one local surveyor and one local resettlement specialist. The team carried out the impacts measurement surveys, the AP census and the socio-economic survey. The affected assets were evaluated by a certified independent asset valuator. The results of the surveys and of the valuation were reviewed and approved by the State Agency for Architecture and Construction; the State Registration Services; the State Agency for Environment and Forestry and the Ministry of State Property. . A.4 Civil Society 70. One local NGO was tasked with the External Monitoring of RP implementation and with independent support functions to the Grievance Redress Group.

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Figure 2: Institutional Setup

TableVII.1: Agencies and Their Responsibilities

No. Agency/individual Responsibility

1 ADB Guidance for RP preparation Approval of RP Disclosure of RP on ADB website Issuance of no objection letter for resumption of non-essential civil works.

2 Kyrgyz Republic Government

Approval of RP and its budget Decision to allocate government budget for RP implementation

3 MOTC Overall RP responsibility 4 IPIG Consultations of Aps

Preparation of RP RP disclosure Compensation agreement with APs Implementation of RP Preparation of RP implementation progress reprot and completion report

5 Grievance Redress Group

Resolve grievance during implementation of this RP

6 Inter-departmental Commission

Review/approval of Identification of impacts surveys and AP census Consultation of APs Approval of assets valuation Supervision of RP preparation and implementation

7 Ministry of Finance • Budget allocation 8 Independent evaluator Valuation of affected assets 9 Consultants Execution of impacts surveys and socio economic surveys.

Acting as LPC

Government of Kyrgyz Republic

LPC

APs

ADB

MOTC Interdepartmental LAR impact assessment

committee

Ministry of Finance GRG

Supporting NGO

Consultants

Independent evaluator

IPIG

RMS

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10 NGO Participation in consultations External monitoring Assistance to GRG and APs for grievance redress

B. Implementation Schedule

71. The preparation and implementation schedule of this RP is detailed in Figure 3.

Figure 3: RP Implementation Schedule

Tasks April May June July August September Responsibility

RP Action Plan MOTC/ADB

Surveys Consultants/MOTC

1st Draft completion -ditto- Valuation Independe

nt assessorConsultation MOTC/Con

sultants/ADB

Compensation Decree

GOV

Contracts signing MOTC RP finalization Consultant

s/MOTC RP review/Approval ADB/GOVCompensation delivery

MOTC/Rayon

External Monitoring EMA Compliance report EMA ADB review ADB Grievance Redress GRG,

MOTC

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VIII BUDGET AND FUND FLOW

A. Compensation Rates Calculation14 72. Buildings. Buildings compensation rates have been assessed as new at replacement cost without deductions for depreciation and only with partial deductions of value for: a) salvaged materials (the deduced value corresponds to the assumed valued of the salvaged materials for the original public bus sheds rented and demolished or incorporated in the shops by the shop owners).and b) the amount of rent unpaid by the shop owners. The valuation was based on market value of construction materials + cost of reproduction of specific structural and aesthetic features of the affected building + current cost of labor + cost of transport of building materials and cost of reinstatement of facilities. The valuation methodology regarding this item were disclosed in the Information Pamphlet and during public consultation. 73. Fences. Fences relocation costs have been assessed based on the cost of labor to move and refit the fences and on a lump amount to cover at replacement cost eventual damages caused to during the relocation. The compensation rate regarding this item was disclosed in the Information Pamphlet and during public consultation. 74. Trees. Compensation rates for affected trees have been assessed based on the market value of the affected trees wood based on the width diameter of the affected trees. Trees width was defined in 4 width classes (up to 15 cm to be paid as 15 cm); (up to 30 cm to be aid as 30 cm); (up to 50 cm to be paid as 50 cm) and (more than 50 cm to be aid as 60 cm). The valuation methodology regarding this item was disclosed in the Information Pamphlet and during public consultation. To satisfy the concerns vented by the APs during the consultation meetings it was decided to add to this also the planting of a new tree to be carried out under the Road Greening Program of MOTC in the affected villages. 75. Businesses. As all affected businesses pay the obligatory annual patent fees they are legal and will be paid based on the actual assessed net-income. Compensation will be provided based on the monthly assessed net-income multiplied for the period of business stoppage. This period has been assessed at 3 months (2 months to rebuild the store plus one month for business re-establishment). The valuation methodology regarding this item was disclosed in the Information Pamphlet, and during public consultation. B. Costs Assessment B.1 Buildings Compensation Costs 76. The total building losses compensation costs is Som398,392.4, as detailed in the Table VIII.1 below (for detailed calculation see annex 4). Table VIII.1: Buildings losses Costs Location Shop Value

(Som) Shed value

deduction(Som)Due Taxes

deduction (Som) Total compensation

(Som) Kara Bulun Shop Nur 121,427 9,362 (2 years x 500) 1,000 111,065 Shop Bakhtiar 115,490 9,362 (4 years x 1000) 4,000 102,128 Total Kara Bulun 213,193 Kara Suu Shop Adis 122,269 6,458 0 115,811 TOTAL 329,004 14 For the detailed description of the valuation methodology for each affected asset and for the detailed calculations of compensation see annex 4.

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B.2 Fences Relocation Costs 77. The total costs for fences losses compensation costs amounts to Som18,864 as detailed in the table below (for detailed calculation see annex 4). Table VIII.2: Fences Relocation Costs

Item type Length (m) Cost x m (Som) Total Kara Bulun Fences 417 12 5,004Kara Suu Fences 1,155 12 13,860

Grand Total 18,864 B.3 Tree Losses Costs 78. The total cost for trees compensation is Som26,494 as detailed in the table below (for detailed calculation see annex 4). Table VIII.3: Tree losses

Village

Dimensions of trees by volume, m3 No of trees

Total SOM<0,3 0,3-0,6 0,6-0,9 0,9-1,2 > 1,2

No. Unit price

Total No Unit price

Total No. Unit price

Total No Unit price

Total No Unit price

Total

Kara-Suu 129 56 7256 19 169 3206 17281

4781 1 394 394 1 506 506 167 16 144

Kara-Bulun 11 619 14 2363 6 1688 8 3150 5 2 531 44 10 350

Total: 140 7 875 33 5 569 23 6 469 9 3 544 6 3 038 211 26 494

B.4 Businesses Rehabilitation Costs 79. The total costs for business compensation amounts to Som248,314.80 as detailed in the table VIII.4 below (for detailed calculation see annex 4). Table VIII.4: Business Impacts Compensation Costs

Indicator Months of

income to be compensated

Net profit, som/month Total, som

Kara-Bulun village Shop "Nur" 3 37 266.33 111 798.99 Shop "Bahtiyar" 3 15 033.87 45 101.61

Kara-Suu village Shop "Adis" 3 30 471.07 91 413.21 Total compensation: 248 313.81

B.5 Severe Impacts Allowances 80. The total cost of severe impacts allowances is Som10,785 as detailed in the Table below.

Table VIII.5: Severe Impacts Allowances Costs No. of Severely affected AF Unit Allowance (Som) Total (Som)

3 3,595 10,785

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B.5 Vulnerable People Allowances Costs 81. The total costs for vulnerable people allowances is Som86,280 as detailed in the table below. Table VIII.6 Vulnerable People Allowances Costs

No. of Vulnerable AF Unit Allowance (Som) Total (Som) 24 3,595 86,280

B.6 Relocation Allowances 82. The total cost for relocation allowances is Som9,000 as indicated in the table below. Table VIII.7 Reallocation Allowances Costs No of relocated shop owners Unit Allowance (Som) Total (Som)

3 3,000 9,000 B.7 Total RP Implementation Costs 83. The summary costs for the implementation of this RP are provided below in Table VIII.8. Table VIII.8 Summary Compensation Costs Item Cost (Som) Buildings 329,004Fences 18,864Trees 26,494Business rehabilitation 248,314Severe Impacts Allowances* 10,785Vulnerable people allowances* 86,280Relocation Allowances* 9,000Unallocated 75,000Total (Som) 15 803,741*These expenses are related to specific requirements of the ADB Policy

15 On 09/07/11 the Som was exchanged with the US Dollar at the rate of 45.15:1

28

IX. MONITORING A. Internal Monitoring 84. Internal monitoring will be carried out by the IPIG. IPIG will record progress in compensation payment and prepare a progress report one month after the completion of compensation payments. The progress report will be submitted to ADB and MOTC for review. B. External Monitoring 85. External monitoring will be carried out by an External Monitoring Agency (EMA). The tasks assigned to the EMA will be the external monitoring of RP implementation and the preparation at its end of a compliance report which will the basis for ADB to provide No objection to the start of civil works.

B.1 EMA Tasks 86. EMA will closely monitor the implementation of the RP and engage in the following tasks: (i) review of RP and Information pamphlet disclosure; (ii) review of action taken by the PIU to compensate the APs with particular attention to the way this action fits the stipulation of the RP; (iii) review all compensation tallies; (iv) verify whether the compensation is provided thoroughly to all APs and in the amounts defined in the RP and in the AP contracts; (v) asses the satisfaction of the APs with the information campaign and with the compensation/rehabilitation package offered to them; (vi) review the legalization process and assess its effectiveness; (vii) review complaints & grievances case; (vii) carry out an AP satisfaction survey with a 20% sample of the APs. Immediately after the implementation of the RP the EMC will prepare the Compliance Report. The report will include well argued sections on the following:

(i) Assessment of the way the compensation has been carried out in relation to RP stipulations;

(ii) Verification that all APs were compensated in the amounts stipulated in the RP (iii) Review of complaint and grievance cases and of their solution (iv) Assessment of the rehabilitation program for vulnerable APs (v) Assessment of the satisfaction of the APs (vi) Lesson learned to be applied to the next projects, and; (vii) General assessment of RP implementation and recommendations to ADB

regarding the provision of no objection Letter to start the civil works. 87. The EMA will carry out its activities in close communication with the PIU and will engage in desk activities and field activities and for this s/he will hire an appropriate number of assistants to carry out the AP satisfaction survey and to review the compensation tallies. The monitoring activities assigned to the consultant will start immediately after Government approval of the RPs and will last until RP implementation is concluded.

29

ANNEX 1: LIST OF AFFECTED HHS AND THEIR PROPERTY LOSS

A. Kara-Suu village

No. Affected household Location Property within ROW 1 Kabaev Shekerbek. Km 409+860 RHS • A shop

2. Usenov Beishenbek 409+980 RHS • 15 trees of less than 15 cm (in diameter) • A Barbed fence (11 m by estimation)

3. Jumakadyrov Medet 410+120, LHS • 15 trees of less than 15 cm • 120 m barbed wire fence

410+230, LHS • 20m wooden fence

4. Rahmanova Bubuzuura 410+280, LHS • 30m wooden fence

5. Tentimishev Keneshbek 410+400, LHS • 76 trees of less than 15 cm • A barbed wire fence (80m by estimation)

6. Kasmatova Kasbyby 410+415, RHS • 10m wooden fence • 25m barbed wire fence

7. Tostokova Kanymbyby 410+440, RHS • 80m barbed wire fence

8. Abdyraeva Boobek 410+440, LHS • 160 trees of less than 15 cm • 100m barbed wire fence

9. Chikeev Bakyt 410+540, RHS • 45m barbed wire fence

10. Baygazieva Kulipa 410+600, LHS • 1 tree of less than 15 cm • 28m wooden fence • 40m barbed wire fence

11. Kakishova Osipa 410+650 LHS

• 30 m of wooden fence• 14 m of barbed wire

12. Toktakunov Mukan 410+700, LHS • 1 tree of less than 15 cm • 20m barbed wire fence

13. Tolomushov Mairambek 410+610 RHS

• 20 m of wooden fence • 5 m barbed wire

14. Kasimov Bartabas 410+710 RHS • 60 m of wooden fence

15. Shaadaev Abdrashit 410+740 RHS • 25 m of barbed wire fence

16. Shygaev Ishenbek 410+710 LHS • 20 m of wooden fence

17. Shygaev Jumabek 410+740 LHS • 20 m of wooden fence

18. Jumabaev Jyrgalbek1 410+780, LHS • 2 trees of less than 15 cm • 40m barbed wire fence

19. Abdralieva Urpukan 410+840 LHS • 27 m of wooden fence

20. Tumakov Asylbek 410+900 LHS • 20 m of metal fence • 35 m of barbed wire fence

21. Kabylov Musabek 410+940, RHS • 15 trees of less than 50cm

• 80m barbed wire fence

22. Kasymov Nurlan 411+000, RHS • 60 trees of less than 50 cm

23. Junusov Jakyp 410+950 LHS • 40 m of barbed wire fence

24. Derbishev Kurmanbek 411+080, LHS • 15 trees of less than 15cm

25. Mukashev Omurakun 411+910 LHS • 50 m of barbed wire fence 26. Abylov Dayirbek Km 409+510 RHS • 25m barbed wire fence 27. Januzakov Alisher 409+535 RHS • 35m barbed wire fence 1 Deceased

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B. Kara-Bulun Village No. Affected HH Location Property within ROW PRIVATE APs 1 Isaev Omurbek. Km 417+620 LHS • 30m wooden fence 2. Kopoeva Yryskan 417+680, RHS • 6 tress of 30-50cm (in diameter) 3. Jarkynbaev Ainidin 417+740, RHS • 1 tress of less than 10cm

• 20 m wooden fence • 30 m. of barbed wire fence

4. Kopoev Oljobek 417+780, RHS • 40 m barbed fence 5. Nur Shop

(Sagynaliev Erkin) 418+080, LHS • Bur shop with legal documents available (lease

agreement with RMU 957, Architectural planning assignment, and design documents)

6. Bahtiyar shop (Tologonova Elmira)

418+110, RHS • Bahtiyar shop with legal documents available

7. Sairakunov Beishembek 418+140, RHS • 2 trees of more than 50cm 8. Ajigulov Bazarbek 418+220, RHS • 5 tress of 10-30cm 9. Sydykov Nasirdin 418+390, RHS • 30m barbed wire fenc 10. Sydykov Orozbek 418+410, LHS • 40m wooden fence 11. Malik uulu Muhtarbek 418+420, RHS • 30m barbed wire fence

• 1 trees of 15-30cm 12. Usubaliev Asylbek 418+620 RHS • 25 m of wooden fence shifted 13. Mamytov Maatkazy 418+570 RHS • 20 m of wooden fence shifted 14. Karalaeva Kalbyby 418+660, RHS • 2 trees of 20cm

• 3 trees of more than 50cm 15. Ahmatov Rahat 418+720, RHS • 32 trees of 15cm

• 1 tree of more 50cm 16. Alybaev Tilek Km 418+283 LHS • 50 m metal fence 17. Kazygulov Bayaman 418+234 LHS • 31 m wooden fence 18. Adyshov Mirbek 418+170LHS • 41m wooden fence,

• 12 m barbed wire fence PUBLIC APs 19. Primary health center 418+340 LHS • 18 m wooden fence

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ANNEX 2: APS LIVELIHOOD RANKING

No. Affected HH Location Wealthy status Wealthy Middle class Poor

Kara Suu Village 1 Kabaev Shekerbek. Km 409+860 RHS Yes 2. Usenov Beishenbek 409+980 RHS yes 3. Jumakadyrov Medet 410+120/410+230

LHS yes

4 Rahmanova Bubuzuura 410+280, LHS yes 5. Tentimishev Keneshbek 410+400, LHS yes 6. Kasmatova Kasbyby 410+415, RHS yes 7. Tostokova Kanymbyby 410+440, RHS yes 8. Abdyraeva Boobek 410+440, LHS yes 9. Chikeev Bakyt 410+540, RHS yes 10. Baygazieva Kulipa 410+600, LHS Yes 11. Kakishev Moldobai 410+650 LHS Yes 12. Toktakunov Mukan 410+700, LHS Yes 13. Tolomushov Mairambek 410+610 RHS Yes 14. Barktabasov Kairat 410+710 RHS yes 15. Shaadaev Altynbek 410+740 RHS yes 16. Shygaev Ishenbek 410+710 LHS yes 17. Shygaev Jumabek 410+740 LHS yes 18 Jumabaev Jyrgalbek (deceased) 410+780 LHS n.a. n.a. n.a. 19. Abdralieva Urpukan 410+840 LHS yes 20. Tumakov Asylbek 410+900 LHS yes 21. Kabylov Musabek 410+940, RHS yes 22. Kasymov Nurlan 411+000, RHS yes 23. Junusov Jakyp 410+950 LHS Yes 24. Derbishev Kurmanbek 411+080, LHS Yes 25. Mukashev Omurakun 411+910 LHS Yes 26. Abylov Dayerbek 409+510 RHS yes

27. Dzhanuzakov Alisher 409+535 RHS yes Total Kara Suu 5 7 14 Kara Bulun Village 1 Isaev Omurbek. 417+620 LHS Yes 2. Kopoeva Yryskan 417+680, RHS Yes 3. Jarkynbaev Ainidin 417+740, RHS Yes 4. Kopoev Oljobek 417+780, RHS Yes 5. Nur Shop (Sagynaliev Erkin) 418+080, LHS yes 6. Bahtiyar shop (Tologonova

Elmira) 418+110, RHS Yes

7. Sairakunov Beishembek 418+140, RHS Yes 8. Ajigulov Bazarbek 418+220, RHS yes 9. Sydykov Nasirdin 418+390, RHS Yes 10. Sydykov Orozbek 418+410, LHS yes 11. Malik uulu Muhtarbek 418+420, RHS yes 12. Usubaliev Asylbek 418+620 RHS yes 13. Mamytov Sheishenbek 418+570 RHS Yes 14. Karalaeva Kalbyby 418+660, RHS Yes 15. Ahmatov Rahat 418+720, RHS yes 16. Alybaev Tilek 418+283 LHS Yes 17. Kazygulov Bayaman 418+234 LHS yes 18. Adyshov Mirbek 418+170LHS yes Total Kara Bulun 2 6 10 Grand Total 7 13 24

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ANNEX 3: RESETTLEMENT INFORMATION PAMPHLET

MINISTRY OF TRANSPORT AND COMMUNICATIONS KYRGYZ REPUBLIC

CAREC Transport Corridor 1 (Bishkek-Torugart) Project 1 (km 409.060 to km 411.915 and km 417.060 to km 418.915)

A. Introduction

1. The Ministry of Transport and Communication (MOTC) of Kyrgyz Republic is constructing the road between Naryn and Tourgart Pass. The Project is financed by the Asian Development Bank (ADB) grant in the amount of USD 20 Million; MOTC is the Executing Agency (EA). The Project commencement date is 1 April 2010 and completion date is 30 September 2012. To fit the requirements of the ADB resettlement Policy of 1995, MOTC has prepared a Resettlement Plan (RP) detailing Project impacts, compensation entitlements and compensation mechanisms and procedures. 2. This Information Pamphlet summarizes the main points of the RP. Its objective is to disclose and summarize for the benefit of the AP the impacts of the project in Kara Suu (km 409.060-411.915) and Kara Bulun Village (km417.060 to 418.915) and the other stipulations detailed in the RP. 3. To fit ADB policy, MOTC will disclose for public consultation the RP in Kyrgyz language at MOTC offices in Bishkek and Naryn and at local village offices. This pamphlet in Kyrgyz and Russian has been sent to all APs. B. Impacts Summary. 4. Based on the RP impacts assessment The affected Parties (AP) are 46. Of these 45 are private citizens (27 in Kara Suu village and 18 in Kara Bulun) and 1 is a public institution (1 primary health center is affected in Kara Bulun). Project impacts entail the following effects:

• Loss of 3 private shops (2 standing in Kara Bulun Village and 1 demolished in Kara Suu Village)

• Income losses to the 3 affected shops • 211 wood trees of different dimension/type (44 in Kara Bulun Village and 167 in Kara

Siuu Village) • 470 m. of wooden fences (225 m. in Kara Bulun Village and 245 in Kara Suu Village) • 1,032 m. of Barbed-wire febces (142 m. in Kara Bulun Village and 890 m. in Kara suu

Village) • 70 m. of metal fences (50 m. in Kara Bulun and 20 m in Kara Suu).

D. Resettlement Policy and Principles 5. The impacts caused by road rehabilitation will be compensated based on the laws of Kyrgyz Republic and the requirements of the ADB Resettlement Policy of 1995.. All Impacts whether already occurred or yet to occur will be compensated at replacement rates and severely affected or vulnerable APs will receive special rehabilitation allowances. The compensation/rehabilitation program under the RP is based on the following principles:

• Involuntary resettlement is to be avoided or at least minimized. • If impacts are unavoidable appropriate compensation/rehabilitation will be provided

so as to preserve the APs living standards. • APs should be fully informed and consulted on LAR compensation options and

implementation. • APs’ socio-cultural institutions should be supported/used as much as possible. • Compensation will be carried out with equal consideration of women and men. • Lack of formal legal land title should not be a bar to compensation or at least

rehabilitation. • Particular attention should be paid to poor or women/disabled person headed

households and appropriate assistance should be provided to them.

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. E. Compensation Eligibility and Entitlements 6. Eligibility. APs eligible to compensation or at least rehabilitation provisions under the Project are:

• All APs losing either land covered by legal title/traditional land rights or without legal status16; • Tenants and sharecroppers whether registered or not; • Owners of buildings, crops, plants, or other assets attached to the land; and • APs losing business, income, and salaries.

7. Compensation eligibility will be limited by a cut-off date to be set on 24 June 2011 (the day of the end of the AP Census and impacts measurement survey). APs who settle in the affected areas after the cut-off date will not be eligible for compensation. Impacts occurred/detected after this date will be handled by the Grievance Resolution Group (GRG) and compensated if found valid and eligible by the GRG. 8. The payment of compensation will be done by MOTC in due course upon the concordance with MOF KR and ADB. 9. Entitlements. Compensation/rehabilitation provisions for the APs are defined in the table below.

Table 1: Entitlements Matrix

Impact type

Eligible APs

Entitlements Note

Land

Titled AP Not Applicable. All land affected is public and within the ROW. It will not be acquired nor compensated

Buildings Owner Replacement Rate compensation based on cost of materials, labor, transport of materials, and reinstallation of facilities.


Trees Owner Compensation based on the value of the tree wood to be calculated based on tree diameter. Each affected tree will also be replanted by the environmental program under MOTC in 2012.

Determined by the independent evaluator. Tree replanting will be possible only in 2012 as the 2011 planting season was finished by the time of the finalization of this RP. It will entail land preparation, provision of seedlings, planting seedlings and irrigation for 3 years

Fences Owner Compensation for fence relocation + eventual damages.

Determined by the independent evaluator

Business Shop owner

Compensation of business income lost for the period of business stoppage (due to new shop construction and business re-establishment) based either on tax declaration/patent fee or (f this is unavailable minimum non-taxable income



AP suffering >. 10% income

A 1 month allowance based on minimum subsistence level

Minimum subsistence level for Naryn Province is Som3,595/month (NSC, 19/01/11). This allowance applies to 3 affected shop owners only

16 APs with land title/traditional land rights will receive land compensation; the others will not receive land

compensation but will be entitled to compensation of all other losses.

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losses Vulnerable people allowance


A 1 months allowance based on minimum subsistence level

The KGZ poverty line is set at Som19,417.2/year x capita or Som1,618 /month. (Dec 2010)






The cash allowance amounts to Som3,000 (sufficient for a truck and gasoline x 1 day)

Unexpected impacts due to construction work If found eligible by the GRG these impacts will be compensated as per the entitlements above.

F. Compensation Rates 10. The table below specifies the compensation rates for affected items. Details are provided in the RP. Table 9.1: Compensation/Rehabilitation unit rates Item Unit Unit value (SOM) Buildings impacts Specified for each building in the RPTrees Market value of wood m3 Variable according to volume of

woodFences relocation Relocation/damages cost m. 12Business Losses

Specified for each shop owner

Relocation allowances 1 lump-sum allowance unit 3,000Severe Impacts Allowances

1 month at minimum subsistence level

unit 3,595

Vulnerable people allowances

1 months at minimum subsistence level

unit 3.595

G. Complaints and Grievance Redress Mechanism 11. A grievance mechanism will be available to allow an AP to appeal any disagreeable decision, practice or activity arising from assets compensation. A Grievance Redress Group (GRG) will be established community level in each village to solve grievances informally through community participation. The GRCs will include representatives from MOTC, the local government, representatives of the APs, and local NGOs. The grievance resolution process is detailed below. • Local (Village). The grievances will be first lodged at the level of the complainant village

community. The complainant will report his case to the Local Point of Contact (LPC) who will be officially appointed on behalf of MOTC to promptly process and respond to AP’s queries and complaints. The LPC will seek a solution by consultation with local RMU, IPIG personnel, the selected AP representatives and the supporting NGO.

• Regional Level. If within 15 days the complaint is not solved, the AP assisted by the LPC, the selected AP representatives, a representative of the Ombudsman office in Project areas and the supporting NGO will raise its grievance to MOTC’s regional office (the Road Management Service).

• Central Level: If within additional 15 days the grievance is still not resolved at Regional Level the complainant will further raise the issue to MOTC’s headquarters in Bishkek again with the support of the LPC, AP representatives, a representative of the Ombudsman Office in Project Areas and supporting NGO.

H. Contact Information

12. For any information and advice, please feel free to approach the following contacts:

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(i) Sanjar Ibraimov-IPIG Director MOTC,42, Isanova St.,Bishkek 720017 (0312) 970970 (tel) (0312) 314378 (fax) [email protected]

(ii) Ruslan Satybaldiev, IPIG-Regional Coordinator MOTC,42, Isanova St.,Bishkek 720017 (0555)550783 (cell) (0312) 314378 (fax) [email protected]

(iii) Sveta Keldibaeva-IPIG Safeguards Specialist MOTC, 42, Isanova St.,Bishkek 720017 (0555)714789 (cell) (0312) 314378 (fax) [email protected]

(iv) Keldibek Ibraev -Deputy Resident Engineer Kara Suu Village 40 Abit Str., At Bashy Rayon, Naryn Oblast. (0777)189504 (cell)

[email protected]

36

APPENDIX 4 METHODOLOGY FOR THE VALUATION OF IMPACTS 1. Impact valuation was carried out by and independent assessor between June 2011 and July 2011. The methodology and the summary results of the evaluation for each affected item is detailed in this Appendix. Further detail can be obtained from the full evaluation paper deposited at MOTC. A. Methodology of buildings reconstruction cost calculation 2. The Replacement cost of affected businesses has been valuated based on the following formula:

RC = B + L + T1 + D + Eq + T2 + D - Matgov - Rentgov, Where: RC – is the cost of the shop building replacement; B – is market value of construction materials; L – is market value of construction works; T1 – is market value of costs for motor transportation services; L – is market value of costs for official registration of papers; Eq – is market value of shop-windows and shelves; T2 – is market value of services on goods carryover; D – is market value of services on shop dismantling; Matgov – is market value of bus stop structures (see balance sheet of MOTC) Rentgov - is rent receivable to RMU No.957 (MOTC). Explanatory notes to calculations

a) The market value of construction materials was estimated based on prices which have developed in the market of construction materials in the nearest regional center: v. At-Bashi.

b) The market value of construction works and transportation services was estimated

in the course of consultations with builders and finishers in v. Kara-Suu and v. Kara-Bulun.

c) The market value of costs for official registration of papers included:

• Cost of works and services of the state architecture and construction control; • Cost of registration of the certificate on the right of temporary use of the land plot; • Cost of registration of the technical specifications on the immovable property units; • Cost of architecture-planning conditions; • Cost of the design documentation. • Cost of registration cost or preparations of each document is based on official data

prepared by corresponding state structures.

d) The market value of shop-windows and shelves is based on the market data of the trading equipment manufacturers.

. e) The market value of services in carryover of goods is based on interview with

unskilled labor power. 3. RMU 957 one of the structures of the Ministry of Transport and Communications presented an estimate of the bus stop structures before shops were constructed on their sites, and information on indebtedness of the shops' owners to RMU 957, with which the bus stop lease contracts were concluded, in order to deduct these sums from cost of the shop buildings reconstruction.

37

Table 1.4. The results of calculation of the size of compensation for shop buildings: Attachment 4. Full costing of compensation for shop buildings

Name Type and conditions of buildings Total

internal area, m2

Total external

area, m2

Replacement valueMarket-value

of construction,

som

Documentation Registration

cost, som

Windows/ shelves costs

som

DemolitionCosts som

Total Shop value som

Deductionx Value of bus-sheds

som

Deduction rent dues

som

TOTAL, som:

Shop "Nur"

Shop building made of brick with monopitch slate roof, based on a strip concrete foundation.

27.3 33.8 86,586 25,441 6,400 3,000 121,427 9,362 1,000 111,065

Windows and doors are made of wood. Interior finish: plasterwork, whitewashing. Floors: concrete-clay blinding. Outer finish: no. Electrified. Derelict building.

Shop Bahtiyar


22.04 27.56 81,852 24,478 6,160 3,000 115,490 9,362 4,000 102,128

Windows and doors are made of wood. Interior finish: plasterwork, whitewashing. Floors: wooden boards. Commercial power supply, denied for non-payment. Partially destroyed.

Shop "Adis"


25.28 29.74 88,471 24,478 6,320 3,000 122,269 6,458 0 115,811

Windows and doors are made of wood. Interior finish: plasterwork, whitewashing. Floors: wooden boards. Electrified. Removed.

Total compensation for shop buildings: 329,005

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2. Methodology for the Valuation for the shops business losses 2.1 Methodology 4. A challenge for the valuation of the shops business losses is that it in the absence of proved accounting records of the affected stores it is impossible at present to know their original pre-impacts income. To overcome this problem the following method was adopted:

a. The basic income valuation was done based on the current income of a model shop that has not been affected. b. As the affected stores could be originally different in income from the model store their original income was assessed through observable factors17. This was done by comparing the stocking volume/variety of goods currently sold in the model store with the assumed stocking volume/variety of goods of the affected stores prior to impact. This information was obtained through comparison of pictures (when available) and through interviews with shop owners, long-time customers and villagers. c. The income of each affected shop was then determined based on the percentage difference between the stocking volume/variety of goods of the model shop and the affected shops.

2.2 Determination of monthly income of the model store 5. The current income of the model store vas assessed by documenting empirically the transactions in the store for a number of hours. This data-taking operation was repeated for two days and led to the determination of the hourly income of the store. Based on this information the valuators determined the daily income based on a 12 hours store opening day. The monthly income was determined by considering a 30 days month. Based on this approach the monthly income of the model store was assessed at 222,090 som x month. Table 2.1 details the information gathered to determine this figure. Table 2.1. The results of the model shop "Kanykei" examination: shop Earnings on

22.06.2011 Earnings on 23.06.2011

Average hour earnings

Average day earnings

Average month

earnings Som Som/hour Som Som/hour Som/hour Som/day Som/month

Kanykei 6 710,00 559,17 8 096,00

674,67 61.007 7,403 222,090

2.3 Stocking volume/goods variety of affected shops compared with model shop 6. It is assumed that the amount of earnings of a shop depends on operating time of the shop and volume/ assortment of merchandise. In the course of the shops examination it has been found out that the original, pre-impact volume/assortment of goods of the affected shops considerably differed. Table 2.2 below compares volume assortments of goods in the three affected shops with the model shop. Table 2.2. Shares of names of goods in shops, as compared with that in the shop "Kanykei" Location v. Kara-Bulun v. Kara-Bulun v. Kara-Suu v. Kara-Bulun Name Shop "Nur" Shop "Bahtijar" Shop "Adis" Shop "Kanykei" Current goods volume/variety compared with shop "Kanykei"

100.0%

40.0%

80.0%

100.0%

17 The use of observable material factors was needed given the absence of acceptable income records.

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2.4 Determination of Monthly income of affected stores 7. Based on the above parameters for goods variety/volume, the monthly income of each affected shop was determined. Details are in table 2.3. Table 2.3. Calculation of the shops' revenues

Name Earnings, som/month Note Shop "Nur" (kara Bulun) 222 090 100% of model shop income Shop "Bahtijar" 88 836 40% of model shop income Shop "Adis" 177 672 80% of model shop income

8. Following the calculation of revenues the calculation of the net-income of the stores was carried out by deducing sales profit and operational expenses from the revenues.. 9. The examination of financial and economic activity of the shops indicates that the average gain margin made on the sales is 15-25 %. Based on this information the proportion of income for goods purchase was averaged to 80% and the proportion of gain margin was averaged to 20%. As per operational costs all expenses which born by the shop owner have been considered. The share of operational expenses ranges from 2.9 % to 3.6 % of the shop's revenues. The calculation of net-income of each affected store is provided below in table 2.4 Table 2.4. Calculation of the cost value share and operational expenses in the earnings

Name Shop "Nur" Shop "Bahtiyar" Shop "Adis"

Location Kara-Bulun Kara-Bulun Kara-Suu A. Revenue from sales 1. Gross Revenue from sales 222, 090.00 88, 836.00 177, 672,002. Cost of goods 177, 672.00 71, 069.80 142, 137,603. Net Revenue from sales 44, 418.00 17, 767,20 35, 534,40B. Operating expenses Electricity 600.00 400.00 600.00Taxes 500.00 500.00 500.00Land tax 550.00 550.00 550.00Transport charges from At-Bashy 2, 400.00 1, 200.00 1. 800.00Transport charges from Bishkek 3. 060.00 0 1, 530.00Monthly Rent of bus-stop, 41.67 83.33 83.33Total operating expenses 7, 151.67 2, 733.33 5, 063.33C. Net Profit (A.3 –B) 37,266.33 15, 033.87 30, 471.07Expenditure+cost price share in income earned 83,2% 83,1% 82,8%

10. As the Resettlement Plan compensation policy for business losses provides an allowance based on 3 months of net-income the business losses compensation to each AP the amounts to Som248,313.8. The details are provided below in table 2.5.

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Table 2.5. Calculation of net profit and the size of compensation for losses in business

Indicator Monthly income to be compensated Net profit, som/month Total, som

Kara-Bulun village Shop "Nur" 3 37 266.33 111 798.99Shop "Bahtiyar" 3 15 033.87 45 101.61

Kara-Suu village Shop "Adis" 3 30 471.07 91 413.21Total compensation: 248 313.81

3. Calculation of the amount of compensation for trees 10. All affected trees are wood trees and include the following species: willow,189 trees; Poplar, 21 trees; and Elm, 1 tree. For matters of value calculation the species difference between the tree is considered as non relevant. The trees I fact will be valued based on value of firewood and wood volume of the cut down tree based on the following formula:

P = C x V

Where Р – is the cost of a cut down tree, С – is the cost of 1 м3 of wood, V – is the tree volume. 12. The Cost of 1 cubic meter of firewood is between 350 to 400 som/m3. as established by the official letter of the Chamber of Commerce and Industry of the Kyrgyz Republic, No.02-02/59 of June 20, 2011. 13. The methodology for the assessment of the volume of wood was as follows: i. For easiness and rapidity of assessment the affected trees where subdivided in five width classes and each tree’s width was assumed to be the average between the upper and lower margin of each class. Based on this, an average tree x tree species was identified for each class. ii. The height of the average tree in each class was identified based on the height indicated for a tree of that width in the Manual for Taxation of Forests of the Kyrgyz Republic (A.B. Chotonov, ed.). This allowed to determine an average tree width/height for each tree species affected and for each class. iii. The wood volume of each average tree width/height was then determined by adopting the Manual’s volume value for that tree width/height. 14. The figures obtained through the above elaborated method are provided in table 3.1below

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Table 3.1. Calculation of volumes of trees Tree

Indicator

Diameter, cm <6 6-16 16-32 32-48 > 48

Willow Height, m. 3 5 9.5 13.5 15 Volume, м3 0.004 0.031 0.2 0.747 1.6

Elm Height, m 4 7 11.5 16 17.5 Volume, м3 0.006 0.034 0.234 0.865 1.83

Poplar Height, m. 9 12.5 17 21 23 Volume, м3 0.0117 0.0591 0.303 1.01 1.85

The tree’s height was standardized based on the average height of each tree species The diameter taken was the average of each group.

15. The table below details the average value of each width category based on a wood unit value of Som375/m3: Table 3.2. Cost and quantity of trees by groups

Indicator

Volume, m3

<0,3 0,3-0,6 0,6-0,9 0,9-1,2 > 1,2 Compensation, soms 56 169 281 394 506 Quantity, trees 140 33 23 9 6 16. The summary table for trees is provided next in table 3.3. 4. Calculations of the size of compensation for fences, with partial replacement of materials 17. In the course of examination, the following types of fences have been revealed: wooden board fences, barbed wire fences and fences made of metal rods. All fences are movable and can be generally shifted without damage. If damages occur it can be easily remedied with little expense. Therefore the size of compensation was determined as the costs related with payment for carryover of the fence with partial replacement of the material. The amount to compensate relocation + possible damages has been calculated at Som12/m, based on interviews with unskilled workers of villages Kara-Suu and Kara-Bulun. Below, there are the results of calculations: Table 4.1. Types and length of fences Village Types and length of fences

Wooden board fences Barbed wire fences Metal rod fences V. Kara-Suu 245 900 20 V. Kara-Bulun 225 142 50

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Table 4.2. Cost of compensation for shifting of fences with partial substitution of the material

Indicator Length, m Cost for 1 rm Total v. Kara-Suu Wooden board fence 245 12 2940Barbed wire fence 890 12 10680Metal rods fence 20 12 240Total for the village 1155 13860v. Kara Bulun Wooden board fence 225 12 2700Barbed wire fence 142 12 1704Metal rods fence 50 12 600Total for the village 417 5004Total: 1572 18,864

Table 3.3. The amount of compensation and quantity of trees by groups and villages Village

Groups of trees by volume, m3

Total, quantity of trees

Total, compensation, som <0,3 0,3-0,6 0,6-0,9 0,9-1,2 > 1,2

Quantity Cost Total Quantity Cost Total Quantity Cost Total Quantity Cost Total Quantity Cost Total Kara-Suu 129

56

7256

19

169

3206

17

281

4781

1

394

394

1

506

506

167

16 144

Kara-Bulun 11

619

14

2363

6

1688

8

3150

5

2 531 44

10 350

Total:

140

7 875 33

5 569 23

6 469 9

3 544 6

3 038 211

26 494

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ANNEX 5 TERMS OF REFERENCE FOR THE GRG

A. GRG establishment and composition 1. The GRG will be established for 3 months starting the disclosure of the RP. The GRG is tasked with all activities needed to discuss a grievance, assess its validity, assess the scope of eventual impacts, decide eventual compensation needed and instruct/facilitate the functioning of the grievance redress mechanism. The GRG is composed at different levels of appeal by the following individuals/officers:

a. Local level LPC Head of ayil okmotu Representative of the RMU Ombudsman of Naryn Oblast 3 representatives of AP (selected after the Public consultation) Supporting NGO

b. Regional Level LPC Representative of the RMS Representative of the RMU 3 representatives of AP (selected after the Public consultation) Ombudsman of Naryn Oblast Supporting NGO

c. Central Level Representative of IPIG Representative of the RMS Representative of the RMU 3 representatives of AP (selected after the Public consultation) Ombudsman of Naryn Oblast Supporting NGO

2. At each level of appeal, the GRG will be assisted as needed by the professional capacity needed to solve each specific case. This will include among others:

• Representatives of the local Governments • Representatives of the State Agency for Architecture and Construction • State Registration Services • Ministry of Agricultural • State Agency for Environment and Forestry • Ministry of State Property • Ministry of Foreign Affairs

B. Functioning of the GRG within the Grievance Redress Mechanism 3. The grievance redress mechanism (GRM) involves the following 4 stages appeals:

• Local (Village). The grievances will be first lodged at the level of the complainant’s village community. The complainant will report his case to the Local Point of Contact (LPC) who will be officially appointed on behalf of MOTC to promptly process and respond to AP’s queries and complaints. The LPC will trigger the action of the Grievance Redress Group (GRG) which will assess the situation and seek a solution through consultation with complainants, local Roads Maintenance Unit (RMU) the Naryn Ombudsman, the selected AP representatives and the supporting NGO. After consulting with IPIG the representative of the RMU will take the final decision on the complaint cases and decide whether the complaint is eligible or not.

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• Regional Level. If within 15 days, the complaint is not solved, the AP assisted by the LPC, the selected AP representatives, the Naryn Ombudsman and the supporting NGO, will raise its grievance to MOTC’s regional office the Road Management Service. After consulting with IPIG, the representative of the RMS will take the final decision on the complaint cases and decide whether the complaint is eligible or not.

• Central Level: if within additional 15 days the grievance is still not resolved at Regional Level the complainant will further raise the issue to MOTC’s headquarters in Bishkek again with the support of the LPC, AP representatives, the Naryn Ombudsman and supporting NGO. The representative of the IPIG will decide on the eligibility or not of the complaint case.


4. GRM proceedings will entail one or more meetings for each complaint and may require field investigations by specific technical or valuation experts. Grievance cases shared by more than one complainant may be held together as a single case 5. For deliberations at the local level, the meetings will be held in the village of the complainant. To simplify procedures and reduce costs the same will happen for appeals at regional level; in this cases the representatives of the RMS will travel to the appropriate villages. For appeals at central level the meetings will be carried out at the Oblast level in Naryn. In these cases the representative of the IPIG will travel to Naryn. C. TOR for specific members of the GRG C.1 The Local Point of Contact (LPC) 6. Once the LPC Receives written notification of a complaint s/he will:

a. draft a complaint memo to be signed by the complainant and the LPC indicating name of complainant, date and place of presentation of complaint, description of complaint;

b. Send the complaint memo to all members of the local level GRG, summon them for a GRC meeting and establish the date of the first and (if needed following) grievance redress meetings

c. Request village authorities to organize the meeting(s) d. Convey requests and enquiries of the complainants to MOTC and to the other

members of the GRG at village level e. Maintain records of each meeting and each communication between him/her and the

complainants. f. participate as a witness to appeal cases at all levels

C.2 Supporting NGO (SNGO) 7. Once notified of a complaint an summoned by the LPC to a grievance meeting the SNGO will:

a. contact the complainant(s) and draft a note with their understanding of the complaint; b. explain to the complainant(s) the functioning of the GRM and the RP compensation policy c. Participate to all grievance meetings, provide opinions and analysis, take minutes of the discussions d. Accompany eventual assessment/valuation specialists in the field e. Prepare a position report at the end of the meeting(s) and forward it to complainant, RMU

and IPIG; f. Participate to appeal cases at all levels and provide inputs to appeal meetings deliberations

and to meeting final reports. g. In case of unsolved cases gather the requests of appeal of the complainants and forward

them to the RMU or RSU as it is the case.

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h. Carry out the above for all appeals C.3 Ombudsman 8. Once notified of a complaint an summoned by the LPC to a grievance meeting the Ombudsman will:

a. contact the complainant(s) and draft a note with his/her understanding of the complaint;

b. Participate to all grievance meetings, provide opinions and analysis, take minutes of the discussions

c. Accompany eventual assessment/valuation specialists in the field d. Prepare a position report at the end of the meeting(s) and forward it to complainant

and RMU e. Participate to appeal cases at all levels and provide inputs to appeal meetings

deliberations and to meeting final reports f. Carry out the above for all appeals

C.4 RMU Representative 9. Once notified of a complaint and summoned by the LPC to a grievance meeting the RMU representative will:


b. Participate to all grievance meetings, provide opinions and analysis, take minutes of the discussions

c. Accompany eventual assessment/valuation specialists in the field d. Based on the position reports of SNGO and Ombudsman and on his/her

understanding of the case prepare the final grievance report and recommendations to be sent to complainant, other GRG members and IPIG. The report may indicate that: i) the case is solved without further action; ii) that the case is solvable but requires compensation or other action or iii) that the case remains unsolved.

e. If the complaint is considered valid and the needed compensation/action is approved by IPIG proceed for the delivery or compensation or for the execution of the redress action.

f. When the redress action is carried out prepare a report to be signed by complainant(s), SNGO and Ombudsman.

g. When prompted by the LPG that a complainant with an unsolved grievance wants to lodge the complaint at a higher appeal level inform RMS and IPG and proceed with the organization of the regional level appeal meeting.

C.5 RMS Representative 10. Once notified that a complainant has lodged an appeal case at regional level and that an appeal meeting has been scheduled the RMs representative will travel to the complainant village and will:


b. Participate to the appeal meeting, provide opinions and analysis, take minutes of the discussions

c. If needed summon again assessment/valuation specialists and accompany them in the field d. Based on the position reports of SNGO and Ombudsman and on his/her

understanding of the case prepare the final grievance report and recommendations to be sent to complainant, other GRG members and IPIG. The report may indicate that: i) the case is solved without further action; ii) that the case is solvable but requires compensation or other action or iii) that the case remains unsolved.

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e. If the complaint is considered valid and the needed compensation/action is approved by IPIG proceed for the delivery or compensation or for the execution of the redress action.

f. When the redress action is carried out prepare a report to be signed by complainant(s), SNGO and Ombudsman.

g. When prompted by the LPG that a complainant with an unsolved grievance wants to lodge the complaint at a higher appeal level inform RMS and IPG and proceed with the organization of the central level appeal meeting.

C.6 IPIG Representative 11. The IPIG representative will open a file on each complaint case and keep record of all final grievance reports. For each grievance case the IPIG representative will decide whether the requested action or compensation is warranted or not. If warranted the IPIG representative will inform of his/her decision the complainant, the SNGO and the Ombudsman and will instruct the RMU and RMS representatives to proceed in the implementation of the action/compensation. 12. Also, once notified that a complainant has lodged an appeal case at central level and that an appeal meeting has been scheduled the IPIG representative will travel to Naryn to:


b. Participate to the appeal meeting, provide opinions and analysis, take minutes of the discussions

c. If needed summon again assessment/valuation specialists and accompany them in the field d. Based on the position reports of SNGO and Ombudsman and on his/her

understanding of the case prepare the final grievance report and recommendations to be sent to complainant, and GRG members. The report may indicate that: i) the case is solved without further action; ii) that the case is solvable but requires compensation or other action or iii) that the case remains unsolved.

C.7 Representatives of the APs 13. The representatives of the APs will

a. Participate to all grievance redress meeting both in the complainants village and in Naryn. b. Provide to the RMU, RMS and IPIG representatives as relevant with a position note to

be reflected in the final meeting report. . C.8 Representatives of the Local Government of the complainant village 14. The Local Government representative will:

a. Assist LPG and RMU in the organization of grievance meetings and in communicating with the complainants

b. Participate to all grievance redress meeting both in the complainants village and in Naryn. c. Provide to the RMU, RMS and IPIG representatives as relevant with a position note to

be reflected in the final meeting report. . C.9 Professional Experts 15. Once summoned to provide expert advice for the assessment or valuation of an impact claimed by a complainant the relevant professional expert will carry out the needed investigations and prepare a report to be handed to the complainant and the other members of the GRG.

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ANNEX 6: MINUTES OF THE FINAL CONSULTATION MEETINGS A. MEETING IN KARA BULUN (7 July 2011, 10-13 o’clock)

Attended by: ADB mission:

Mr. Sunil Mitra - Senior Transport Specialist, ADB Mr. Lanfranco Blanchetti-Revelli – Senior Social Development and Resettlement

Specialist, ADB Mr. Nurzhan Dzhumabaev – Land Acquisition and Resettlement Consultant,

KYRM Mr. Mirdin Eshenaliev – Project Officer, KYRM Ms. Gulaim Korchubekova – Interpreter

MOTC:

Mr. Kubanycbek Mamaev – State Secretary, MTC Mr. Ruslan Satybaldiev – BNT Regional Coordinator, IPIG Ms. Svetlana Keldibaeva – Safeguard Specialist, IPIG Ms. Renta Esembaeva– Communication Officer, IPIG Ms. Yulya Amanbaeva– Contract Administration Specialist, IPIG

Independent Evaluator:

Mr. Illya Nirenberg - Independent evaluator assistant Consultant:

Mr. Md. Ahsan Habib – Senior Resident Engineer Mr. Iwao Yokokawa –JOC President, Senior Pavement / Materials Engineer Mr. Keldibek Ibraev – Deputy Resident Engineer Ms. Nargis Djoldoshova – Interpreter Mr. Aibek Abdilasizov – Interpreter Mr. Ernis Imanaliev – Office Manager Mr. Mirlan Beksultanov - Inspector

Contractor:

Mr. Jing Chaohong – Project Manager Mr. Ulan Bekemirov – Interpreter

NGO:

Ms. Raya Kadyrova – Foundation for Tolerance International, NGO Ms. Maya Eralieva – Forum NGO-ADB, NGO

Ombudsman

Mr. Bakyt Rysbekov – Ombudsman on Naryn region.

Attendance: 30-40 people came at the meeting. All the 19 APs were invited; 13 of them came.

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Subject: Report on resettlement and land acquisition activities done The meeting in Kara-Bulun was opened by Mr. Mamaev, State-secretary of MOTC. He explained that purpose of the meeting was to report what actions have been taken so far in respect to resettlement and land acquisition with observance of requirements of the KR legislation and ADB policy and introduced to public the representatives of ADB, MOTC, Consultant and Contractor participated at the meeting. At the beginning of the meeting a list of affected people in Kara-Bulun village was announced to check those who absent. Thus 6 APs out of 19 were absent due to different reasons. They are: Sairakunov Beishenbek, Sydykov Orozbek, Ahmatov Rahat, Alybaev Tilek, Kazygulov Bayaman, Abdyshev Mirbek. Also a brochure was distributed to APs (in Kyrgyz and Russian) with general information on project impacts, ADB resettlement policy, compensation eligibility and entitlements as well as grievance redress mechanism. Before questions from APs Mr. Mamaev explained the information contained in the brochure.

1) MOTC is an Executive Agency of the project financed from 20 mln.USD grant of ADB. While considering resettlement and land acquisition issues the ADB Resettlement Policy of 1995 will be followed. The ADB is in the process of preparing the final Resettlement Plan with taking into account KR legislation and ADB policy. After translation of the final Resettlement Plan it is subject to approval by the Government. After approval its content in three languages (English, Russian, Kyrgyz) will be disclosed to public by means of publications in newspapers as well as placement in web-sites of MOTC and ADB. 2) Since compensation eligibility and entitlement are financial issue (to be paid from the state budget) adoption of the special Governmental Decree requires comments and concordance from related ministries like Ministry of Finance, Ministry of Economical Development and Ministry of Justice. In this connection MOTC addressed to above mentioned ministries with request 1) to approve Resettlement Plan and authorize Mr. Mamaev for Resettlement Plan implementation, 2) to use state budget to pay to independent evaluators, 3) to use state budget to pay compensation to APs. Actually we have received signatures from all related ministries except for the Ministry of Justice. This is the final ministry which checks lawfulness of such action. 3) A set of documents on APs together with all measurements, calculations, photos made by independent evaluators has been submitted to State Architecture (GosStroy) for expertise. This agency will check for correctness of figures indicated in those documents and give a final conformance report. Only then we will be able to tell you the exact compensation figures. 4) In total there are 3 affected shops: 2 in Kara-Bulun and 1 in Kara-Suu which has been demolished already. However the shop owner is entitled to compensation since he/she caused financial and other affects. There are 211 affected trees in total: 44 in Kara-Bulun and 167 in Kara-Suu. Wooden fence – 470 meters in total: 225 meters in Kara-Bulun and 245 in Kara-Suu. Barbed wire fence – 1032 meters in total: 142 meters in Kara-Bulun and 890 meters in Kara-Suu. Metal fence – 70 meters in total: 50 meters in Kara-Bulun and 20 meters in Kara-Suu. 5) We are going to set up a commission which will receive and process complaints from local APs. The complaints will be considered at three levels: local, oblast and republican. The commission will compose of a representative from MOTC, for this position I propose a candidature of Ibraev Keldibek, DRE, then representatives of the local government, NGO and 3 selected APs. If the complaint is not solved within 15 days at local level the complaint will be brought to oblast level and solved with participation of a representative of the Ombudsman. If

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within additional 15 days the complaint is still not solved it will be brought to republican level, i.e. to consideration of MOTC’s headquarter in Bishkek. If within a month MOTC does not solve the complaint, the issue will be settled by the court. 6) ADB headquarter representative, Mr. Lanfranko, reported the following: I want to bring together 3 elements given by Mamaev: 1) ADB policy, 2) Government policy, 3) Combination of these 2 policies. -As for entitlement to compensation the ADB policy says that all affected people are to be compensated or at least to be rehabilitated even if they occupy the land illegally. The land itself cannot be compensated since it is within the ROW. However all the rest will be compensated, even allowances will be provided for rehabilitation. The Kyrgyz law is not clear in respect to compensation to those who illegally occupy the land. Having two options of law interpretation we decided to be more generous and will be generous. The Government is making effort to compensate all APs and provide allowances. As for compensation for building the ADB policy says that property of APs is to be compensated at its replacement cost, i.e. cost of construction materials, labor, transportation – at market price. But the problem is that 3 shops were built over existing bus sheds rented by the shop owners from MOTC. It would be impossible to compensate for these shops since the shop owners are in situation of illegality. The land on which shops built are within ROW. That is why first it is necessary to reconstitute the shops’ legality to entitle the people for compensation. There are 2 elements why illegality: 1) While modifying rented bus sheds into kiosk, the owners had to use light construction materials. Instead of it they took away construction materials of existing bus sheds or demolished them totally. But the materials belong to the state. 2) Bus sheds were rented. But for several years rental has not been paid at all. Thus compensation for shops will be made at replacement cost but with deduction of cost of construction materials of the bus shed and non-paid rental. However reduction amount will not exceed 10% of total compensation amount. The Government will also compensate loss of business. This is a grant that difficult to find. We recognize that road construction cause loss of business however it is difficult to determine exactly what is caused by road construction and what by other factors. We do not have clear figures of income due to lack of accounting, tax declarations kept by shop owners, only cost of patent. In fact business never stopped, maybe for a short period only. However the Government decided to take a very fair decision. We assume that the business in these shops fully stopped for 3 months: 2 months for construction of a new shop and 1 month for business rehabilitation. How we calculated average income of these shops? We took another successful business fully operated and not affected. Independent evaluators took 2 days observations (8 hours every day) recording all incomes. But the income we calculated based on this shop observation was not high. Then we decided to consider variety and volume of products sold in the shop. By comparing variety and stock of modern stores, this method gave more income amount. And we chose that way for compensation. Trees will be compensated at market value. Affected trees are not productive and to be considered as wood. Volume of trees will be calculated according to official parameters taken from Environmental Agency. They will be divided into several categories depending on their diameter. Some trees are very little and it is not clear should they be compensated or not. But in compliance with the ADB policy we will compensate them too. Most of fences are within the ROW. They should be moved. We will pay for labor/shifting of fence and possible damages. Rates for labor were taken from local people as 12 soms per a running meter. Allowances will be paid to those classified as poor. There are three categories of poor: relatively poor, medium poor and extremely poor. Not all APs are poor. 24 APs out of 44 are poor. Official statistics data cannot be applied. Poverty is to be assessed based on visible assets of people like

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number of livestock, type of car, availability of agricultural equipment, condition of house. First it was decided to pay allowance in amount of minimal wage rate (app. 600 som) but it was too small amount, and it was decided to pay minimum of subsistence which is appr. 3595 som. Severely affected people suffering 10% income loss are also entitled to allowance. They are owners of 3 shops. They will get appr. 3000 som (cost of transportation, truck/a day). We should appreciate MOTC and ADB for their effort. Thank you for your coming.

QUESTIONS AND ANSWERS

1. Question (from AP, Kasymova Layla): Will you construct sidewalks? Answer (Mamaev): By initial design the sidewalks were not foreseen. But for safety purposes we have changed the design and thus considered construction of sidewalks on both sides of the road. In fact if we followed the initial design we would have more affects. We changed road parameters but these changes did not affect the budget. ADB requested us to follow their resettlement policy, and in this connection civil works were stopped in 2 villages. But to avoid dust problem we asked permission for construction of at least 8 meters of asphalt which will be laid soon. Now we will ask permission for sidewalks. 2. Question (from AP): There will be parking space in front of the shops so that cars can stop at our shops? Answer (Mamaev): First we have to come into agreement about compensation issue. If we do not come into agreement the issue will go to the court. No other way. After reaching agreement we will demolish the shops. Road is public, no obstacles should be for the road construction. We foresaw shoulders for cars parking, 2.50 meters. Every point will be checked and calculated: junctions, pipes, etc. This is a technological process. First we have to finish main works. Also we have to arrange speed bumps in two villages. Maximum speed is 80 km/hour. But nowadays the maximum speed people drive at is 120-160 km/hour. We will have to get approval for these speed bumps from the Stat Auto Inspection. 3. Question (from AP): Where did you take information on poor APs, from statistics committee or from interview? How do you classify people? Answer (Mamaev): I applied to Social Protection Ministry for consultation. We took information from rayon, village statistics committees, also used information from interview. Minimum of subsistence for the republic is 1600 som, for Naryn oblast – 3 595 som (high land). I asked the Minister of Social protection to provide a specialist to assist us in defining and classifying poor APs. Still waiting for a specialist. 4. Question (from AP): How will you compensate for fence shifting? Answer (Mamaev): We will pay only for shifting (labor) plus 20% for possible damages. 5. Question (from AP): If I cut my tree without permission of Environmental Protection Agency I will be penalized up to 10000 som per a tree. Now you made us to cut trees. How will you compensate us? Answer (Mamaev): Here you have bushes. We have an established methodology for calculation of volume of bush. The thickest trunk is taken as a basis and its cubage is calculated. This bush is not productive and used only for wood. The Chamber of Commerce and Industry has fixed rates for wood for each region. I was told that 1 m3 of wood would cost not less than 350 som. In any case we will be provided with official wood unit rates to be applied for APs trees compensation. 6. Question (from NGO): I have acquainted myself with calculation provided unofficially by Mr. Mamaev. In calculations not all figures are correct. What about Resettlement Plan? Will it

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be distributed to public? After getting acquainted with the RP people will have more questions to ask. What about registration of new business, what about loan taken by Elmira? Answer (Mamaev): That is why we sent all documents with figures to Gostroy. This agency has a certificate for conducting expertise. They will correct figures, increase or reduce. After Gostroy’s expertise we will meet again with people. This document will be considered separately but later on will be an Annex to the Resettlement Plan. The Ministry is not against to pay, but payment should be done on the basis of a justified, fair decision. While taking a decision state interests and people’s interests should be taken into consideration. 7. Question (from AP): When will you start asphalt laying? Harvest is approaching as well as rains. Answer (Contractor): If ADB permits us to start asphalt pavement we will be able to complete binder course by end of July. Answer (Mitra): We have just received such request from MOTC. No civil works stopped but we cannot permit to do entire works till compensation issue is solved. Won’t we get claims from owners of the shops if we proceed with all civil works? Could we be assured? At present ADB works with the Government, MOTC to speed up compensation payment so to be able to continue construction of drains, culverts, shoulders, sidewalks. Answer (Lanfranko): We stop not essential works. We can proceed with all works only after compensation issue is solved. Answer (Mamaev): We do not understand each other. Construction of asphalt inside two villages was considered 1-1.5 months ago at the meeting with participation of Indah, Caren. At that time I explained that if we did not put asphalt we would face another problem –dust problem. We requested for approval and it was recorded in the Minutes, approval was received, we informed the Consultant by phone to start construction of drainages and 8 meters of asphalt. If verbal instruction is not sufficient I will sign in Bishkek a required document. At least we can leave 50 meters of land near the shops and continue construction in the rest area. By Today we have got approval for compensation from the Ministry of Finance, Ministry of Economical Development. That is why in any case we will pay compensation and demolish the shops. Of course we will have disputes on each volume but everything will be discussed and we will come into agreement. I and independent evaluator will prove our figures. This is the seventh case in my practice. We even demolished, bought and registered houses in previous projects. There were tensions of course, but we overcame all. Thus I request ADB once more time to give permission for all construction works. Answer (Lanfranco): We can stop activities near the shops and continue the works in other places inside the villages. Do you agree with this? Answer (Layla Kasymova, AP): Yes, we agree. 8. Question (from AP): Can you put speed bumps yourselves? Answer (Mamaev): Of course we will do it for you. But it will be on the wearing course. It is better to put speed bumps from asphalt and not from rubber. In any case this should be agreed upon in advance with State Auto Inspection. 8. Question (from representative of Ombuldsman): Who is responsible for safety during the road construction period? Answer (Mamaev): A road was handed over to a Contractor. Traffic regulation scheme – approved by State Auto Inspection. All traffic safety requirements should be followed by the Contractor, controlled by the Consulted and reported to MOTC. The Consultant administers the project implementation.

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9. Question (from representative of Ombuldsman): They use trees for decoration and shadow purposes and not for wood. They bring water to irrigate trees from 20 km distance. It does not take one year to grow them. Why don’t you take into account the cost of all these? Answer (Lanfranco): There are two types of trees: productive and non-productive. These trees are non-productive, means no income. You can use them wherever you want but no income. Since no income you will be compensated as for wood. Yes, you use but no income. 10. Question (from head of rural government): You raised the road level. Now our fences are at the same level as the road. Could we get support from ADB and Government in providing us with metal fence to raise the existing fence level? Answer (Mamaev): We cannot provide you with metal fence. You just shifted the fences and we will pay only for shifting of those fences. 11. Question (from head of rural government): Will you construct channels with pipes at the entrance to each yard? Answer (Mamaev): First we will complete main civil works. Then we will consider other works. In any case we will put pipes for irrigation. They are foreseen by the road design. 12. Question (from AP): Can you guarantee compensation so to allow the constructors to proceed with road construction before compensation is paid? Answer (Mamaev): This issue is under control and will be solved. If you do not trust me we will continue asphalt pavement except for furnishing, if you trust – demolish the shops voluntarily. Identification of AP representatives for the Grievance Redress Group: Three APs were selected and elected as members of the above mentioned commission. They are: Kasymova Leila, Abdramanov Ryspek, Tologonova Elmira. Candidature of DRE, Ibraeev Keldibek, was rejected by APs due to his rudeness, improper behavior towards local people. Instead of him JOC inspector, Beksultanov Mirlan was elected as a member of the commission, local representative of MOTC. At the end of the meeting, Mr. Mitra, ADB representative, made a speech: My respect to Mr. Mamaev and local people. I understand the need for completion of civil works quickly and I understand what will happen if new complaint comes and comes. Every time ADB gets complaints from new affected people. That is why we are very concern. Now I would like to get your consent for construction works. If we receive complaint again we will have to stop activities to investigate the case. That uses some time, construction time. But outside the villages we will not stop works. Consultant and Contractor can proceed with construction works. May I ask you are you all agreeing if the construction works go on? Answer: Yes, we agree Sunil Mitra: Works outside the villages will not be stopped. Lanfranco: This is what is going on outside the villages but inside the villages the main works will not be done. The works will not be started till the date when shops get compensations. Mamaev: The demolition of shops will not take place until you receive the compensation. Lanfranco: When you receive the compensation we shall come again and talk to you. Mamaev: Thank you everybody for participating in this meeting.

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B. MEETING IN KARA SUU (7 July , 3-5 o’clock) Attended by: ADB mission:

Mr. Sunil Mitra - Senior Transport Specialist, ADB Mr. Lanfranco Blanchetti-Revelli – Senior Social Development and Resettlement

Specialist, ADB Mr. Nurzhan Dzhumabaev – Land Acquisition and Resettlement Consultant,

KYRM Mr. Mirdin Eshenaliev – Project Officer, KYRM Ms. Gulaim Korchubekova – Interpreter

MOTC:

Mr. Kubanycbek Mamaev – State Secretary, MTC Mr. Ruslan Satybaldiev – BNT Regional Coordinator, IPIG Ms. Svetlana Keldibaeva – Safeguard Specialist, IPIG Ms. Renta Esembaeva– Communication Officer, IPIG Ms. Yulya Amanbaeva– Contract Administration Specialist, IPIG

Independent Evaluator:

Mr. Illya Nirenberg - Independent evaluator assistant Consultant:

Mr. Md. Ahsan Habib – Senior Resident Engineer Mr. Iwao Yokokawa –JOC President, Senior Pavement / Materials Engineer Mr. Keldibek Ibraev – Deputy Resident Engineer Ms. Nargis Djoldoshova – Interpreter Mr. Aibek Abdilasizov – Interpreter Mr. Ernis Imanaliev – Office Manager Mr. Mirlan Beksultanov - Inspector

Contractor:

Mr. Jing Chaohong – Project Manager Mr. Ulan Bekemirov – Interpreter

NGO:

Ms. Raya Kadyrova – Foundation for Tolerance International, NGO Ms. Maya Eralieva – Forum NGO-ADB, NGO

Ombudsman

Mr. Bakyt Rysbekov – Ombudsman on Naryn region.

Attendance: About 40 participants. All 27 APs were invited, 15 were present.

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Subject: Report on resettlement and land acquisition activities done 1. The meeting in Kara-Suu was opened by Mr. Mamaev, State Secretary of MOTC. He explained that purpose of the meeting was to discuss about impacts of the Project and compensation to affected people. He introduced to public the representatives of ADB, MOTC, Consultant and Contractor, NGOs, representative of the Ombuldsman participated at the meeting. 2. At the beginning of the meeting a list of affected people in KaraSuu village was announced to check those who absent. Thus 12 APs out of 27 were absent due to different reasons. They Are: Tostokova Kanymbubu, Chikeev Bakyt, Baigazieva Kulipa, Kakisheva Osipa, Toktakunov Mukan, Tolomushev Mairambek, Shadaeva Abdrashit, Shigaev Zhumabek, Tumakov Asylbek, Kasymov Nurlan, Zhunusov Jakyp, Abylov Dairbek. 3. Two days before the meeting a brochure was distributed to APs (in Kyrgyz and Russian) with general information on project impacts, ADB resettlement policy, compensation eligibility and entitlements as well as grievance redress mechanism. After announcing the list of APs some local people were questioned why they have not been included into the list? They complained that the list was not full since there were other people living along the BNT road and not included into the list. In reply to this question and other related resettlement and land acquisition issue the following discussions took place: 4. Mr. Lanfranko reported that::

a. According to initial list there were 42 APs in both villages. Later on one of them died. After the list was replenished by 3 more APs in Kara-Bulun village including 1 medical point and 2 additional APs in Kara-Suu village. According to the final list a total number of APs in Kara-Suu and Kara-Bulun village is 46 including 27 private in Kara-Suu village and 18 private and 1 public in Kara-Bulun village. Mr. Mamaev added: Not everybody living along the BNT road should be in the list, only affected ones. Now we will proceed with 27 APs in Kara-Suu and after discussions a separate list will be prepared for additional APs not included into the list. Before getting other questions from APs Mr. Mamaev explained in brief the content of the brochure distributed to APs who attended the meeting. b.. MOTC is an Executive Agency of the project financed from20 mln.USD grant of ADB. While considering resettlement and land acquisition issues the ADB Resettlement Policy of 1995 will be followed. The ADB is in the process of preparing the final Resettlement Plan with taking into account KR legislation and ADB policy. After translation of the final Resettlement Plan it is subject to approval by the Government. After approval its content in three languages (English, Russian, Kyrgyz) will be disclosed to public by means of publications in newspapers as well as placement in web-sites of MOTC and ADB. c. In total there are 3 affected shops: 2 in Kara-Bulun and 1 in Kara-Suu which has been demolished already. There are 211 affected trees in total: 44 in Kara-Bulun and 167 in Kara-Suu. Wooden fence – 470 meters in total: 225 meters in Kara-Bulun and 245 in Kara-Suu. Barbed wire fence – 1032 meters in total: 142 meters in Kara-Bulun and 890 meters in Kara-Suu. Metal fence – 70 meters in total: 50 meters in Kara-Bulun and 20 meters in Kara-Suu. d. 24th June 2011 was fixed as a deadline for APs entitled for compensation. Based on ADP policy no compensation for land is needed since land is within the ROW. We have only 1 affected shop in Kara-Suu which has been demolished. We took all available

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documents for the shop and calculated income of the shop. Compensation for trees will be calculated according to established normative. Compensation for fence shifting – fixed unit rate (12 soms per 1 sq.m. ) plus 20% for possible damages.

QUESTIONS AND ANSWERS

1. Question (from AP): In my garden they excavated appr. 50 meters of irrigation channel. Why? Answer (Mamaev): If it is a public land, i.e. within the ROW, no compensation will be paid. If it is private but the government needs land the Government is entitled to withdraw land for public needs. Of course you can claim. The claims will not stop; they will come more and more. For this reason a special commission will be set up to receive and process claims from local APs. There are three stages of complaints consideration: local, oblast and republican. The commission will compose of a representative from MOTC, for this position in Kara-Bulun I proposed a candidature of Ibraev Keldibek, DRE, but his candidature was rejected by APs and we appointed inspector of the Consultant, Beksultanov Mirlan, then representatives of the local government, NGO and 3 selected APs. If the complaint is not solved within 15 days at local level the complaint will be brought to oblast level and solved with participation of a representative of the Ombudsman. If within additional 15 days the complaint is still not solved it will be brought to republican level, i.e. to consideration of MOTC’s headquarter in Bishkek. If within a month MOTC does not solve the complaint, the issue will be settled by the court. A set of evaluation documents on APs was prepared together with measurements, calculations, photos by independent evaluators. All these documents will be submitted to Gostroy for their expertise. If any comments from Gostroy they will work with independent evaluators to come into unanimous and fair opinion/agreement. Since compensation eligibility and entitlement are financial issue (to be paid from the state budget) adoption of the special Governmental Decree requires comments and concordance from related ministries like Ministry of Finance, Ministry of Economical Development and Ministry of Justice. In this connection MOTC addressed to above mentioned ministries with request 1) to authorize Mr. Mamaev to sign the Resettlement Plan to be implemented, 2) to use state budget to pay to independent evaluators, 3) to use state budget to pay compensation to APs. Actually we have received signatures from all related ministries except for the Ministry of Justice. This is the final ministry which checks lawfulness of such action. If the Ministry asks to change smth we will redo but I hope no objection will be received from that Ministry. I asked the Minister of Justice to sign the document by Friday evening. Also I applied to a Prime-Minister of KR, Mr. Atambaev A. to assist us in acceleration of the compensation implementation process. From his side Mr. Atambaev issued a special order to related agencies to give their comments and remarks as for compensation issue within the shortest period. If we get comments and remarks from related ministries the Resettlement Plan will be redone with taking into consideration those comments. For compensation we will use state budget. 2. Question (from AP): I live 15 meters far from the road. Heavy trucks passing through the road make noise and vibration and as a result many cracks appeared in my house. Nowhere to complain. When I claim they ask why do I live so close to the road? Answer (Mamaev): We will complete construction of the road. We will pave the road: 8 meters of asphalt plus shoulders and sidewalks. According to technical parameters speed limit is 80km/hour. Nevertheless people drive at 120-160 km/hour speed. Thus,

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after paving the road, speed bumps will be constructed inside two villages, not from rubber but from asphalt. These bumps will be marked by thermoplastic to be visible at night time. Of course all these arrangements first need to be agreed upon with State Auto Inspection. Nowadays technical parameters of transport are higher than technical parameters of the road. In past the Zhogorku Kenesh in old composition (Parliament) adopted a law which allows passing of heavy trucks on conditions that they pay compensation. At present 940 km of road in KR are under rehabilitation (BNT, Osh-SaryTash, Talas, etc). We have one option to save the road. Last Friday Zhogorku Kenesh (in new composition) adopted a law which prohibits passing of heavy trucks that exceeds 10 tn of weight. Excess weight trucks will not be allowed to enter the country. 17 control points will be constructed inside the country and at the boundaries of the country to control the weight. On-line control system will be implemented. At present this issue is under consideration of Babanov and Zhunusov. After the draft law is signed by them it will be submitted to a Prime-Minister, Mr. Atambaev, for his signature. 3. Question (from AP): I was not included into the list of APs. I cut the trees but not shifted the fence yet. Every year I plant raspberries, carrot. But this year because of lack of water everything got dried out. Answer (Ibraev): Since September we have been visiting all houses with representatives of Architecture, Land Engineering agency, Mustafa. We know who shifted who did not. Answer (Mamaev): Now we will proceed with 27 confirmed affected people. Not all affected 27 people are subject to allowance payment. For new AsS we will prepare a new list, but everything will be checked for compliance. We will work with Social Protection Ministry. We do not have exact figures for compensation and allowances now. We will get consultation as per rates (minimum of subsistence) of allowances to be paid to those classified as poor people. Proposal by APs: Three APs were selected and elected as members of the above mentioned commission. They are: Abylov Dayirbek, Barktabasov Kairat, Usenov Beishenbek. Question (from AP): Due to raise of road level the slop is very high now. Entrance (approach) to my yard is very steep. Who will take necessary measures? Myself or you? And what about paving the road junctions? Answer (Mamaev): Yes, according to design the road level was increased. But nevertheless in that places pipes will be installed as well as slopes will be regulated. But all this will be done after main civil works are completed. As for road junctions, according to technical specifications all main junctions will be paved at least 20 meters in stretch. But this is also to be done later. 4. Question (from AP): Will you be able to complete asphalt pavement by September? Harvest season as well as school season are approaching. Answer (Mamaev): In June at the meeting with participation of ADB representatives Indah, Caren I requested to start asphalt pavement to avoid dust problem. Today we have received permission from ADB for construction works inside the villages except for areas close to the shops. The Contractor ensures that will complete asphalt pavement by July 2011. Asphalt plant, materials of different fractions, bitumen are ready. 5. Question (from AP): The compensation will be paid after completion of construction works?

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Answer (Mamaev): After getting approval from the Ministry of Justice and signing of the Governmental decree we will get money from the state budget and distribute compensations and allowances. 6. Question (from AP): Can we use old pipes for our village needs? At present they are moved to Kara-Bulun. Can’t we stock them in Kara-Suu? Answer (Mamaev): Yes, these old pipes will be given for the village’s needs. But you live from local budget and we live from republican budget. Each pipe has its balance cost recorded in a certain budget. We have a special procedure to follow. Just wait a little bit. We are working on it. It will be solved. 7. Question (from Lanfranco): You say that in private land you are cultivating something but water flow was interrupted due to construction works. You plant raspberry and carrot? How many sq.meters do you have? Answer (by new AP): I have 5 sq. meters of private land. Besides I cut trees but I am not in the list. I was told that the road would be enlarged. Answer (Lanfranco): If your trees were within the ROW then you could not be compensated. Answer (Mamaev): No sense to discuss it without seeing ownership documents. First we have to check all documents. If ownership is confirmed the person will be added into the new list of APs. Now we will proceed with confirmed 27 APs. 8. Question (from AP): Thank you very much for your efforts (addressed to Mamaev). I fight only for justice. When I get compensation I will not take a som but will donate all for social needs of our village. (Applause). I would ask you to discipline the DRE, he is not capable to contact with people. Answer (Mamaev): I will leave my telephone number. If any claims contact me immediately I will take strict measures towards such people. From my side I ask all road specialists to be polite with local people and solve their problems promptly. 9. Question (from AP): Irrigation channel was excavated in my land for public needs by local people. The Contractor promised to pay but not paid yet? Also there are irrigation channels blocked up due to construction works. Answer (Mamaev): I was reported that all irrigation channels had been cleaned. If there are some, the Consultant and Contractor will take measures and clean them. 10. Question (AP): At the meeting hold on 11th June, we told about irrigation pipe at km. 416. In that area we plant 13 hectares of land. Water comes down from mountains and we get water according to a schedule. Within 4 days the pipe was full of 30 sm of sand due to a very low slope. Answer (Ibraev): Now the water is passing through the pipe without any problem. There was 70% of silting with a previous pipe. Answer (Mamaev): Check everything again. 11. Question (from AP): Very soon we will start transporting hay. The slope is high. Answer (Mamaev, Ibraev): Will be done. 12. Question (from AP): There is a borrow pit at km. 405. The road was deteriorated by the Contractor. We used that road to go to our pastures (Zhan Teri). At the meeting of 11th June we told about this problem. Answer (Beksultanov): The road condition is not bad. Answer (Mamaev): We will solve this problem. First the laboratory will check the material. If it is not suitable the Contractor will not use it. We have a Consultant who controls the Contractor, quality of all materials to be used in construction, mix design, fraction, etc. To ensure the road of good quality we should use construction materials of

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good quality. This road should serve 18 years. Time to time we will do some pavement repair works only. 13.Question (from AP): Whom should additional people apply to be entered into the list? Answer (Mamaev): To a commission. Question (by Ombuldsman): About disclosure of project information to people and weight control? Answer (Mamaev): There will be 17 check points including one in Torugart. Dislocation plan is available. Terminal is not of my competence. 14. Question (from AP): All heavy trucks belong to high-ranking officials. They will keep entering with 80tn weight but will register 60 tn. Answer (Mamaev): Control should be toughened. The Consultant will place an information signboard with all technical parameters of the road, scheme, cross sections to be placed at entrance yard of the local administration building. The Consultant was instructed before but not followed. Answer (Yokokawa): Tomorrow we will place the information. 15. Question (from AP): Will we be paid compensation for sure? Answer (Mamaev): No way back. Here are the representatives of ADB, NGO. All eligible APs will be compensated. 16.Question (from AP): How calculations of trees were made? Answer (Mamaev): Calculation of trees will be based on state methodology (Environmental Protection Ministry). The thickest trunk is taken and multiplied to a length. We get cubic meters. Chamber of Commerce and Industry will give official rates for 1 m3 of wood. Productive trees will be calculated in another way. Independent evaluators prepared their calculations. All calculations will be submitted to Gostroy for their expertise. 17.Question (from AP): Chinese people live in Tashrabat. They eat donkeys. But they eat only meat and viscera is thrown by them into the river. Then our cattle drink polluted water. Thus sanitarian conditions are not followed by Chinese people. Why they cannot dig a big pit and buried it up? Mamaev: We shall consider this issue with Contractor and he will get the due instructions. Head of local rural administration: If no more questions, let’s close the meeting. Thank you very much on behalf of local people and local rural administration. Mamaev: We will try to do our best to solve all your problems and complete the road successfully.

CAREC Transport Corridor 1 (Bishkek-Torugart Road), Project 1

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