RP618 V5 LAND ACQUISITION PLAN FOR THE PURPOSE OF CONSTRUCTION OF PLOVDIVTSI DAM, RUDOZEM MUNICIPALITY - BULGARIA June 2014 INTRODUCTION This Land Acquisition Plan (LAP) has been prepared by the Ministry of Regional Development of the Republic of Bulgaria to outline the actions undertaken for the acquisition of land required for the construction of the „Plovdivtsi” dam and its ancillary components (i.e. reservoir, “sanitary zone”, access road, transmission line, etc) and a drinking water treatment plant in the area of Plovdivtsi village, Rudozem municipality. The completion of this project is part of the Municipal Infrastructure Development Project (MIDP), implemented by the Ministry of Regional Development and Public Works with a credit facility of the International Bank for Reconstruction and Development. This Plan has been prepared in conformity with the applicable Bulgarian laws and the requirements of the MDIP’s Land Acquisition Policy Framework (LAPF) dated March 2009 which is in line with theWorld Bank Operational Policy on Involuntary Resettlement OP 4.12. The LARPF includes an analysis of the applicable legal framework, valuation criteria, entitlement matrix, stakeholder engagement and grievance mechanism, among other details. . This Land Acquisition Plan complements the findings of the “Social Due Diligence in Respect of Construction of Plovdivtzi Dam” (November 2007) which describes the previous land acquisition associated to Plovdivtzi Dam and the drinking water treatment plant conducted between 1998 and 2007. It must be noted that the land acquisition related to the construction and operation of the Plovdivtsi” dam and the drinking water treatment plant does not involve the physical displacement of population. Between 1998 and 2000 the Government of Bulgaria acquired from public entities and private land owners a total of 553,600 m2 (55.36 hectares) of land for the project, distributed as follows: 447 680 m2 (44.76 hectares) for the Plovdivtsi” Dam reservoir and Sanitary and Security area of belt I; 36,962 m2 (3.69 hectares) for the associated access road; and 66,100 m2 (6.61 hectares) for the transmission line, while for the construction of the drinking water treatment plant it acquired 3,000 m2 (0.30 hectares). 86% of the land was publicly owned and only 14% was owned by 39 individuals. Between 2008 and 2014 the Government initiated the additional acquisition of 11,149 m2 (1.15 hecatres) of public lands and 9,926 m2 (0.99 hectares) of private lands distributed in 13 properties. The land rights from the public entities and private owners have been transferred to the project. The compensation for the private owners, which includes market value for land and other losses amounts to BGN 34, 923 (approximately USD 25,000). The money has been set aside in an escrow account and efforts have been made to inform affected people about the compensation, but as of April 2014 only 14% of the compensation has been collected. OBJECTIVES AND PRINCIPLES The premise governing this LAP is that land acquisition may cause hardship and impoverishment, and therefore where it is not feasible to avoid land acquisition, project affected persons (PAPs) will consulted and compensated and assisted in their efforts to improve or restore their livelihoods and standards of living to levels prevailing prior to the beginning of project implementation. To support this objective, the following principles will apply:  During the sub-project preparation process, consideration of technical options shall involve a concurrent assessment of potential associated land acquisition impacts, so that, where feasible, design alternatives to minimize such impacts can be identified as early as possible.  Consultation arrangements during the project sub-component preparation process shall be transparent and inclusive to ensure that all persons affected by involuntary land acquisition are consulted on the mitigation measures.  Compensation for lost assets shall be provided before land and other assets are taken into possession. I. LAND ACQUISITION CONDUCTED BETWEEN 1998 AND 20071 By Order N 370 of 10.08.1998 the mister of Finance approved the expropriation of 80 569 m2 (8,05 hectares) of land which were private agricultural lands for the construction of Plovdvtzi dam. The expropriation of these properties was also approved by the Minister of the Regional Development and Public Works by Order N RD 02-14-1010 of 16.09.1998. As of November 2007 the State had acquired by way of expropriation 74,591 m2 (7.45 hectares) of private agricultural lands for the dam reservoir from 31 owners and 3,962 m2 (0.39 hectares) of private agricultural land for the supporting road from a total of 8 land owners, for a total area of 78,553 m2 (7.85 hectares). The “Social Due Diligence in Respect of Construction of Plovdivtzi Dam” conducted on November of 2007 concluded that procedures implemented for the acquisition of lands for the construction of the Plovdivtzi Dam were in compliance with the objectives of the World Bank OP 4.12 on “Involuntary resettlement" and the construction of the Plovdivtzi Dam has not, and will not, imply displacement of population. Table 1. Summary of Land Acquisition 2000 to 2007 Public Private Total land Total land % land land land required acquired acquired (hectares) (hectares) (hectares) (hectares) Dam reservoir and Sanitary and Security area of 37.30 7.46 (16%) 44.76 44.76 100% (84%) belt I Access road 3.30 0.30 (1%) 3.69 3.69 100% 1 A full description of the land acquisition process between 1997 and 2007 can be found in the “ Social Due Diligence in Respect of Construction of Plovdivtzi Dam” available at http://www.mrrb.government.bg/en/?controller=articles&id=652 (89%) Potable water 0.30 treatment plant 0.30 0.30 100% (100%) Electric power 6.61 6.61 6.61 100% line (100%) TOTAL 47.51 7.76 (14%) 55.36 55.36 (86%) II. LAND ACQUISITION FROM 2008 TO 2014 a. COMPLETED ACTIONS IN RESPECT OF ACQUISITION OF PUBLIC LAND LOTS OWNED BY RUDOZEM MUNICIPLAITY By Ordinance № АК-02-23-779 of 19.12.2012 of the Head of Region of Smolyan an expropriation procedure in favor of the state has been ordered for construction of a project: ‘„Plovdivtsi” dam and drinking water treatment plant’ in the local land area of Plovdivtsi village, Rudozem municipality, lots and lot parts – private municipal ownership, located in the local land area of Plovdivtsi village, Rudozem municipality, Smolyan region, described in detail in terms of type, area, location, title holders and size of monetary compensation, as follows: List of land lots –municipal ownership, subject to involuntary expropriation and included in project ‘„Plovdivtsi” dam and drinking water treatment plant’ in the local land area of Plovdivtsi village S Seri Total property Area subject to Monetary al Type of Permanent use Type of title of Lot № area, expropriation Locality Name of title holder compensation, № area manner ownership Decares BGN 1 2 3 4 5 6 7 8 9 10 Pasture common Demerdeshev Rudozem 1. 33006 Rural 0,916 0,916 Private municipal BGN 2872 pasture land o municipality Pasture Rudozem Rural common Private municipal 2. 33016 1,351 1,351 Grobat municipality BGN 4237 pasture land Pasture Rudozem Rural common Private municipal 3. 34005 2,091 2,091 Vulchenatsko municipality 7235 pasture land Rudozem Rural Natural Private municipal 4. 28035 0,380 0,380 Rupsko municipality 1192 meadows Natural Rudozem Rural Private municipal 5. 28067 meadows 0,396 0,396 Alikovo municipality 1242 Natural Rudozem Rural Alikovo Private municipal 6. 28065 meadows 0,026 0,026 municipality 82 Natural Rudozem Rural Alikovo Private municipal 7. 28064 meadows 0,133 0,133 municipality 417 28041 Rural Shrubs pasture 0,392 0,392 Alikovo Private municipal Rudozem 8. municipality 1229 Rudozem 9. 28025 Rural Natural Alikovo Private municipal 0,145 0,145 municipality 455 meadows Pasture Rudozem Rural common Alikovo Private municipal 10. 28012 1,652 1,652 municipality 5180 pasture land Pasture Rudozem Rural common Alikovo Private municipal 11. 28022 1,924 1,924 municipality 6033 pasture land Pasture Rudozem Rural common Alikovo Private municipal 12. 28070 0,400 0,387 municipality 1214 pasture land Pasture Rudozem Rural common Alikovo Private municipal 13. 28073 0,793 0,356 municipality 1116 pasture land 32504 Hectares Total BGN 1.06 1.11 Decares 10.60 11.15 M2 10,599.00 11,149.00 The total value of the compensation is equal to BGN 32 504 and it has been fully paid into the account of Rudozem municipality on 12 March 2013. The expropriation procedure of land lots – private municipal ownership, should be deemed as closed on 12 March 2013, with payment of the total value of the compensation determined for the land lots acquired by the state. b. COMPLETED ACTIONS ON THE ACQUISITION OF PRIVATE LAND LOTS OWNED BY INDIVIDUALS In the acquisition process of land, which is within the scope of Plovdivtsi Dam project, the consultations with the affected people were carried out in two stages: 1. Discussion of the draft of Plovdivtsi Dam detailed structure scheme containing information on the land subject to expropriation and according to which the expropriation is made; 2. Conducting negotiations with the owners of the properties subject to expropriation; On July 9th, 1998 in Plovdivtsi village was held a meeting of representatives of Rudozem municipality and the owners of the affected land. During the meeting were considered matters of significance for this area, as well as matters about the claims of the owners on the price of the properties and perennial plants subject to expropriation. The detailed structure scheme of erection and regulation of the following project: Plovdivtsi Dam and Purifying Station for drinking water on the land of Plovdivtsi village, Rudozem municipality was subject to public discussion and all interested parties were invited. The invitation notice for the above was put up in Plovdivtsi village and in the building of the municipality in town of Rudozem. At the same time the notice was also published in a local daily newspaper (Rodopi vest newspaper, issue 46/29.04.2011). A public discussion was held on May 4th, 2011 in Plovdivtsi village cultural club and the draft was available to all interested parties every working day in the building of the municipality of Rudozem village. There is a record evidencing the public discussion, which was signed by the affected persons who attended it. The record contains all their questions and comments. The claims made by Plovdivtsi village residents were included in the draft. The detailed structure scheme was adopted on the grounds of Resolution No. 356 of Rudozem municipality`s municipal council and the resolution was promulgated in State Gazette, issue 74/21.09.2011. The draft of detailed structure scheme was announced to the interested parties by its promulgation in State Gazette, issue 82/21.10.2011. No complaints were received by the interested parties against the detailed structure scheme for construction of Plovdivtsi Dam. In June 2012 in 5 consecutive days were carried out negotiations with the persons the properties of whom are subject to expropriation according to the draft of detailed structure scheme for the construction of Plovdivtsi Dam. The negotiations were conducted by commission with members: representative of the Ministry of Regional Development and Public works, representative of the municipality and the independent assessor who took part in the preparation of the assessment. The affected parties were notified about the negotiations in advance by letter of notice sent to each of them and by a notice put on the board for announcements in the building of Rudozem municipality. Some of the affected persons participated in this procedure, during which they were informed in detail about the necessity of expropriation of their property, as well as the way of determination of the assesment of their land.Some of the persons gave their consent with the specified market value and signed declarations for consent. Order No. AK-02-23-780/19.12.2012 of the district governor of Smolyan district decreed expropriation for state necessity with the purpose of construction of project: Plovdivtsi Dam and Purifying Station for drinking water on the land of Plovdivtsi village, Rudozem municipality, properties and parts of properties – private ownership located on the land of Plovdivtsi village, Rudozem municipality, Smolyan district. The order was promulgated in State Gazette, issue 7/2013. On January 8th, 2013 Rudozem municipality announced in public the sequestration order by putting it up on the information board of Rudozem municipality and on the information board of Plovdivtsi village. By Ordinance № АК-02-23-780 of 19.12.2012 of the Head of Region of Smolyan an expropriation procedure in favor of the state has been ordered for construction of a project: „Plovdivtsi dam and drinking water treatment plant“ in the local land area of Plovdivtsi village, Rudozem municipality, land lots and lot parts – privately owned by individuals, located in the local land area of Plovdivtsi village, Rudozem municipality, Smolyan region, described in detail in terms of type, area, location, title holders and size of monetary compensation, as follows: List of land lots – private ownership, subject to involuntary expropriation and included in project ‘„Plovdivtsi” dam and drinking water treatment plant’ in the local land area of Plovdivtsi village Seria Area subject l Total property to Type of title of Monetary compensation, № Lot № Permanent use manner area, Locality expropriation ownership BGN decares 1 2 4 5 6 7 8 10 1. 028010 Pasture 0,439 0,439 Alikovo private 1377 common pasture land Alikovo private 2. 050044 Wooded territory 1,3 0,16 674 Pasture Mustetsa private 3. 028008 common pasture land 0,056 0,056 194 Pasture Rupsko private 4. 028078 common pasture land 1,411 1,077 3377 Rupsko private 5. 028083 meadow 0,31 0,31 972 Pasture Vodenitsata private 6. 028074 common pasture land 0,745 0,745 2336 Pasture Alikovo private 7. 028071 common pasture land 0,542 0,004 13 Pasture Alharnarnik private 8. 034018 common pasture land 0,199 0,199 689 Pasture Menkovo private 9. 034010 common pasture land 1,193 1,193 4128 Pasture Vulchenatsko private 10. 034009 common pasture land 3,851 3,851 13 332 Pasture Grobat private 11. 033023 common pasture land 0,752 0,752 2358 Wooded territory Menkovo private 12. 050045 1,000 1,000 4210 Wooded territory Menkovo private 13. 050041 0,300 0,300 1263 Decares 10.80 9.93 34923 BGN Hectares 1.08 0.99 M2 10,798.00 9,926.00 The total amount of the compensations provided to private land owners equals BGN 34 923 and it has been transferred by the Ministry of Regional Development and Public Works into an account of the regional administration of Smolyan region on 21 Dec 2012. The compensations of the owners were determined on the grounds of market values made by independent assessors, two times updated – in March 2012 and in August 2012. The documentation concerning expropriation contains the market value of each property. The assessors calculated the compensations by comparing the market assessment and the normative assessment. The market assessment was made on the grounds of concluded deals concerning the sale of similar properties in the recent year before the date of the assessment and along with it evidences were presented about the prices of already implemented deals. For the calculation of the normative assessment were taken into consideration the requirements of the Regulation on the way of assessment of prices of agricultural land and the Regulation of assessment of land property in forest territories. These normative acts rely on determination of compensation criteria in order to guarantee the assessment objectivity and the justice of the replacing benefit like for instance the land statute, location, loss of income and other economic factors. The final compensation is determined on the basis of which price is higher – the market or the normative. The costs for acquisition of ownership on the affected lands, including associated taxes and registration fees, are borne by the state and therefore they are not part of the compensations determined. The affected persons have been notified of the amount of their compensations and of their right to receive them by designating bank accounts of their own, where the funds shall be transferred throw the publishing Order No. AK-02-23-780/19.12.2012 in State Gazette and throw the announcement the order on the information board of Rudozem municipality building and on the information board of Plovdivtsi town hall. In State Gazette, issue 7 of 2013 was published Order No. AK-02-23-780/19.12.2012 of the district governor of Smolyan district about expropriation of the affected land for the purpose of construction of project: Plovdivtsi Dam and Purifying Station for drinking water on the land of Plovdivtsi village, Rudozem municipality. The abovementioned order explicitly stated that the specified compensations shall be available in International Asset Bank AD and once the order comes into force, any affected person the name of whom has been listed in the order, is entitled to receive their compensation, also explicitly specified, in any bank branch. This order was announced in public on January 8th, 2013 on the information board of Rudozem municipality building and on the information board of Plovdivtsi town hall. The above method of announcement in the local administrative buildings was described in a record as of 08.01.2013 of commission of Rudozem municipality. As of 25 September 2013 only few of the affected persons have demanded payment and have received their compensation, as follows: Total Total value of unpaid % unpaid amount of remuneration as of 25 compensatio September 2013 n 1. Family 1 7,14% BGN 1377 BGN 98,35 2. 100% Family 2 BGN 674 BGN 674 3. 100% Family 3 BGN 194 BGN 194 4. Family 4 BGN 34,50 1,02% BGN 3377 5. 100% Family 5 BGN 972 BGN 972 6. 100% Family 6 BGN 2336 BGN 2336 7. None 100 % Family 7 BGN 13 8. 100% Family 8 BGN 689 BGN 689 9. Family 9 100% BGN 4128 BGN 4128 10. 100% Family 10 BGN 13 332 BGN 13 332 11. 100% Family 11 BGN 2358 BGN 2358 12. 100% Family 12 BGN 4210 BGN 4210 13. 100% Family 13 BGN 1263 BGN 1263 TOTAL VALUE: BGN 34 923 BGN 30 288,85 87% As of 25 September 2013 out of the total value of compensations BGN 34 923 due to affected persons, few of these persons have received their compensation payments equaling BGN 4 634.15. 30288,85 (87% of total compensation) is still pending to be claimed. The reason for non-payment of the whole amount of compensations is attributed to the lack of filed requests on part of the affected persons to receive the relevant amounts in cash or by way of bank transfer. The persons have been notified that the allocated compensation amount was transferred by the MRDPW into a special bank account with CB “International Asset Bank” and they should ask from each bank branch receipt of the respective compensation in cash /if it is up to BGN 1000/ or designate a bank account of their own for remittance of the allocated compensation by “International Asset Bank”. Payment of the compensations due to the remaining persons is expected whereas the amount has been transferred into a special bank account, and upon request of an affected person, the bank transfer may be ordered at any point of time. Upon declared willingness by the entitled persons, due compensations of up to BGN 1000 may be paid in cash. The respective compensation amounts earn an interest until the time of their receipt, which is payable to the persons entitled to compensation together with the principal compensation amount. III.COMPLETED ACTIONS ON THE COMPENSATION OF THE INFORMAL USERS OF LAND A field study on the informal use of land needed for the construction of Plovdivtsi dam was carried out on October 24th, 25th and 26th 2011. The field study was conducted by a Commission of 3 experts including: representative of the MRDPW, representative of Rudozem municipality and an appraiser. The results of the study have been laid down in a Protocol signed by the Commission members. During field study conducted were found the following forms of informal use of the land in the area of Plovdivtsi dam: the ground of the dam area is used for pasture of 12 cows, 14 goats and 4 sheep, which are property of 10 households in total. The cows are usually locked in the barn and the hay cut from the ground`s place of the dam area is spread around. Hay-making season is within the period from June to September – October. Usually the goats and the sheep are taken out to pasture there every day or every two days. Some of the people asked say that most of the grass on the ground is cut to reduce the risk of fire and not to serve as fodder. Most cattle owners do not care about the future damming of the dam lake because there is sufficient land for pasture. Currently on the territory of the site are not being performed activities that would affect the informal use of the land i.e. up till now there have been no impacts on economic activities of informal users.The mayor of Rudozem municipality assumed the responsibility to provide land, property of the municipality, to be used for pastures by the informal users when the dam construction activities impede the formal use of the land. IMPLEMENTING SOCIAL COMMITMENTS IN CONNECTION WITH PLOVDIVTZI DAM WATER COLLECTION. Prior to the completion of the expropriation file for the private properties falling within the Plovdvtzi Dam reservoir and SSA a meeting was held between the persons concerned, representatives of Rudozem Municipdty, representatives of the dam designer Vodokanalengineering OOD and investor control, Geos OOD, Smolyan. The meeting was held on 9 July 1998 and a Protocol has been drafted thereof (Protocol N 11), containing multiple requests, most of which had been complited. However, as of April 2014 the following commitments are pending: Commitment Pending Corrective Action Deadline Rudozem Municipality The village old irrigation After the construction of After the construction of And the contractor commit systems has not been the dam will provide the dam. themselves to restore the restored. The restoration water for irrigation. Will village old irrigation of the irrigation systems is be restored canals. systems, namely to connected with the conduct water to the completion of the dam and water-mill and to buildup will directly result as the two irrigation channels on effect of the Plovdivtzi the two sides of the Dam construction. village. The necessary quantities The provision of the Built a new plumbing. Already done! of running water for necessary quantities of drinking and household running water for drinking needs to all points of the and household needs are village shall be ensured. connected with the completion of the dam and will directly result as the effect of the Plovdivtzi Dam construction. The Municipality and the No playgrounds are put in Carry out a tender for the 12.2014 contractor shall build place. There are no sports construction of playgrounds and sports ground in the school area multifunctional grounds in the school area. since the school has been playground. closed. The opening of a kindergarten is envisaged.. Grievance Redressal Mechanisms The Expropriation Laws provide for an appeals process against the proposed award for compensation. The PIU staff also play an advisory and facilitating role in resolving grievances. Grievances related to land acquisition impacts should be pursued at the municipality/ community level with facilitation by PIU staff together with design consultants in order to find technical solutions that avoid or further minimize the need for land acquisition. Solutions to grievances related to compensation amounts, delays in compensation payments should be pursued directly by the designated authorities in liaison with the PIU staff who will inform PAPs about the avenues for grievance redress, and will maintain a record of grievances received, and the result of attempts to resolve them. Attachments: 1.Order No. AK-02-23-780/19.12.2012 of the district governor of Smolyan district. 2. Record as of 08.01.2013 of commission of Rudozem municipality.