3€¦ · Web viewIn Uzbekistan, this word means an organ of self-governance of citizens. Optimization of farms The process triggered by the Decree “On Optimization of Cropping

Ferghana Valley Water Resources Management Project – Phase I Resettlement Policy Framework and Specific Resettlement Action Plan

REPUBLIC OF UZBEKISTAN

FERGHANA VALLEY WATER RESOURCES MANAGEMENT PROJECT – PHASE 1

RESETTLEMENT POLICY FRAMEWORK AND

SPECIFIC RESETTLEMENT ACTION PLAN

(FIRST 37 FARMERS)

20 July 2009

CONSULTANTS:

Tahlil Center for Social Research/ Social Assessment LLC. (Team Leader Prof. Ayse Kudat)Under Management of the Project Implementation Unit

REPUBLIC OF UZBEKISTANMINISTRY OF AGRICULTURE AND WATER RESOURCESPROJECT IMPLEMENTATION UNIT

RP820

Ferghana Valley Water Resources Management Project – Phase I Resettlement Policy Framework and Specific Resettlement Action Plan Page 3

Contents Page

1 Description of the Project 8

1.1 Background to Ferghana Valley Water Resources Management Project 8

1.2 Project Area 8

1.3 Population and Project Affected People 10

1.4 Elements of Project that Affect Land Acquisition 10

2 Potential Impacts 11

2.1 Project components and activities that give rise to resettlement 11

2.2 The alternatives considered to avoid or minimize resettlement 19

3 Objectives of Land Acquisition and Resettlement Policy Framework. 20

4 Results of the Socio-economic Census of 37 Affected Farms 21

4.1 Introduction 21

4.2 Basic characteristics of Project affected leasehold farmers’ households 21

4.3 Agricultural Activities of Leasehold Farms, Assets and Incomes 23

4.4 Lands acquisition 27

4.5 Farmers’ awareness about the Project, readiness to participate and suggestions about the future land acquisition process 32

4.6 Risks related to land acquisition 35

5 Legal Framework 37

6 Institutional Framework 47

7 Eligibility / Right to Compensations and Assistance 48

8 Valuation of and Compensation for Losses 50

9 Compensation and Entitlement Matrix 56

10 Selection of Plots for Farmers Whose Existing Plots are Significantly Reduced During Land Acquisition 59

11 Provision with Housing, Objects of Infrastructure, and Social Services 59

12 Environmental Protection and Management 60

13 Public Participation 60

14 Integration with Host Communities 61

15 Grievance Procedures (Procedures for consideration and resolution of complaints) 61

16 Organizational Responsibilities for Implementing Resettlement 61

17 Implementation Schedule 62


18 Costs and Budget 65

19 Monitoring and Evaluation 73

Annex 1: Decree On Optimization of Cropping Areas and Increasing of Food Crop Production 77

Annex 2: Instruction On Constitution of a Special Committee (SC) in charge for development of proposals on optimization of farm enterprise plots 79


List of Tables Table 1. Suggested new and rehabilitated infrastructure and links to the resettlement issues......12Table 2. Sources of forage and pastures for livestock in households of affected farmers.............23Table 3. Year of establishment of affected leasehold farms..........................................................23Table 4. Farming information about affected leasehold farms......................................................24Table 5: Officially registered indicators of performance on affected leasehold farms in 2008

(extracted from accounting books of farms)..........................................................................25Table 6. Crops structure on the leasehold farm plots affected by IDs...........................................25Table 7. Availability of own machinery to leasehold farmers.......................................................26Table 8. Affected farms and future land acquisition by Raion......................................................27Table 9. Information about affected farms in Altyaryk raion. WUA “Katput”.............................28Table 10. Information about affected farms in Rishtan rayon. WUA “Tuda obi hayot”...............29Table 11. Information about affected farms in Bagdad raion. WUAs “Kushtegirmon”, “Sabibullo

Hodji Muhiddinov”, “Dashtda dustlik bogi”, “Besh uglon zamini”......................................30Table 12. Negative consequences expected by farmers from the construction of IDs..................33Table 13. Farmer’s requests for assistance/information in connection with possible beginning of

construction IDs.....................................................................................................................34Table 14. Crop structure in Project farms, whose land will be acquired for ID construction

(taking into account permanent crops)...................................................................................51Table 15. Estimates for compensations most common fruit trees and bushes..............................53Table 16. Average annual production of crops in Project districts, 2006-2008............................54Table 17. Estimates of compensations for loss of annual crops....................................................55Table 18. Entitlement Framework.................................................................................................56Table 19. Calculation of compensations for acquisition of lands under annual crops in 37 farms,

for the purposes of ID construction.......................................................................................66Table 20. Calculation of compensations for acquisition of 200 ha of lands under annual crops, for

the purposes of installation of 100 km long SHD..................................................................67Table 21. Calculation of amount of trees on the routes of interceptor drains................................69Table 22. Estimates of compensations for loss of fruit and mulberry trees during ID construction

...............................................................................................................................................70Table 23. Total estimates for RF implementation, ‘000 USD.......................................................72Table 24. M&E matrix...................................................................................................................74

List of Figures Figure 1. Map of the Project Area...................................................................................................9Figure 2. Interceptor drains location and characteristics in Altyaryk district................................14Figure 3. Interceptor drains location and characteristics in Bagdad district..................................15Figure 4. Interceptor drains location and characteristics in Rishtan district..................................15Figure 5. Interceptor drains location within the Project Area........................................................16Figure 6. Preliminary location of SHDs........................................................................................17Figure 7. Readiness of farmers and family members to participate in paid construction work, if

opportunity/necessity is present.............................................................................................34


Glossary

Ameliorative Term used in the context of improving the drainage conditions of soils

Dehkan farm / Dehkan plot

In Uzbekistan, a dehkan farm is a family-based small-scale enterprise that produces and markets agricultural products; it uses family labor and cultivates a plot adjacent to the family home. Such a plot is locally referred to as ‘tomorka’ and is usually smaller than 0.1 ha. About 10 percent of households have additional dehkan plots, often outside, but close to, their communities. These additional dehkan plots (0.15-0.2 ha) are used for cultivation and/or for house construction. Dehkan plots (both tomorka and additional dehkan plots) are held for a lifetime and can be inherited. Dehkan farms may be registered as legal commercial agricultural entities; but there is no requirement of registration.

Dehkan farmer 1) Peasant, farmer; 2) in Uzbekistan this word means an owner of a dehkan plotHorizontal drainage An open or closed (buried) drain designed to lower the water table in the fields

Khokimiyat Local authorities/government.

Makhalla Territorial community, community of neighbors; In Uzbekistan, this word means an organ of self-governance of citizens.

Optimization of farms

The process triggered by the Decree “On Optimization of Cropping Areas and Enhancing Food Crop Production” and “Instruction On Constitution of a Special Committee (SC) in charge of developing proposals for optimization of farm plots” issued by the President of the Republic of Uzbekistan in October 2008. The key objective of the decree is to consolidate a large number of existing small (less than 10 ha) leasehold farms into sustainable (around 50 ha) agricultural enterprises and to improve the efficiency of irrigation.

Project districts Administrative districts of Ferghana region (Baghdad, Rishtan and Altyarik) where the Project Area is located.

Project Area Territory of nearly 67,000 hectares spanning approximately a half of irrigated land of the Project districts

Rural Assembly of Citizens (RAC)

A body of local self-governance in rural areas. One RAC consists of either one or several Makhallas.

Salinization High salinity level in soil and/or water impeding plant growth, also the term mineralization is used

Shirkat Agricultural cooperativeUzgeocadastre Land Registration officeTomorka Household garden plot Vertical drainage A system of deep wells designed to control the water tableWaterlogging Lands with high water table, impeding soil aeration and plant growth


ACRONYMS and ABBREVIATIONS

AWArtesian well

BAIS Basin Administration of Irrigation SystemDIWIP Drainage, Irrigation and Wetland Improvement ProjectDP Demonstration PlotFS Feasibility studyFV Ferghana valleyFWRMP-I Ferghana Valley Water Resources Management Project Phase-IHGME Hydro-Geological Meliorative ExpeditionI&D Irrigation and DrainageID Interceptor DrainLDFA Leasehold and Dehkan Farmers AssociationMAWR Ministry of Agriculture and Water ResourcesM&E Monitoring and EvaluationMOM Management, Operation and MaintenanceOFWM On-Farm Water Management O&M Operation and MaintenancePAD Project Appraisal DocumentRAP Specific Resettlement Action Plan for the First Segment of the Project (for 37

farmers)RF Resettlement Policy Framework and Specific Resettlement Action PlanPIM Participatory Irrigation Management PIU-WIPRW

Projects Implementation Unit for Water InfrastructurePressure relief well

RAC Rural Assemblies of Citizens RBA Rishtan-Bagdad-AltiarikSHD Subsurface horizontal drainageTA Technical AssistanceToR Terms of ReferenceUZGI Uzgiprovodkhoz Institute UNDPVDW

United Nations Development ProgrammeVertical Drainage Well

WB World BankWUA Water Users Association


1 Description of the project

1.1 Background to Ferghana Valley Water Resources Management Project

The Ferghana Valley Water Resources Management Project Phase-I (FWRMP) has been devised to address constraints on agricultural productivity in parts of the Uzbekistan territory lying within the Ferghana Valley (FV). In addition, it seeks to tackle chronic problems of water-logging which are affecting infrastructure and buildings within this part of the Valley.

A major problem in the Valley is the high water table, especially in the lower and central parts. This widespread problem is particularly associated with the irrigated areas. The high water table is due to the absence of an adequate drainage system; or a drainage system that is no longer properly functioning because the necessary rehabilitation and maintenance has not been carried out during the past two decades. Poor water management practices have also contributed to this ecological problem. As a result, the area is suffering from substantial water logging as well as soil and water salinization. The high water table has mobilized salt in the soil which, together with water-logging, has resulted in destruction of buildings and residential houses located near the collector drains. For crops, it has resulted in lower yields and therefore lower incomes for the people living in the area.

As stated in the Final Feasibility Report (September 2008), the main objectives of the Ferghana Valley Water Resources Management Project Phase-I (FWRMP) are to:

(a) Promote sustainable irrigated agriculture production, increase employment, and generate farm incomes in the Uzbek part of the Ferghana Valley by improving drainage and irrigation systems and overall water resources management;

(b) Reduce damage to private and public infrastructure, and improve environmental and public health conditions by controlling water logging. In so doing, the Project will enhance standards of living;

(c) Introduce participatory irrigation management through Water Users’ Associations (WUAs) and improved agricultural and irrigation practices so as to enhance innovative cropping patterns and the value of agricultural produce and farm incomes in the Project area; and

(d) Strengthen water management, and irrigation and drainage institutions.

Improved water productivity is understood to mean greater agricultural output per unit of water used, and will be achieved through rehabilitation of irrigation and drainage (I&D) systems, improved groundwater management, and other measures to support local agricultural producers and communities. Improved overall water resources management will be measured through increased quantity and reliability of flows in Syr Darya basin on the basis of Water Balance studies. The Project’s objectives would contribute to Country Assistance Strategy (CAS) goals of increased agricultural production, employment, incomes and living standards as well as improved environment.

1.2 Project Area

The Ferghana Valley is a large broad-bottomed valley surrounded by foothills of the western Tien Shan and Pamir Mountains, which are in turn located at the western end of the Himalayas. The Valley is almost totally encircled by mountains, which rise to about 4500 m, with only a narrow mouth to the west through which the Syr Darya river drains the valley, first into


Tajikistan, and then across the Uzbek and Kazakh steppes to discharge into the Aral Sea. The valley floor has an elevation of about 450 m above sea level (asl).

The Project Area is located in the south-central part of Ferghana Valley on the left bank of Syr Darya river roughly between 40 20’ and 40 38’ northern latitude and 71 04’ and 71 28’ eastern longitude. Part of the area sits on the Sokh and Shahimardan river debris cones in the northern foothills of the Alay-Turkestan mountain range.

Administratively, the Project area covers most of Baghdad raion (excepting the extreme southern and eastern sections), about the northern half of Rishtan raion, and the middle section of Altyarik raion, all being part of Ferghana oblast, as well as the cities Rishtan, Baghdad and Altyarik (Map 1). The borders of the Study area are: on the north – Middle Kizyltepe and North Bagdad Collectors; on the west and east – borders of Baghdad and Altyarik raions; on the south – the Burgandin massive of the Republic of Kyrgyzstan. This area slopes slightly from north to south and from east to west with land elevations from 490 to 370 m above sea level (asl).

Figure 1. Map of the Project Area

Improving water resources management in the Ferghana Valley and rehabilitating the I&D system over the entire area is an enormous task requiring large investments. Therefore, the improvement and rehabilitation process will be undertaken through a long-term program, to be implemented in several phases over the next 15 years. The FWRMP is the first of a series of Projects for implementation by the Ferghana Valley Water Resources Management Program.


The Project area is about 67,000 hectares; of this amount, 48,000 hectares are cultivated. About one third of the cultivated area is under cotton production and about the same amount is devoted to growing wheat. The remaining area is used for orchards, vineyards, vegetables, and other crops. The crop intensity is about 112 percent and increases when short duration fodder crops and vegetables follow wheat. It is therefore possible for farmers to minimize construction and rehabilitation damage to standing crops provided that they have timely information. .

1.3 Population and Project Affected People

The Project area accommodated 490,000 people in early 2007. Currently, agricultural activities are carried out primarily by leasehold or dehkan farmers; the state cooperative farms (shirkats) no longer operate in the Project area. The leasehold farmers used to have 20 hectare holdings, on average. In the process of farm consolidation (optimization process) rapid changes have taken place, and every 2 to 3 leasehold farms were merged under one management selected from among one of these farms. Thus, the legal entities, i,e, the newly emerging farms that deliver the produce, pay taxes, etc., have been reduced from 3,900 in 2007 to 1,800 in 2009. The leasehold farmers are organized into 35 WUAs which, are based in the former shirkat areas.

While a relatively small number of leasehold farmers cultivate most (75 percent) of the cultivable land, the greatest majority of the farming families rely on 12,000 ha or one-quarter of the cultivable area for their living. There are some 88,000 dehkan households with very small holdings of 0.14 ha (garden plots) adjacent to their homes; about 10 percent of the households have an additional dehkan farm of 0.15 ha outside the settlements, away from their homes. All Project construction and rehabilitation works will take place on the lands of leasehold farmers. This land is owned by the State. No works will be performed on the very small plots of dehkan farm land adjacent to the homes, or to home gardens. Because the Project will rehabilitate the entire I&D infrastructure, however, there is a possibility that some of the dehkans farms may also be affected1. Thus no adverse Project impacts on standing crops will fall on the shoulder of the greatest majority of the people in the three districts - the dehkan farmers with no additional land outside the villages. The largest impacts will be on leasehold farmers whose land holdings are significantly larger than any of the dehkan farms.

1.4 Elements of Project that Affect Land Acquisition2

For the areas where the Project involves construction of open IDs, the Project Implementation Unit (PIU) prepared the first full list of affected farms. Based on extensive socio-economic surveys and farm interviews, a detailed inventory of land that each farmer will lose was prepared, including the number, type, and age of the trees; as well as the type and amount of standing crops, vegetables, and orchards the farmers had in 2008. There were 37 farms to be affected, of which 36 were leaseholder and one was a small plot (a garden of 0.16 Ha)3. All 1 No works are anticipated in dehkan farms inside or outside the villages; should there be any need to do any repair work in some dehkans, compensation will be provided.2 As stated the Projects’ adverse impacts will be shouldered primarily by leasehold farmers. They lease the land from the State, which owns all the potentially affected areas. Thus, no land will be acquired; rather compensation will only involve for standing crops. Thus, for purposes of this Project, we would be referring to damage on crops with acquisition of land. 3 This plot was used by person who received the land from a former shirkat in 2004. This person worked as a watchman for shirkat and continues to work in the same capacity guarding pumps on drainage wells. He has no


farmers were informed of the project and possible land acquisition4. A full Resettlement Action Plan (RAP) was prepared for this segment of the Project and is included in this document. A budget for Resettlement Policy Framework (RPF), including the full budget for the component of land acquisition on 37 farms, is presented in section 18 of this document. Elements of the remaining impacts are addressed through the creation of a special Fund that sets aside resources for compensation for economic displacement, as well as for administration and monitoring/evaluation purposes.

Although the extensive rehabilitation and repair works under the Project will affect more than 37 farms, two factors make it difficult to identify these additional farms and prepare an inventory of affected assets. First, the lack of in-farm roads may require the use of machinery in parts of the affected plots that are not directly subject to land take; as a result, the specific impacts on land and standing crops can be identified only during the course of Project implementation. Secondly, although information on the first group of farms was available at the time of Project design, the initiation of the government’s farm consolidation process made the identification of affected assets for the remaining farms impossible (see Annexes 1 an 2) because the boundaries of leasehold farms have changed, and are still changing. Until the farm consolidation process is complete, it will not be possible to obtain information on which farmers' land will be affected. Thus, while the broad boundaries of the Project area are known, the affected assets will only be identified during Project implementation. When they are identified, the Project’s land acquisition process and the mitigation of adverse impacts on economic displacement will be subject to the policies and principles described in this document.

2 Potential impacts

2.1 Project components and activities that give rise to resettlement

The Project interventions are primarily to improve drainage and off-farm irrigation systems that are largely “public goods.” The project does not include on-farm investments. The Project components consist of the following:

salary and uses this garden as a payment for guarding. He has no documents to make a legal claim. Nevertheless, he will be compensated as indicated in the Compensation Matrix.

4 The process of ‘optimization’ or farm consolidation has affected these farmers during the past 2 months. Thus, some of them are not yet fully informed how the Project work will affect their land. However, given all lease holding farms are in the process of getting larger, the impacts are likely to be small. Farmers stress the immediacy of the need to complete the drainage works and are less interested in compensation as the farms were given to them free of charge by the Government.


Component A: Improvement of Irrigation and Drainage Network This component aims at addressing the problem of high groundwater levels by financing improvements in the surface drainage network and irrigation system as well as the installation of vertical drainage wells.

Component B: Institutional Strengthening and Agricultural Development Support. This component covers institutional strengthening support to public and private institutions/organizations involved in the enhancement of water resources management (I&D system O&M, water utilization) and agriculture production in the project area. The component would finance training and study tours, outreach demonstration plots, field and O&M equipment, laboratory, IT and office equipment, and institution and training support consultancy services.

Component C: Project Management and Audit, and Monitoring and Evaluation of Project Impact, consisting of operational expenditures for project management, consultancy services for auditing project expenditures, and for the M&E of project impacts, and for the preparation of a future project.

Component A is by far the largest of these and directly related to WB OP 4.12 on Involuntary Resettlement. The main works of this Component and potential linkages with the OP 4.12 are summarized in Table 1:

Table 1. Suggested new and rehabilitated infrastructure and links to the resettlement issues

Construction/Rehabilitation works expected

Potential/probability of

Leasehold farms and households land

acquisition

Resettle-ment of

people, ordamage to immovable

assetsTemporary Permanent

1 Open interceptor drains: construction 24.9 km Yes Yes No

2 Subsurface horizontal drainage (SHD): cleaning / repair – 230 km; new 100 km

Yes No No

3 Drains: rehabilitation of off-farm and on-farm – 1 150 km

Yes5 No No

4 Canals: rehabilitation of off-farm and on-farm – 2 500 km

Yes6 No No

5 Rishtan town: upgraded electricity supply – New transformer; power line – 50 km; repair of drainage flumes

Yes7 No No

6 Vertical Drainage Wells (VDWs): rehabilitation, No No No

5 A large portion of the potential adverse impacts that will occur as a result of rehabilitation works will be avoided by advance notice to farmers. Nevertheless, some damage to standing crops may occur. 6 See footnote above.7 During the construction of the new power line, some damage may occur. The repair work could likewise cause damage to property. These will be avoided through advance notice to people.


Construction/Rehabilitation works expected

Potential/probability of

Leasehold farms and households land

acquisition

Resettle-ment of

people, ordamage to immovable Temporary Permanent

including mechanical and electrical components – 240 units.

7 Pressure relief wells (PRWs) and Artesian wells (Aws): new - 1 420 pcs.

No No No

8 Cross regulators and outlets: repair of off-farm and on-farm - 625 pcs.

No No No

9 Cross regulators and outlets: new off-farm and on-farm – 265 pcs.

No No No

10 Water measuring structures: new - 750 units No No No

11 I&D culverts and siphons: repair – 450 units No No No

The implementation of the Project will not require physical resettlement; rather, it will have some adverse impacts on standing crops and thus cause economic displacement. The impacts will be more prominent along the ID, affecting 37 farmers. As mentioned, extensive detailed surveys were carried out with these farmers and an inventory of their affected assets has been prepared. This document incorporates the full RAP completed for the ID area and the broader resettlement policy framework that covers the remaining works.

The construction and rehabilitation works are highly complex and require the use of various types of heavy machinery. The use of the machinery within the existing farms may result in unavoidable yet minimal damage to standing crops. However, other than the construction of IDs, the works would involve temporary economic displacement. Most of the Project components will not involve permanent and/or temporary impacts on farm land and/or standing crops.

Construction of open IDs on 37 farms (25 km) will involve extensive work in individual leasehold farms. New IDs are expected to be relatively wide open drains (canals) of 5 meters deep and 10 meters width. The construction and further maintenance of the drains also will require reserving up to 10 meters of land from each side of the drain. Preliminary calculations show that about 42 hectares of land will be used permanently to install 25 km of proposed IDs. The excavation works and the necessity to store the excavated soil will require an additional 10 meters of land from each side of ID, or 25 ha of land on a temporary basis. Thus, considering the scope of the works, the land acquisition requirements for this major component of the Project will be 70 hectares, of which 42 hectares will be permanent. These drains will discharge into the existing network. The location and scope of works are shown in “Feasibility Study Working Paper 6: Irrigation and Drainage” [MMTS, 2008f].

There will be 6 IDs (8 km) constructed in the Altyaryk raion, 13 IDs (15 km) in Bagdad, and 2 IDs (2 km) in Rishtan district, as shown in Maps 2-5 below.


Figure 2. Interceptor drains location and characteristics in Altyaryk district


Figure 3. Interceptor drains location and characteristics in Bagdad district

Figure 4. Interceptor drains location and characteristics in Rishtan district


Figure 5. Interceptor drains location within the Project Area


The construction of subsurface horizontal drainage (SHD) will involve 100 km of subsurface drains to improve the situation on 1000 ha of land. Closed drainage installation will require specialized excavators to dig a ditch (1 m wide and 3-5 m deep) to place perforated plastic of pipe of 100mm pipe; thereafter the ditch will be covered. Drainage pipes will have to be installed in parallel lines every 100-150 mt. Thus, installing closed drains on 1 ha plot (100m x 100m) will require digging 6-10 parallel ditches and installing 1 km of pipes. Thus, the impacts on the affected farms will be significant. The area over the ditch will be levelled and can be used for cultivation but not for planting of trees. It may cause temporary land acquisition/loss of incomes for one season for affected farmers. The impacts can be minimized through timely information provision to the farmers and careful scheduling of construction activities.

Initially, the SHD pipes have been proposed for the north of Baghdad raion and the north of Rishtan raion. For Bagdad, the loamy soils allow a typical drain spacing of 90 m whereas in Rishtan the spacing can be increased to 120 m, thus reducing the requirement for land acquisition8. Later, the specialists changed the location of SHD slightly to the southwest and in January 2009 the preliminary location of SHD has been proposed in sectors 4, 9-11, and 14-15 in map 6.

Figure 6. Preliminary location of SHDs.

Note: SHD location is intended to be to the south from the bold red line.

8 A spacing of 100 m has been assumed for calculating the affected land.


The details of the relevant works subsequent to the preparation of the Feasibility Studies are not available. However, it can be assumed that the construction of 100 km of new SHDs will require only 3 hours for the construction per km if specialized layer machinery is used and 15 days if partially mechanized procedures are adopted. Accordingly, the width of the ditch will vary from 1 m to 3-5 meters with pipes at a depth of 2.5 m. Consequently 1 meter of SHD installation may require a spacing of up to 20 m width of lands of leasehold farmers, and up to 200 Ha of lands will be temporary occupied. It is expected that the work within each farm will take a short period of time and the farmers would be able to plant the temporarily affected areas almost immediately.

The Feasibility Study (FS) shows that inter farm drains typically show signs of bank failure. Many banks stand vertical. The beds of drains are flat and the drains are narrow. The steep banks may fail under the surcharge of an excavator and bed deepening may cause further failure, thus widening the collector. If drain side slopes are battered back to 1 in 1.5 or 1 in 2, this would involve significant earthwork quantities and land take. On a majority of drains, fields are planted right up to the edge of the collector. This is contrary to standard practice in Uzbekistan, and irrigation so close to the collector adds to the instability of the side slopes. Nevertheless, in such situations, the standing plants will be affected and farmers will have to be compensated.

In addition, in some cases, there is no room for excavators to clean the drains from the bank without passing on cropped land; there is also no room to place spoil apart from on agricultural land. Thus collector deepening may reduce the area of agricultural land. The FS shows that in the Bagdad pilot area the collector density is 60m/ha; if a 10m strip of agricultural land alongside each collector and irrigation canal is used, about 7.5 percent of land in the affected area will have to be taken by the Project.9 The details of the relevant rehabilitation works will be clear at the later stages of Project implementation. Thus it is impossible to assume the scale of this temporary land acquisition and the extent to which the state-owned and privately held property will be affected, to allow the preparation of a full scale RAP with a detailed compensation budget. As a result, the policies, principles, and mechanisms described in the following chapters of this RF document will be used if land is acquired from leasehold farmers or dehkans.

The two other rehabilitation activities (rehabilitation of 1,150 km of existing off-farm and on-farm drains, and 2500 km of canals) might also require temporary land acquisition. Despite the fact that the National Land Code prohibits to use of the reserve lands along canals and drains, households and farmers might be using these for agricultural activities or for planting poplar, fruit, and mulberry trees, as well as other crops. Some farmers plant seedlings to ensure rapid growth, others may cultivate wheat, cotton, or vegetables, and still others may plant poplar and/or other trees. While this activity severely threatens the sustainability of I&D infrastructure, shortages of water creates incentives for illegal planting. Poplars are not bought and sold; they are used by families often for cooking energy. Seedlings are replanted elsewhere in farms once they grow. Wheat, cotton, and other crops are harvested periodically. Mulberry trees have no commercial value because households do not breed silkworm cocoons.

No information is yet available on the list of the drains to be rehabilitated. Although there are variations within the regions, construction of new drains and the extensive rehabilitation would have involved 4,000 leasehold farmer families that lived in the 3 raions in 2007. It now appears that the number of leasehold farms is substantially reduced to 1,800 as a result of the Government’s optimization process. The drains and rehabilitated infrastructure will be unevenly

9 This is estimated as follows: for the 3650 km of canals at least 10 meters on each side will be needed which will require 36,500,000sqm or 3,650ha. This amounts to 7,6 percent of the irrigated lands (48,000).


distributed among the affected provinces. Leasehold farmers will lose different amounts of land; at the same time, each farmer will lose a different proportion of his land. Almost none of the 88,000 dehkan farmers are expected to be adversely affected.

2.2 The alternatives considered to avoid or minimize resettlement and principles to be applied

In compliance with the WB policy OP 4.12 (Involuntary Resettlement), all measures were being taken by the Feasibility Study Team in the development of the project activities to avoid impacts on residential areas and/or on immovable built assets. There will be no physical resettlement as a result of Project activities. Similarly, the temporary use of land will be minimized through screening of repair and rehabilitation options and continuous monitoring of economic displacement affects during the construction phase.

The Feasibility Study indicates that the subprojects will require a small amount of permanent land acquisition in the three project raions without displacement of household and existing village infrastructure; there may be some, but minimal, temporary occupation of land for the completion of the works. Because there is potential for adverse economic displacement impacts on people, a RPF and Specific RAP has been formulated in accordance with the WB policies on involuntary resettlement.

Several principles will guide Project implementation:

a. No new or rehabilitation works will be carried out that will cause physical displacement (resettlement); all such works will avoid adverse impacts on homes and infrastructure;

b. Permanent land take will be minimized through design arrangements;

c. Temporary adverse impacts on land will be minimized through careful implementation of construction/rehabilitation works; additional measures will be taken so as to inform the farmers so that damage on standing crops can be minimized;

d. Every effort will be made to limit construction and rehabilitation works to avoid dehkan farms inside or outside villages; should minor works cannot be avoided in dehkan farms outside the settlement areas, affected land and standing crops/trees will be compensated;

e. Compensation values for affected crops and trees will be determined by free market retail prices to leaseholders and to dehkan farmers;

f. Entitlements of affected farmers will be disclosed widely and in a transparent manner, involving, among others, the Water User Associations (WUA);

g. Farmers will be able to express their grievances and seek compensation; and

h. Implementation of RF policies outlined here will be monitored internally by PIU as well as through an Independent Panel of Experts, composed of three members.

i. Compensation will be fully provided to the affected parties before any construction and rehabilitation works may begin.


3 Objectives of resettlement policy framework

These consist of the following:

a. Ensure construction, rehabilitation, and rehabilitation/repair works are implemented in accordance with the policies and principles outlined in this document;

b. Provide a basis for consultations with relevant stakeholders;

c. Enable farmers to have firm knowledge of their entitlements and responsibilities;

d. Guide affected groups to launch grievances through appropriate channels; and

e. Ensure monitoring of arrangements for economic displacement.


4 Results of the socio-economic census of 37 affected farms

4.1 Introduction

The following summarizes the results of socio-economic census of farms and farmer’s families to be affected during the construction of interceptor drains (IDs) in 3 project raions.

The Feasibility Study suggests that the construction of 25 km of interceptor drains (wide open drainage collectors) along southern border of the three raions to cut-off the groundwater flowing from the Burgandin massif of Kyrgyz Republic and to divert excess water from the lower parts of the project area should start as early as possible.

According to the data as of Jan 1, 2009, the total number of farms to be affected during the construction of IDs in 3 raions is 37. The PIU identified these farms using the lists of 43 farmers prepared by Ferghanagiprovodkhoz Institute in autumn 2008. The process of consolidating/merging of farms, launched after the Decree “On Optimization of Cropping Areas and Increasing of Food Crop Production” issued by the President of the Republic of Uzbekistan on 20 October 2008 (see Annexes 1 and 2), has significantly reduced the number of leasehold farms in the region. Some farms within the IDs construction area were also reorganized and the number of farms in the ID construction areas has been reduced from 43 to 37. In addition, the process of farm consolidation is not yet complete; during 2009 it will be continued with the emphasis on the consolidation of farms involved in cropping orchards. According to the information received from MAWR, farmers who manage orchards and mulberry trees (used for feeding silk warms under State order) will be also merged so as to have at least 5 ha of land.

Of the 37 farms surveyed, only one plot is not a registered leasehold farm, but a small 0.16 ha plot given from a former shirkat in 2004 to the guard of pumps on drainage wells instead of paying him a salary. He has no any documents for this plot, and seems to be more vulnerable in terms of land acquisition, because, according to the FS calculations, “his” plot will be fully occupied or destroyed by the IDs, and he will have no chance to keep at least a small piece of this plot after the completion of construction works.

4.2 Basic characteristics of Project affected leasehold farmers’ households

Leasehold farmers’ households are larger; thus they have greater opportunities to make use of family labor. The average family size of affected leasehold farmers (7.1 persons) is higher than the average rural family size in the Project Area (5.9 persons). Less than half of the members of the leasehold farmer households surveyed in 2009 are women (48.3 percent). The average age of the family members is 27.2 years. Leasehold farmers’ families have the same share of children under 16, as compared with average households – 30 percent, and the percentage of pension-age persons10 is 8 and 10 percent, respectively.

The educational level of leasehold farmer family members is much higher than the average in the Project area. Among leasehold farmers, 28 percent of men and 9 percent of women have completed higher education or have a post-graduate degree.

10 The pension age is 60 and 55 years old for men and women respectively.


Agriculture is the most significant source of income for leasehold farmers and their families. The percentage of working age persons is very high in the surveyed households and 66 percent of family members aged 16 and above (including the farmers themselves) work on the leasehold farm plot. The employment and economically active rate is high among both male and female family members. More than 30 percent of economically active family members have at least one additional job. There are no registered unemployed in leasehold farmer’s households; the share of pensioners is only 3 percent (comparing with average 8-10 percent for other households). In addition, there are no vulnerable members (e.g., disabled or very old people) in leasehold farmers’ households.

Cash incomes of leasehold farmers’ families are much larger than those of the dehkan households. In December 2008, total cash income of the surveyed farmers’ households was 498,000 soums (USD 360), and the average per capita monthly income was 77,000 soums (USD 56)11. Incomes measured through expenditures are even much higher than incomes from cash income. Cash expenditures of leasehold farmers’ families in December 2008 averaged 709,000 soums (USD 514) and per capita monthly expenses were 118,000 soums or USD 86. None of leasehold farmers’ households live on USD 1 per person a day or below, but, according to the SA-2007 survey, about 60 percent of the Project area population did so. Moreover, 95 percent of surveyed farmers considered themselves rich; only 2 of these farmers (5 percent) consider themselves poor12.

All of the 37 Project affected farmers have their own garden plot (tomorka) on irrigated lands with an average size of 0.2 ha, of which 0.1 ha is occupied by crops, gardens, and vineyards. This additional garden plot owned by leasehold farmers is significantly larger than those held by dehkan farmers. The leasehold farmers use their garden plots effectively; the average cash income they make from marketing the crops they raised on these plots for last 12 months was 488 thousand Sums (US$375). Additionally, the average consumption from these plots in 2008 was 341,000 sums (US$260 a year). The Social Assessment conducted in 2007 showed dehkan farms to have higher productivity; the first group of leasehold farmers that will be affected by the Project also obtain higher yields from their dehkans than other farmers.

Thirty four of the 37 leasehold farmer households (92 percent) have livestock on their garden plots. The average livestock they hold consists of 3.6 cows and 5.2 sheep (comparing with 2 cows and 3 sheep as the average for the Project area households). Even in December 2008, incomes from the sale of home grown agricultural products, including livestock products grown on the family dehkan plot, constituted 21.7 percent of leasehold farmers’ household incomes. Additionally, 38.3 percent of incomes came from the leasehold farm activities and 6.2 percent was from the salary of farmers. Overall, the agricultural incomes of leasehold farmers, even in winter, constituted more than 65 percent of their cash household income. Leasehold farmers’ plots are also an important source of forage and are also used to graze livestock (Table 2).

11 According to SA-2007 data, in June 2007, the average monthly income of families in the Project districts was 250,000 soums (about USD 200); the average per capita income was 42,600 soums (USD 34).12 One of these two persons was not a farmer, but the watchman, mentioned above.


Table 2. Sources of forage and pastures for livestock in households of affected farmers

Pasturing Sources of Forage

On family’s dehkan farm

Along sides of the roads,

canals, etc.

On public pastures

Fodder raised on own

dehkanplot

Purchased fodder and

combined feed

Fodder raised on dehkan/to

morka

Collected fodder (hay, food waste)

25 7 1 27 27 24 1073.5% 20.6% 2.9% 79.4% 79.4% 70.6% 29.4%

Source: 2009 SA surveyNote: the sum exceeds 100%, because farmers use the combination of sources.

It is important to note that the farmers’ plots are used as pastures and sources of forage only when their leasehold holdings are large. Larger plots produce straw after wheat harvesting and plant forage crops. None of the small fruit farmers use their plots for the feeding of livestock. Because the leasehold farmers with larger holdings will lose only 3-5 percent of their land as a result of the Project, ID construction is not likely to create adverse impacts on the capacity of these farmers to keep the livestock.

4.3 Agricultural activities of leasehold farms, assets, and incomes

More than 73 percent of the affected leasehold farmers were established during the period 2004-2005, and the oldest one was created in 1995. All farms that currently cultivate cotton/wheat were established in 2004-2006 (Table 3).

Table 3. Year of establishment of affected leasehold farms

1995-1999 2000-2003 2004-2006As a % of affected leasehold farmers 11% 14% 76%Main specialization of leasehold farms, % of farmsCotton/wheat raising * 0 0 100Gardens* 21 26 53Source: 2009 SA survey

*Note: this sub-division on cotton/wheat and orchards farmers is limited and is done only on the basis of plots size. Some of the surveyed cotton/wheat farmers have sub-plots with hundreds of fruit trees also. Tables 9-11 below clearly describe the current assets of all the affected farms.

Twenty-one of the 37 surveyed farms (57 percent) have one plot, but others have several plots situated close to each other, but separated by roads, or other farm’s plots. Further, 58 percent of orchard farmers have from 2 to 5 separate sub-plots, while 72 percent of cotton/wheat raising farmers have only one plot; 4 farmers have 2 plots; and one farmer has 10 separate plots. The soil quality of their plots is close to the average for the Project area and the ball-bonitet varies from 42 to 76 with an average of 61 balls.

Affected farms are very different in terms of the size of their land holdings. Plot size varies from 1 to 72 ha, as shown in the table 4. Six of the seven gardens to be affected are located in Altyaryk raion and the only large (21.5 ha) garden affected is in Rishtan raion.


Table 4. Farming information about affected leasehold farms

Altyaryk Rishtan Baghdad TOTALTotal number of farms 913 5 23 37Main specialization of leasehold farms, No of farms Cotton/wheat raising 3 4 23 30Gardens 614 1 0 7Average size of plot, HaCotton/wheat raising 66 47.7 54.3 54Gardens 1,914 21.5 - 4.3

Source: 2009 SA survey

Affected leasehold farms provide significant employment. The average number of permanent employees in the affected leasehold farms is almost 13 persons (including the farmer) and varies from 2 to 34 people. All the workers are officially registered workers and have signed contracts with the farmer. The average number of person-months spent on-farm by all the permanent workers was 100 person-months which is an equivalent of a full year for about 8 workers. The maximum number of temporary workers was high – 59 people on average, and the average number of person-months spent on-farm by all the temporary workers was 307 months (which is an equivalent of a full year for 26 people). Thus, the average affected farm provides full-year equivalent employment to 34 people. Despite the fact that orchard farms are small in terms of the amount of land, the number of permanent workers on these farms is similar to those dealing with cotton and wheat. The maximum number of temporary works is required for cotton farms and for gardens during the harvesting season. In terms of negative effects on employment, the most vulnerable farms will be the 6 small orchard farms in Altyaryk district, because most of them, even with the replanting of lost trees will have to shed at least 1/3 of their workers. Others will have no adverse impact in terms of employment.

Expenditures per hectare are relatively uniform over the Project districts. The average income of leasehold farms over 12 months preceding the SA survey consisted of 20 percent of the gross revenue. Farmers who grow fruits have the highest income per hectare, while those who deal with cotton or wheat may even lose money. However, among the orchard farmers, there were two without cash incomes because the gardens are still very young and no harvesting has yet occurred.

Bookkeeping is a very weak part of leasehold farmer’s activities. Cotton and wheat growing farmers are very vulnerable in terms of freedom of using their banking accounts:

One the one hand, the necessity to sell sufficient produce within the State order system discourages farmers from showing a poor yield. In some cases, unsuccessful farmers have to buy wheat at local markets and pass it to the State to fulfill their contract and prevent sanctions (if the farmer does not fulfill the State order during 3 years, the leasing contract on the land can be denounced).

On the other hand, too much production may cause requests to sell the production on fixed price (lower than the free market) if a raion has not fulfilled the State order.

Balancing between these two choices, most farmers try to have close-to-zero balance in their accounting books, as it shown in Table 5 below. 13 Including the plot of the guard man14 Excluding o.16Ha plot of the guard man


Table 5: Officially registered indicators of performance on affected leasehold farms in 2008 (extracted from accounting books of farms)

Total Orchards Cotton/wheatAverage official annual income (000 soums) 22,000 24,338 19,637Official gross net income (000 soums) 3,765 4,581 2,898Proportion of farmers with no profit, % 8 (3 farms) 2 1


Also, farmers unofficially reveal the harvesting of secondary crops after wheat and hide both cash expenditures and incomes from this type of activity. The tanshes system (credits from the State to grow cotton and wheat) restricts the use of money from their banking accounts to buy necessary inputs for secondary crops; thus, the farmers have to buy many inputs using their own cash without revealing this in their accounting books.

In terms of reimbursements for land acquisition, all farmers are vulnerable because in most of cases they cannot reveal their real yields, expenditures, and incomes. The average figures, used by Geodezcadastre bodies (average ball-bonitet of the soil, average yields, average net incomes etc.) may cause significant uncovered losses to farmers should large-scaled land acquisition takes place. This is an important reason to conduct unofficial surveys and, if possible, censuses so that real losses can be identified. Thus, to calculate compensation to farmers in the context of the current RF, realistic and accurate data were collected.

Cotton and wheat are the predominant crops on leasehold farm plots, while the areas of other these crops are insignificant. Leasehold farmers keep cropping patterns as instructed by local authorities; the cropping patterns depend on the planned target output of cotton and wheat to be sold to the state procurement organizations. Fruit and vegetable farmers are free to grow anything they want and sell it on the free market, but their land plots are too small and the share of crops excluding cotton and wheat is about 20 percent in the area affected by IDs.

Table 6. Crops structure on the leasehold farm plots affected by IDs

No of farms and % Mean, Ha Minimum, Ha

Maximum, Ha

Average weighted, %

Valid MissingCotton 30(81.1%) 7(18.9%) 12.24 5.3 23.3 43.0%Wheat 29(78.4%) 8(21.6%) 10.13 3.3 20.8 34.4%Corn 3(8.1%) 34(91.9%) 2.07 0.6 5 0.7%Rice 1(2.7%) 36(97.3%) 1.00 1 1 0.1%Potato and vegetables 10(27.0%) 27(73.0%) 1.23 0.02 5 1.4%Melon, water-melon 2(5.4%) 35(94.6%) 2.20 1.4 3 0.5%Bean crops 2(5.4%) 35(94.6%) 0.59 0.38 0.8 0.1%Fodder root crops 14(37.8%) 23(62.2%) 5.76 0.4 13 9.5%Hay, Lucerne 2(5.4%) 35(94.6%) 5.50 2 9 1.3%Apple tree 7(18.9%) 30(81.1%) 0.69 0.1 2.2 0.6%Apricot tree 9(24.3%) 28(75.7%) 1.68 0.02 11 2.3%Peach tree 10(27.0%) 27(73.0%) 1.64 0.005 6 1.9%Merry tree 4(10.8%) 33(89.2%) 0.10 0.005 0.25 0.0%Pomegrenate 1(2.7%) 36(97.3%) 2.00 2 2 0.2%Persimmon 2(5.4%) 35(94.6%) 0.40 0.1 0.7 0.1%Circassian walnut tree 2(5.4%) 35(94.6%) 0.55 0.1 1 0.1%Mulberry tree 6(16.2%) 31(83.8%) 4.08 0.6 14.7 2.9%Vine (table variety) 1(2.7%) 36(97.3%) 6.00 6 6 0.7%Source: 2009 SA survey


Despite having their land with high ground water table, and having the limitations on watering secondary crops, the farmers use their plots intensively, and the amount of land under secondary crops was about 12 percent during 2008 (so the land usage was 112 percent).

As one can see from the table above, cotton and wheat occupy 77.5 percent of the land. It is important to note that the structure includes all types of crops and trees, including secondary crops and plants between the trees. This crop structure has been used for the calculation of sums to be reimbursed to farmers before the land acquisition for IDs. All calculations and other relevant figures for the calculation of reimbursements are included in the Chapter 8 “Valuation of and compensation for losses” below.

Shortage of machinery and high costs of leasing machinery is one of the acute problems for agricultural operators. Small farmers do not have any machinery. Only the highest-income leasehold farmers (particularly, leasehold farmers whose plots are more than 30 ha) can afford to buy independently a tractor or seeding machine, etc. Moreover, farmers with small plots, especially if they work on one to two orchard plots, have no need to buy heavy machinery.

Table 7. Availability of own machinery

Percentage of leasehold farmers who have own

machinery, %

Average quantity of machinery owned by

leasehold farmers, piecesTractor 57 1.2Combine harvester 0 0Plows, seeding machines 46 2Thrashers, mills, rice mills 5 1Truck 5 1Water pumps 5 1Electric generator 11 1Car 62 1.1None of above 22


In terms of other assets and infrastructure, the surveyed farmers almost have nothing. Only one of the surveyed farmers has a building for storage, one person has a barn in the fields, and few farmers have summer camps in the fields. None of the existing infrastructure will be damaged during the construction of IDs.


4.4 Land acquisition

There will be 6 IDs (8 km) constructed in Altyaryk raion, 13 IDs (15 km) in Bagdad and 2 IDs (2 km) – in Rishtan district. The aggregated information about the lands to be affected is shown in the Table 8.

Table 8. Affected farms and future land acquisition by Raion

Altyaryk Rishtan Baghdad TOTALTotal amount of land in farms, HaCotton/wheat raising 198.2 190.8 1249.2 1638.2Gardens 9.76 21.5 - 31.3Total 208 212.3 1249.2 1669.5Temporary land acquisition, HaCotton/wheat raising 4.96 8.75 48.9 62.6Gardens 6.51 0.7 - 7.2Total 11.47 9.45 48.9 69.8Permanent land acquisition, HaCotton/wheat raising 4.51 5.17 27.5 37.2Gardens 4.66 0.4 - 5.1Total 9.17 5.57 27.5 42.2Temporary land acquisition, as % of landsCotton/wheat raising 2.5 4.6 3.9 3.8Gardens 66.7 3.3 - 23.5Total 5.5 4.5 3.9 4.2Permanent land acquisition, as % of landsCotton/wheat raising 2.3 2.7 2.2 2.3Gardens 47.7 1.9 - 16.6Total 4.4 2.6 2.2 2.5


The more precisely information about the affected farms is summarized in the tables below.


Table 9. Information about affected farms in Altyaryk raion. WUA “Katput”

No. Farm name First and last names of farm head Crops raised

No.

of l

and

plot

s as

of 1

.01.

2009

Irri

gate

d ar

ea, h

a,

as o

f 200

8

Irri

gate

d ar

ea, h

a,

as o

f 1.0

1.20

09

Bal

l bon

itet o

f pl

ots,

as o

f 200

8

Nam

e of

in

terc

epto

r dr

ain

Land acquisition,

Ha(tempo-rary)*

Land acquisition,

Ha(perma-nent)*

% of land to be (permanently

and temporary)**

destroyed, as % of all farmer's land plots on

1.01.2009

Size of Land which will be

available after construction works, Ha

1 Yuldosholi ugli Rahmonkul Rahmonkul Olimov Wheat, cotton 2 20 72 70 A-1 2 1.75 2.8 70.3

2 Salohiddin Sirozhiddin Sirozhiddin Salohiddin vegetables, orchards: apple, apricot, sweet cherry trees

corn for silos1 1 1 50 A-2 0.8 0.5 80.0 0.5

3 Zokirzhon bogbon Zakir Mamadzhanov orchard: apple-60, apricot-100, peach-70, persimmon

–90 trees1 2 2 70 A-2 0.75 0.5 37.5 1.5

4 Abdurahmonov Tozhiboy Ikbol Abduraimov orchard: 200 apricot trees 1 1 1 50 A-2 0.8 0.5 80.0 0.5

5 Ulug ikbol baraka Ulugbek Zhumaev

Beans and corn in between rows and

orchard: apple, apricot, peach, sweet cherry trees,

1 2 2 50 A-2 2 1.5 100.0 0.5

6 Solohitdinov Shohobitdin Shohobitdin Solohitdinov

Vegetables, watermelons, mulberry, poplar, willow 1 3.6 3.6 50 A-3 2 1.5 55.6 2.1

7 Dehkonov Habibulo Habibulla Boimatov Vegetables and orchard:

peach-22 and sweet cherry-22 trees

1 0.16 0.16 70 A-4 0.16 0.16 100.0 0.0

8 Otahon Ugli Murodhon Murodhon Dadabaev Wheat, cotton, corn, 860-mulberry trees along the

ditch7 40 67.2 70 A-4 1 1 1.5 66.2

9 Odiljonbobo Ergash Zakir Odilov

Cotton, wheat, vegetables, beans, orchard: apricot-420,

peach-800, sweet cherry-100 trees, walnut-50,

7 34 59 50 A-5,A-6 1.96 1.76 3.3 57.2

TOTAL OF LAND PLOT OWNERS BY WUA/RAYON 9 208 11.47 9.17 5.5 198.79Source: 2009 SA survey* Land acquisition estimations were done on the basis of estimations prepared by FS team in September 2008 using the old borders of farms (before the optimization of farms)** In case of orchards "temporary" occupation of land means complete losses of fruit trees


Table 10. Information about affected farms in Rishtan rayon. WUA “Tuda obi hayot”.

No Farm name First and last names of farm head Crops raised

No.

of l

and

plot

s as o

f 1.

01.2

009

Irri

gate

d ar

ea,

ha, a

s of 2

008

Irri

gate

d ar

ea,

ha, a

s of

1.01

.200

9

Bal

l bon

itet o

f pl

ots,

as o

f 200

8

Nam

e of

in

terc

epto

r dr

ain

Land acquisition,

Ha(tempo-rary)*

Land acquisition,

Ha(perma-nent)*

% of land to be (permanent and temporary)**

destroyed, as % of all farmer's land plots on

1.01.2009



1 "Kalay Nav Shamis" Yakubjon Shakirov Cotton, wheat 10 35.8 60.8 70 R-2 3 1.62 4,9 59,2

2 Kimyo Sharifjon AzizovOrchard: apple, apricot, peach trees, melons and

watermelons5 21.5 21.5 63 R-2 0.7 0.4 3,3 21,1

3 Abdumalik A.A. Ganijon Salomov Cotton, wheat, rice 2 15.3 60 75 R-2 2.25 1.55 3,8 58,5

4 Sadri Jambul Djamilya Ganieva Cotton, wheat 2 10 10 70 R-1 1.75 1 17,5 9,0

5 Rahmonov Olimjon Ma'murjon Rahmonov Cotton, wheat 7 23.2 60 70 R-1 1.75 1 2,9 59,0

TOTAL OF LAND PLOT OWNERS BY WUA/RAYON 5 212,3 9.45 5.57 4.5 206.7


* Land acquisition estimations were done on the basis of estimations prepared by FS team in September 2008 using the old borders of farms (before the optimization of farms)** In case of orchards "temporary" occupation of land means complete losses of fruit trees


Table 11. Information about affected farms in Bagdad raion. WUAs “Kushtegirmon”, “Sabibullo Hodji Muhiddinov”, “Dashtda dustlik bogi”, “Besh uglon zamini”


No.

of l

and

plot

s as

of 1

.01.

2009

Irri

gate

d ar

ea, h

a,

as o

f 200

8

Irri

gate

d ar

ea, h

a,

as o

f 1.0

1.20

09

Bal

l bon

itet o

f pl

ots,

as o

f 200

8

Nam

e of

in

terc

epto

r dr

ain

Land acquisition,

Ha(temporary)

Land acquisition,

Ha(permanent

)


and temporary)destroyed, as % of all farmer's land plots on

1.01.2009



1 Muhamadali ota bogi Saminjon Muhammadaliev Cotton, wheat 1 27 62 72 B-12 4.1 2 6.6 60.0

2 Ergash Ota Siymosi Abdugaffor Kukonov Cotton, wheat 1 30.6 51.3 58 B-11 6.3 3.2 12.3 48.13 Shuhrat Shuhrat Egamov Cotton, wheat 1 27 27 37 B-1 5 2.5 18.5 24.5

4 Usmonov Behzod Rustam Homidov Cotton, wheat 1 22 57.2 61 B-13, B-3 1.87 0.93 3.3 56.3

5 Sanobar Murod Abdurahmonov Cotton, wheat, and orchard: apple-45, apricot-200 and

peach-100 trees3 25.3 58.2 51 B-3,

B-4 0.4 0.4 0.7 57.8

6 M.Imomov Ma'ruf Imomov Cotton, wheat, mulberry tree-4.5 ha 3 28 66 68 B-4 1 0.5 1.5 65.5

7 Gani ota Hakimjon Shamsakov

Cotton, Wheat and orchard: apricot-500, peach trees-400, pomegranate-400, vineyard-

1000

2 53 53 76 B-4 4.4 2.2 8.3 50.8

8 Samandarak zarshunosi Abdusobir Otazhonov Cotton, Wheat, mulberry trees (Special field-1600

trees)3 31.5 61.5 59 B-5 1.02 0.5 1.7 61.0

9 Firdavs gulshani Saidahmadhon Azizov Cotton, Wheat, orchard: 200 pcs. 2-year-old peach trees 2 20 73 70 B-10,

B-6 2.75 1.35 3.8 71.7

10 Nasiba Abdujabbor Soliev Cotton, Wheat, mulberry trees along the field side 2 23 66 76 B-9 0.61 0.61 0.9 65.4

11 Temurov Zaynillo Yusufjon Temurov Cotton, Wheat, mulberry trees - 14.7 ha 1 35 52.2 54 B-7 1.5 0.75 2.9 51.5

12 Muhammad Rahim hoji Hudayberdi Ziedboev Cotton, wheat 1 17.7 50.5 58

B-6,B-7, B-10

2.6 1.6 5.1 48.9



No.

of l

and

plot

s as

of 1

.01.

2009

Irri

gate

d ar

ea, h

a,

as o

f 200

8

Irri

gate

d ar

ea, h

a,

as o

f 1.0

1.20

09

Bal

l bon

itet o

f pl

ots,

as o

f 200

8

Nam

e of

in

terc

epto

r dr

ain

Land acquisition,

Ha(temporary)

Land acquisition,

Ha(permanent

)


and temporary)destroyed, as % of all farmer's land plots on

1.01.2009



13 Yigit Yigitali Juraev Cotton, wheat, vegetables, 7-

ha orchard: apple, apricot, peach trees, nutwood

2 33.9 33.9 51 B-7 2.5 2 7.4 31.9

14 Osim Ali Davron Sharofitdinov Hoshimzhon

Cotton, 2-ha orchard: apple, peach and persimmon trees 1 22 53 65 B-8 2 1 3.8 52.0

15 Mirzabek Durmoncha Holmatjon Bekmirzaev Cotton, wheat 1 23 43 65 B-8 1.75 0.88 4,1 42,116 Bogdod Shermat ota Nodir Tojaliev Cotton, wheat 2 31.3 50.3 57 B-13 1.05 1.05 2,1 49,3

17 SheralievMahammadsharif Sheraliev Cotton, wheat 1 36.7 50.7 57 B-13 0.4 0.4 0,8 50,3

18 Soli Komil Ahmadjon Bogdod Ahmadjon Solijonov Cotton, wheat 1 30 60 60 B-12 4 2 6,7 58,0

19 Mirzaubaydullo bogiMirzaubaydulla Mamasidikov Cotton, wheat 1 40.6 40.6 58 B-3 0.21 0.21 0,5 40,4

20 Husnitdin Nuritdinov Bahritdinovich Bahritdin Ruzimatov Cotton, wheat 1 16.4 50.1 58 B-3 0.35 0.35 0,7 49,8

21 Anvarjon Hudoynazarovich Anvar Imomov Cotton, wheat, vegetables 1 31.3 60 55 B-2 0.75 0.75 1,3 59,3

22 Hamdamov Rustamjon Bogdod Rustamjon Hamdamov Cotton, wheat 2 30 72 61 B-12 4 2 5,6 70,0

23 Madaminbek Hursanov Madaminbek Hursanov Cotton, wheat 1 22 57.7 58 B-3 0.32 0.32 0,6 57,4

TOTAL OF LAND PLOT OWNERS BY WUA/RAYON 23 1249.2 48.9 27.5 3.9 1221.7

TOTAL OF LAND PLOT OWNERS IN 3 RAYONS 37 1669.5 69.8 42.24 4.2 1627.2



As shown in the tables 9-11 above and summarized in table 8, the six farmers in Altyaryk raion with small (1-3 ha) gardens will be the most negatively influenced by the construction of IDs.

Two of them will be able to continue the farming, because 1.5 ha for each of them will be available after finalizing the construction works. Another 4 orchard farmers will be in the most difficult situation:

2 farmers will loose 80 percent of trees but will have 0.5 ha to proceed with farming; 1 farmer will loose all of the trees, but also will have 0.5 ha and be able to continue farming;

and 1 dehkan farm (guard man) will lose this plot completely.

All other farmers, including one large orchard farm in Rishtan raion, will merely lose 3-4 percent of their lands and the adverse affect of the land acquisition will be fully compensated by raised productivity of crops after the IDs start to cut-off subsurface water flows. Nevertheless, the farmers will be compensated for the all standing crops lost.

The total amount of land to be expropriated from 37 farms in 3 districts is expected to be only 42 ha. In addition, 27.6 ha will be temporarily occupied during the construction works. Within one agricultural season, the 27 ha will be returned to farmers, after leveling, for future farming activities.

4.5 Farmers’ awareness about the Project, readiness to participate, and suggestions about the future land acquisition process

The consultations with farmers and with authorities in the Project districts during the RF preparation clearly confirm that in autumn 2008 a total of 43 farmers were informed about the plans of the construction of IDs and the implications this would have on temporary and permanent land acquisition. Thus, the affected farmers had a solid understanding of land acquisition implications of the Project. At that time, the Ferghanagiprovodkhoz institute representatives pegged out the routes of the IDs. Since then, however, the State program to consolidate farms reduced the number of affected farmers from 43 to 37. Thus, it is possible that all 43 leasehold farmers continue their cultivation efforts until the present, but only 37 are recognized as legal entities, and the remaining farmers operate under the management of those 37 farms.

Because of the farm consolidation process, at the time of the 2009 Land Acquisition and Resettlement Survey, 8 new farmers (21.6 percent of all affected) were not informed of the implications of Project activities by officials, but knew about the issues based on information they received from neighbors, other farmers, and WUAs. Since then, all affected leasehold farmers have been informed; indeed, all 37 farmers participated in the 3 focus group discussions (FGDs) held in the 3 Project districts, and their households were visited during the systematic surveys.

However, farmers were not provided with written documentation because the exact routes of IDs will have to be confirmed by the Contractors yet to be chosen.


Every effort was made by technicians to prevent adverse impacts on settlements and other permanent structures, including the existing on- farm structures. It was agreed with farmers that the routes of IDs will be close to the existing roads. Similarly, effort was made to avoid works in orchards so as to align the ID routes away from fruit gardens.

During the survey most of farmers (73 percent) stated that there was no need for them to get replacement land for the land they may permanently lose to IDs. Instead, they preferred to be compensated for standing crops and revenue losses. In addition, farmers wanted re-adjustments made to the State order so as to reflect loss of land.

The fruit farmers wanted to be compensated for the losses of income for all the years of expected productive life of trees.

About a third (32 percent) of surveyed farmers does not expect significant losses or disadvantages from the construction activities of the Project. The negative effects that the remaining 68 percent expect from the IDs construction are summarized in the table 12.

Table 12. Negative consequences expected by farmers from the construction of IDs

N %There will not be any negative consequences for my family from the construction of drainage systems 12 32

Income of my family will decrease 22 60One or several family members will lose permanent job 4 11Communications (roads, water flumes) may be damaged 4 11Production on the plot will become unprofitable: the plot will be too small and there will be no point in dealing with it 3 8

Construction works will impede sowing/collection of harvest 3 8Quality of soil may deteriorate during the construction (diesel fuel, construction waste, damage to structure and layout of land by heavy machines, et

3 8

Expenditures for fruits and vegetables, which we have earlier gotten from the leasehold farm plot, will increase 2 5

Poplars and other trees, which we planted along the road/canal and were going to use for own needs (construction, timber, heating, etc.) will be destr 1 3

Outhouses may be damaged 1 3We will have to buy guza-paya for heating of housing 1 3We will lose a business: processing of leasehold farm products 0 0We will be involved in unpaid work or give money for construction and food for workers 0 0Source: 2009 SA survey


The farmers themselves and the members of their families are ready to participate in the construction works, if their help needed.

Figure 7. Readiness of farmers and family members to participate in paid construction work, if opportunity/necessity is present


The vast majority of the farmers are very interested in receiving information about the future works and all the aspects of the future land acquisition. During the FGDs, most of them insisteding on being provided with written official information about the forthcoming land acquisition, mechanisms of compensation, and grievance procedures. The requests were summarized during the census and presented in the Table 13 below.

Table 13. Farmer’s requests for assistance/information in connection with the possible beginning of construction of IDs.

Full information about work plans, date of beginning

and duration

Information about the size and the location of the

expropriated land plot

Information about the

procedure of land

expropriation

Information about the

procedure of getting

compensation

Information about possibilities and mechanisms of

complaining against decisions

of authorities

Information about rights of

leasehold farmers in

cases of land expropriation

Requested for the

assistance of a lawyer

31 31 29 25 20 18 1484% 84% 78% 68% 54% 49% 38% Source: 2009 SA survey


Risks related to land acquisition

This sub-chapter summarizes the risks identified by farmers and specialists during the 2009 SA census, discussions in FGDs and in-depth interviews.

Related to Interceptor drains construction:

Optimization of farms. The process is not completed. The number of farms subject to land acquisition may be further reduced in the future. Thus, the proportion of land to be taken from affected farmers may change;

The FS intends to start IDs construction during the second half of the first year of the Project implementation. The plans could be changed because the optimum time needed for the preparation of land acquisition and compensation procedures estimated by SA team as 8 months as minimum. Because of the problems with cadastre after optimization, it will take additional time for Uzgeocadastre (which is responsible for the calculation of losses) to do the new maps15. Also the compensation is linked to the ball-bonitet. And cadastre services will have to re-evaluate the ball-bonitet of new merged affected lands accurately. It may take additional time also;

Risk of conflicts between farmers and implementing agencies (contractor, Project team, Geocadastre bodies etc.) during the process of land acquisition is rather low, but even one case of conflict could stop the process of the construction of the whole drain.

Leasehold farmers’ incomes and expenses are not fully reflected in the accounting system / bills. Secondary crops are the coping mechanism for many farmers and the only reason for them to be farmers at all, especially on unproductive flooded lands with small incomes from cotton and wheat. These will not be taken into consideration for the calculation of compensation since it is the farmers themselves who refrain from revealing accurate information;

There are many requests from local specialists to be more involved during the stage of the detailed design. They have many suggestions which sound reasonably. There is fear that without their participation land to be acquired would not be sufficiently minimized;

The construction works must be completed as soon as possible and on-time. A long time is needed for the construction of IDs and possible delays in construction works will hinder the use of land temporarily acquired; this in turn will lower farm incomes;

Temporary losses of large amount of land (up to 40-50 meters width will be occupied by ID) is the subject of concern for those who deal with orchards, because their plots 1-2 ha only and they may lose more than 80 percent of their gardens. These farmers want to be provided with additional land plots;

The system of irrigation will be damaged and the Contractor will have to repair the damage; there is fear that the Contractor may delay the repair works or perform inadequate repairs;

15 Currently, there are no maps indicating farm borders.


The same risk exists in relationship to roads and other infrastructure; people fear that the damage that Contractor would cause would either not be repaired at all or the relevant work would be substantially delayed, thus causing loses in income;

The reduction of the State order parallel to the reduction of land holdings (as a result of the land acquisition process) is a complicated issue. Nevertheless, Local khokims are eager to help the farmers for this purpose as is the Regional khokimiyat that has already agreed to adjust the State order subsequent to land acquisition; and

Some of the IDs are expected to be constructed near the railroad and along the state border with Kyrgyzstan. The Kyrgyz authorities, state border authority, and the railroad authority should be informed in a timely manner to avoid problems.

Related to Subsurface Horizontal Drainage (100 km construction):

Many of the risks listed above also apply to SHD. In particular,

There is uncertainty related to the amount of time needed to complete the works and delays may hinder the ability of farmers to cultivate a portion of their land, thus causing loss of income;

There is fear that the Contractor may lack modern and specialized machinery to complete the works promptly; otherwise farmers’ ability to farm would be reduced;

There is fear that there would be delays in the reinstallation of the system of irrigation; and

There may be problems in documenting all the losses.

Related to rehabilitation works on existing canals:

There may be delays in the release of the land temporarily acquired as a result of lack of appropriate machinery. Also, dust, soil pollution and pressing with heavy-weight trucks may damage land and crops beyond the land temporarily acquired while the compensation will be limited primarily to the land acquired; and

The losses of poplars in zones near canals will not be compensated for.

Rishtan city poses additional risks:

High density of buildings, with small space for heavy machinery;

Pollution during reconstruction and washing of wells;

Relatively small, but existence of risk of land acquisition for the construction of transformer; and

The necessity to agree on each step with different organizations may cause delay in the completion of works; it is forbidden to start any construction works and especially digging without special permissions from department of communal service, gas and electricity suppliers, landline phone provider, etc.


5 Legal Framework

a) Scope of the State’s right for land acquisition, and respective compensation.

According to the Land Code, all land in Uzbekistan is state property and permits for use of land are granted and monitored by the State through the rayon and oblast administrations.

National legislation envisages the following types of land transfers: (a) for use, lease, or ownership by legal entities dealing with various trades and services for lifelong inheritable use (with housing), and (b) use or lease by individuals. Because all land ultimately belongs to the State, it cannot be sold without the buildings on that land. In the case of individual land uses, land can be purchased only together with the residence located in that land. A similar provision applies to land used by legal entities. For example, if a grocery store or a barber shop is to be demolished, and land is to be occupied by a production shop, the land plot shall cease to be owned by the grocer or barber; instead, it will be transferred into another land category in the cadastre documents.

All land occupied for permanent structures required in the Project, namely electric power lines, wells, cross regulators and outlets, water measuring structures, collectors and related protection perimeters (‘sanitary zones’) is contributed by the State through the local administrations and will remain the property of the State upon completion of the Project.

Legislation envisages compensation for damages to land users in full, including lost income, in the following instances: (i) seizure, purchase, or temporary occupation of land; (ii) limitation of the rights of users; and (iii) deterioration of land quality due to the effects of construction works, and servicing and other activities that lead to decreases in the quantity or quality of agricultural products.

In the case of the acquisition of agricultural lands, in addition to compensation for damages, the legislation envisages compensation to land users for the loss of agricultural production. The Land Code identifies several categories of arable land users, who are eligible for compensation for losses and damages in connection with land acquisition:

Land tenants – citizens who were allocated land plots for individual housing construction and/or dehkan farming on the basis of life-long heritable tenure.

Lessees (leaseholders) – farmers, who were allocated land plots for agricultural production purposes, on the basis of a long-term lease.

Land owners – users of land plots occupied by tradesmen and services, which are used as private property.

Land users – all other enterprises, organizations and institutions, which are entitled to use of non-agricultural lands. This is the largest category, which includes enterprises and institutions of all types (private and public). Examples are hospitals, schools, private enterprises, factories, etc.


b) Legislation regulating land use, estimation of property value and damages, and payment of compensation

Key legal documents regulating land-related issues are the following:

(i) Land Code of the Republic of Uzbekistan (RUz) approved by the Law on Land of RUz of 30.04.1998 and amended on 30.08.2003 and 03.12.2004. The amendments regulate issues related to exemption and allotment of lands for non-agricultural purposes and compensation for agricultural production losses;

(ii) Resolution of the Cabinet of Ministers (RCM) of the RUz No. 248 of 27.05.1992 “On adoption of the Regulations on the procedures related to exemption and allotment of land plots for non-agricultural purposes”;

(iii) RCM No 246 of 25.05.1992 “On adoption of Regulations on settlement of land disputes in RUz”;

(iv) RCM No. 282 of 15.06.1992 “On adoption of Regulations on classification and compensation of losses of agricultural and forestry production resulting from occupation of land for purposes not related to agricultural and forestry activities in the RUz”, with revisions according to RCMs No. 126 of 11.04.1995, and No. 223, 16.06.1995.

The main articles of the Land Code that deal with land acquisition are the following.

Article 23. Provision of land

The transfer (sale) of lots of land into possession and use shall be implemented in the form of allocation.

The allocation of land lots shall be executed by the Cabinet of Ministers of Uzbekistan, khokims of regions, the city of Tashkent, and districts and towns in accordance with the procedure established by legislation.

The provision (sale) of a land lot that is under possession or use shall be implemented only upon acquisition of that land lot as required.

Non-agricultural land or land non-usable for agricultural purposes, or agricultural land of non- classified quality shall be provided (sold) for the purposes of the construction of industrial premises, railroads and automobile roads, communication and power lines, and main pipelines as well as for other non-agricultural needs. The provision (sale) of land lots for the aforementioned purposes out of forestry land shall be implemented primarily in areas not covered with forests such as land with bushes and plants of low value.

It shall be prohibited to enter into possession and use of the provided (sold) land plot until authorities in charge of land use have established boundaries of the plot concerned and have issued relevant documents certifying the right of possession or the right of use of the land.

The procedure for acquiring land and its use shall be according to the current legislation.


Article 80. Environmental requirements, location, design, construction and maintenance of facilities, constructions, and structures

Environmental requirements for the location, design, construction, and maintenance of facilities, constructions, and structures shall be regulated by the legislation on natural protection to be carried out during the location, design, construction, and operation of the new and reconstructed facilities, constructions, and structures as well as when introducing new technologies that have negative effects on land conditions.

Assessment of the negative effects of the facility, or introduced technology, on land condition, as well as the efficiency of measures on land use and protection is to be implemented on the basis of environmental examination.

It is prohibited to put into operation facilities and implement technologies without ensuring measures on protecting lands from degradation or damage, and a favorable environmental assessment.

Installation of facilities affecting land condition shall be agreed upon with land planning, natural protection and other authorities, in accordance with procedures established by the legislation.

Article 86. Compensation for losses incurred by tenants, land users, leaseholders and land owners

Damages incurred by land tenants, land users, land lessees, and land owners shall be subject to compensation in full (including loss of income) in the following instances:

Acquisition or temporary occupation of land; Restriction of rights resulting from installation of protection and sanitary zones around

national reserves, sanctuaries, parks,, cultural and historical monuments, ponds, sources of water supply, health resorts, along rivers, canals, discharges, roads, pipelines, communication and power lines;

Deterioration of land quality as a result of the effects of construction and operation of water resources, canals, collector drains, and other objects emitting substances harmful for agricultural crops and plants, as well as the effects of other actions by physical and legal persons leading to harvest decrease and deterioration of agricultural produce quality.

Compensation of losses shall be implemented by enterprises, establishments, and agencies to which the acquired lands are being allotted, as well as by enterprises, establishments, and agencies whose activity involves limitation of rights of land tenants, land users, land lessees, and land owners, or degradation of surrounding lands, according to the procedure established by the legislation.


Article 87. Compensation of Losses of Agricultural and Forestry Produce

Losses of agricultural and forestry production caused by the acquisition of agricultural and forestry land, including agricultural land owned and used by physical persons, for the use thereof for purposes not connected with agricultural and forestry activities, causing the limitation of the rights of landowners, land users, and land lessees or the deterioration of land quality as a result of the effects of activities of enterprises, institutions, and organizations shall be subject to compensation, apart from compensation of damages provided for by Article 86 of this Code.

Losses of agricultural and forestry production shall be subject to compensation to physical and legal persons:

Who are exempted from agricultural and forestry land regulations because their needs are not related to agriculture or forestry; and

Whose facilities are being surrounded by sanitary and protection zones with restrictions on agricultural and forest use or re-evaluation as less valuable land.

Losses of agricultural and forestry production shall not be subject to compensation if:

Land is acquired for the construction and servicing of individual housing; Land is acquired for the construction of schools, boarding-schools, orphanages, preschool

and healthcare establishments; and Land was allocated for water management purposes and for the construction of irrigation and

water related facilities.

Legislation may envisage other instances when physical and legal persons shall be exempt from compensation of losses of agricultural and forestry production.

The procedure for determining losses of agricultural and forestry production subject to compensation shall be established by the legislation.

Article 88. Utilization of Funds, Obtained as the Compensation for Losses of Agricultural and Forestry Production

Funds obtained as compensation for losses of agricultural or forestry produce shall be used in accordance with legislation to:

Develop new land and integrated rehabilitation of irrigated land; Improve soil fertility; Build and rehabilitate collector and drainage networks, to do land leveling and to increase

water availability on irrigated land; Improve land used for hay and pastures; and Adjust or develop designs and other documentation used for planning the use of the affected

land in connection with the acquisition of land.

By decision of the region’s khokim, the funds specified in the first part of the Article may also be used for implementation of other measures aimed at increasing agricultural production. Funds


obtained as compensation for losses of forestry produce shall be considered separately, and used for establishment and recreation of forests, fruit trees, forestation of desert land, shores of reservoirs and rivers, as well as for other measures to improve forest conditions.

c) Applicable legislative and administrative procedures, including a description of legal remedies and alternative conflict resolution strategies, which may be used during resettlement

Procedures related to the acquisition of land plots for non-agricultural and non-forestry purposes, is established by the RCM No. 248 of 27.05.1992.

The process for assigning lands to be used for non-agricultural purposes is accomplished in three steps: (i) step 1: selection of a land plot, (ii) step 2: acquisition of a land plot, and (iii) step 3: land marking of the allocated land, issuance of the State certificate for the right of permanent or temporary land use, and updating of land registration and cadastre documents.

Step 1. Selection of land plot

The PIU submits an application to regional khokimiyat for the selection of lands subject to acquisition for construction of facilities in the framework of the Project.

The application has to specify: (i) the aim and the period for which the land plot is needed; (ii) its location and size; (iii) the justification for acquiring the land; (iv) the planned construction schedule; and (iv) complementary justifications supporting the necessity for land acquisition. These latter have to include: (i) extracts from the Loan Agreement between the RUz and World Bank, (ii) resolutions of the Cabinet of Ministers of the RUz; and decisions of the MAWR on construction of objects within the territory of the district where the project is located.

According to RCM No. 248, the regional khokimiyat considers the submission within five days, and requests the permanent regional land acquisition commission to: (i) define the location of constructions and facilities, and (ii) select a land plot for design of their construction. However, since 2004, the Commission has not been functional in the Ferghana region, so the khokimiyat has to identify the composition of the commission, and issue appropriate instructions formalizing its establishment. The commission also needs to include representatives of the enterprises and/or organizations which are being allocated land plots, and persons, legal and physical, whose lands are subject to acquisition, normally farmers and dehkan representatives.

The department of the Goskomzemgeodezkadaster (Geocadastre) within the district khokimiyat is the main administrative agency in charge of the selection of alternative land plots to be allocated for construction of the facilities, preferably within non-agricultural land, land not suitable for agriculture, or non classified agricultural lands.

When part of the infrastructure to be constructed has to be located on agricultural land, the following criteria shall be considered: (i) preservation of the most valuable, productive irrigated lands, (ii)


observance of rules on land management in force in the territory, (iii) compliance with requirements for protection and improvement of the environment; and (iv) consideration of alternative sites for the construction of accessory facilities in such a way to avoid encroachment on crop land.

At the stage of acquiring land plots, the Geocadastre department also: (i) assesses the losses of land being incurred for land owners and users, as well as losses of agricultural production; (ii) defines options to restore land for farming, including removal and temporary storage of topsoil; (iii) defines, if applicable, the sanitary and water-protection zones around facilities being constructed and the rules and restrictions to be followed within such perimeters; (iv) elaborates proposals for compensation with an equivalent land area of the same or better quality in other areas in consultation with citizens; and (v) in the case of permanent occupation of irrigated lands, estimate the requirements and cost for the reclamation of replacement lands.

Multiple choice land plots have to be initially selected for the location of the planned construction sites and facilities. The boundaries of the planned infrastructure have to be reported on plans or maps indicating the perimeters of the total plot area, the crop patterns and if applicable, the location of needed reclamation infrastructure such as irrigation canals or drainage network. The cartographic documents have to be approved by members of the land acquisition commission.

The various options of land plots, as well as the relevant compensation plans included in the acquisition agreement, have to be approved by the PIU and land users or their representatives. The consultation process also involves representatives of departments of state sanitary and epidemiological stations (SES), fire supervision, nature protection, land management, and water management agencies.

All documents on the selection of occupied and acquired land have to be approved by the district khokimiyat and further submitted to the land acquisition commission for review and selection of the option, and for approval of the report and documented by a Land Plot Selection Certificate. The conclusions of the review are documented by a Land Plot Acquisition Certificate.


Step 2. Land acquisition for construction

Upon approval of construction design documents by the competent authorities and allocation of funds for construction, the PIU submits an application for acquisition of land for permanent and temporary use to the heads of district administration where the project is located.

The application has to include the following documents: (i) certificate and approved report on the selection of land; (ii) copy of the construction design documents of the facilities with an implementation plan; (iii) itemized list of construction works with confirmation of availability of funds for indemnification of damages, losses of agricultural production including restoration of lands, removal and storage of topsoil; (iv) a warranty on construction financing; (v) certificates of consultation with the sanitary and epidemiological services, the fire department, and other relevant organizations.

Authorization of occupation of land for limited periods of times is provided for the duration of the construction period. After completion of the construction works the agricultural lands temporary occupied have to be restored to a condition appropriate for agricultural use by the PIU at its own expense.

Simultaneously with the procedure of acquisition of the land, a detailed estimate of the potential losses of agricultural production and other potential damages to land owners and land-users has to be conducted. The costs for compensation for loss of land productivity, including removal and storage of topsoil and restoration of the affected lands is borne by the implementing agency with the funds specifically set aside for compensation of agricultural production losses.

The procedure of assessment and compensation for losses of agricultural production resulting from acquisition of lands for purposes not related to agriculture is defined in the RCM No. 223 of 16 June, 1995.

Losses of agricultural production are assessed by an Evaluation Commission, constituted by instruction of the head of district khokim, along with determination of losses incurred by landowners and land-users resulting from acquisition of land for public needs.

The basic information, required by the evaluation commission for the assessment of the extent of the losses of agricultural production, is provided by the design institute which developed the land acquisition plan.

In case of acquisition and allotment of land for temporary use for purposes not related to agriculture or forestry, losses corresponding to one year agricultural and forestry production are estimated as the average revenue from the harvest earned from the acquired land over the previous three years.

The contractor is responsible for returning the land to the landowners and land-users, in appropriate condition for agricultural use. If there is need for extension of the use of the land beyond the specified terms, the contractor must submit a request for extension of the period of utilization of the land to the organization which provided the authorization to use the land. The compensation of


losses of agricultural and forestry production will have to be increased accordingly for the corresponding number of years.

The findings of the evaluation commission is finalized in a certificate of the right to land use, which has to specify the acquired agricultural lands, the agreed conditions and the total value of the losses of agricultural production and losses of land users.

Estimates of the losses of agricultural production are conducted simultaneously with the procedure of land acquisition and attached to the other documents and plans required for land acquisition. All the above documents will be submitted to the regional land acquisition commission for approval.The contractors, which are to occupy the lands, will transfer funds allocated for compensation of the losses of agricultural production within one month after obtaining the financing for construction, and will appropriately register transfer of capital investments to regional khokimiyats in accordance with existing regulations.

The procedure for land acquisition is planned and coordinated with the agency entitled to use the exempted land, representatives of district SES, fire department, nature protection, the Geocadastre, and the agriculture and water resources department.When land is being acquired from enterprises, institutions or organizations under Ministries, State Committees and State Agencies, the procedures have to be coordinated with the respective Ministries as well as State Committees and Agencies.

Step 3. Marking of the Land to be Acquired

According to Section VI, Para, III of the RCM No. 248, the plan of land acquisition for permanent use, approved in accordance with the existing regulations, should be marked after the compensation to landowners and land-users for losses of agricultural or forestry production has been paid. Pegging of land is implemented in the presence of a representative of the organization for which the land is being acquired, a representative of the farm from which the land is being acquired, as well as representatives of landowners and land-users of adjacent lands.

Certificate of land marking with an attached plan should be signed by a representative of the district Geocadastre department, and representatives of landowners and land users. The certificate, along with all annexed documents, should be included with the land acquisition decision.

Certificate of the right for land use is delivered in three copies in the agreed form after completion of the pegging. Layouts of the land plot, including the actual measurements of the land surface, are attached to the certificate.

All modifications to land ownership and land use of a farm resulting from acquisition, shall be included in the state register on the right of permanent land ownership or state register on the right of permanent land use and, if applicable, in other land cadastre documents.

Laws and bylaws of RUz provide for procedures for multi-party consultations and coordination at all stages of land acquisition in order to avoid possible conflicts and violation of land users’ rights. These procedures envisage participation of all land users and their representatives in decision-


making on the selection of the acquired land, on land acquisition, in preparation of land marking plans, etc., and on the extent of losses and damages incurred. Decisions and certificates, not agreed upon or not endorsed by all consultation participants (including users of land plots and users of neighboring plots), shall have no legal effect.

If persons, legally entitled to use land plots subject to acquisition, disagree with decisions of organizations and institutions in matters of compensations and other decisions, they may submit prejudicial claims to local authorities (district and regional khokimiyats)

Para XVIII of Section VI of the RCM No. 248 covers instances, when parties do not come to agreement during consultations. It specifies: “In the case when landowners and land-users disagree with the decision of local authorities on land acquisition or on conditions of such acquisition, they may appeal against such decision in court”.

d) Legal and regulatory responsibilities of institutions responsible for implementation of resettlement measures

The procedures, functions, and powers of organizations responsible for implementation and observation of procedures for land acquisition for purposes other than agriculture and forestry, are established by RCM No. 248 of 27 May, 1992.

The regional land acquisition commission, established by a decision of the regional khokim: (i) determines the location of constructions and facilities foreseen by the Project; (ii) selects land plots for construction; (iii) prepares and approves Certificates of agreement on land acquisition; (iv) approves Certificates of the right to land use of the plot, with indications of the area of crop land acquired, agreed conditions and total value of losses of agricultural production. The commission, along with permanent members, shall also include representatives or enterprises and/or organizations, to which the plots are being allocated for construction of facilities (HGME), and organizations (farms) from which the plots are being acquired.

Department of Hydro-Geological Meliorative Expedition (HGME). HGME within the district khokimiyat is the main implementing agency, whose functions include: (i) assessing the losses of land being incurred by landowners and land-users, as well as losses of agricultural production; (ii) defining the extents and methods of restoration of land for farming activity, including removal and temporary storage of topsoil; (iii) defining, if applicable, the sanitary and water-protection zones around buildings to be constructed and the rules and restrictions to be followed within such perimeters; (iv) elaborating proposals for compensation with an equivalent surface of land of the same or better quality in other areas in consultation with citizens; (v) in case of permanent acquisition of irrigated lands, estimating the requirements and cost for the reclamation of replacement lands; (vi) approving the Certificate of landmarking with an attached plan; and (vii) amending the official documents confirming the right to ownership or the right for land use, and other land and cadastre documents as per changes in land use and land ownership resulting from acquisition of land plots.

Losses of agricultural production are assessed by an evaluation commission, constituted by instruction of the head of district khokim, along with the determination of losses incurred by


landowners and land-users resulting from acquisition of land for public needs, based on the information, provided by the design institute which has developed the planning for land acquisition. The findings of the evaluation commission are formalized in the form of the Certificate of the right to land use, specifying the area of agricultural lands acquired, the agreed conditions and the total value of the losses of agricultural production.

The Nature Protection Department: (i) carries out the environmental examination of the negative effects of facilities being commissioned or technologies being introduced; (ii) approves the location of facilities having negative effects on soil condition; (iii) develops measures aimed at land preservation during location, design, construction and putting into operation of new and reconstructed facilities, constructions and structures, as well as when introducing new technologies that have negative effects on the condition of lands; (iv) approves the Certificate of agreement to land acquisition.

State departments of sanitary and fire supervision, water resources departments approve the Certificate of agreement for land acquisition.

e) Gaps between national legislation and Bank policy on resettlements; mechanisms to eliminate such discrepancies

The following describes the principal inconsistency between the Uzbek legal framework and the World Bank policy. Wherever Uzbek Laws and World Bank policies are not in agreement, the World Bank policies and principles agreed upon in this RPF will be followed within the scope of the proposed project, regardless of the source of funding.

There is a wide-spread practice among populations in the Project districts to plant trees (mainly poplars for construction materials, but sometimes fruit and mulberry trees) outside their dehkan plots, mostly along the roads, canals, and collector drains, including on the territory of protection and sanitary zones. In rural areas, however, poplar trees do not have commercial value and are grown for the families’ own needs and use. During construction works, some of these plants will be damaged or destroyed. Although the laws of Uzbekistan does not envisage any compensation for unlawful or unregistered occupation of land for any purposes, the World Bank policy foresees compensation even when land is occupied against the law. Under World Bank OP 4.12, persons who suffer any adverse financial effect by a project, regardless of their status and legality of their affected crops, shall be entitled to compensation provided (1) their income decreases as result of Project activities (cutting trees), and (2) they provide proof that these trees belong to them. The gap between OP 4.12 and national legislation of RUz will be eliminated by the following measures:

All farmers will be informed about 2 to 3 times about the expected Project activities at least 6 to 8 months in advance, and will be instructed not to plant any crops or trees in reserve areas. This will ensure that standing crops will either be harvested in a timely manner or, preferably, not planted for the season.

All farmers will be informed of the threat that planting in reserve areas will create for the maintenance of the large investments to be made in the I&D infrastructure. Water User


Associations will take special responsibility to ensure that illegal cultivation activity is discontinued to ensure Project sustainability;

Farmers will be asked to re-plant trees, poplars, and seedlings elsewhere in their farms. They will be free to cut trees and use them for any purpose they see fit;

If there are still any income-producing fruit trees in the reserve areas once the Project works start, farmers will be asked to provide evidence through their makhalla committees and neighbors that the trees belong to them. Once such evidence is provided, they will be compensated for the income-producing fruit trees based on the income they would generate during a three year period. The amount would be based on the average gross income from all trees for one year, and the average net income for two additional years.

In addition, the local authorities also agree not to prosecute owners of illegally planted trees and not to impose fines. Nevertheless, they will continue to discourage farmers from cultivating in reserve areas in order to ensure Project sustainability.

f) Legal actions that have to be taken in order to implement effective resettlement activities

For effective implementation of acquisition activities, which in this Project means acquisition of agricultural land, the PIU will have to undertake the following:

Submit an application, with all necessary documents and permissions, to the regional khokimiyat for the selection of a land plot subject to temporary or permanent acquisition (exemption) for construction of facilities in the framework of the Project;

Submit design estimates necessary for calculation of damages and losses of agricultural production to the district department of Geocadastre and to the evaluation commission;

Obtain, following established procedure, a Certificate of land selection and Certificate of agreement for land acquisition;

Upon approval by the competent authorities of the construction plan, submit an application to the regional khokimiyat for temporary or permanent allocation of the land plots for construction works;

Transfer funds allocated for compensation of the losses of agricultural production within one month after obtaining the financing for construction, in accordance with the Certificate of agreement for land acquisition; and

Obtain, in the established procedure, a Certificate of landmarking from the district khokimiyat, and a Certificate of the right for land use in the regional khokimiyat.

If the term of temporary land acquisition for construction works is not met, all of the above procedures have to be repeated for renewal of the term. Additional damages and losses, incurred by land users owing to such term extension, have to be assessed and compensated.

It is important to notice that because of State ownership of lands in RUz, land use is only possible with the permission of local authorities on the basis of a lease or on other terms. Accordingly, land use issues are fully covered by land legislation and are not governed by provisions of customary law, traditional practices, or neighborhood relationships, etc.


6 Institutional framework

According to the legislation of RUz, the following State organizations are responsible for implementing resettlement activities:

Regional and district khokimiyats; Regional land acquisition commission; District department of Geocadastre; District evaluation commission; District HGME; District department of nature protection; District SES; and the District departments of fire supervision

These agencies have sufficient institutional capacity for the implementation of land acquisition and compensations for damages incurred by land users; thus there is no need to create additional capacity for the purposes of RF. In addition to State bodies, non-governmental organisations (WUA, AFDE and Makhallas) may be involved in land acquisition procedures to ensure the rights and legitimate interests of affected land users.

7 Eligibility / right to compensations and assistance

The legislation of RUz foresees two types of compensation for temporary or permanent acquisition of lands for non-agricultural purposes:

Compensation of damages incurred by land tenants, land users, land lessees, and land owners (Land Code, Art. 86); and

Compensation of losses of agricultural and forestry production. However when allocating land for water management purposes, for construction of irrigation and drainage facilities, losses of agricultural and forestry production are not subject to compensation (Land Code, Art. 87)

According to the legislation of the RUz, the following persons are eligible to claim compensation of damages resulting from land acquisition:

Leaseholders/Lessees – farmers, who were allocated land plots for agricultural production purposes, on the basis of long-term lease; at the first stage of Project implementation, 36 farm plots will be covered by construction works, which will require temporary and permanent land acquisition and respective compensations;

Land tenants- (citizens who were allocated land plots for individual housing construction and/or dehkan farming on the basis of life-long heritable tenure), land owners (users of land plots under objects of trade and services, which are used as private property), and land users (all other enterprises, organizations and institutions, which are entitled to use non-agricultural lands), if their land, homes or other property is affected by Project activities; homes and settlements will not be affected by the Project.


Other persons eligible for compensation. There is a land plot in the Project area, owner of which has the right to compensation equally with other farmers. It is a hired guard, who was allocated a land plot of 0.16 ha for use in the former shirkat, his employer, in 2004. He does not have documental proof of the right to use the plot. But during the period of use, he made investments into planting fruit trees and taking care of them, therefore, he is eligible for compensation of damages.

Therefore within the first stage of the Project, leasehold farmers (36 persons and a guard 1 person) are eligible for compensations. Rights of these people for compensation are to be established by the khokim’s decision to implement construction works on their plots. The amount of compensation is determined by the Certificate of agreement for land acquisition. The final date for payment of compensation is established by the legislation within one month after funding is made available to the Contractor.

One has to keep in mind that measures on enlargement of farms are in progress in the Project area, which may lead to conflict of laws. For instance, if construction is not completed in time, and the owner of the farm would change within this period, additional compensation may have to be paid to another person: the new farmer. In order to avoid such conflicts, a cut-off point will be declared and the right for compensation will be provided to the lease holding farmer at the date of issuance of the Certificate of agreement for land acquisition.


8 Valuation of and compensation for losses

National legislation of RUz envisages compensation for involuntary acquisition of lands for non-agricultural purposes, in the following instances:

Exemption, purchase or temporary occupation of land; Restriction of rights resulting from installation of protection and sanitary zones around

national reserves, sanctuaries, parks, sites, cultural and historical monuments, ponds, sources of water supply, health resorts, along rivers, canals, discharges, roads, pipe lines, communication and power lines; and

Deterioration of land quality as a result of effects of construction and operation of water resources, canals, collector drains, and other objects emitting harmful, for agricultural crops and plants, substances, as well as effects of other actions by physical and legal persons leading to harvest decrease and deterioration of agricultural produce quality.

Specialists recommend refraining from sowing crops in SHD construction area in order to prevent its early clogging during implementation of Project activities, temporary or permanent acquisition of land for construction of IDs and SHDs. Thus, there will be restrictions of land users’ rights to use land during the year after the completion of SHD construction. The probability of deterioration of land quality as well as the decrease of harvests and quality of agricultural produce will be determined by environmental assessment. The farmers will incur income loses when their ability to cultivate is restricted. As a result, they will have to be compensated. As to valuation of losses of agricultural producers incurred as a result of land acquisition, and of those incurred as a result of restriction of land users’ rights, in both cases, the same valuation methodology shall apply.

Calculation of compensation for permanent acquisition of land under annual crops. Agricultural producers shall be paid the amount of gross annual income from standing crops on their affected plot. Gross income shall be calculated as current prices of crops, based on average production during last three years and crop area (prices for crops shall be multiplied by crop area, and then multiplied by average production for last three years). Valuation shall be performed separately for each crop, so that an average weighted annual income is obtained.

Calculation of compensation for temporary acquisition of lands for the first year is performed in the same way as for permanent acquisition (multiplication of crop price by crop area, and by average production). If temporary acquisition lasts for several years, agricultural producers shall receive compensation for the second and consecutive years equal to annual net income in current prices, received from all standing crops on the plot. Net income is calculated by extracting gross expenditures for crop production from gross annual income. Valuation shall be performed separately for each crop, so that an average weighted annual net income is obtained.

In order to determine amounts of compensations for temporary or permanent acquisition of lands, the following information is required:

Crop patterns;

Current market prices for agricultural crops;

Yields from production of crops for last three years; and


Expenditures for crop production.

Information about crop patterns and production costs was obtained from the 2009 farms census (Tables 14, 15 and 17). Information about production of crops in 2006 to 2008, and on current prices in Project districts, was provided by district departments of statistics (Table 16). Compensations for permanent and temporary acquisition of lands under annual crops, per ha, are shown in Table 17.

Table 14. Crop structure in Project farms, whose land will be acquired for ID construction (taking into account permanent crops)

Area, ha Average weightedCotton 717.9 43.0%Wheat 574.4 34.4%Corn 12.1 0.7%Rice 2 0.1%Vegetables 24 1.4%Melon, water-melon 8.6 0.5%Bean crops 2.3 0.1%Fodder crops / corn for silo, Hay, lucerne 179.4 10.7%Apple tree 9.4 0.6%Apricot tree 39.1 2.3%Peach tree 32.1 1.9%Merry tree 0.8 0.0%Pomegranate 3.9 0.2%Persimmon 1.6 0.1%Walnut tree 2.2 0.1%Mulberry tree 48 2.9%Vine (table variety) 11.7 0.7%Total 1,669.5 100%

Compensations for acquisition of lands under permanent crops (fruit trees, vineyards, berry bushes) shall be calculated separately for each tree/bush.

Calculation of compensations for permanent acquisition of land under permanent crops. Agricultural producers shall be paid gross annual income for 1 year, received from all trees on the plot. Gross income from one tree shall be calculated as cost of produce in current market prices, based on data on average production of one tree for last three years, and the data on the number of trees. Valuation shall be performed separately for each crop, so that an average weighted annual income is obtained. Besides, agricultural producers are entitled to lost income, which would have been received until the end of productive life of trees. Compensation of lost income per tree shall be calculated as net income for the previous year, in current prices, multiplied by the remaining period of productive life of the tree. Remaining period of productive life shall be calculated by extracting current age of a tree as of the date of calculations, from the maximum production life. Productive lives of fruit trees are shown in Table 15.


For calculation of compensation for permanent acquisition of land being used for permanent crops, the following data is required for each type of orchard:

Number of trees by type;

Average production from each tree during last three years;

Current market prices for fruits;

Age of trees; and

Maximum productive life.

If orchard farmers, whose plots are to be acquired, will get replacement land of similar quality, apart from the compensation of lost income for 1 year, they will be provided with funds for setting up new orchards. These compensations include expenditures related to planting trees (cost of plant, transportation expenses, plus planting expenses), as well as lost income for the period until the tree becomes productive (expenses for planting new tree, and ages of productivity of various sorts of trees are shown in Table 15).

Valuation of compensations for temporary acquisition of lands under permanent crops includes expenses related to orchard recovery. These include expenditures related to planting trees, as well as lost income for the period until the trees become productive.

For calculation of compensation for starting a new orchard (when a replacement plot is allocated and in instances of temporary land acquisition), the following data is required on each type of trees:

Number of trees;

Costs of planting one tree;

Net income from 1 tree per year, in market current prices; and

Age of productivity.

Estimates of compensations for temporary and permanent acquisition of land being occupied by permanent crops, are presented in Table 15.


Table 15. Estimates for compensations most common fruit trees and bushes

Productive life of

trees, years

Average price of a 2-year-

old plant (UZS)

Cost of planting a new tree (UZS)

(plant+cost of

transportation and planting)

Cost of growing

and collecting

harvest (UZS per

year)

Ave-rage

(for 3 years) pro-

duction (kg)

Market price

(UZS/kg), 2008

Annual income (‘000 UZS)

Net income

from one tree, ‘000

UZS

Non-productive period (years)

Compensation for one tree (‘000 UZS) until the end of productive

life *

Compensation of lost income for the period

until new plant enters

productive age (‘000 UZS)

Total compensation

for permanent acquisition

without providing

replacement plot

Total compensation

for cutting, when

replacement plot is

provided, or for temporary

acquisition1 2 3 4 5 6 7 8 9 10 11 12 13 (7)-(4) (1)/2*(8) (8)*(9) (7)+(10) (7)+(3)+(11)

Large fruits treesApple 25 2,000 3,000 6,900 35 900 31,5 24,6 6 307,5 147,6 339,0 182Pear 20 2,000 3,000 7,530 25 1,400 35,0 27,5 6 274,7 164,82 309,7 203Quince 15 1,000 1,500 3,480 20 800 16,0 12,5 3 93,9 37,56 109,9 55Apricot 30 1,800 2,700 7,950 45 800 36,0 28,1 7 420,8 196,35 456,8 235Peach 8 1,900 2,850 3,700 30 1,500 45,0 41,3 3 165,2 123,9 210,2 172Sweet cherry 20 1,400 2,100 11,000 20 2,000 40,0 29,0 3 290,0 87 330,0 129Cherry 20 1,500 2,250 14,000 20 1,500 30,0 16,0 3 160,0 48 190,0 80Sub-tropicalPomegranate 35 1,000 1,500 7,190 10 2,500 25.0 17.8 3 311.7 53.43 336.7 80Fig 30 1,500 2,250 8,460 15 2,800 42.0 33.5 4 503.1 134.16 545.1 178Mulberry (for leaves) 50 2,000 3,000 400 30 1,200 36.0 35.6 5 890.0 178 926.0 217Persimmon 45 1,800 2,700 7,500 35 2,000 70.0 62.5 3 1,406.3 187.5 1,476.3 260Nut-treesWalnut 70 3,000 4,500 5,000 30 4,200 126.0 121.0 9 4,235.0 1,089 4,361.0 1220Almond 30 1,500 2,250 5,200 15 5,000 75.0 69.8 4 1,047.0 279.2 1,122.0 356VineTable variety 15 400 600 3,500 10 1,500 15.0 11.5 3 86.3 34.5 101.3 50Wine grape 15 300 450 3,100 12 700 8.4 5.3 3 39.8 15.9 48.2 25

* Assuming that the tree is in the middle of its productive age


Table 16. Average annual production of crops in Project districts, 2006-2008

Main crops

Bagdad, c/ha* Rishtan, c/ha Altiarik, c/haAverage for 3 districts2006 2007 2008

Average for 2006-

20082006 2007 2008

Average for 2006-

20082006 2007 2008 Average for

2006-2008

1 Cotton 23.7 23.4 22.8 23.3 23.0 25.9 23.1 24.0 25.5 30.3 23.1 26.3 24.53 Wheat 53.3 56.4 56.8 55.5 44.9 52.8 55.3 51.0 51.3 53.5 53.2 52.7 53.14 Corn for grain 31 49.3 51.3 43.9 0 0 0 0.0 68 85 0.0 51.0 31.65 Rice 0 0 0 0.0 0 0 35 11.7 0 0 0.0 0.0 3.96 Other grain crops 0 0 0 0.0 0 49.3 0 49.3 0 0 0.0 0.0 16.47 Potato 155.4 218.5 220.3 198.1 0 210 284 247.0 155.5 156 162.0 157.8 201.08 Vegetables 250.6 254.3 313.1 272.7 136.2 316.7 300 251.0 191.6 212.2 313.5 239.1 254.29 Melons 161.8 223.7 262.5 216.0 112 148.4 150 136.8 240 250 210.0 233.3 195.410 Beans 0 0 0 0.0 0 49.3 0 49.3 0 0 0.0 0.0 16.411 Corn for silo 131.2 282.8 318.1 244.0 111.6 301.9 524.1 312.5 149.9 253.9 245.4 216.4 257.713 Fruits 61 46.4 56.3 54.6 53.5 48 51.8 51.1 36.5 45.2 62.3 48.0 51.214 Vine 35.6 68 68.2 57.3 66 64 82 70.7 33.3 279 262.2 191.5 106.5

Source: District departments of statistics, 2009*Centners (100kg) per Hectare


Table 17. Estimates of compensations for loss of annual crops

Main crops

Average production for

Project districts, 2006-

2008 (c/ha)

Average market price (UZS/kg),

2008

Annual income (‘000

UZS/ha)

Net income, 2008, (‘000

UZS/ha)

Permanent acquisition of

land - compensation of losses per year per ha

Temporary acquisition of

land - compensation of losses per year

per ha

Temporary acquisition of land for 2 years

(compensation of losses for 1st year and lost

income for 2nd year, per ha)*

1 2 3 4 5 6 7 (3)+(4)

Cotton 24,5 365 895.5 215.5 895 895 1111Wheat 53,1 250 1326.4 172.9 1326 1326 1499Corn for grain 31,6 300 948.7 116 949 949 1065Rice 35,0 2000 7000.0 1500 7000 7000 8500Other grain crops 16,4 1200 1972.0 212 1972 1972 2184Potato 201,0 550 11053.2 614 11053 11053 11667Vegetables 254,2 480 12203.7 645 12204 12204 12849Melons 195,4 600 11722.7 592.8 11723 11723 12315Beans 16,4 1000 1643.3 516 1643 1643 2159Corn for silo, hay lucerne, other forage crops 257,7 100 2576.6 2414.7 2577 2577 4991

*Note: Sample estimates if construction and rehabilitation works last for two agricultural seasons


9 Compensation and entitlement matrix

Package of compensations within the framework of the Project will include compensation of damages to agricultural producers, incurred owing to temporary or permanent land acquisition, and/or restriction of land users’ rights.

Table 18. Entitlement Framework

Asset and Impacts Entitled persons Types of compensation for damages Types of construction works

Permanent acquisition of land being occupied by annual crops

Leasehold farmers and dehkans (if any) with land

use rights

Gross income from all crops for 1 year

State order amount reducing (in case the land is under cotton/wheat cultivation)

ID construction

SHD construction

Temporary acquisition of land being occupied by annual crops


use rights

Gross income from all crops for 1 year

State order amount reducing (in case the land under cotton/wheat) ID construction.

SHD constructionIn case of construction delays, net income from all crops shall be paid for the 2nd year

Restriction of rights of land users


use rightsGross income from all crops for 1 year SHD construction

Gross income from all trees for 1 year ID construction



Permanent acquisition of land being occupied by permanent crops


use rights

Option A. If a replacement plot is not allocated: compensation of lost income (lost income for the rest of productivity life of trees)

Option B. If a replacement plot of equal value is allocated: cost of starting a new orchard and compensation of lost income for the pre-productive period of new trees

The affected farmer will determine whether he or she will receive Option A or Option B on the basis of full disclosure of the land that would be made available in exchange for the land acquired for project implementation.

Temporary acquisition of land being occupied by permanent crops


use rights

Gross income from all trees for 1 year. Cost of starting a new orchard and compensation of lost income for the pre-productive period of new trees

ID construction

Removal of poplars in reserved areas of canals and roads

Households All farmers will be informed at least 6-8 months in advance 2-3 times of the Project activities, and instructed not to plant poplars in reserve areas.

All farmers will be informed of the threat that planting in reserve areas will create for the maintenance irrigation and drainage infrastructure. Water User Associations will take special responsibility to ensure that illegal cultivation activity is discontinued to ensure Project sustainability;

Farmers will be asked to re-plant poplars elsewhere in their farms. They will be free to cut

Rehabilitation works on canals



and use them for any purpose they see fit

Removal of trees with commercial value in reserved areas of canals and roads

Households and Leasehold farmers

All farmers will be informed at least 6-8 months in advance 2 to3 times about the Project activities and will be instructed not to plant any trees in reserve areas.

All farmers will be informed of the threat that planting in reserve areas will create for the maintenance of large investments to be made irrigation and drainage infrastructure.

Water User Associations will take special responsibility to ensure that illegal cultivation activity is discontinued to ensure Project sustainability;

Farmers will be asked to re-plant trees and seedlings elsewhere in their farms. They will be free to cut trees and use them for any purpose they see fit;

If there are nevertheless any fruit trees in the reserve areas once the Project works start, farmers will be asked to provide evidence through their makhalla committees and neighbors that the trees belong to them. Once such evidence is provided, they will be compensated for the fruit trees based on the income they would generate. Gross income from all trees for 1 year, and compensation of lost net income for 2 additional years.

Rehabilitation works on canals



Compensation for damage of houses and other property (if any)

Owners of the property Full replacement value of property Works in Rishtan city


10 Selection of plots for farmers, whose existing plots are significantly reduced during land acquisition

During the past 15 years, almost all arable lands in the Project area was either allocated to households and dehkans, or leased to farmers. Available arable land reserve is very small and dispersed throughout the districts. Thus, in case of land acquisition, khokimiyats will have limited choice of replacement land of equal value. As agreed with the World Bank, in cases where leasehold or dekhan farmers will lose arable land, it will be the farmer who will determine which option he prefers. The farmer will make this decision on the basis of full disclosure of the land that would be made available in exchange for the land acquired for project implementation.

On the other hand, during consultations with farmers conducted as part of RF development process revealed that leasehold farmers with large land holdings were not interested in replacement. The farmers with 25 ha or larger holdings said that it was unrealistic to get 1-2 ha worth of land elsewhere to replace the land lost during IDS construction, and that they did not see the benefits of getting scattered small land plots. Their major concern is for the compensation of losses and reduction of amount of crops sold under contractual obligations to the State.

Among the leasehold farmers that would be affected during the first phase of the ID construction the most vulnerable is a group of 5 farmers and 1 guard-dehkan, who have 1-3.6 ha land plots under fruit trees and vegetables in Altiaryk district. Construction works will mean 25 to 50 percent loss of land and reclassification from farmers to dehkans. These farmers expressed their preference to receive replacement land plots.

Similar vulnerabilities may emerge during the Project activities in other places as well. For this reason, PIU specialists, together with farmers, have to coordinate with local khokimiyats the process of allocation of replacement land to those farmers whose plots are smaller than 5 ha, and will be significantly reduced during construction works or IDS rehabilitation.

All legal steps towards formalizing land use issues and rights of these farmers to own or lease the land, will be taken together with Geocadastre specialists, who will participate in selection of new land plots, and with khokimiyats, and in close collaboration/consultation with farmers.

11 Provision with housing, objects of infrastructure, and social services

The Project will not affect settlements or homes; it will therefore avoid physical resettlement. Thus, there is no need to develop RPF activities aimed at provision of housing, infrastructure, and facilities for social services.


12 Environmental protection and management

Measures for protection and sustainable use of environment shall be developed within the framework of the EA of the Project.

Besides, at the stage of land selection for construction works, Geocadastre will determine the necessity and scope of activities on restoration of land for farming activity, including removal and temporary storage of topsoil, and shall determine the need in sanitary and water-protection zones around facilities being constructed and the rules and restrictions to be followed within such perimeters.

According to the requirements of the Land Code and nature protection legislation, the oblast State Committee for Nature Protection will carry out the environmental examination, which will assess the impact of facilities being put into operation and that of technologies being used during construction process, and shall, if necessary, implement measures towards rational use and protection of lands. It is prohibited to put into operation facilities and implement technologies without ensuring measures for protecting land from degradation or damage, and positive environmental assessment.

13 Public participation

Participation of affected leasehold farmers has been assured at the outset of the first stage of the Project. The first phase of the SA, conducted in 2007, aimed at the analysis of farmers’ views on potential temporary or permanent acquisition of part of their lands. During the second phase, discussions were conducted with farmers who will be affected by Project-related construction works. Extensive discussions were also held with representatives of all State agencies responsible for land acquisition activities. The following problems were discussed:

Acceptability of the decision on land by farmers, and the impact of such measure on farms;

Preferred compensation options; and

Compensation payment schemes.

During discussions, most farmers agreed that measures on land acquisition for construction of drainage facilities are necessary and inevitable. Discussion participants also showed understanding that in conditions of shortage of agricultural land in the region, provision of replacement land will be highly problematic. Therefore, payment of fair and economically justified cash compensations for damages incurred, including lost future income, is considered to be an acceptable measure. It should be noted that many farmers are ready to waive their right to legitimate compensation if measures to rehabilitate drainage are successful and lead to increased productivity and income.

Nevertheless, under WB OP 4.12, any persons who suffer any adverse financial effect during the Project, regardless of their status and legality of their affected crops, shall be entitled to


compensation and assistance from the Project, provided that (a) their income decreases owing to Project activities (cutting trees), and (2) they provide proof that these trees belong to them.

Participation of the public in confirming the rights for crops and trees within reserve areas will be very important because the only way for people to prove ownership for the crops/trees is by referring to their neighbors/makhalla committees.

Forms and amounts of individual compensation will be agreed upon with affected farmers to be resettled at the stage of selection of construction sites. Legislative procedures require participation of all land users or their representatives in decision making on selection of lands to be exempted, on land acquisition, during land marking plan preparation, etc., and on the amounts of damages and losses. Farmers will have a sit in the evaluation commission, and certificate of agreement for land acquisition may not be signed without their consent.

14 Integration with host communities

The Project does not envisage any activities that could affect settlements or housing; thus, there will be no physical resettlement. Therefore, there is no need in development of activities aimed at integration into accepting communities.

15 Grievance procedures (procedures for consideration and resolution of complaints)

During consultations and discussions, it was discovered that farmers to be resettled do not foresee any serious reasons for conflicts and complaints during land acquisition. It must be emphasized that the risk of complaints will be reduced to a minimum owing to the fact that the farmers to be resettled will be involved in the evaluation commission and will have an opportunity to reach consensus during joint discussions. Should such a consensus not be reached, farmers may submit prejudicial claims to local authorities (district and regional khokimiyats) against the decisions of the evaluation commission. If local authorities also fail to satisfy legitimate claims of farmers, the latter may appeal the commission’s decisions in court, in accordance with established procedures.

16 Organizational responsibilities for implementing resettlement

The Project will not affect settlements or housing; it will not resettle any households. Therefore, there is no need in development of operational measures on population resettlement.


17 Implementation schedule

The preliminary schedule of project activities, which will require temporary and permanent acquisition of land and payment of compensation, is presented in the Table below:

Type of works 1st

year2nd

year3rd

year4th

year5th

year6th

year

Construction and deepening of intersection drains

Rehabilitation and cleansing of the existing SHD

Construction of new SHD

If rehabilitation of on-farm drainage wells, flumes and canals, either coated or uncoated, requires expansion of canals and collectors, compensations to farmers have to be paid as well.

The Project envisages implementation of several types of works which will be administered stage-by-stage in different administrative districts. It is important to remember that the main compensation-related procedures will be adopted at the district level. For this reason, detailed land acquisition plans have to be prepared separately for each stage of works and for each district, while following Project’s financing timelines. The schedule for the first segment of RF is given presented in the Table below.

Schedule of RF implementation for leasehold farmers affected by IDs

Months

1 2 3 4 5 6 7 8 9 10 11 12

Appointment of a Resettlement Specialist, responsible for detailed resettlement plan. Collecting documents and maps for selection of construction sites

Submitting an application to regional khokimiyat for the selection of land plots

Setting up regional land acquisition commission and district evaluation commission

Coordination of land plot selection



Months

1 2 3 4 5 6 7 8 9 10 11 12

Informing interested organizations about construction plans (border guards, railways, communication services, etc.). Approval of construction plans

Approval of compensation recipient lists, and types of compensation.

Informing land users about upcoming land acquisition, providing maps, written documentation and full information about construction plans, dates of beginning and expected completion, information about land acquisition procedures, compensations, mechanisms for submission of grievances, legal redress. Consideration of grievances and satisfaction of judicial claims, if any.

Informing affected households, through makhalla committees and WUAs, about construction plans and expected damage to crops and trees in acquisition area along canals. Providing full information about construction plans, dates of beginning and expected completion, information about land acquisition procedures, compensations, mechanisms for submission of grievances, legal redress. Consideration of grievances and satisfaction of judicial claims, if any.

Conducting inventory of affected resources of persons, whose land and property are to be acquired. Preparation of documents supporting the right of ownership for, and full disposal of, the property. Preparation of calculations for compensations. Approval of sizes and types of compensations with respective State bodies and eligible land users.

Preparation of Certificate of land plot selection in the district khokimiyat

Preparation of Certificate of land acquisition in



Months

1 2 3 4 5 6 7 8 9 10 11 12

the regional khokimiyat

Collection of documents for acquisition of land for construction. Submitting an application for acquisition of land for construction

Coordination of acquisition of land for construction

Preparation of Certificate of Land acquisition at the local levels

Beginning of financing

Payment of compensations

Preparation and coordination of the Land acquisition plan

Preparation of Certificate of landmarking in the district khokimiyat

Preparation of Certificate of the right for land use for the Contractor

Changing land and cadastre documents

Internal monitoring

External monitoring

The coordination of land acquisition with all interested parties is a labor and time consuming process. Even in the absence of disputes and conflicts, in terms of consideration and approval of documents (if national applications processing standards are observed), pre-construction procedures would take about 12 months. Given the high interest of local authorities and farmers in Project implementation, the time requirements may be reduced; however, even under the most optimistic scenario, land acquisition implementation would not be completed sooner than 8 to 10 months.


18 Costs and budget

The Project will involve temporary and permanent acquisition of land for construction of IDs and SHDs. Besides, construction of new SHDs will require restriction of rights of agricultural producers because it is not recommended to sow crops on the plots within one year after installation of SHD. It is expected to install IDs on the plots, occupied both by annual and permanent crops, which SHD will be laid only on the plots under annual crops.

Compensation of losses to legitimate land users for loss of agricultural income will be implemented through a bank transfer. Expenses related to recovery of the land plot in areas of excavation will be included in construction expenses.

All calculations are based on information on agricultural crops and market prices that are prevalent in Project raions. Construction of various facilities will last over five years, and the market price for agricultural produce (as well as crop structure) may change during this period. Therefore, compensation expenses will be adjusted according to updated information on land distribution and productivity that has been achieved on affected farms during a period of three years after the start of construction works.

It is expected that on every farm plot, where construction works are to take place, temporary and permanent land acquisition will last no longer than one agricultural season. Thus, compensation for the loss of harvest from annual crops shall be calculated based on gross income for one year. Precise terms of permanent and temporary acquisition of agricultural lands will be known only upon development of project documentation. For the purpose of preliminary calculations, we established average annual income from 1 ha for each crop, weighted on the basis of crop structure.

Construction of IDs will require acquisition of about 70 ha of agricultural land, currently occupied by annual crops, including 42 ha to be permanently acquired. The total amount of compensation for this stage of construction is (in current prices) 9.5 million UZS, or 68 thousand USD (under current exchange rate16). If construction is to be extended to the following agricultural season, additional compensations for lost income will be required in amount of 6 million UZS or about 4 thousand USD (see Table 19).

16 1USD=1400 UZS rate used


Table 19. Calculation of compensations for acquisition of lands under annual crops in 37 farms, for the purposes of ID construction

Average weighted structure of land use for annual

crops (taking into account trees)

Temporary acquisition,

ha

Permanent acquisition,

ha

Annual income (‘000 UZS per ha)

Net income per 1 ha, 2008, ‘000

UZS

Compensation for 1 year, per 1 ha of crops,

‘000 UZS

Total amount of

compensation for 1 year for

all farms, ‘000 UZS

Amount of compensations

to be paid if construction is extended into

the second agricultural season, ‘000

UZS 1 2 3 4 5 6 7Formula (3) (5) * (1) (4) *((1)-(2))Total, Ha 69.8 42.24Cotton 43.0% 30.0 18.2 895.5 215.5 895 26,872.5 2,553.5Wheat 34.4% 24.0 14.5 1,326.4 172.9 1,326 31,845.5 1,639.1Corn 0.7% 0.5 0.3 948.7 116.0 949 480.8 23.2Rice 0.1% 0.1 0.0 7,000.0 1,500.0 7,000 572.2 48.4Vegetables 1.4% 1.0 0.6 11,721.4 630.0 11,721 11,757.0 84.0Melon, water-melon 0.5% 0.4 0.2 11,722.7 592.8 11,723 4,216.5 89.5Bean crops 0.1% 0.1 0.1 1,643.3 516.0 1,643 158.5 22.6Fodder crops / corn for silo, hay, lucerne 10.7% 7.5 4.5 2,576.6 2,414.7 2,577 19,314.5 1,527.3

Occupied by orchards 8.9% 6.2 3.8

Total amount of compensation for all farms, ‘000 UZS

95,218 5,987.4

Total amount of compensation for all farms, ‘000 USD

68.0 4.3

Note: Compensation shall be done for 1 year; lands permanently acquired will be removed from the agricultural lands cadastre on the second year


Annual crops occupy 63.3 ha out of 69.8 ha. Damages, related to loss of fruit trees on the remaining 6.2 ha, shall be compensated separately.


Table 20. Calculation of compensations for acquisition of 200 ha of lands under annual crops, for the purposes of installation of 100 km long SHD

Average weighted

structure of land use for annual crops

(without permanent

crops)

Temporary acquisition,

ha

Permanent acquisition,

ha

Annual income

(‘000 UZS per ha)

Net income

per 1 ha, 2008, ‘000

UZS

Compensation for 1 year, per 1 ha of crops,

‘000 UZS

Total amount of

compensation for 1 year for

all farms, ‘000 UZS

Amount of compensation for

lost income owing to

restriction of land users’ rights

within one year after SHD

installation, ‘000 UZS

Total

1 2 3 4 5 6 7 8Formula (3) (5) * (1) (4) *((1)-(2)) (6)+(7)Total, Ha 200 0Cotton 47.2% 94.4 0.0 895.5 215.5 895 84,554.3 20,348.5 104,902.8Wheat 37.8% 75.5 0.0 1,326.4 172.9 1,326 100,202.0 13,061.7 113,263.8Corn 0.8% 1.6 0.0 948.7 116.0 949 1,512.9 185.0 1,697.9Rice 0.1% 0.3 0.0 7,000.0 1,500.0 7,000 1,800.5 385.8 2,186.4Vegetables 1.6% 3.2 0.0 11,721.4 630.0 11,721 36,993.5 669.1 37,662.6Melon, water-melon 0.6% 1.1 0.0 11,722.7 592.8 11,723 13,267.2 713.0 13,980.3Bean crops 0.2% 0.3 0.0 1,643.3 516.0 1,643 498.8 179.9 678.7Fodder crops / corn for silo, hay, lucerne 11.8% 23.6 0.0 2,576.6 2,414.7 2,577 60,773.0 12,170.8 72,943.8

Total amount of compensation for all farms, ‘000 UZS

299,602 47,714.0 347,316

Total amount of compensation for all farms, ‘000 USD

214 34 248


The construction of SHDs will require temporary acquisition (for one agricultural season) of 200 ha of land being occupied by annual crops. At this stage of construction works, amount of compensations for lost income will be almost 300 million UZS, or 214 thousand USD. Additional compensation will have to be paid for restriction of land users’ rights within 1 year after the construction, in the amount of 47 million UZS, or 34 thousand USD. Therefore, total compensation for SHD construction will be 347.3 million UZS, or 248 thousand USD (Table 20).

The largest share of compensation will be for damages to gardener farmers. SHD construction will not affect plots of these farmers. However, according to Ferghanagiprovodhoz Institute, there are 3,800 trees growing within the territory to be acquired for ID construction. Mostly these are willows and poplars, which local population grows for construction materials. In rural areas, poplar trees do not have commercial value and are grown for the families’ own needs and use. Legislation does not envisage compensation for cutting these trees because they are often located on reserved sanitary zones and are therefore illegal, and their owners may be brought to administrative sanctions. During consultations and discussions that took place within the framework of survey, however participants found a compromise solution: people residing in the Project area will be informed in a timely manner about the scheduled dates of construction works, so that owners of the poplars could remove them in time and use for own needs. At the same time, local authorities agreed not to impose administrative sanctions.

There are various fruit trees growing on the plots, which will be affected by ID construction works. According to information provided by Ferghanagiprovodhoz Institute, 1,277 fruit trees are located in the acquisition territory, including 1,136 apricot trees and 141 mulberry trees. In Altyarik raion there are both apricot and mulberry trees, in Rishtan raion – only apricots, and in Bagdad raion fruit trees are not within the acquisition area (Table 21). Mulberry trees are planted not for berries, but mainly for growing silkworm cocoons, which does not bring any significant income to farmers, as compared to apricot trees.


Table 21. Calculation of amount of trees on the routes of interceptor drains

Collector name Trees typeLeft side of ID Right side of ID Total

number of trees

Of them orchardsTrees

diameterNumber of trees

Trees diameter

Number of trees

Baghdad raionB-1 No 0 0 0 0B-2 Poplar/willow 0.2-0.3 242 0.2-0.3 47 289 0B-3 Poplar/willow 0.2-0.3 177 0.2-0.3 108 285 0B-4 Poplar/willow 0.2-0.3 327 0.2-0.3 77 404 0B-5 Poplar/willow 0.2-0.3 31 0.2-0.3 24 55 0B-6 Poplar/willow 0.2-0.3 23 0.2-0.3 29 52 0B-7 Poplar/willow 0.2-0.3 161 0.2-0.3 88 249 0B-8 Poplar/willow 0.2-0.3 29 0.2-0.3 38 67 0B-9 Poplar/willow 0.2-0.3 57 0.2-0.3 31 88 0B-10 Poplar/willow 0.2-0.3 20 0.2-0.3 44 64 0B-11 Poplar/willow 0.2-0.3 27 0.2-0.3 69 96 0B-12 Poplar/willow 0.2-0.3 37 0.2-0.3 149 186 0B-13 No 0 168 168 0

Altyarik raionA-1 No 0 0 0 0A-2 Apricot 0.2-0.3 205 0.2-0.3 433 638 638A-3 Mulberry 0.2-0.3 73 0.2-0.3 68 141 0A-4 No 0 0.2-0.3 0 0 0A-5 No 0 0.2-0.3 0 0 0A-5-1 No 0 0 0 0A-6 Poplar/willow 0.2-0.3 137 0.2-0.3 243 380 0

Rishtan raionP-1 Apricot 0.2-0.3 129 0.2-0.3 145 274 274P-2 Apricot 0.2-0.3 168 0.2-0.3 197 365 365

Total for 3 raions 3,801 1,277Source: Explanation letter to research. Report of the Ferghanagiprovodhoz Institute on calculation of trees within the area to be acquired for construction of interceptor drains. September 2008. Prepared by R. Isakov

Estimates of compensations for losses incurred by gardeners by construction of interceptor drains, are shown in Table 22. Compensations for temporary land acquisition will be about 89 million UZS (including 88.7 million UZS for apricot trees), and those for permanent land acquisition with provision of equal quality replacement plots will be 212.4 million UZS (including 211.5 million UZS for apricot trees). Most expensive option is compensation of damages for fruit trees without allocation of replacement plots, about 700 million UZS, including 687 million UZS for apricot trees.

If replacement plots are provided, compensations will amount to 301 million UZS, or 215 thousand USD. If local authorities cannot provide replacement land to gardener farmers, compensations will go up to 785 million UZS, or 560.5 thousand USD.


Table 22. Estimates of compensations for loss of fruit and mulberry trees during ID construction

Formula Apricot Mulberry (leaves)

Number of trees within ID construction area * 1 1,277 141including on lands to be permanently acquired 2 900 113including on lands to be temporarily acquired 3 377 28Productivity life of trees, years 4 30 80Average cost of 2-year-old plant, UZS 5 1,800 2,000Expenses for growing new tree (plant+transportation and planting expenses), UZS 6 2,700 3,000

Expenses related to cultivation of the tree and picking harvest, UZS per year 7 7,950 400

Average age of trees, years 8 16.8 18.8Average annual production from 1 tree, kg 9 45 30Average market price, UZS/kg, 2008 10 800 40Annual income from 1 tree, ‘000 UZS 11 36.0 1.2Net income from 1 tree, ‘000 UZS 12 (8)-(4) 28.1 0.8Non-productive period, years 13 7 5Remaining productive period, years 14 (4)-(8)+(13) 20.2 66.2Option A. Estimates of compensations for permanent acquisition of land without allocation of replacement plot, ‘000 UZS

15 (18)+(19) 686,697.9 9,089.4

Compensation for 1 tree until the end of productive life, ‘000 UZS 16 (8)*(12) 471.2 15.0

Number of trees to be cut, pcs 17 (2) 900 113Compensation of lost income for 1 year, ‘000 UZS 18 (2) * (11) 32,391 135Compensation of lost income until the end of productive life, ‘000 UZS 19 (2)*(12)*(14) 654,306.5 8,954.1

Option B. Estimates of compensations, if equal quality replacement plot is provided, ‘000 UZS 20 (21)+(22)+(23) 211,488.9 924.3

Compensation of lost income for 1 year, ‘000 UZS 21 (2) * (11) 32,391 135Compensation of lost income until the end of non-productive period of new trees, planted after return of lands, ‘000 UZS

22 (2)*(12)*(13) 176,668.2 450.9

Expenses for growing new trees, ‘000 UZS 23 (6)/1,000*(2) 2,429.4 338.1Mandatory component. Calculation of expenses for temporary acquisition of land, ‘000 UZS 24 (27)+(28)+(29) 88,669.9 231.9

Compensation for 1 tree for the remaining productive period, ‘000 UZS 25 (8)*(12) 471.2 15.0

Number of trees to be cut on temporarily acquired lands, pcs 26 (3) 377 28

Compensation of lost income for 1 year, ‘000 UZS 27 (3) * (11) 13,580.6 33.9


Formula Apricot Mulberry (leaves)

Compensation of lost income until the end of non-productive period of new trees, planted after return of lands, ‘000 UZS

28 (3)*(12)*(13) 74,070.8 113.1

Expenses for growing new trees on returned lands, ‘000 UZS 29 (6)/1,000*(3) 1,018.5 84.9

Total expenses for Option A (without allocation of replacement land), ’000 UZS (15)+(24) 775,367.8 9321.3

Total expenses for Option A (without allocation of replacement land), ’000 USD 553.8 6.7

Total for Option A, for all sorts of trees, ’000 USD 560.5

Total expenses for Option B (with allocation of replacement land), ’000 UZS (20)+(24) 300,158.9 1,156.2

Total expenses for Option B (with allocation of replacement land), ’000 USD 214.4 0.8

Total for Option B, for all sorts of trees, ’000 USD 215.2

Compensation budget is not limited solely to compensations for agricultural producers. It also includes RF administration and M&E expenses, as well as incidental expenses.

A RF Special Reserve Fund (15%) is being established in order to compensate losses, which cannot be calculated before the development of a detailed design. The largest expenditure to be covered from the SRF will be for compensations to owners of illegal fruit, silkworm, and other trees, that have commercial value, as well as for illegal crops within canals’ reserve areas, as envisaged by WB OP 4.12. Under WB OP 4.12, however, any persons who suffer any adverse financial effect during the Project, regardless of their status and legality of their affected crops, shall be entitled to compensation and assistance from the Project, provided (1) their income decreases owing to Project activities (cutting trees), and (2) they provide proof that these trees belong to them.

Total estimates for RF are given in Table 23.

Minimum RF budget is estimated to be 733.5 thousand USD (provided that construction timelines are observed and gardener farmers receive equal quality replacement plots). If construction is extended or replacement plots are not available, RF budget will exceed 1,150,000 USD. In any case scenario, major expenses fall on two first years of construction, as it is planned to implement a large amount of works, entailing the necessity in allocation of considerable compensations.


Table 23. Total estimates for RF implementation, ‘000 USD

Total 1st

year2nd

year3rd

year4th

year5th

year6th

year

Compensations for temporary and permanent acquisition of lands, being occupied by annual crops, for ID construction

OPT

ION

S construction timelines are observed 68 35 33

construction timelines are not observed/extended 72.3 40.3 32.0

Compensations for fruit trees

OPT

ION

S

Option A. Compensations for temporary or permanent acquisition of land without allocation of replacement plot

560.5 300.5 260

Option B. Compensations for temporary or permanent acquisition of land with allocation of replacement plot

215.2 130.2 85

Compensations for acquisition of lands, being occupied by annual crops, for SHD construction

248 100 37 37 37 37

Compensation for lost income 214 86 32 32 32 32

Compensations for restriction of land users’ rights 34 14 5 5 5 5

Expenses for monitoring and administration 80 20 20 5 15 5 15

Internal monitoring and administration 30 5 5 5 5 5 5

External monitoring 50 15 15 10 10

Intermediate total

Minimum 611.2 185.2 238 42 52 42 52

Maximum 960.8 360.9 411.9 42 52 42 52


Total 1st

year2nd

year3rd

year4th

year5th

year6th

year

Targeted Reserve Fund (15%)

Minimum 91.7 27.8 35.7 6.3 7.8 6.3 7.8

Maximum 144.1 54.1 61.8 6.3 7.8 6.3 7.8

Incidental expenses (5%)

Minimum 30.6 9.3 11.9 2.1 2.6 2.1 2.6

Maximum 48 18 20.6 2.1 2.6 2.1 2.6

TOTAL

Minimum 733.5 222.3 285.6 50.4 62.4 50.4 62.4

Maximum 1,152.9 432.9 494.4 50.4 62.4 50.4 62.4

19 Monitoring and evaluation

The PIU will appoint a specialist for the internal monitoring of resettlement, who will develop detailed plans and indicators for monitoring for subsequent phases of land acquisition plan. The monitoring specialist will submit quarterly information about the progress of resettlement to be incorporated into Project reports. Expenditures for internal monitoring shall be incorporated into the resettlement budget. General system of monitoring indicators is shown in the following table.


Table 24. M&E matrix

Purpose Activities Monitoring indicators

Identification of compensation recipients

Checking the list of compensation recipients against eligibility criteria for compensations.

Number of persons in the list of compensation recipients, who do not meet eligibility criteria (mistaken inclusion)

Identification of persons, who may claim eligibility to compensation, but are not included in the lists of compensation recipients. Separate check should be performed on each type of compensation

Number of persons, who meet the criteria, but are not included in the list of compensation recipients (mistaken exclusion)

Controlling types of compensation

Confirmation of temporarily or permanently affected areas against RF

Area of land subjected to temporary acquisition, for which compensations have been paid

Area of land subjected to permanent acquisition, for which compensations have been paid

Fruit trees actually affected against the data in RF

Number of trees, for which compensations have been paid

Controlling compensation Examination of financial documents

Number of persons, who received compensation in time and in full amount, disaggregated by compensation types

Identification and analysis of reasons for compensations not being paid in full amount and in time

Number of persons, who did not receive compensation in time and in full amount, disaggregated by compensation types

Number of persons, who received compensation in time, disaggregated by compensation types

Amount of funding allocated for payment of compensations


Purpose Activities Monitoring indicators

Identification of reasons, for which funds for compensations have been under/overspent

Rate of spending of funds allocated for compensations, % of envisaged by RF

Additional compensation in case the construction works will be delayed (In this case affected farms will have to be compensated for the second agricultural season losses)

Monitoring time limits of temporary land acquisition

Number of persons, on whose plots temporary acquisition needs to be extended

Area, on which construction works will be continued after the established deadline

Consultations and participation

Determining the level of involvement, and identification of reasons of inadequate participation

Number of compensation recipients, who participated in consultations and coordination meetings at each stage of land acquisition

Analysis of disputes’ and complaints’ content. Resolution of conflicts

Number of complaints

Number of complaints resolved

Level of satisfaction with the types and sizes of compensations

External monitoring

According to the requirements of the WB, PIU will hire a consultant for external monitoring of resettlement. Expenditures for external monitoring activities shall be included in the resettlement budget. Main functions of the external monitoring specialist will be the following:

Development of recommendations on the organization and implementation of internal monitoring of resettlement, including a system of monitoring indicators, timelines and procedures, reporting forms, etc.;

Analysis of, and preparation of recommendations on, the preliminary lists of persons, who incur damages and may be eligible for compensation;

Analysis of the RF, payment of compensations, procedures for approving and payment of compensations, and preparation of recommendations on their compliance with the WB resettlement policy;


Participation (as an observer) in consultative meetings on land acquisition;

Monitoring the timeliness of the allocations of funds for compensations; preparation of respective recommendations on adjustment of measures;

Monitoring land acquisition timelines and terms of temporary land acquisition; preparing recommendations on the adjustment of timelines/terms; and

Conducting special baseline update surveys with affected farmers who incurred damages resulting from construction works under the Project, in order to identify the level of satisfaction with types and sizes of compensations.


Annex 1: Decree On Optimization of Cropping Areas and Increasing of Food Crop Production

Issued by the President of the Republic of Uzbekistan on 20 October 2008

Due to recurring low availability of water during recent years, a steady food price surge in the international market, and also in order to assure further increase of production volumes and to expand foodstuff range with the purpose to provide the most possible satisfaction of the population’s demand on foodstuffs, and finally, to leverage incomes and enhance living standards of the rural population, this Decree envisages the following:

1. To accept the proposal initiated by the Ministry of Agriculture and Water Resources (MAWR) and the Ministry of Economy of Uzbekistan on decreasing (starting from 2009) of the volumes of raw cotton production being produced under contractual agreements, and accordingly, on downsizing of the cotton crop areas, as stated in the Attachment 1.

2. Having released cotton crop areas:a. To increase sown areas under cereal crops of 2009 growing season, as stated in the

Attachment 2. b. To arrange planting of vegetables and other food crops in the rayons and farms where

appropriate. 3. In process of crop zoning, the MAWR, the Council of Ministers of the Republic of

Karakalpakstan, Regional and Rayon Khokimiats shall pay specific attention to the following:

a. To plant only those crops for which appropriate conditions are available including skills and experience of farms to grow specific crops.

b. To consider the status of irrigation and land improvement systems, as well as the level of water availability in the regions.

c. To try to expand plantings on the rainfed areas, particularly of oilseeds, fodders and melons.

4. The MAWR and the Regional Khokimiats shall make comprehensive arrangements for the additional sowing of winter cereals in October-November 2008, as prescribed in the Attachment 2. The Minister of Agriculture and Water Resources, Regional and Rayon Khokims shall bear personal responsibility for duly and appropriate implementation of the activities on fall-ploughing and sowing of cereal crops for 2009 crop yield.

5. The following is assigned to the Joint Stock Company Uzdonmakhsulot: a. To duly provide the farms with high quality treated wheat seeds in appropriate

volumes to assure timely sowing of the additional winter cereal crops in October-November of the current year.

b. During weekly period, in cooperation with the MAWR, to submit to the Cabinet of Ministers a proposal on increasing of the cereal seed stock to be sown on the irrigated areas in 2009 crop season.

For the additional sowings, to permit using of cereal seeds provided to the State Seed Stock above the required volume.

6. The MAWR in cooperation with the Ministry of Justice and the other stakeholders to submit to the Cabinet of Ministers in ten day period a proposal on amendments to the Resolution #PP-956 of 4 September 2008 issued by the President of Uzbekistan On


arrangements of winter cereal crop sowing, variety pattern and public procurement of cereal harvest of 2009, resulting from this Decree.

7. To assign Mr. Sh. Mirziyoev, the Prime Minister of Uzbekistan, to be responsible for implementation of this Decree.

I. Karimov,The President of the Republic of Uzbekistan

Tashkent city20 October 2008

Source: UzA, 22 October 2008.


Annex 2: Instruction On Constitution of a Special Committee (SC) in charge for development of proposals on optimization of farm enterprise plots

Issued by the President of the Republic of Uzbekistan on 5 October 2008, # F-3077

To develop proposals on efficiency improvement of farm enterprise operation through optimization of their land plots, the following is instructed:

1. To constitute the SC to be in charge for development of proposals on optimization of farmer plot sizes being under tenure of farm enterprises and on merging of the plots for efficiency improvement. A composition of the SC is listed in the Attachment.

2. The SC (Mr. Sh. Mirziyoev) shall visit regions and localized zones to conduct an in-depth and thorough inventory including size of land plots being in actual tenure, a status of their rational use, their efficiency for operation of the farm enterprises.a. To critically review financial status of the farms including the status of their material

and technical base.b. To pay special attention to the extent of equipping the farms with needed machinery, the

capacity of farms to arrange effective operation.c. Based on the inventory outcomes and comprehensive review of the performance

efficiency, to determine the most appropriate sizes of farm plots for every localized zone having in mind the goal of increasing efficiency of farm operation. To make emphasis on specific conditions of the zones – a density of population, employment rate and sectorial specialization (cotton production, cereal production, growing of fruit and vegetables, grape production, livestock breeding).

3. Based on the in-depth study and review of the above mentioned areas, the SC (Mr. Sh. Mirziyoev) shall develop and submit to the Cabinet of Ministers (by 15 November 2008) the proposals on optimization of land plot sizes being tenured by the farm enterprises by each zone, including implementation mechanisms for merging some small farms, which would not be responding to the optimal sizes.

To assign Mr. Sh. Mirziyoev, the Prime Minister of Uzbekistan, to be responsible for supervision over implementation of this Instruction.

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3€¦ · Web viewIn Uzbekistan, this word means an organ of self-governance of citizens. Optimization of farms The process triggered by the Decree “On Optimization of Cropping