Livelihood Restoration Plan (Italy) · Document title Livelihood Restoration Plan (Italy) ... Rev....

Document title Livelihood Restoration Plan (Italy)

Document no. IAL00-PMT-660-X-TTA-0001 Rev 0

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Trans Adriatic Pipeline Project

Document Title:

Livelihood Restoration Plan (Italy)

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Document no. IAL00-PMT-660-X-TTA-0001

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Table of Contents

Preamble ................................................................................................................. 8

1. Introduction – Scope of this Document ..................................................... 9

1.1 Project Overview .................................................................................................................... 9

1.2 Scope of this Document ....................................................................................................... 9

1.3 Key Terminology .................................................................................................................. 10

1.4 Structure of Document ........................................................................................................ 10

2. Project Description ........................................................................................ 12

2.1 Project Purpose ................................................................................................................... 12

2.2 TAP Overview ...................................................................................................................... 12

2.3 Key Characteristics of the Main Project Components in Italy ...................................... 13

2.3.1 Overview ................................................................................................................... 13

2.3.2 Pipeline ...................................................................................................................... 13 2.3.3 Above Ground Installations .................................................................................... 14

2.3.4 Temporary Facilities ................................................................................................ 15 2.3.5 Routing and Route Selection Process.................................................................. 15

2.4 Project Schedule .................................................................................................................. 18

3. Legal Framework ............................................................................................ 20

3.1 Key Italian Legislation ......................................................................................................... 20

3.2 Land Acquisition Process in Italy ...................................................................................... 22

3.3 Key Potential Gaps with International Resettlement Standards .................................. 23

3.3.1 International Resettlement Standards .................................................................. 23 3.3.2 Key Gaps .................................................................................................................. 23

4. Overview of Project-Affected Population ................................................ 28

4.1 Introduction ........................................................................................................................... 28

4.2 Demographics + Household Characteristics ................................................................... 29

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4.2.1 Age ............................................................................................................................. 29 4.2.2 Gender ....................................................................................................................... 31

4.2.3 Ethnicity ..................................................................................................................... 31 4.2.4 Religion ...................................................................................................................... 32

4.2.5 Economy + Livelihoods ........................................................................................... 32 4.2.6 Olive Oil Production + Distribution ........................................................................ 33

4.2.7 Tourism ...................................................................................................................... 34

4.3 Vulnerable Groups............................................................................................................... 35

4.4 Project-Affected Population ............................................................................................... 37

5. Project Impacts ............................................................................................... 39

5.1 Pipeline .................................................................................................................................. 39

5.1.1 Construction Corridor .............................................................................................. 39 5.1.2 Restrictions during Operations .............................................................................. 39

5.2 Above Ground Installations ................................................................................................ 40 5.2.1 Pipeline Receiving Terminal (PRT) ....................................................................... 40

5.2.2 Block Valves ............................................................................................................. 40

5.3 Temporary Facilities ............................................................................................................ 40

5.4 Summary of Land and Easement Acquisition Impacts .................................................. 40 5.4.1 Physical Displacement ............................................................................................ 40

5.4.2 Economic Displacement ......................................................................................... 41

5.4.3 Key Numerical Impact Indicators .......................................................................... 41 5.4.4 Impact on Project-affected Population ................................................................. 42

5.4.5 Impact on Annual and Perennial Crops ............................................................... 42 5.4.6 Additional Impacts ................................................................................................... 43

6. Stakeholder Engagement ............................................................................ 44

6.1 Overview ............................................................................................................................... 44

6.2 Legal + Institutional Framework ........................................................................................ 44

6.3 Corporate Stakeholder Engagement Approach .............................................................. 44

6.4 Stakeholder Identification ................................................................................................... 45

6.5 Past Stakeholder Engagement Activities ......................................................................... 46

6.6 Special Accommodations for Vulnerable PAPs .............................................................. 47

6.7 NO TAP Movement ............................................................................................................. 47

6.8 Key Stakeholder Issues ...................................................................................................... 47

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6.9 Stakeholder Engagement Going Forward ....................................................................... 48

7. Compensation Strategy ................................................................................ 49

7.1 Key Principles ...................................................................................................................... 49

7.2 Compensation Principles .................................................................................................... 50 7.2.1 Permanently Acquired Land ................................................................................... 50 7.2.2 Temporarily Occupied Land ................................................................................... 50

7.2.3 Orphan Land ............................................................................................................. 52 7.2.4 Easements ................................................................................................................ 54

7.3 Compensation Eligibility ..................................................................................................... 55

7.3.1 Private Land .............................................................................................................. 55

7.3.2 Entitlement Matrix .................................................................................................... 55

7.4 Valuation Principles ............................................................................................................. 56 7.4.1 Methodology of the Valuation Study ..................................................................... 56

7.4.2 Land Valuation ......................................................................................................... 57 7.4.3 Crop Valuation .......................................................................................................... 57

7.4.4 Attachments / Structures ........................................................................................ 57 7.4.5 Taxes and Subsidies ............................................................................................... 57

8. Secure Land Access ..................................................................................... 59

8.1 Preparation Tasks ............................................................................................................... 59

8.2 Survey Corridor .................................................................................................................... 59

8.3 Census of Affected Plots / Land Dossiers ....................................................................... 59 8.3.1 Census of Affected People ..................................................................................... 60

8.3.2 Database ................................................................................................................... 60

8.4 Compensation Memo .......................................................................................................... 60

8.5 Offer and Negotiation .......................................................................................................... 60

8.6 Land Exit Agreement and Hand Back .............................................................................. 64

9. Livelihoods Assistance and Transitional (Vulnerable) Support (LATS) ............................................................................................................. 65

9.1 Overview ............................................................................................................................... 65

9.2 Objectives of Livelihoods Assistance & Transitional Support (LATS) ......................... 65

9.3 Transitional Support ............................................................................................................ 66

9.4 Identification of Vulnerable People ................................................................................... 67 9.4.1 Overview ................................................................................................................... 67

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9.4.2 Pre-Identification ...................................................................................................... 67 9.4.3 Screening .................................................................................................................. 68

9.5 Assistance to Vulnerable People ...................................................................................... 68

9.6 Procedure for Detailed Design + Implementation of the LATS Program .................... 69

10. Grievance Management ............................................................................. 70

10.1 Principles and Overview ................................................................................................... 70

10.2 Anticipated Categories of Grievances ............................................................................ 70

10.3 Grievance Support Structure ........................................................................................... 71

10.4 Administrative Steps and Timeframes for Resolving Grievances ............................. 71

11. Monitoring and Evaluation ........................................................................ 75

11.1 Overview ............................................................................................................................. 75

11.2 Input and Output Monitoring ............................................................................................ 77

11.3 Outcome Monitoring & Evaluation .................................................................................. 78

11.4 Compliance Monitoring and Completion Audit ............................................................. 79

11.4.1 Compliance Monitoring ......................................................................................... 79

11.4.2 Completion Audit ................................................................................................... 80

12. Implementation Arrangements ................................................................ 82

12.1 Overall Organization ......................................................................................................... 82

12.2 Implementation Schedule................................................................................................. 82

12.3 Budget ................................................................................................................................. 83

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Table of Figures Figure 1: Project Overview 1 Figure 2: Construction Corridor 4 Figure 3: Overview of On-Shore Route in Italy and Location of the Pipeline Receiving Terminal (PRT) 7 Figure 4: Overview of Project Schedule 8 Figure 5: Project Footprint 16 Figure 6: Age Distribution by Gender for the Municipality of Melandugno, 2011 18 Figure 7: Farm Land 21 Figure 8: Income Levels 22 Figure 9: Orphan Land (Construction Period) 36 Figure 10: Secure Land Access 44 Figure 11 Grievance Resolution Process 53 Figure 12 Grievance Resolution Administrative Steps 53 Figure 13: Project Management Department Italy 60

Table of Tables Table 1: Key Italian Land-related Legislation 9 Table 2: Gap Analysis – Italian Legislation / International Resettlement Standards 13 Table 3: Population 17 Table 4: Gender 19 Table 5: Businesses 20 Table 6: Vulnerability 23 Table 7: Restriction Corridors 25 Table 8: Project Components and Summary of Land Impacts 27 Table 9: Project Components and Summary of Impacts by Land Use Type 27 Table 10: Stakeholder Groups 30 Table 11: Entitlement Matrix 38 Table 12 Grievance Severity Timeframe 51 Table 13 Grievance Timeframe 52 Table 14: Components of Monitoring and Evaluation 55 Table 15: Input and Output Indicators 56 Table 16: Outcome Indicators 57 Table 17: Compliance Monitoring 58 Table 18: Implementation Schedule 61 Table 19: Budget 61

Appendices Appendix 1: Key Terminology 85 Appendix 2: Legal Review 91

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Acronyms

BVS Block Valve Station

CS Compressor Station

EBRD European Bank for Reconstruction and Develop-ment

EIB European Investment Bank

EP Equator Principles

HGA Host Government Agreement

IFC International Finance Corporation

LEA Land and Easement Acquisition

LRF Livelihood Restoration Framework

LRP Livelihood Restoration Plan

PR Performance Requirement

PRT Pipeline Receiving Terminal

TAP Trans Adriatic Pipeline

TEN-E Trans European Energy Network

TSP East TAP Engineering Services for East section (Greece and Albania onshore) provided by EoN RuhrGas

TSP West TAP Engineering Services for West section (off-shore and Italy onshore) provided by Statoil

FRV Full Replacement Value

Trans Adriatic Pipeline AG

Lindenstrasse 2, 6340 Baar, Switzerland

www.tap-ag.com Copyright Reserved: This document may not be copied, shown to or placed at the disposal of third parties 8

without prior consent of TAP AG. The latest version of the document is registered in the TAP Project’s Database.



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Preamble

This document constitutes the Livelihood Restoration Plan (LRP) for the Trans Adriatic Pipe-line Project (TAP) in Italy. It describes the results of an intensive land easement and acquisi-tion planning exercise undertaken by TAP and its Project’s consultants. It contains a record of the commitments, procedures, and actions being taken to resettle and compensate the people, households and communities impacted by the Project, consistent with Italian law and the European Bank for Reconstruction and Development’s Environmental and Social Pol-icy (07 November 2014) and associated Performance Requirement 5- Land Acquisition, Involuntary Resettlement and Economic Displacement, It has also been informed by the International Finance Corporation (IF) Performance Standard 5 – Land Acquisition and Invol-untary Resettlement and European Investment Bank (EIB) Environmental and Social Stand-ards related to involuntary resettlement. The data presented in this Livelihood Restoration Plan are current through April 2016 and re-flect Project-Affected People and the Project Footprint at that date.








1. Introduction – Scope of this Document

1.1 Project Overview

1. The Trans Adriatic Pipeline (“TAP” or “the Project”) will start in Greece, cross Albania and the Adriatic Sea and come ashore in Southern Italy. The general purpose of the Project is to link gas fields in the Caspian Sea, including the major Shah Deniz field in Azerbaijan, to European markets. The pipeline, approximately 870 km in total length, of which 104 km are offshore across the Adriatic Sea, will have the capacity to deliver 10 billion cubic metres (bcm) of new gas per annum to Europe, starting in 2019, and will be able to ex-pand to as much as 20 bcm per annum when required. Figure 1 below presents an over-view of the Project.

Figure 1: Project Overview

2. TAP is developed by TAP, a company headquartered in Baar, Switzerland. TAP’s current shareholders include the State Oil Company of the Azerbaijan Republic (SOCAR), BP, Snam, Fluxys, Enegas and AXPO, some of the world’s most experienced companies in the natural gas sector.

3. The Project crosses Italian territorial waters in the Adriatic Sea for about 47 km, and reaches its landfall between the hamlets of San Foca and Torre Specchia Ruggeri in the municipality of Melendugno in the Lecce Province of the Puglia Region. It then crosses the municipality of Melendugno and in a small part the municipality of Vernole, to reach the Pipeline Receiving Terminal (PRT), where it connects to the Italian natural gas grid.

1.2 Scope of this Document

4. TAP is committed to a number of environmental and social obligations, which are sum-marised on TAP’s website1. TAP has selected the Performance Requirements (PR) of

1 www.tap-ag.com







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the European Bank for Reconstruction and Development (EBRD) to serve as the bench-mark to assure that adverse impacts on people, their rights, livelihoods, culture and envi-ronment are avoided or, where avoidance is not possible, minimised, mitigated, offset and/or compensated. This approach will further ensure compliance with the Performance Standards of the International Finance Corporation (IFC) and European Union Directives and Regulations. Amongst others, the EBRD Performance Requirements address land acquisition, involuntary resettlement, and economic displacement (Performance Require-ment 5 or PR5).

5. This document is the Livelihood Restoration Plan (LRP). It updates the Livelihood Resto-ration Framework (LRF) dated March 2013. The LRP details compensation entitlements and additional mitigation measures intended to address economic disruptions and/or dis-placement resulting from the construction and operation of the Trans Adriatic Pipeline, whilst ensuring implementation is undertaken in a manner that is transparent, consistent and equitable. The data presented in this LRP is current through April 2016.

6. This LRP addresses all components of the TAP Project in Italy, including:

The 8 km long pipeline, both from the angle of land requirements associated with its construction and long-term operational restrictions;

Above ground installations (one block valve at the landfall, and the Pipeline Receiving Terminal at the tie-in between the TAP pipeline and the Italian grid);

Temporary facilities (construction camps, storage yards, staging areas for the two mi-cro-tunnels that are required at and near the landfall, access roads, storage areas for olive trees, etc…), for which land will be needed by TAP for the duration of construc-tion only.

1.3 Key Terminology

7. Key terminology and associated meanings and comments are presented in Appendix 1.

1.4 Structure of Document

8. This document is organized into twelve chapters.

Chapter 1: Introduction briefly describes the Project and outlines the purpose and structure of this document.

Chapter 2: Project Description outlines the key Project components and the route selection and design process.

Chapter 3: Legal Framework provides an overview of the national legal and institu-tional framework as it relates to land access, acquisition and compensation.

Chapter 4: Overview of the Project-affected Population provides a demographic and socio-economic profile of the people being affected by the Project, including iden-tified ‘vulnerable groups’.

Chapter 5: Project Impacts describes efforts to minimize displacement impacts and details the categories and extent of impact on people, communities, land and assets.







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Chapter 6: Stakeholder Engagement summarizes the Project’s approach to identi-fying and engaging with stakeholders on land-related impacts and mitigation measures, and disseminating Project-related information.

Chapter 7: Compensation Strategy defines the entitlements and eligibility criteria for compensation, and how they were determined.

Chapter 8: Secure Land Access details the steps in securing land access from the collection of cadastral information and asset verification, to reaching voluntary agree-ments and payment of compensation.

Chapter 9: Livelihoods Assistance + Transitional (Vulnerable) Support describes how the Project will target additional livelihoods assistance and transitional support to Project-affected people in line with EBRD PR 5.

Chapter 10: Grievance Management outlines the mechanism for resolving Project grievances.

Chapter 11: Monitoring + Evaluation describes how Project progress, performance and impacts will be tracked, assessed and reported on.

Chapter 12: Implementation Arrangements details the arrangements, including the work plan, budget, and schedule for LRP implementation.








2. Project Description

Note: Only those features of the Project that are of relevance to this Livelihood Restoration Plan are addressed below. Additional details are presented in the ESIA2.

2.1 Project Purpose

9. The key purpose of the Project is to enhance Europe’s energy security by opening a new route for gas from the Caspian Sea. Gas will be delivered from off-take points in Greece, Albania and Italy, thereby allowing access to markets in these three countries as well as in the Western and Eastern Balkans, and Central and Western Europe. At full capacity (20 bcma) the Project could serve an estimated 15 million households in these areas.

10. The Trans Adriatic Pipeline is recognized as a "Project of Common Interest" by the EU Parliament and Council under the European Union's Trans European Energy Network (TEN-E) guidelines, as it is would contribute to the EU’s objectives and policies aimed at diversification and security of energy supply.

2.2 TAP Overview

11. The Project is a proposed gas pipeline starting in Greece, crossing Albania and the Adri-atic Sea and coming ashore in southern Italy, allowing gas to flow from the Caspian basin into Western and South Eastern European markets. The TAP route will be approximately 870 kilometres in length (Greece 547 km; Albania 211 km; offshore Adriatic Sea 104 km; Italy 8 km – see Figure 1 above). TAP’s highest elevation point will be 1,800 meters in Albania’s mountains, while its lowest part offshore will be at 810 meters of depth.

12. In addition to the pipeline itself, the Project also includes two Compressor Stations, one near Kipoi, in Greece, and the other one on the Albanian coast near Fier. The Pipeline Receiving Terminal (PRT), a combined pressure reduction, metering and pigging station, will be located near Melendugno in the province of Lecce, with a tie-in to the Italian grid at the boundary of the terminal. The Central Control Centre for the entire TAP system will also be located at the PRT in Italy, with a backup in Albania. Two additional compressor stations could be installed later (one near Serres, and the other one near the Greek- Albanian border, on the Albanian side) to reach the maximum throughput of 20 bcm/year.

13. The TAP Project is also investigating the option of developing gas storage facilities in the Dumre region in central Albania, using underground salt formations. This area is located approximately 50 km to the south of Tirana, and 20 km to the north of the planned Trans Adriatic Pipeline route.

2 The full ESIA for Italy is available at http://www.trans-adriatic-pipeline.com







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2.3 Key Characteristics of the Main Project Components in Italy

2.3.1 Overview

14. Key components of the Project in Italy are the following:

A sub-sea 36” pipeline from the Adriatic Sea median line to the Italian landfall, approx-imately 47 km in length;

A landfall micro tunnel, approximately 1,335 m long;

A buried cross-country 36” pipeline from the landfall to the Pipeline Receiving Termi-nal (PRT), approximately 5 km long;

A preliminary proposed onshore micro tunnel, approximately 320 m long (kp 0.350);

A landfall block valve station (BVS at kp 0.840);

A Pipeline Receiving Terminal (PRT) (kp 4.910 from landfall); and

Associated facilities required during construction (access roads, construction, pipe yards etc.).

2.3.2 Pipeline

15. TAP will initially have a capacity of 10 billion cubic metres (bcm)/year, providing enough energy for as many as 7 million households. The pipeline’s transport capacity can further be expanded to 20 bcm/year. TAP can use a large diameter pipeline also for the subsea section. With this choice of pipeline dimensions, all that would be needed for an expan-sion of capacity to 20 bcm/year is to add more compression capacity (in Albania and Greece).

16. The onshore pipeline (approximately 8 km long from the landfall to the Pipeline Receiving Terminal) runs east to west in the Salento Peninsula, in the sector to the southeast of Lecce, almost entirely within the Municipality of Melendugno (Province of Lecce). An overview of the route is presented in







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17.

18. Figure 3: Overview of On-Shore Route in Italy and Location of the Pipeline Receiving Terminal (PRT). The minimum cover depth for the pipeline will be 1.5 m in regular sec-tions. A wooded area (pine forest) approximately 350 metres downstream from the land-fall is planned to be crossed by digging a micro tunnel with a circular section, approxi-mately 320 m long and with an internal diameter of 1.6 to 2 m.

19. The construction working width for the TAP Project in Italy is 18 m (7 m on one side and 11 m to the other), as depicted in Figure 2 below.







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Figure 2: Construction Corridor

20. After completion of pipeline construction, the pipeline construction corridor is reinstated,

which involves the following:

The original contours are restored.

Topsoil that has been removed and stored separately is placed back.

All temporary crossings are removed.

Land drainage infrastructure, access roads, other networks and facilities, and vegeta-tion, which were disturbed or moved during construction, are reinstated to their previ-ous condition.

21. Photographic records will be made of the route, where necessary, before and after the works. Where required to prevent induced access and use of the pipeline right-of-way as a road, barriers may be established. All posts and markers will be located such that inter-ference with agricultural activities is minimized.

2.3.3 Above Ground Installations

1.1.1.1 2.3.3.1 Block Valves

22. A Landfall Block Valve Station (BVS) will be installed close to the pipeline landfall. The purpose of the BVS is to enable the isolation of the offshore pipeline from the onshore pipeline for maintenance and safety purposes. The block valve is unmanned and contains a small cabinet with a fence to avoid any interference. The BVS will be remotely operated from a control center in the PRT through a fiber-optic cable communication system and will be connected to the local power grid.

23. The preliminary authorized design indicates that the BVS requires about 335 m2, and that it is located within one land plot in the Municipality of Melendugno with three co-owners.







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1.1.1.2 2.3.3.2 Pipeline Receiving Terminal

24. The Pipeline Receiving Terminal (PRT) will be the end point of the TAP pipeline and will constitute the connection with the Italian national grid owned and operated by Snam Rete Gas S.p.A (SRG). The PRT will be located in the municipality of Melendugno and on the border with Vernole, in an agricultural area about 7 km inland from the seashore (see

25.

26. Figure 3: Overview of On-Shore Route in Italy and Location of the Pipeline Receiving Terminal (PRT)). The main functions of the PRT will be to:

Receive the gas and inline maintenance equipment (PIGS);

Control pressure and temperature to meet grid requirements;

Measure the flow for fiscal requirements;

Transfer custody of the gas to SRG;

Meet safe venting requirements during maintenance and emergencies; and

Control the operation of the entire pipeline, isolation valves, compressor stations and the functions at the PRT.

27. The PRT requires approximately 12 hectares of land. About 13 land plots would be af-fected. Most of the area is located in the Municipality of Melendugno but approximately 2 hectares is situated in the Municipality of Vernole.







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2.3.4 Temporary Facilities

28. A temporary worksite of about 2.5 hectares will be established near the landfall for the construction of the offshore micro tunnel and the pre-commissioning of the offshore sec-tion of the pipeline.

29. Additional temporary land will be required for storage of affected olive trees which will be uprooted, stored and then replanted following completion of the construction of the pipe-line.

30. The rest of the construction of the pipeline and the PRT will be handled from a construc-tion site and camp located within the PRT footprint.

2.3.5 Routing and Route Selection Process

31. The TAP route in Italy was selected following an extensive route alternatives assessment process performed by TAP in order to select a technically feasible pipeline route with the least environmental, socioeconomic and cultural heritage impacts.

32. Upon selection of the preferred route, Alternative 0 (or ‘base case’), a process of route refinement commenced in order to optimize the route. The ESIA summarizes the route alternatives assessment performed by TAP in order to select the “base case” route and considers the “No Project Alternative,” as well as base case optimization. Five options were compared, including four with the landfall close to Brindisi (two to the north of Brin-disi or two south of Brindisi, in addition to the Melendugno). None of the Brindisi options proved acceptable (for a range of reasons that are described in detail in the ESIA).

33. The Melendugno option was then refined, with a few adjustments introduced based on updated cadastral maps, in order to guarantee safe distance from buildings and to reduce the number of affected land parcels to the greatest extent possible.








Figure 3: Overview of On-Shore Route in Italy and Location of the Pipeline Receiving Terminal (PRT)








2.4 Project Schedule

34. Error! Reference source not found. shows an indicative, “high level” Project schedule.

Figure 4: Overview of Project Schedule

35. Key Project milestones include the following:

In 2003 the pre-feasibility study for TAP was conducted.

The feasibility study for the project was concluded by EGL in March 2006, confirming technical, economic and environmental feasibility.

TAP's extended basic engineering, including the offshore seabed survey, and prelim-inary impact assessment surveys were concluded by March 2007.

In 2008, TAP entered the front-end engineering detailed design stage (FEED).

TAP continues to work on engineering and planning, as well as securing a favourable regulatory framework for the pipeline project.

In February 2012 TAP was selected by Shah Deniz Consortium as the priority route to Italy.

August, 2012, funding and option agreement with Shah Deniz partners to finance part of TAP and potentially take up to 50% equity stake in the project.

February, 2013. Governments of Albania, Greece and Italy sign intergovernmental (IGA) agreement on TAP.

March, 2013. TAP completes Front End Engineering Design (FEED).

April, 2013. TAP receives environmental permit in Albania.

April, 2013. Albanian government ratifies Host Government Agreement with TAP.

June 28, 2013 Shah Deniz Consortium selects TAP as preferred transportation route for Caspian gas to Europe.

November, 2013. TAP shareholders take resolution to construct.

December, 2013 Shah Deniz Consortium takes Final Investment Decision on Stage 2 of project.

December, 2013 Greek government ratifies the Host Government Agreement with TAP.







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April, 2014 TAP re-launches procurement process following review of strategy and schedule.

July, 2015 first construction works begin on Albanian roads and bridges.

TAP's schedule is aligned with developments upstream.

36. TAP expects to be ready to transport natural gas from the Caspian region, when the Phase II of Shah Deniz field in Azerbaijan starts production (estimated January 2020).







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3. Legal Framework

3.1 Key Italian Legislation

37. Table 1 below identifies key Italian legislation relevant to land easement and acquisition.

Table 1: Key Italian Land-related Legislation

Italian Name English Translation

Number and Reference of Approval and Publication

Subordinate

Acts

Key Issues Addressed

Key Provisions

Testo Unico Es-propriazioni

Consolidated Act on Expro-priation Pro-cedure

Presidential Decree 8, June 2001, No. 327. Published in the Official Gazette of the Italian Repub-lic 16 August 2011, No. 189

Gas pipeline authorisation and expropri-ation proce-dure

In general the law governs the expropriation proce-dure

Art. 52-bis ff: provisions applicable to pipelines

Disposizioni regionali in materia di espropria-zioni

Regional regulation on expropriation procedure

Apulia Regional Law

22 February 2005, No. 3. Published on the Official Bulletin of Apulia Region 25 February 2005, No. 32

Implementation at a regional level of the DPR 327/2001

It does not significantly deviate from the national legislation

Decreto legis-lativo recante norme comuni per il mercato interno dell'energia elettrica e del gas naturale

Common rules for the internal mar-ket in electric-ity and natu-ral gas

Legislative Decree 1

June 2011, No. 93. Published in the Of-ficial Gazette of the Italian Republic 28 June 2011, No. 148

Ten-year sce-narios and Decree of the Prime Minister on the identifi-cation of the priority Infra-structure to be adopted

Authorisation procedure for priority pipe-lines

Priority criteria for pipe-lines consistent with the national energy strategy

Legge Mar-zano sul rior-dino del set-tore energe-tico

Marzano Law on the reor-ganisation of the energy sector

Law 23 August 2004, No. 239. Pub-lished in the Official Gazette of the Ital-ian Republic 11 September 2004, n. 215

Agree-ments with local enti-ties

Art. 1, paragraph 5: Re-gions and local entities af-fected by the construction and operation of an energy infrastructure have right to enter into specific agree-ment aimed at identifying proper environmental com-pensation and balance measures consistent with the objectives of the na-tional energy policy







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Subordinate

Acts


Key Provisions

Codice dell'Ambi-ente

Environmental

Code

Legislative Decree 3

April 2006, No. 152. Published in the Of-ficial Gazette of the Italian Republic 14 April 2006, No. 88

EIA procedure Infrastructures subject to the EIA procedure falling under the national or the regional competence (submarine pipelines and pipelines longer than 40 km and having a diameter equal or larger than 800 metres)

Normativa re-gionale sulla valutazione di impatto am-bientale

Regional Law on EIA and VINCA procedures

Apulia Regional Law

12 April 2001, No. 11. Published in the Official Bulletin of Apulia Region 12 April 2001 n. 57

EIA and VINCA

procedures

Pipelines no longer than 20 km are subject to the EIA screening procedure (Pro-cedura di Verifica di Assog-gettabilità a VIA) carried out by the Region

Normativa re-gionale sulle procedure per la Valutazione di incidenza

Regional Law on VINCA pro-cedure

Regional Executive Board Resolution 14

March 2006, No. 304 14 March 2006, n. 304. Published in the Official Bulletin of Apulia Region 30 March 2006, No. 41

VINCA proce-dure

Phases of the assess-ment procedure

Codice del Processo Am-ministrativo

Adminisrative Proceeding Code

Law 2 July 2010, No. 104. Published in the Official Ga-zette of the Italian Republic 7 July

2010, No. 156

Judicial pro-tection before the Adminis-trative Court

Rules regulating the appeal before the Regional Admin-istrative Courts

Legge di rati-fica della Con-venzione delle Nazioni Unite sul diritto del mare fermata a Montego Bay in 10 dicembre 1982

Ratification of the United Nation Con-vention on the Law of the Sea

Law 2 December 1994, No. 689. Pub-lished in the Official Gazette of the Italian Republic 19 Decem-ber 1994, No.295

Rights and ju-risdiction of the Coastal State over the territo-rial sea, the ex-clusive eco-nomic zone and the continental shelf

Articles 2 and 3: rights and jurisdiction of the Coastal State on territorial sea

Article 79: the Coastal State may not impede the laying or maintenance of cables or pipelines on the continental shelf, without prejudice for its right to explore and ex-ploit the continental shelf and its natural resources and prevent, reduce and control the pollution from pipelines







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Subordinate

Acts


Key Provisions

Codice Civile Italiano

Italian Civil Code

Royal Decree 16 March 1942, No. 262 Published in the Official Gazette of the Italian Republic 4 April 1942, No. 79

In general the Italian Civil Code governs the civil re-lations among private par-ties

Legge n. 590/1965

Law No. 590/1965

Law 26 May 1965, No. 142. Published in the Official Ga-zette of the Italian Republic 9 June 1965, No. 142.

Agricultural pre- emption right

Article 7: Agricultural Pre- Emption Right of the Adja-cent Farmer

Article 8: Agricultural Pre- Emption Right

3.2 Land Acquisition Process in Italy

38. Based on the legal opinion issued by [omississ] in May 2015 (see details in Appendix 2) and MoED advice, the recommended process for land acquisition in Italy following the is-suance of the Single Authorization (that has been issued by MoED on May the 20th 2015) is the following:

Send a registered letter to all the landowners informing them that the Project has been approved and TAP intends to enter into an amicable agreement process to purchase and/or lease their land and requesting that the land owner contact TAP to start the negotiation process;

Seek to reach negotiated settlements wherever possible through a series of meetings to present and review TAP’s offer to the Landowner;

Send a copy of the agreement by registered mail either confirming their acceptance of TAP’s offer, in instances where there is no response or a refusal to accept TAP’s offer, the expropriation procedure is described.

39. The expropriation process is summarized as follows (for further details please refer to Legal opinion iddue by (omississ), Appendix 2):

Under the Single Authorization process, TAP files the request of Preliminary Expro-priation Needs ( i.e. Vincolo Preordinato all’Esproprio) specifying with proper technical documents the Project affected land. This step was completed in October 2014;

With the Single Authorization, the Project is declared a Public Utility and the Prelimi-nary Expropriation Needs are imposed on the Project affected area. This decree was issued on May the 20th, 2015;

TAP publishes this decree in two newspapers (one local and one national) and on the official board of the Municipality of Melendugno and Region of Apulia. This step was completed on July the 16th 2016;







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In cases where expropriation is necessary, TAP will require the MoDE to issue an expropriation decree under the urgent procedure (as per art. 22 Expropriation law 327/01) specifying the compensation proposed to the landowner;

MoDE accepts the compensation as calculated by TAP and issues the Expropriation Decree;

TAP provides a copy of the expropriation decree to the affected land owner specifying the date of the entrance onto their land;

TAP enters onto the land to take possession and executes its land rights as per de-cree. Minutes are drawn, including an asset inventory. If the landowner is present, s/he is allowed to sign the minutes, otherwise it can be signed by TAP and two wit-nesses;

TAP registers the land rights acquired and can begin work from the date of the occu-pation;

Landowner may accept the proposed compensation of TAP or can call for an arbitra-tion procedure with three engineers: one appointed by the Land Owner, one appointed by the MoED and the last one appointed by the Local Court (Tribunale di Lecce). TAP shall deposit to the National Escrow account the proposed compensation amount.

At the end of the arbitration process the outcome will be disclosed through a MoED sentence and any further compensation required will be deposited into the National Escrow Account by TAP.

3.3 Key Potential Gaps with International Resettlement Standards

3.3.1 International Resettlement Standards

40. The key objectives of International Resettlement Standards, as commonly defined by IFC Performance Standard 5, EBRD Performance Requirement 5, EIB Environmental and Social Handbook and the Equator Principles are to:

Avoid or, at least minimize, involuntary resettlement wherever feasible by exploring alternative project designs;

Mitigate adverse social and economic impacts from land acquisition;

Improve or, at a minimum, restore the livelihoods and standards of living of displaced persons to pre-project levels;

Improve living conditions among displaced persons through provision of adequate housing with security of tenure at resettlement sites.

3.3.2 Key Gaps

41. Table 2 below provides a comparison of Italian legislation to International Resettlement Standards and the identification of key gaps.








Table 2: Gap Analysis – Italian Legislation / International Resettlement Standards

Requirement EBRD/IFC/EIB/EP Policy Gap Analysis

Project Design and Minimization of Dis-placement

The client will consider feasible alternative pro-ject design to avoid or at least minimize physical and/or economic displacement, while balancing environmental, social and financial costs and benefits

Under DPR 327/2001 (the so-called Consolidated Act on Expropriation Procedure), the preliminary project (on the basis of which the preliminary expropriation constraint (vincolo preordinato all'esproprio) is adopted) is evaluated during a steering committee phase ex-actly with the purpose of balancing environmental, social and financial costs and bene-fits. Even if the Italian law does not require that the expropriation application should in-clude alternative designs, other feasible solutions to minimize the prejudice of the own-er's right are taken into account, especially during the approval of the definitive project as better detailed below.

In addition, the preliminary expropriation constraint must be notified to the owner, which may submit, in the following 30 days, comments and observations. The Expropriating Authority must reply to such objections in writing. This ensures that a debate phase, by private discussion between the Expropriating Authority and the owner, is carried out.

The same procedure is set out for the approval of the definitive project: the Expropriating Authority notifies the relevant owner(s) of the procedure for the approval of the final pro-ject. The owner(s) and any other interested party may submit comments to the Expropri-ating Authority no later than 30 days from the communication or publication of the notifi-cation abovementioned. The Expropriating Authority shall approve the project based on the observations submitted. Thus, before the final approval of the project, a variance to the preliminary design may be requested in order to mirror the proposed solutions to minimize the prejudice of the owner's right.

Consultation The client is encouraged to consult with the af-fected persons and communities and facilitate their early and informed participation in decision making processes related to the resettlements and compensation purchase on a continuing ba-sis

Italian law (DPR 327/2001) provides for information to affected people and gives op-portunities for feedback and negotiated settlements before the expropriation decree is triggered, hence, it generally meets the spirit of EBRD requirement pertaining to consul-tation.


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Grievance Mecha-nism

It is required that a grievance mechanism is es-tablished and made public. This mechanism shall permit to receive and address in a timely fashion specific concerns about compensation and relocation, and will provide a recourse mechanism.

The affected landowner can file comments and objections (i) on the preliminary identifi-cation of the land subject to the expropriation procedure (i.e. once notified of the prelimi-nary expropriation constraint); (ii) on the approval of the final project and (iii) during the phase of determination of the compensation.

Moreover, the Consolidated Act on Expropriation Procedure sets out that any interested third party may (i) challenge the expropriation decree before the Administrative Court and (ii) challenge the estimate or the determination of the compensation, requesting the Civil Court to determine the final compensation.

As per negotiation on relocation and other recourse mechanisms, the Consolidated Act on Expropriation Procedure does not provide any remedy, thus, we suggest TAP to re-view and enhance, where necessary, the scope of the Livelihood Restoration Plan (LRP). In order to fully meet EBRD requirements TAP should establish a separate griev-ance mechanism.

Resettlement Plan-ning and Implemen-tation

In the event that an involuntary resettlement oc-curs, the client will carry out a census and a so-cio- economic baseline assessment within a de-fined affected area in order to identify the per-sons who will be displaced and eligible for com-pensation and assistance and discourage inflow of people who are ineligible for these benefits

Italian law does not provide for publication of a comprehensive document equivalent to a LRP and consultation thereupon. DPR 327/2001 only sets out that, after the declaration of public utility, the Applicant drafts a list of the properties to be expropriated, with a brief description, the data of the owner concerned and the indication of the amount offered as compensation. This document must be notified to the owner and any interested party, in order to consent them to submit written comments or relevant documents.

DocumentationAction Plan

In the case that the Project causes physical dis-placement of people, a Resettlement Action Plan (RAP) will be prepared. In the case that the Pro-ject causes economic displacement of people, a Livelihood Restoration Plan (LRP), or similar, will be prepared.

The Consolidated Act on Expropriation Procedure does not provide for such a commit-ment. At any rate, the Italian expropriation procedure already ensures the compliance with points sub (a) and (b) of the RAP. On the contrary the Italian expropriation proce-dure does not provide any mechanism for monitoring and evaluating the implementation of the resettlement plans.







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The RAP/LRP will be designated to mitigate the negative impact of displacement, identify potential development benefit and establish the entitle-ments of all categories of affected parties; docu-ment all transactions, to acquire land rights and related compensation measures; and set up pro-cedures to monitor and evaluate the implementa-tion of the resettlement plans.

Compensation and Benefits for Dis-placed Persons

In case of any displacement caused by the Pro-ject, the client will offer to the affected persons and communities’ in-kind or cash compensation for loss of assets at full replacement cost (that is equal to the market value of the assets plus transaction costs) and other assistance to help them improve or at least restore their standards of living or livelihoods. In-kind compensation pre-ferred over cash compensation for vulnerable groups.

DPR 327/2001 sets out that, when the expropriation procedure derives from the realisa-tion of a public utility work of private initiative (such as the pipeline at issue) the compen-sation is determined based on the market value (valore venale) of the goods to be ex-propriated and all indirect costs are covered.

On the contrary the Consolidated Act on Expropriation Procedure does not provide for assistance to help the parties concerned to improve or at least restore their standards of living or livelihoods.

Loss of Public Amen-ities

Where the Project involves the loss of public amenities, the client shall undertake meaningful consultation with the locally affected community to identify and agree upon a suitable alternative where possible.

A consultation phase is carried out during the steering committee, where all the inter-ested authorities and entities concerned are invited to express their opinions, permits, or notices of objection related to the project under assessment.

Private Sector Pri-vate responsibilities Under Government

In the event that the land acquisition and resettle-ment are the responsibility of the host govern-ment, the client will collaborate with the public au-thority to achieve outcomes that are consistent

This is also a principle of the Italian expropriation procedure.







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Managed Resettle-ment

with the objectives of the EBRD Performance Re-quirements 5.

Particular Attention to Vulnerable People

Measures to ensure that vulnerable and ‘at-risk’ groups and women are not disadvantaged, are fully informed and aware of their rights, and are able to benefit equally from the resettlement op-portunities.

No special provisions on vulnerable people are provided under the Italian law. All the as-pects to be taken into account according to the present EBDR requirement are generally considered, under DPR 327/2001, with respect to any affected owners or individual hav-ing title over the land.

Trans Adriatic Pipeline AG 29







4. Overview of Project-Affected Population

4.1 Introduction

42. In this Chapter, the demographic and socio-economic characteristics of the Project-affected population are described based on recent findings from an overview of census and socio-economic data (2015) and supplemented by data previously collected as part of the ESIA (2013).

43. The Project area is located in the southern province of Lecce, one of six provinces in the Apulia Region. Although the entire footprint of the Project lies in the municipality of Melendugno, the study area defined in the ESIA included buffers (500m, 2km and 3km corridors) that extended into areas under the administrative control of the Municipality of Vernole (see Figure 5 below).

44. As indicated in Chapter 6 (Project Impacts), the Project will affect the land holdings of approximately 156 households.

Figure 5: Project Footprint







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4.2 Demographics + Household Characteristics

45. The Province of Lecce is the second most populous province in the Apulia Region (after the Province of Bari) representing 19.9% with a population of about 815,600 people, 12% of whom live in the provincial capital city of Lecce. The Apulia Region represents 6/7% of the population of Italy. Table 3 provides population data related to the two municipalities of the Project area (ISTAT, January 1, 2011), as well as at the provincial, regional and national level.

Table 3: Population

Area Popula-tion

% of provincial popula-tion

Surface (km2)

Density (n. peo-ple/km2)

Melendugno Munici-pality

9,838 1.2% 91.06 108.04

Vernole Municipality 7,404 0.9% 60.57 122.32

Province of Leece 815,597 - 2,759.4 295.57

Apulia Region 4,091,259 - 19,358 211.35

Italy 60,626,442 - 301,336 201.19

Source: ISTAT

46. Over an 11 year period (January 2000-2011), the municipalities of Melendugno and Vernole experienced different demographic trends. Since 2000, Melendugno experi-enced a population growth of 6%, while Vernole saw a 2.5% decrease in population. This may be related to the fact that the Municipality of Meledugno has a larger town center and includes coastal areas which are a primary driver for tourism.

4.2.1 Age

47. At a national level, the largest age group is between 40 and 44 years for both males and females, followed by 35-39 and 45-49 years old. The lack of a large cohort of younger workers shows the gradual aging of the Italian population, as a result of low birth rates and small family sizes.

48. Figure 6 below illustrates the age distribution by gender for the Municipality of Melandugno (2011). Similar trends are observed at the national and regional level.







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Source: ISTAT

Figure 6: Age Distribution by Gender for the Municipality of Melandugno, 2011

0.5%

1.2%

2.3%

3.4%

4.6%

4.9%

6.7%

6.1%

7.0%

7.9%

7.4%

7.6%

7.7%

6.4%

6.1%

5.5%

5.2%

5.1%

4.7%

1.1%

2.2%

3.2%

4.3%

4.9%

4.8%

6.3%

6.4%

7.4%

6.9%

7.5%

8.2%

6.9%

6.8%

5.7%

4.4%

4.4%

4.7%

4.0%

-10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%

>90

85-89

80-84

75-79

70-74

65-69

60-64

55-59

50-54

45-49

40-44

35-39

30-34

25-29

20-24

15-19

10-14

5-9

0-4

Percentage

Age

cla

ss

Female Male







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4.2.2 Gender

49. In Italy generally and in the Project area specifically, the percentage of women is slightly higher than men, as shown in Table 4.

Table 4: Gender

Area Male Female

Melendugno 48.5% 51.5%

Vernole 47.7% 52.3%

Province of Lecce 47.8% 52.2%

Apulia Region 48.5% 51.5%

Italy 48.5% 51.5%

Source: ISTAT

50. Although the principles of gender equality (Article. 3), equal pay (Article. 37) and equal

opportunities for men and women (Article. 51) are enshrined in the Italian constitution, women report ongoing challenges in finding waged employment and for those who do, in combining paid work with child care responsibilities. Italy has an unemployment rate which has been consistently higher for women in the last decade. More recently, un-employment for both men and women in Italy is on the rise, reflecting a similar trend across the EU.

4.2.3 Ethnicity

51. Italy has a relatively homogeneous population. The prevalent ethnic group is the Ital-ians, but there are small clusters of German-Italians, French-Italians, and Slovene-Italians in the north and Greek-Italians and Albanian-Italians in the south (ESIA 2013).

52. Two small Griko-speaking communities survive today in the Italian regions of Calabria (in Province of Reggio Calabria) in southern Italy and the Apulia Region. Griko is a form of the Greek language which can be considered as a Modern Greek dialect. The origin of Griko communities is uncertain but it is likely that these people emigrated from Greece to the Apulia region in the ancient times (from 7th to 8th century B.C. to the Middle Ages). Griko communities are renowned for their folklore (especially music) and represent a cultural touristic attraction in the area.

53. The Griko-speaking area of Salento comprises nine small towns in the historical region called “Grecia Salentina”; they are Calimera, Castrignano dei Greci, Corigliano d'Otranto, Martano, Martignano, Melpignano, Soleto, Sternatia and Zollino, with a total







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of approximately 41,000 inhabitants. Martano and Calimera municipalities are border-ing the ESIA Study Area, however no presence of Griko communities was detected in the municipality of Melendugno and Vernole during 2013 field surveys.

54. The Parliament of Italy has recognized the Griko community of Reggio Calabria and Salento as an ethnic and linguistic minority. The Griko-speaking people are well-inte-grated in the socio-economic local context and during the ESIA no critical issue emerged regarding the presence of these communities.

4.2.4 Religion

55. In Italy the Constitution sets forth freedom of religion. Article 8 states that “all religious denominations are equally free before the law”, although the Roman Catholic Church continues to play a major role in Italian society and (to a lesser extent) economy and politics.

56. According to a 2012 survey by the Pew Forum on Religion and Public Life, Christianity is the main religion, encompassing 83% of the population, and a vast majority of these people are Roman Catholics. The next largest classification is irreligious, atheist or agnostic people (12%). There are also significant minorities, which include Protestants, Jews and a growing Muslim immigrant community.

57. Considering the low percentage of foreign residents in the Project area (less than 2% of the local population) and that these settlements have a long rural tradition, it can be assumed that most of population in this area identify with Roman Catholicism.

4.2.5 Economy + Livelihoods

58. Apulia is the 9th largest contributor of nominal GDP among the 20 Italian regions with a GDP of 64 million euros (ISTAT, 2011). According to ISTAT figures, GDP per capita amounts to 17,545 euros, which is higher than the other southern regions (average GDP for Italian South is 16,989 euros), but considerably lower than national standards (26,002 euros).

59. From a provincial perspective, the main economic sectors in Lecce are agriculture, services (mainly tourism) and a network of small enterprises. The service industry (which includes tourism) is the largest generator of total added value, representing about 75% of all economic activity in the Apulia Region. However, the greatest number of registered companies are involved in trade and maintenance (e.g. mechanic shops) activities (21,277 businesses), followed by agriculture, hunting and forestry (almost 10,771 businesses) and construction activities (more than 9,384 businesses).

60. The main economic activities in the ESIA study area are similar to those represented at the provincial level, which are agricultural, fishing, trade (wholesale and retail), and maintenance and construction activities. These economic activities make up 72% of economic activities across both the Municipalities of Vernole and Melendugno com-bined. Table 5 compares the number of registered companies per sector for each of the municipalities.







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Table 5: Businesses

Type of Business Vernole Melendugno Total

Agriculture, sylviculture, fishing 254 200 454

Wholesale and Retail trade, Reparation of cars and motorbikes

116 260 376

Construction 102 124 226

Receptive structures and restaurants 43 116 159

Manufacturing activities 37 57 94

Other services 14 33 47

Rentals, Travel agencies, services to the compa-nies

7 19 26

Professional, scientific and technical activities 9 9 18

Artistic, sport, entertainment and leisure activi-ties

9 8 17

Transport and stocking 7 8 15

Financial and insurance activities 7 7 14

Estate activities 0 13 13

Information and communication activities 1 5 6

Health and social assistance 2 3 5

Education 2 1 3

Water supply, sewage network, trash manage-ment

0 1 1

Not classified companies 0 1 1

Total 610 865 1,475

Source: Statistical Office of Province of Lecce

4.2.6 Olive Oil Production + Distribution

61. Olive farming is a major agricultural activity in the Mediterranean region, where 95% of the world’s olive trees are cultivated. Italy is considered to be one of the main producing countries (along with Spain and Greece) of green and black table olives.

62. The Apulia Region has a history of producing high quality olives and is the region with the highest harvested production of olives and olive oil production in all of Italy. Apulia is second to Sicilia in terms of table olive production. The Province of Lecce has the highest harvested production of olives in the Apulia Region, it accounts for 9.2% of national olive production and approximately 29% of the regional olive production. From these harvested olives, the Province of Lecce also has the highest production of table olives and olive oil of all provinces in the Apulia Region.







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63. The Apulia Region is the second largest producer of Protected Designation of Origin (PDO) olive oil in Italy (after Tuscany) with over 1,500 farms, 16,000 ha and a very organised chain of olive oil millers and bottlers. However, the Province of Lecce has a lower number of PDO designated olive producers and processors compared to other provinces in Apulia.

64. The Municipalities of Melendugno and Vernole are important areas for olive production. In the Project area within the 2 km. corridor along the pipeline, approximately 1,361 ha (73% of total land) is utilized for olive farming. Figure 7 depicts the extent of olive grove cultivation in the Project area.

Figure 7: Farm Land

65. Olive oil cooperatives play an important role in the supply chain of olive oil, as they

offer key services to farmers, including pressing olives in mills, oil bottling, and com-mercialization of the produce to regional, national and international clients.

66. In Melendugno and Vernole there are two main cooperatives, Oleificio Cooperativo Rinascita Agricola and Cooperativa Oleificio Sociale Sant’Anna, which produce and distribute olive oil from the various olive farms in the area. The first cooperative is just inside the 2km pipeline corridor, whereas the second is just outside, in the proximity of the urban area of Vernole. However, they both serve the needs of local farmers in Melendugno and Vernole.







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4.2.7 Tourism

67. Tourism is another important economic activity in the Project area. According to the data of the Local Tourism Authority (APT Lecce), in Melendugno and Vernole tourism flows are on the rise.

4.3 Vulnerable Groups

68. Social assistance in Italy is given to different social groups within the population (e.g. elderly, unemployed, physically disabled, low-income families) for a number of rea-sons.

69. In Italy, the relative poverty line for a two-member household in 2011 was equal to 1,011.03 euros per month, which was around 18.5 euros higher than the 2010 thresh-old (+1.9%). In Southern Italy and Islands, poverty rates are much higher, at 23.3% compared to North and Central regions of the country.

70. Figure 8 illustrates the average annual income level for residents of Melendugno and Vernole between 2005 and 2010, compared to the averages for the Region and coun-try as a whole.

Figure 8: Income Levels

71. Groups in the Project area identified during the ESIA as being potentially vulnerable

include:

Women: Survey data show that despite the fact that gender inequalities are de-creasing, women in the Project area still suffer from pay gaps, have more difficulties

0.000

5.000

10.000

15.000

20.000

25.000

Melendugno Vernole Apulia Italy

2005 2009 2010







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in finding employment and their rates of political and economic representation are generally lower.

Elderly/retired: Specific areas of vulnerabilities are related to income levels and limited ability to change or increase access to additional finances and access to health care. The limited accessibility of transport and social services make the el-derly particularly vulnerable.

Households dependent on low productivity fishing or agriculture: Households dependent on low productivity fishing or agriculture generally have a lower income and less access to resources and are likely to show low resilience to unexpected events, which make them more vulnerable to changes in land use and environment.

Households dependent on investment returns: Households that are exposed to the banking system are highly vulnerable to changes, should these have an impact on their economic activity.

Unemployed people: This group includes, on the one hand, young people who find labour market entry and contract stabilization extremely difficult, and on the other hand adults who have lost their job and are struggling to find a new one.

Large families: Households who have to provide for a large number of minors and children are more likely to spend their savings and earnings more quickly and are under the additional strain of higher family costs.

Immigrants: Despite the low presence of immigrants in the Project area, regional and provincial-level labour unions have reported cases of abuse on labour rights within immigrant communities (caporalato).

72. As part of the ESIA an assessment of vulnerability in the Project area was undertaken. The findings are provided in Table 6.

Table 6: Vulnerability

Indicator Specifics Relevance within the Project context

Vulnerable Groups or Individuals

Access to key socioeconomic or environmental resources

Livelihoods

Diversity of liveli-hoods

Subsistence livelihood activities

Households with low-in-come levels

Productivity of as-sets

Principal livelihoods are relatively unpro-ductive, reliance on multiple livelihood strategies

Households where head has low-level of education, is self-employed or is re-tired

Households whose finan-cial stability is dependent on third parties

Female-headed house-holds

Small-scale farmers

Small-scale fishermen

Unemployed







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Services Health/medical ser-vices

Long waiting list at hospitals and health clinics servicing stake-holders

Insufficient number of staff to meet the health needs of the community

Households with intermit-tent access to health care

Transport Low availability or quality of key services and infrastructure

Households without ac-cess to transport

Recreation Lack of meeting places

Elderly

Youth

Women

4.4 Project-Affected Population

73. Of the land identified, some is designated public land and the remainder is owned pri-vately by individuals (affected owners). Some of these private land areas have a single owner, while others have multiple owners. Where there are multiple owners, this is often because multiple siblings or other family members received rights to the land as part of an inheritance.

74. In this context, the term primary owner is used to refer to a single owner, or to the owner among multiple owners identified as the person chiefly responsible for the land. Where land has multiple owners, the owners other than the primary owners are re-ferred to as co-owners.

75. Overall, 65% of the land areas have a single owner, 21% have two owners, 9% have three owners, and the remainder have between four and thirteen owners.

76. Looking at both primary owners and all owners overall, more than 85% are local, mean-ing that they live near the affected land or in the same region or province as the land. The majority of the remainder lives elsewhere within Italy, and only a small minority lives abroad. For primary owners, those living abroad account for just 3%. Again for primary owners, 80% own their houses on the land.

77. Across owners, average age is relative high at 61 years old. Primary owners have an average of 63, and an average household size of 2.5. Nearly half report being retired, just over 40% report full time employment, and the remainder are either on temporary contracts, or have chosen not to specify their employment status. Those employed work across the full range of sectors and services, including in agriculture, industry, education and law.

78. For owners where an income range can be estimated, approximately 40% are believed to own less than €8,000 gross annually. This would suggest that they are living primar-ily on savings, or are dependent on social assistance allowances. A further 28% are







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understood to earn between €8,000 and €28,000 annually, and 20% to earn between €28,000 and €75,000. Just over 10% are understood to earn €75,000 or more.

79. Of all owners, 17% are considered vulnerable. For primary owners, this rises to 19% of total owners, but fully 34% of those answering the relevant questions. This may be skewed upwards, as people without markers of vulnerability may have declined to an-swer key questions. Overall, vulnerability is primarily linked with age, with those who are elderly, without regular family support and without formal education being the most vulnerable. Vulnerability does not seem to be correlated to homeownership, meaning that many of the vulnerable own their homes rather than rent them. Individually, those identified as vulnerable are also primarily those earning less than €8,000, although it is not known what their households own overall. Some of the vulnerable owners are functionally illiterate.







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5. Project Impacts

5.1 Pipeline

5.1.1 Construction Corridor

80. As shown in Figure 2 (see Section 2.3.2), the Construction Corridor is 18 metres in width. While construction in a given area should not take more than a few months at most, impacts on the Construction Corridor will typically last longer as reinstatement will need to be carried out after construction is complete. It is assumed that the Con-struction Corridor will typically remain under Project control for two years. In line with normal practice on similar pipeline projects, compensation associated with the Con-struction Corridor will therefore be calculated based on the 18 meter wide Construction Corridor that will remain under Project control for two years. The Construction Corridor will not be purchased from its current owners but will be leased by TAP for the duration of construction and reinstatement (i.e. 2 years).

81. TAP will uproot and temporarily store olive trees currently being cultivated on land re-quired for the construction corridor. Sites for the temporary storage and care of im-pacted olive trees have been identified.

5.1.2 Restrictions during Operations

82. With respect to long-term restrictions around the pipeline during operations, and in the absence of applicable local standards, TAP will apply the following standards.

Table 7: Restriction Corridors

Area Description Nature of Restriction

Zone A

8 metre wide strip with the pipeline at its centre (4 metres from the centre line either side)

No buildings of whatever nature, no deep plough-ing, no trees with deep roots

Zone B

40 metre wide strip with the pipeline at its centre (20 metres from the centre line either side)

No residential buildings

Zone C

200 meter wide strip with the pipeline at its centre (100 meters from the centre line either side)

DM17/04/083 gives specific requirements on popu-lation control which restrict buildings belonging to inhabited settlements of more than 300 people, and/or single building with more than 100 people and public buildings like a school or hospital.

3 Ministero Dello Sviluppo Economico Decreto 17 aprile 2008; Regola tecnica per la rogettazione, costruzione, collaudo,

esercizio e sorveglianza delle opere e degli impianti di trasporto di gas naturale con densita' non superiore a 0,8. (Gazzetta Ufficiale n. 107 del 8/5/2008 - Suppl. Ordinario n. 115)







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83. In line with good practice for similar pipeline projects, the restricted corridors are not purchased from their current owners. Rather, easement rights are acquired from cur-rent landowners by the pipeline operator to accommodate long-term operational re-strictions (servitù) but land ownership does not change and most activities can con-tinue normally. The acquisition of easement rights from current owners is subject to appropriate compensation based on full replacement value of the land and that takes account of the diminished potential of the restricted land.

5.2 Above Ground Installations

5.2.1 Pipeline Receiving Terminal (PRT)

84. The layout of these facilities will require just over 12 hectares of land for the PRT and associated access roads. Land required for the PRT will be acquired permanently by TAP.

5.2.2 Block Valves

85. A typical block valve requires between 600 and 800 square metres. This is a perma-nently fenced area, where only authorized access is possible. The area occupied by a block valve is usually entirely overlapping with the pipeline construction corridor. The Italian section of TAP will include one block valve station at the landfall and will require 524sqm including associated access roads. This land will be acquired permanently.

5.3 Temporary Facilities

86. Temporary facilities include access roads, pipe storage yards, construction camps, and the staging areas that tunnel construction works will require at both ends of the tunnel. These areas will typically be needed for the duration of construction (i.e. two years). In the case of TAP Italy it is anticipated that most of these will be located within the foot-print of the PRT. Some land will be required on a temporary basis around the landfall as well.

87. Land required for temporary facilities will be needed for the duration of the construction phase only. It will typically be reinstated to its previous condition upon the completion of construction and handed back to its owners. Land will therefore not be purchased but will rather be rented on a temporary basis from its current owners.

5.4 Summary of Land and Easement Acquisition Impacts

5.4.1 Physical Displacement

88. It is not anticipated that the Project will require any physical displacement in Italy. The route as well as permanent and temporary facilities have been selected and will further be optimized such that no residential properties are affected.







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5.4.2 Economic Displacement

89. The Project will cause temporary and permanent economic displacement of people using land that is affected by the pipeline, above ground installations, and temporary facilities. It is currently estimated that 188 private land parcels owned by 156 different owners (PAHs) will be affected by the Project. Most of this land is agricultural, culti-vated with olive trees and small portions of annual crops. It is not envisaged that any actual businesses (other than agricultural farms) will be affected by the Project.

5.4.3 Key Numerical Impact Indicators

90. Table 8 presents key indicators describing the quantitative impact of the TAP Project in Italy in terms of land area and parcels. In line with the Project’s need to access the majority of land for up to two years during the construction and reinstatement phases (see sections 5.1 and 5.3), easement represents nearly half of the impact at 47.8%, whereas leases represent 44.5% and acquisition 7.8%. These numbers were obtained from the Land Dossier, an asset inventory based on cadastral records and field verifi-cation.

Table 8: Project Components and Summary of Land Impacts

Impact Type of Land

Access Land Area

(m2) # Land Parcels per impact type

Construction Corridor (18m ROW)

Lease

143,535 130

Temporary Working Areas for Micro Tunnel En-try

22,832 6

Temporary Olive Tree Storage 52,677 13

Zone B (40m ROW) Easement 338,400 160

Pipeline Receiving Terminal (PRT)

Acquisition

116,550 13

Access roads for the PRT 7,421 11

Block valve station (BVS) 335 1

Access roads for the BVS 191 1

Total Land Area + Parcels 681,491 3354

91. Table 9 presents information on the number and area of land impacted by the TAP Pro-

ject in Italy by different types of land use. The vast majority of the land (90%) is used

for agricultural purposes.

4 There are some parcels that are impacted by multiple project infrastructure and therefore are counted multiple times.

For this reason, the total number of land parcels impacted is less than the sum of the individual impacts per type of infra-structure.







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Table 9: Project Components and Summary of Impacts by Land Use Type

Type of Impact Agricultural Land Constructible

Land Public Utility

# of Par-

cels Area (m2)

# of Par-cels

Area (m2)

# of Par-cels

Area (m2)

Construction Corridor (18m ROW) 120 124,108 3 5,320 7 14,107

Temporary Working Areas for Micro Tunnel Entry and Olive Tree Storage

14 57,032 5 18,477 N/A N/A

Zone B (40m ROW) 143 275,129 5 17,549 12 45,722

Pipeline Receiving Terminal (PRT) 13 116,550 N/A N/A N/A N/A

Access roads for the PRT 11 7,421 N/A N/A N/A N/A

Block valve station (BVS) N/A N/A 1 335 N/A N/A

Access roads for the BVS N/A N/A 1 191 N/A N/A

Total Parcels5 + Land Area 301 580,240 15 41,872 19 59,829

5.4.4 Impact on Project-affected Population

92. Construction and operation of the pipeline will affect almost 64 hectares of land, im-pacting 156 PAHs6.

93. Almost 13 hectares (124,497 m2) of land will be acquired on a permanent basis im-pacting 26 parcels and 15 owners and/or users and their families.

94. Almost 22 hectares (2196,0447 m2) of land will be required on a temporary basis for the Construction Corridor, the temporary working areas for the Micro Tunnel Entry and for olive tree storage areas. This will impact 149 parcels and 142 owners and/or users and their families.

5.4.5 Impact on Annual and Perennial Crops

95. The Project is expected to impact farm land under cultivation with rotation crops as well as olive trees. Eight parcels of private land (5.2% of parcels / 3 PAHs) were under cultivation with rotational crops. 1133 olive trees belonging to 95 PAHs will be im-pacted. This represents 49.2% of PAHs.

5 There are some parcels that are impacted by multiple infrastructure and therefore are counted multiple times. For this

reason, the total number of land parcels impacted is less than the sum of the individual impacts per type of infrastructure. 6 Owners in this sense are considered a single entity, even if the properties are jointly owned by a couple, a family or a

collection of people.







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5.4.6 Additional Impacts

96. The Project is expected to impact one traditional house (pajara), one open air well, and 4,355 linear meters of stone wall.







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6. Stakeholder Engagement

6.1 Overview

97. This section outlines the national and international regulations guiding the Project’s approach to engaging with stakeholders in Italy. It identifies key stakeholder groups and describes the methods which have been used to consult with them throughout the Project impact assessment process and into land easement and acquisition. It also describes an engagement strategy in support of the Secure Land Access process and going forward into Project construction.

6.2 Legal + Institutional Framework

98. TAP has been engaging with stakeholders in Italy since 2006, when the TAP Project was first announced at the national and regional level. Engagement has continued in alignment with the following national and international requirements/guidelines:

Legislative Decree 152/06, as modified by Legislative Decree 4/08 and Legislative Decree 128/10;(2)

Performance Requirements (PR) of the European Bank for Reconstruction and De-velopment (EBRD);

UN Convention on Environmental Impact Assessment (EIA) in a Transboundary Context – the Espoo Convention;

Article 6 of the UN Economic Commission for Europe (UNECE) Aarhus Convention: Access to Information, Public Participation in Decision-Making and Access to Jus-tice in Environmental Matters;

TAP’s corporate standards, including their Stakeholder Engagement and Code of Conduct;

99. All of the international standards relevant to this project – EBRD, IFC, EIB, EP - rec-ommend identifying key stakeholders and ensuring engagement planning, consultation and disclosure of Project information is undertaken in a timely, relevant and under-standable fashion. They emphasize the importance of making sure information is ac-cessible to all groups and individuals who will be affected and / or have an interest in a project, including any segments of the population who might be considered vulnera-ble or marginalized. They encourage project proponents to use engagement methods which are culturally appropriate, and ‘free of manipulation, interference, coercion and intimidation.’

6.3 Corporate Stakeholder Engagement Approach

100. TAP defines stakeholders as individuals, community groups and government entities, who are directly or indirectly affected or likely to be affected by the Project. The com-pany understands that engagement with its stakeholders during the pre-construction phase will set the tone for community, government and other relationships for the re-mainder of the Project’s operational lifetime.







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101. As such, TAP Country Offices are committed to ensuring transparent and inclusive stakeholder engagement activities are in full compliance with the corporate strategy. The Country Offices are expected to put in place regular and comprehensive monitor-ing and evaluation of the strategy’s implementation, TAP’s stakeholder engagement is expected to be participative and consultative, whereby stakeholders and their interests will be systematically identified.

6.4 Stakeholder Identification

102. Stakeholder identification is an on-going process which has evolved as the Project design in Italy has been refined and affected parties/communities identified. Table 10 summarizes key stakeholder groups identified during the ESIA phase of the Project.

Table 10: Stakeholder Groups

Stakeholder Group Connection to the Project

Affected Parties

Local communities, including village and Municipality heads within the 2km corridor – 2 in total

Will receive impacts (positive or negative) as a result of the Project

May have expectations regarding devel-opment and benefits in their local area.

Groups within the 2km corridor:

Women

Senior Citizens

Youth

Tourism businesses

Farmers / land owners / olive growers

Fishermen

Provide information regarding the local community that will enable the identifica-tion of potential impacts and mitigation measures as well as identify community needs.

Other interested parties

Authorities and institutions:

Heads of municipalities

Representatives of the municipalities be-ing consulted.

May have expectations regarding devel-opment and benefits for the country or in the local area.








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Key Informants:

Agencies responsible for economic sectors (urban planning / local development, fishing, labour, agriculture)

May have expectations regarding devel-opment and benefits for the country or in the local area.


Local CSOs and Associations Raise concerns about the Project and/or facilitate contacts with local communities.


103. As described in Section 5.4, a total of 156 households and 193 parcels of land are

directly impacted by the Project’s land access needs.

104. During the ESIA a significant number of meetings were held with local institutions, both political and technical. The first group included representatives of the Municipality of Melendugno, Vernole, Brindisi and Lecce. The second group included a number of diversified technical bodies, such as the Superintendence for Cultural Heritage, the Basin Authority, the local police, the fire brigades, and the Lecce prefecture.

105. TAP continues to consult regularly with regional and national authorities (e.g. Ministry of Environment). Other stakeholder groups with an interest in the Project include eco-nomic operators (tourism, agriculture, and fishing), workers and business representa-tives (Confindustria, ANCE, Coldiretti, Assobalneari, labour unions and cooperatives, etc.), and, importantly, Project-affected people.

6.5 Past Stakeholder Engagement Activities

106. Various types of engagement were conducted throughout the ESIA phase to ensure that information regarding the Project was disseminated to all stakeholders, including vulnerable groups. These were as follows:

Meetings (bilateral or group meetings) to provide information about the Project, to discuss impacts and mitigation measures and answer questions and understand concerns of affected and interested stakeholders.

Focus group discussions and key informant interviews primarily to collect baseline data but also to act as a forum for these groups to communicate their opinions and concerns regarding the Project.







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Individual face to face meetings within the 2 km corridor to provide information about the Project, impacts and mitigation measures, to answer questions and iden-tify the concerns of stakeholders.

Information pages in main local newspapers in order to disseminate information about the Project and let people know about TAP information desks at the main open air markets.

Information desks at the main open markets in different settlements of the affected area.

Letters to the households of Melendugno to provide information about the Project and ESIA activities and surveys.

6.6 Special Accommodations for Vulnerable PAPs

107. Every effort has been made throughout the land access process undertaken to date, to accommodate special needs that any of the affected owners and co-owners might have. This has included holding meetings in people’s home, or convenient locations of their choice. For more than 50 PAPs, family members, advisors or people from within their support network were also included in TAP meetings and discussions around land issues.

6.7 NO TAP Movement

108. A key factor affecting the approach to stakeholder engagement, which surfaced during the ESIA consultations and continues to affect engagement activities, has been the existence of an anti-TAP sentiment (described as the NO TAP Movement) amongst some government officials and within pockets of the Project-affected population. The ESIA cites a number of resolutions passed by the municipal council of both Melandugno and Vernole expressing a lack of support for the Project. Importantly, the majority of affected land owners did not express opposition to the Project during indi-vidual engagement activities.

109. The existence of the NO TAP Movement had some bearing to the approach taken for engagement. TAP disclosed publicly the Compensation Principles and a project infor-mation brochure. With the aim of encouraging participation and establishing an effec-tive, open and measured process, TAP undertook the types of engagement activities listed above. In particular, smaller gatherings and one-on-one meetings were utilised to allow for more voices to be heard and more in-depth conversation than at a large forum. Through this process of engagement, TAP was able to undertake 224 meetings with individual PAHs, which averages 1.5 per household.

6.8 Key Stakeholder Issues

110. Key issues which were identified during the ESIA and continue to be raised in various forms as the Project progresses are listed below.







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TAP Project: A diverse range of questions were raised to gain further clarity on aspects of the Project particularly around the routing and location of the PRT and block valve station.

Other impacts and their management: Questions were raised with regard to how a range of impacts would be managed. Examples include: noise and disturbance, potential contamination of water resources; interaction with local development ar-eas and tourism and agriculture activities; property value; and cultural heritage.

Project benefits: Stakeholders asked questions with regard to benefits that they might receive from the Project. Sometimes, these questions were articulated as community needs. Key areas of benefit raised were road and community infrastruc-ture improvements.

Purchase of gas: The potential that the Project would improve access to gas was raised by a few stakeholders. Some of those consulted were also interested in the source of the gas.

Health & safety: There were concerns expressed with regard to health and safety implications of the gas pipeline and associated facilities.

6.9 Stakeholder Engagement Going Forward

111. The LEA team will continue to meet regularly with PAPs to agree on outstanding com-pensation packages and address any concerns related to land-take and reinstatement. Particular attention and special accommodations will continue to be made for those PAPs considered ‘vulnerable’.

112. A summary of the LRP, including details of the Livelihood Assistance and Transitional Support (LATS) program will be uploaded to the TAP website. A brochure describing LATS will also be prepared and distributed to project stakeholders.







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7. Compensation Strategy

7.1 Key Principles

113. Key principles of the TAP land and easement acquisition and access strategy are the following (details are provided in further sections of this chapter):

Land and easement acquisition and access for TAP will be carried out in compli-ance with Italian law and international requirements (EBRD PR 5).

TAP will seek to avoid physical displacement and to minimize economic displace-ment.

Compensation for land and crops based on Full Replacement Value (FRV). Full replacement value includes related transaction costs. Compensation will not be lower than the amount of compensation that would otherwise be payable under Italian law.

Land required on a permanent basis for Above Ground Installations for the Pipeline Receiving Terminal, Block Valve Station; and access roads will be purchased from its current owners at FRV by TAP.

Land required on a temporary basis, including the pipeline Construction Corridor and land required for construction related temporary facilities such as construction camps or pipe storage yards, will be used by TAP for the duration of the construc-tion. It will not be acquired by TAP but will be leased from its current owners and handed back to these owners after end of construction and reinstatement.

For land that is subject to easement and /o r r estrictions during operations, these restrictions will be compensated to affected landowners based on the desig-nation of the Land (i.e. agriculture or constructible) as categorized in the applicable town-planning scheme (i.e. Piano Regolatore Generale, herein PRG).

Any affected standing crops, in the pipeline Construction Corridor or elsewhere, will be compensated at current market value.

Orphan land, i.e. land that is severed or bisected such that a non-acquired portion of the land plot is made uneconomic and/or unviable and/or inaccessible, will be compensated.

The process of land access, including identification of affected plots and owners/us-ers, land and easement acquisition and land leases, will be administered by TAP and designated land agents.

These TAP land teams will seek to enter into amicable agreements with affected landowners and land users wherever possible. Where no agreement can be reached, land teams may have to resort to forced easement, temporary occupation and acquisition.

Affected people will have access to a grievance mechanism, including a first tier of internal grievance review by TAP, with the possibility for aggrieved individuals to resort to a second tier of independent review of the grievance.

Vulnerable people will be identified and specifically assisted as needed.

Land owners are entitled to a minimum compensation.







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7.2 Compensation Principles

7.2.1 Permanently Acquired Land

114. Permanently Acquired Land includes land required for the PRT and the Block Valve Station. Compensation principles are the following:

TAP will purchase Permanently Acquired Land from its current owners in full and perpetual ownership, granting TAP full right to construct and operate the anticipated facilities.

TAP will seek to enter in negotiated sale-purchase agreements with current land-owners. Only in case a reasonable agreement cannot be reached would expropri-ation be used as a last resort.

115. Compensation for permanently acquired land will include the following three elements, as applicable:

Compensation for land at the Project Land Acquisition Rate;

Compensation for any standing annual or perennial crops at the Project Crop Rate.

Compensation at replacement value for any structures or developments on land that the land owner or land user can demonstrate ownership of;

Eligibility for participation in livelihood restoration programs designed to restore live-lihoods to pre-Project levels (further details can be found in Chapter 9).

7.2.2 Temporarily Occupied Land

1.1.1.3 Pipeline Construction Corridor

116. The Pipeline Construction Corridor is 18 metres in total width. To accommodate con-struction constraints, and particularly the storage of top soil on one side of the corridor, the pipeline is not located at the centre of the strip, which will typically be split into two parts of different widths:

A 7 m wide strip to one side;

An 11 m wide strip to the other.

117. The Construction Corridor will be occupied during construction for two years. This Con-struction Corridor will also be further restricted (the 8m Restriction Zone A is entirely located within the Construction Corridor, and the 40 m wide Restriction Zone B over-laps with the Construction Corridor as well).

118. Key compensation principles for the Construction Corridor are the following:

TAP will not purchase the Construction Corridor from its current owners but will enter into negotiated rental agreements with them for the two year duration of con-struction;

TAP will reinstate the Pipeline Corridor at the end of construction to its previous condition, such that pre-construction agricultural productivity will be restored within







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a period of three years after the end of construction and reinstatement. Reinstate-ment will include the re-establishment to a condition and functionality better or sim-ilar to the pre-construction condition of any irrigation and/or drainage structure that may need to be demolished, modified or interrupted during construction;

119. Compensation for the Construction Corridor will include the following elements, as ap-plicable:

Land rental: The Project Land Rental Rate is calculated as 1/12th of the land re-placement value per year, in line with usual practice; in the typical case where the land is needed for two years, the Project Land Rental Rate will be equal to 1/6 th of the land replacement value, or 1/6th of the Project Land Acquisition Rate;

Crops: Compensation for any standing annual or perennial crops at the Project Crop Rate;

Compensation for long term restrictions: see below section 7.2.4;

Eligibility for participation in livelihood restoration programs designed to restore live-lihoods to pre-Project levels (further details can be found in Chapter 9).

120. Because the configuration of the restricted areas does not precisely superimpose the Construction Corridor (see Figure 2 above), the agreements to rent the land for two years and the long-term easement agreement will be separate, even if the negotiation is conducted in one round with the related landowner.

1.1.1.4 Other Temporarily Occupied Land (Construction Camps, Pipe Storage

Yards, etc…)

121. Such facilities may include access roads and possibly other land required for the dura-tion only. Land will be occupied on a temporary basis during the maximum duration of construction, i.e. two years, then reinstated to pre-project condition and handed back to the owner.

122. Compensation principles are the following:

TAP will not purchase land required temporarily for construction related facilities but will enter into negotiated rental agreements with current landowners for the two year maximal duration of construction.

TAP will reinstate land required temporarily for construction related facilities at the end of construction to its previous condition. Where such land is agricultural, rein-statement will seek to restore pre-construction agricultural productivity within a pe-riod of three years after the end of construction.

123. Compensation is essentially the same as that applicable for the Pipeline Construction Corridor (except that there are no long term restrictions) and will include the following elements, as applicable:

Land rental: The Project Land Rental Rate is calculated as 1/12th of the land re-placement value per year, in line with usual practice; in the typical case where the land is needed for two years, the Project Land Rental Rate will be equal to 1/6th







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of the land replacement value, or 1/6th of the Project Land Acquisition Rate; In cases where the land is needed for 4 years the Project Land Rental rate will be equal to 1/3rd of the land replacement value or 1/3rd of the Project Land Acquisition rate. In cases where the rental period exceeds 4 years (i.e. in the case of the Olive Tree Storage Land), the Project Land Rental Rate will be equal to 1/12th of the Project Land Acquisition Rate multiplied by the number of years of the rental period.

Crops: Compensation for any standing annual or perennial crops at the Project Crop Rate.

7.2.3 Orphan Land

124. Where a plot that is wider than the Pipeline Construction Corridor is acquired, the tem-porary occupation by TAP of the part of this plot located in the Construction Corridor may leave sections of land on either side that will not be required for the Project and would normally not be compensated. Agricultural ac t i v i t i es on these sections of land could normally be continued. There will be cases, however, where the remain-ing part will be too small to make cultivation economically worthwhile, or may be difficult to access. Such a situation (“Orphan Land”) is illustrated in Figure 9 below. Note that the figure represents a situation, where the plot is affected as a result of the pipeline land occupation, but the same could occur as a result of land purchase associated to an above ground installation, in which case the remaining piece of land would be “or-phaned” permanently, whereas in the situation shown it is orphaned for the period of construction only.

125. Similarly, access to the remaining land across the construction corridor may be re-stricted making cultivation during construction impractical or uneconomic. If small re-maining plot parts are made uneconomic or in accessible as a result of the purchase or occupation, than they may be eligible for compensation as ‘orphan land’.







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Figure 9: Orphan Land (Construction Period)

126. Whether a parcel qualifies as “orphan land” will be reviewed by TAP on a case-by-

case basis based on a request lodged by the landowner and/or land user. The following criteria will be considered in this review:

Size, dimensions and shape of the orphaned part of the plot (i.e. is the potential orphan land viable to cultivate);

Access restrictions and whether these will only last for the duration of the construc-tion period or may be permanent (which is not anticipated to occur except in very exceptional cases);







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Size and nature of mechanical equipment typically used for cultivation on this plot and whether such equipment can reasonably (and economically) be used given the size, shape and dimensions of the orphaned part of the plot;

Potential restrictions to irrigation or drainage during the construction period.

127. Compensation for Orphan Land, once recognized such, will based on the same enti-tlements as the main affected piece of land, that is to say:

Same entitlements as permanently acquired land if the piece of land is orphaned permanently, in this case the land is also purchased with the project affected land and might be used by TAP and Contractor;

Same entitlements as temporarily occupied land if the piece of land is orphaned temporarily for the construction phase only.

128. In cases where the permanently acquired land represents a minor portion of the origi-nal land that is bisected by the project works (for instance when an access road splits the land in two disjoined portions), TAP will award the land owner 10% of the FRV applied to the remaining surface of the land according to expropriation practice and Italian law.

7.2.4 Easements

1.1.1.5 Restriction Zone A (8m)

129. Restriction zone A will not be purchased by TAP but will be subject to a long term easement, to be registered by TAP on the associated land ownership titles. Restrictions associated with this easement (or servitude) will be compensated according to the fol-lowing principles:

The first meter will be compensated at 100% of the Project Land Acquisition Rate

The remaining seven (7) meters will be compensated at 100% of the Land Acqui-sition Rate, if it is zoned ‘constructable’, and 25% of the Land Acquisition Rate if zoned agricultural

1.1.1.6 Restriction Zone B (40m)

130. Similarly, restriction zone B will not be purchased by TAP but will be subject to a long term easement, to be registered by TAP on the associated land ownership titles. Restrictions associated with this easement will be compensated according to the fol-lowing principles:

If zoned ‘constructable’, the land will be compensated at 100% of the Project Land Acquisition Rate;

If zoned ‘agricultural’ the land will be compensated at 12.5% of the Project Land Acquisition Rate.







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1.1.1.7 Restriction Zone C (400m)

131. Any entitlement for compensation related to Restriction Zone C will be dealt with case by case.

1.1.1.8 Minimum Compensation

132. The minimum amount of compensation that Land Owners are entitled to is 500 Euro/per parcel, divided amongst parcel owners/users.

7.3 Compensation Eligibility

7.3.1 Private Land

133. Where the owner and the user is the same individual, this person will receive all ele-ments of compensation mentioned above in paragraph 114 (permanent acquisition), paragraph 116 (Pipeline Construction Corridor), and paragraph 121 (temporary facili-ties).

134. Where land is farmed by a land user separate from the landowner, the share be-tween the landowner and the land user will be the following:

Permanently acquired land:

Compensation for land to landowner;

Compensation for crops to land user;

Temporarily occupied land:

Land rental fee to landowner;

Livelihood restoration allowance to land user;

Compensation for crops to land user;

Compensation for restrictions to land owner.

135. Compensation for any structures and developments on land (irrigation, drainage, agri-cultural buildings of a temporary or permanent character) will be paid to the demon-strated owner of such structures and developments, who could be either the land owner or land user depending on situations.

7.3.2 Entitlement Matrix

136. The Project will apply the entitlement matrix shown in the following table.

Table 11: Entitlement Matrix

Type of impact Compensation Entitlement

Permanent acquisi-tion of private land – Permanent facilities

To Land Owner: Purchase of land including any standing attachments on the land (i.e. perennial trees, irrigation and/or drainage structures, sheds, wells) at Full Replacement Value.







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(compressor sta-tions, block valves)

To Land User (either third party or Land Owner) Compensation for loss of standing crops at full replacement value.

Compensation at replacement cost to development owner for any develop-ments and enhancements on land (irrigation and/or drainage structures, sheds, wells, etc…)

Temporary occupa-tion of private land in the pipeline con-struction corridor

To Land Owner: Compensation for land rental at a rate of 1/12 FRV for each year with a minimum rental period of 2 years for pipeline works, 4 years for microtunnel and 6 years for olive tree temporary storage area

Compensation to owner of any standing attachments on the land (i.e. per-ennial trees, annual crops). In the case of uprooted and stored olive trees, owners receive lost income for the duration of the storage period, and are compensated for the full replacement value of the olive tree in the event that the tree is determined not viable for replanting following construction.

Temporary occupa-tion of private land for construction re-lated facilities (con-struction camps, pipe yards, etc…)

To Land Owner: Compensation for land rental at a rate of 1/12 FRV for each year with a minimum rental period of 2 years for pipeline works, and 4 years for microtunnel and olive tree temporary storage area

Compensation to owner of any standing attachments on the land (i.e. per-ennial trees, annual crops). In the case of uprooted and stored olive trees, owners receive lost income for the duration of the storage period, and are compensated for the full replacement value of the olive tree in the event that the tree is determined not viable for replanting following construction.

Orphan land Subject to case-by-case review, land that is severed by Project activities or becomes inaccessible, unviable, and/or uneconomical for cultivation as a result of the Project may be declared “orphan” and become eligible for com-pensation along the same lines as above (either temporarily orphaned or permanently orphaned land).

Long term easement in restriction zone A

First meter, 100% of Project Land Acquisition rate

Remaining 7 meters: 100% of Project Land Acquisition Rate for land deemed ‘constructable’; 25% of Project Land Acquisition Rate for land deemed ‘agricultural’.

Long term easement in restriction zone B

For land deemed constructable: 100% of the land replacement value

For land deemed agricultural: 12.5% of the land replacement value

Minimum Compen-sation

Owners will receive a minimum compensation payment of 500 Euros/ par-cel

7.4 Valuation Principles

7.4.1 Methodology of the Valuation Study

Overview

137. TAP has undertaken a specific study to determine appropriate compensation values for land and crops. This study was been carried out by a specialised Italian consulting firm in 2015. It included the aspects described in the following sub-sections.

138. Identification of Existing Applicable Values







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139. The consultant was first tasked to identify all applicable rates used by agencies of the Central Government and local governments currently involved in negotiated or com-pulsory land acquisition activities. In practice:

Italian Government agencies involved in negotiated or compulsory land acquisition activities and in collecting land taxes were identified, met and interviewed, and any information on compensation values and valuation methodologies they use was gathered and collated;

Methodologies applied in Italy for valuation were identified and compared.

7.4.2 Land Valuation

140. The replacement value of agricultural land is defined as the market value of land of equal productive use or potential, located in the vicinity of the affected land, plus the cost of preparation to levels similar to or better than those of the affected land. The replacement value of land in urban settings is defined as the market value land of equivalent area and use, with similar or improved infrastructure and services. Any transaction costs, such as registration and transfer taxes are included in the calculation of replacement value.

141. In Italy, land is categorized as constructible, agricultural or public utility. The general designation of constructible land is for residential or business purpose, with values increasing from lowest (business purpose) to highest (downtown area). Constructible land in the Project area is categorized as Zone D. All agricultural land is categorized as Zone E, with limited construction permitted. Public utility land is categorized as Zone F.

7.4.3 Crop Valuation

142. The replacement value of annual crops is based on typical yields and market prices, which have been gathered for all main crops in the Project area. The replacement value of perennial crops is based on the income lost during the period required to re-establish the perennial tree or plant, or, in the case of temporarily relocated olive trees, the period of temporary relocation plus the period for full recovery of normal yield fol-lowing replanting.

7.4.4 Attachments / Structures

143. All impacted attachments will be compensated at Full Replacement Value. Deprecia-tion of assets will not be taken into account.

7.4.5 Taxes and Subsidies

144. TAP shall directly pay any registration or other real estate taxes/duties arising from the subscription of amicable land rights agreement. Additional personal income taxes will be applied to the landowners with respect to the amount of the compensation, as their







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taxable income will be increased accordingly. Such personal income taxes cannot be offset or reimbursed by TAP in any case. The specific methodology for applying this may vary depending on the type of compensation payment (Land Acquisition; Land Rental; Easements/Restrictions; Crops; Structures; etc.)..

.







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8. Secure Land Access

8.1 Preparation Tasks

145. TAP has obtained all available cadastral information on Project-affected plots in Italy. This information includes:

Name and residential address of owners (most plots are held by several individuals, usually belonging to the same family);

Name and residential addresses of any entity already benefitting from servitude rights on the plot (typically utilities);

Size of the plot.

146. Cadastral information has been complemented by field inspections to ascertain poten-tial losses (particularly trees and structures) and interviews with affected people. This is described in further sections.

8.2 Survey Corridor

147. The survey corridor is the 40m wide zone potentially affected by restriction Zone B (See Error! Reference source not found. above).

8.3 Census of Affected Plots / Land Dossiers

148. Based on the list of pre-identified properties, the LEA team and its consultants visited affected plots in the presence of the affected landowner and/or land user to carry out a detailed inventory and inspection of the land, development and enhancements if ap-plicable, and crops on the affected parcel of land. The purpose of this process was to prepare Land Dossier, with a written record of the condition of the land parcel, includ-ing all assets and crops, for further valuation. The following details were recorded in the Land Dossiers for all potentially affected plots:

Annual Crops

Perennial trees / plants

Pasture

Any developments and enhancements (fences, buildings, irrigation / drainage, wa-ter sources, power supplies, roads)

If structures are noted on the parcel, details of size, age, type, construction materi-als etc…

Potential for orphan land (review of the shape of the parcel against the footprint of the Project)

Any residential structure that might fall within the Construction Corridor and/or the 40 m wide Restriction Zone B and may warrant a micro-reroute of the pipeline at that level.







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149. The inventory act will be prepared on the spot (“parcel chit”), submitted to the land-owner and/or land user for signature and will further form the basis for valuation and calculating the compensation offer.

8.3.1 Census of Affected People

150. The LEA team has made every effort to visit all the affected housholds. Demographic and socio- economic data has been gathered on all Project-affected households, to the extent possible, and potentially vulnerable people pre-identified with a view to further screening and final validation. Preliminary information on handicaps, age, and income has been gathered for further processing by the TAP LEA team and consideration of specific support in further stages of the identification and compensation process.

8.3.2 Database

151. A database wi l l capture and record the results of all surveys, f o r use in calculation of compensation and socio-economic monitoring. This database will be structured along a file of affected plots with a unique plot registration number, linked to house-hold’s dossiers.

8.4 Compensation Memo

152. Based on the confirmed inventory, a Land Agreement Compensation Memo is pre-pared, which includes entitlements for land and standing annual and perennial crops, according to the entitlement matrix and applicable rates. All compensation will be based on the entitlement matrix and rates detailed in section 7.3.2. A clear com-pensation calculation sheet will be developed that can be easily explained to the land owners and land users. In view of preparing the different compensation agreements mentioned below, this sheet will clearly distinguish the different nature and duration of impacts, i.e.:

Compensation arising from permanent acquisition of land (above ground installa-tions), which will further be sanctioned in a sale-purchase agreement;

Compensation arising from temporary occupation of land (pipeline construction corridor and temporary facilities), which will further be sanctioned in a rental agree-ment ;

Compensation arising from restrictions upon land (pipeline restrictions zones A and B), which will further be sanctioned in an easement agreement.

8.5 Offer and Negotiation

153. Before starting the negotiation process a communication campaign is carried out through door-to-door contact with the PAP and distribution of a general brochure on the LEA principles. Each PAP receives by registered mail a copy of the approval of the Project by the Ministry of Development (i.e “Single Authorization”) and an invitation to enter into an agreement with TAP concerning the land rights they are requesting for the Project.







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154. The negotiation process starts with the first visit to the PAP by at least two repre-sentatives from the TAP land access team. The procedure for securing land access is elaborated upon, after which the offer is presented and explained. During a period of approximately two weeks, the PAP is given the time to consider the offer, to ask for additional explanation and information, or to seek legal advice. Dedicated Community Liaison Officers or other members of the TAP land access team are available to an-swer questions on procedures and other legal solutions.

155. Two weeks after the first visit, the PAP is visited for the second time by at least two representatives of the TAP land access team. If the PAP refuses to sign the offer during the second visit, a Minute of Disagreement ( M o D ) is signed by the repre-sentative of TAP and the witness where possible.. The PAP is asked to sign in confirmation.

156. If despite the best effort of TAP, the PAP cannot be persuaded to sign the offer, a Minute of Disagreement is drawn up and a notice letter is sent to the landowner at-taching the proposal discussed during the meeting and informing the PAP that expro-priation and the forced easement and temporary occupation procedure will start in order to obtain rights for the land required by TAP. The offer remains open until the expropriation (or mandatory easement) has ended, to allow the PAP to change his/her mind and sign the Offer.

157. If the PAP does sign the offer, TAP offices will assist the PAP to collect all necessary documents and permits, and prepare for the signing of the contracts for lease, ease-ment, or transfer of ownership.

158. The compensation amount in the TAP offer will be based on the asset record (TAP valuation procedures). The Government could use a separate valuation procedure for the expropriation procedures.

159. EBRD Performance Requirements prescribe that compensation must be paid prior to entry into land. In compliance with international requirements, TAP shall disburse com-pensations payments to the PAPs in time. With respect to amicable agreements the following is paid at the time of contract signing together with the land right transfer from land owner to TAP: lump sum purchase price, lump sum easement compensation, one year of lease and lump sum of the esteemed damage compensation. Further payment will be paid at a later stage as follows: (i) lease fee is paid on yearly basis and (ii) any further damage on the land may occur during the construction will be paid at the hand over back to land owner at the conclusion of the lease period.

160. Compensation in case of expropriation and forced easement and compulsory tempo-rary occupation, is calculated in order to be consistent with the same compensation principles applied for Amicable agreement but are subject to the approval of the Min-istry of Development (the authority who has the power to rtealise any compulsory land right acquisition acts and to approve the related compensation to PAP)

161. Figure 10 below provides an overview of the Secure Land Access (SLA) process.







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162. Negotiations will be confidential, but the landowner/user may invite outside advisors or other assistance if desired. Payment will typically be made within one month after the compensation agreement is reached and in any case before entry into land.

163. Once an agreement on compensation is reached, agreements will be signed as rele-vant to the situation under consideration, as follows:

Sale Purchase Agreement for permanent acquisition of land (above ground instal-lations);

Rental Agreement for temporary occupation (pipeline construction corridor and temporary facilities);

Easement Agreement for restrictions upon land (pipeline restrictions zones A and B). Although the Easement Agreement will enter into force only upon land hand back at the end of construction, it will nevertheless be signed before entry into land and associated compensation will be paid at that time too. Its contents will be re- explained to the landowner (particularly in respect of restrictions to building and construction in Restriction Zones A and B) at the time the Easement Agreement enters into force at land hand back after construction and reinstatement are com-plete (see section 8.7).

164. Sale Purchase and Easement Agreements will be executed through a public notary deed (rogito). Accordingly, the purchaser appoints the notary and asks the seller to sign the agreement in front of them. In practice this means that:

The Notary represents the Italian Government and acts as an independent third party between the seller and the purchaser in carrying out the public deed even if he/she is appointed and paid by the purchaser.

Both parties appear before the notary and sign the contract.

The notary guarantees that both have the power to sign the contract.

The notary verifies that both the parties are fit to plead and fully understand the terms and condition of the agreement.

The seller has the full and unrestricted title to sell the land (or to waive the easement right) to the purchaser.

There are no third party rights on the land.

All legal requirements associated to the deed's execution are met.

The contract is registered to the property register office against third party claims. The lease agreements for the temporary occupation of the working area (i.e. RoW, Micro tunnel entry point working area, temporary olive tree storage) are signed as private agreements with signature authenticated by notary where the notary guar-antees that both have the power to sign the contract.







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Figure 10: Secure Land Access

165. While land lease agreements are not generally signed in front of notaries unless the anticipated lease duration is greater than nine years, to protect against third party claims, agreements will be executed in front of a notary.







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166. After execution of the agreement (purchase, easement or lease) by both parties, com-pensation will be paid in Euros by means of either bank cashier cheque handed over to the PAP or transfer to the bank account designated by the land owner and/or land user and mentioned in the compensation agreements within 10 working days after the contract signature. In case the compensation beneficiary does not have a bank ac-count, s/he will be supported in opening such at the nearest bank subsidiary. TAP will work with banks to devise a payment mechanism that does not entail any cost to the compensation beneficiaries.

167. The landowner will be asked to vacate the land after the Land Hand Over minute is signed between the Land Owner and TAP. Following this, the Project will have the right to enter into the land if required. Upon entry into land that is to be temporarily occupied (pipeline construction corridor and temporary facilities), a Land Entry Agree-ment will be signed between the landowner, the land user (if relevant), TAP and the relevant construction contractor. This agreement will describe the condition of the land upon entry by the Contractor and establish respective responsibilities of TAP and the Contractor to the landowner and land user with regards to land maintenance during occupation and further reinstatement.

8.6 Land Exit Agreement and Hand Back

168. Upon completion of construction and reinstatement in temporarily occupied land (pipe-line construction corridor and temporary facilities), the Land Acquisition Team and the construction contractors will carry out an exit inspection with the land owner/user of all land that was used during the construction period. The aim of this inspection is to en-sure that the land has been left in a suitable state whereby previous agricultural activ-ities may be resumed on the land, subject to reuse restrictions mentioned above. If the inspection concludes that reinstatement is satisfactory, the usage right of the affected land plot will be handed back to the landowner and/or land user for agricultural activi-ties. A land exit agreement will then be signed to include this information and will be signed by the construction contractor and the affected landowner or land user, and by TAP as a witness. This agreement will confirm that the affected landowner or land user is satisfied with the quality of the reinstatement of the land. Any claim arising from potentially unsatisfactory reinstatement will be managed through the grievance man-agement mechanism outlined in Chapter 10. Note that provisions have been made in the compensation formula to accommodate for the fact that even with state of the art reinstatement some loss of productivity may be expected in the first three years after reinstatement.

169. During the exit inspection the landowner/user will also be provided with all required information with respect to permissible and restricted activities on the land plot, both in writing and verbally, and contact details of the team responsible for the monitoring of the project during operations. The contents of the Easement Agreement signed upon entry onto the land will be re-explained to the landowner.







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9. Livelihoods Assistance and Transitional (Vulnerable) Support (LATS)

9.1 Overview

170. A key objective of PR5 is to “restore or, where possible, improve the livelihoods and standards of living of displaced persons to pre-displacement levels”.

171. PR5 stipulates also that when a project causes “temporary or permanent loss of in-come or livelihood through, for example, interruption or elimination of a person’s ac-cess to his/her employment or productive assets”, the project will provide the following in addition to compensation:

Livelihood assistance (for example, credit facilities, training or job opportunities) and opportunities to restore, and where possible improve, their income-earning ca-pacity, production levels and standards of living, and;

Transitional support to economically displaced persons, as necessary, based on a reasonable estimate of the time required to restore their income-earning capacity, production levels and standards of living.

172. The compensation entitlements outlined in Chapter 7 have been designed to fairly compensate for Project land easement and acquisition impacts, including any related temporary and/or permanent loss or disruption of income and access to productive assets experienced by Project-affected people. Compensation alone, however, may not guarantee restoration or improvement of living standards. Complementary liveli-hoods assistance and transitional support measures will be delivered to ensure that all affected people, particularly those who may face exceptional or disproportionate chal-lenge, are able to restore and where possible strengthen their livelihoods.

173. This section outlines TAP’s strategy for achieving the above objectives, and identifying, monitoring and assisting any Project-affected person/household who might be at risk of being more adversely affected by the land easement and acquisition process.

174. A Livelihoods Assistance and Transitional Support (LATS) Program will be established by TAP with the goal of delivering specific forms of targeted assistance and transitional support to eligible Project-affected people

9.2 Objectives of Livelihoods Assistance & Transitional Support (LATS)

175. The LATS has five main objectives aimed at achieving livelihood restoration and im-provement:

Rehabilitating and reinstating successfully temporarily leased land to affected own-ers and users for re-cultivation.

Monitoring effectively PAPs impacted by permanent land-take and support for ef-forts to secure suitable replacement land and to re-establish livelihoods.

Providing targeted livelihoods assistance, particularly to households and commu-nities experiencing more significant land-acquisition related impact.







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Linking PAPs to the benefits and opportunities associated with the TAP Project, including construction-related employment and training opportunities, and commu-nity investment initiatives.

Providing appropriate transitional support to PAPs considered ‘vulnerable’ and at an elevated risk of experiencing hardship as a result of land easement and acqui-sition.

176. The first objective around the successful rehabilitation and reinstatement of leased land will be achieved through the coordinated efforts of the LEA Team and TAP Envi-ronmental and Social Management (ESM) staff. The ESM Team is responsible for re-viewing contractor environmental and social implementation plans (ESIPs) and moni-toring Contractor compliance in their execution. This includes ensuring land delivery and exit protocols are adhered to. TAP/LEA will monitor the effectiveness of this pro-cess and the success of Project-affected people to resume cultivation following com-pletion of the exit protocol and hand over after reinstatement to ensure the following:

The original pre-Project productivity of the land has been restored in terms of crop yields.

No post-reinstatement issues have emerged that compromise the above in the long-term. This could include, but not be limited to, ponding or flooding of the land that did not occur pre-Project, or run-off or drainage from the reinstated land that negatively impacts neighbouring land.

The proper functioning of irrigation/drainage systems and wells have been restored where the removal of the existing drainage system was not been fully compensated under the lease agreement.

177. With respect to Project-affected people whose land is being permanently acquired, as part of LEA’s responsibility to monitor outcomes, staff will implement a follow-up pro-gram that involves contacting PAPs within six months of compensation being paid, prioritizing contact with those categorized as ‘severely impacted’. PAP’s success in acquiring replacement land and/or restoring their livelihood will be documented and an assessment made as to whether prioritized referral to specific livelihoods assistance or transitional support is required.

9.3 Transitional Support

178. Vulnerable people are people who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status, may be more adversely affected by the land acquisition process than others and who may be limited in their ability to claim or take advantage of compensation.

179. In the context of the TAP project in Italy, vulnerable people include:

Women (pay gaps, lower employment levels, political and economic underrepre-sentation);

Elderly/retired (lower income levels, fixed incomes, lack of access to services);

Households dependent on low productivity agriculture (lower income, less access to resources and sensitive to impacts);







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Households dependent on investment returns (sensitive to economic changes);

Unemployed people, including youth (sensitive to economic changes);

Large families (less savings and greater strain on resources); and

Immigrants (vulnerable to labour rights abuse).

180. In order to better understand issues of vulnerability and to finalize vulnerability criteria in the Project context, consultation will be undertaken with Project-affected people and key informants.

181. Information will also be gathered to better understand the forms of social support for vulnerable groups which currently exist within the Project area through local and/or regional government and non-profit groups, and the criteria used for eligibility.

9.4 Identification of Vulnerable People

9.4.1 Overview

182. Screening people for vulnerability can be challenging for the following reasons:

Vulnerable people may not attend Project meetings because they are marginalized and do not access information that would easily be available to other members of the affected community.

Some vulnerable people do not have the capacity to understand communication messages related with land acquisition or compensation.

Screening people for vulnerability in a community that is generally poor can give rise to discontent in the general population.

183. The TAP vulnerable people identification process will include two stages:

Pre-identification, essentially done as part of the normal land acquisition process by the TAP Land Acquisition Teams.

Screening of those people pre-identified as potentially vulnerable by a specialised TAP social worker.

184. While pre-identification will be undertaken by the TAP Land Acquisition Teams, the further screening process may be undertaken either by internal TAP resources or by a sub-contracted specialist NGO with experience in dealing with vulnerability issues in Puglia.

9.4.2 Pre-Identification

185. Vulnerable people will be pre-identified during the negotiation and land acquisition pro-cess using:

The socio-economic questionnaire administered to all potentially affected house-holds; and

Where the local authority are cooperative with TAP, interviews with relevant officials at Commune and village levels, including those in charge of health, social assis-tance and social welfare activities.







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9.4.3 Screening

186. Further to the pre-identification of vulnerable people carried out by the Land Acquisition Teams as part of the initial stages of the process, a TAP social worker will visit all pre-identified vulnerable individuals and/or households and will administer a screening in-terview to better understand the nature and consequences of vulnerability in each par-ticular case. The screening process will include confidentially investigating the follow-ing:

Detailed circumstances of the household and potentially vulnerable individuals therein, including their personal history, income sources, details on illnesses and handicaps;

Details on the implications of vulnerability, including:

Mobility issues (will they need assistance to participate meaningfully in negotia-tions, including visiting the affected land parcel, etc.);

Understanding issues (will they understand the process, the documentation, the agreements);

Conclusion on categorisation as vulnerable, and types of assistance that will be needed further in the process of negotiation, agreement, land entry and exit, expla-nations on restrictions and grievance mechanism, etc.

9.5 Assistance to Vulnerable People

187. Working with relevant local authorities, TAP will seek to ensure that no vulnerable people are disproportionately affected by the land acquisition and easement process. The following activities will be implemented by TAP in cooperation with local authorities in respect of vulnerable people affected by the TAP project:

Assisting during the land acquisition and negotiation process, including, at the stage of plot and landowner identification, specific individual meetings to explain eligibility criteria and entitlements; the clauses of compensation agreements; and grievance avenues. Where people may need to be assisted to transport themselves to the plot for inspections and land entry/exit, TAP will provide such assistance.

Assisting in the payment process (provision of transport to the bank effecting com-pensation payment in support of physically handicapped or chronically ill people, support in securing powers of attorney for those unable to understand or sign their compensation agreements, individualised support in the payment procedure, etc.).

Prioritizing training courses to enhance employability and employment by contrac-tors where possible.

Where specific benefits provided by Government or other institutions may exist that affected vulnerable people are unaware of or have been unable to secure, review-ing with the relevant organisations eligibility for such social benefits, and assisting in submitting applications, for identified vulnerable people to be able to benefit from assistance opportunities not provided by TAP but that TAP field staff can help in obtaining.







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9.6 Procedure for Detailed Design + Implementation of the LATS Program

188. While research and engagement will inform an appropriate LATS Program, some ex-amples of potential initiatives include:

Securing partnerships and collaborating closely with local governments;

Coordinating with the Social and Environmental Investment (SEI) planning process and seeking synergies and complementary activities, in particular with their small grants program;

Involving PAPs whose olive farms have been temporarily displaced in the monitor-ing of the storage of the trees and identifying any further support that these farmers may require;

Minimizing the impact on tourism as TAP is aiming to concentrate construction dur-ing the off season;

Encouraging secondary economies around tourism and construction opportunities (e.g. small business training);

Supporting tourism with, for example, marketing campaigns; and

Developing a local employment plan to support income generation during the tem-porary economic displacement.

189. Once the LATS Program is developed, its successful implementation and its impact on Project affected people will be monitored and evaluated, as part of the M&E approach described in Chapter 11.







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10. Grievance Management

10.1 Principles and Overview

190. In order to be aware of and respond in a timely manner to stakeholders’ grievances, concerns and complaints, including those associated with LEA, TAP is in the process of implementing a comprehensive Grievance Mechanism. The Grievance Mechanism complies with the following key principles:

Address grievances, concerns and complaints promptly and effectively, in a trans-parent manner that is culturally appropriate and readily accessible to all segments of the affected communities, giving due consideration to confidentiality and legal requirements;

Handle grievances, concerns and complaints being discreet, objective, sensitive and responsive to the stakeholders’ needs and concerns;

Not prevent access to judicial or administrative remedies;

Inform the affected communities about the Grievance Mechanism in the course of TAP community engagement activities and report regularly to the public on its im-plementation;

Publish the Grievance Mechanism using appropriate and easily accessible ave-nues;

Develop training and implement procedures which will ensure that all TAP employ-ees and its contractors comply with the Grievance Mechanism.

10.2 Anticipated Categories of Grievances

191. In practice, grievances, concerns and complaints that are anticipated for the TAP land acquisition programme are the following:

Misidentification of properties (allocation of a property to the wrong owner due to wrong cadastral information and/or deliberately misleading statements);

Disputes over plot limits, between affected persons and the Project or between two neighbours;

Dispute over the ownership of a given property (two or more individuals claim to be the owner of this property);

Disagreement over the valuation (either unit rate applied or count) of a plot, crop or structure;

Post cut-off establishment of a structure or other asset, whether deliberate (oppor-tunistic occupation in anticipation of compensation) or not;

Absentee landowners;

Confusion between legal occupants and informal occupants;

Forged documents (identification, ownership or others);

Deceases and unresolved successions, divorces, and other family issues, resulting in disputes between heirs or shareholders in the disputed property, particularly when such occur after identification and before payment;







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Damages occurring during construction;

Unsatisfactory compensation;

Unsatisfactory reinstatement.

10.3 Grievance Support Structure

192. To support the implementation of grievance management the following structure is be-ing established.

A Grievance Management Team, which comprises the Grievance Coordinator Italy, the Community Liaison Coordinators, the relevant Work-Stream Manager, the ESMS and/or the Senior Social Specialists and the Grievance Advisor in Baar;

A Grievance Working Group, an ad hoc team formed (if required) to review decisions and or remediation measures which have been rejected by stakeholders, which may include: the Project Manager (as required), the Country Manager (as required), the Grievance Advisor in Baar, the Grievance Coordinator Italy, the Community Liaison Coordinator, the ESMS Manager (as required), the Stakeholder Engagement Advisor (as required) and the Legal and Compliance Officer (in-country or Baar: as required); and

A Grievance Task Force, an adhoc team established to manage the resolution pro-cess for high severity grievances or those in which the stakeholder wishes to engage a third party entity to be involved in the resolution process, which may include: the Project Manager, the Country Manager (as required); the relevant Construction Con-tractor representative, the Community Liaison Coordinator, the Grievance Coordina-tor Italy; the Legal and Compliance Officer (in-country or Baar: as required) and the Grievance Advisor in Baar.

10.4 Administrative Steps and Timeframes for Resolving Grievances

193. Stakeholders will be able to submit a grievance via one of TAP’s grievances lines (e.g.

by speaking to a TAP’s or Contractor’s employee, by submitting a completed grievance form in one of the grievance boxes in TAP’s offices and/or the contractors construction camps and/or work areas, by calling TAP’s grievance hotline, by sending an e-mail, letter and/or fax to TAP.

194. The timeframes to resolve a grievance, as reported in the table below, are commen-surate to the related severity, based on the consequence (potential or actual) of it. The severity rating (low, medium and high) will be assessed by the Grievance Coordinator Italy.

Table 12 Grievance Severity Timeframe

Grievance Severity Timeframe Responsible Low 30 days Grievance Coordinator Medium 30 days Grievance Working

Group High 60 days (depending on com-

plexity)

Grievance Task Force







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195. The Grievance Management will typically include the following steps:

196. Confirmation of receipt: For grievances received in the field, the TAP’s Community Liaison Coordinator or Social Field Monitor will verbally acknowledge the receipt of the grievance. For grievances received through email, post and fax, the Grievance Coor-dinator Italy will issue an acknowledgement receipt form within 7 days of receiving a grievance. When possible, the Grievance Coordinator will make a follow up call to the stakeholder to understand the grievance process to be followed.

197. Register grievances in Grievance database: The Grievance Coordinator Italy will register all grievances. Each case will receive a unique registration number in the griev-ance database to enable tracking.

198. Verification: The Grievance Coordinator will verify if the grievance is related to the Project. If the grievance is not related to the Project or the construction activities, the Grievance Coordinator Italy will send a rejection letter to the stakeholder indicating this point. The Grievance Coordinator Italy will also verify the severity of the grievance or complaint and register the grievance or complaint appropriately.

199. Categorizing: The Grievance Coordinator Italy will categorize each grievance accord-ing to:

the Work-Stream responsible for resolving the grievance;

the type of aggrieved party (individual, group, Non-Governmental Organization);

the type of grievance and indicate frequency of the grievance;

the severity and consequence.

200. Assigning cases to the appropriate Work-Streams: The Grievance Coordinator It-aly will send the grievance to the relevant Work-Stream Managers (or contractor) for investigation and resolution. The Work-Stream Managers will be informed of the appli-cable timeframes for resolving the type of grievance and the format of the official re-sponse required.

201. Resolution or Remediation measure: When a resolution or remediation measure to a grievance has been reached by the relevant Work-Stream, the Work-stream Man-ager will send the detail of remediation measure to the Grievance Coordinator Italy to be recorded in the database. The Grievance Coordinator will alternatively (i) immedi-ately discuss the proposed resolution/remediation with the stakeholder and agree the timing of the remediation process; (ii) send a rejection letter in case a grievance has been assessed as unjustified, not related to TAP or its contractors or has been rejected for any other sound reason, explaining the grounds for rejection; (iii) if the case is com-plex and the resolution will take longer than anticipated, inform the stakeholder of the reasons for the delay and indicate when the resolution is expected.







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202. Implementing Remediation Measures: The implementation of remediation measures will start immediately after the stakeholder has been consulted about the proposed remediation measure and agreed that they are appropriate.

203. Closing Grievance Resolution Process: When the stakeholder has accepted the proposed resolution and is satisfied with the remediation measure implemented, the Grievance Coordinator Italy will have the stakeholder sign a grievance close out form. The Grievance Coordinator Italy will upload the signed agreement as an attachment into the grievance system and the case will be marked as resolved/closed.

204. The timeframes in Table 13 will be followed in the grievance administrative process.

Table 13 Grievance Timeframe

Action Timeframe Responsible Acknowledge Grievance Within 7 days Grievance Coordinator Register grievance in database & Acknowledge Grievance

7 days Grievance Coordinator

Issue grievance rejection letter 10 days Grievance Coordinator Issue grievance resolution letter On agreement of grievance remedia-

tion action

Grievance Coordinator

Issue grievance Closure letter On completion grievance remediation implementation

Grievance Coordinator

Issue compensation payments 30 days from approval Project Manager Italy Accounting Department

205. Figure 11 provides an overview of TAP’s grievance procedure and Figure 12 the ad-ministrative steps involved.

Figure 11: Grievance Resolution Process Overview







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Figure 12: Grievance Resolution Administrative Steps







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11. Monitoring and Evaluation

11.1 Overview

206. Monitoring and Evaluation are key components of the land acquisition process. The Monitoring and Evaluation process examines what worked with the process and why, what did not and why it did not, and what adjustments or changes need to be made.

207. Monitoring7 is the measurement through time that indicates the movement toward the objective or away from it. Monitoring provides the raw data to answer questions. Eval-uation is putting those data to use, thus giving them value. Evaluation is where the learning occurs, questions are answered, recommendations are made, and improve-ments are suggested. Yet without monitoring, evaluation would have no raw material to work with.

208. Monitoring and Evaluation are typically divided into three components, defined below

Input monitoring,

Output monitoring,

Outcome evaluation.

209. Input (or progress) monitoring: Measures whether inputs are delivered on schedule and as defined in the Livelihood Restoration Plan. Inputs are the services, resources or goods that contribute to achieving outputs and, ultimately, desired outcomes. Input monitoring is done internally on an on-going basis, often as part of the project general management system or quality assurance system.

210. Output (or performance) Monitoring: Measures the direct measurable results of the inputs, for example the number of people receiving compensation or completing liveli-hood restoration training course. Input and output monitoring together keep track of project implementation efficiency, and indicate whether changes need to be made to make the program operate more efficiently. Output monitoring is done internally.

211. Outcome (or impact) Evaluation: Defines the extent to which the project inputs and outputs are achieving or are likely to achieve the objectives of a program. Examples of outcomes include the effectiveness of livelihood restoration or reinstatement. Outcome evaluation, coupled with output monitoring results, indicate whether the program is genuinely working and should continue to be implemented as is, or whether fundamen-tal changes have to be made. Outcome evaluation is usually carried out by an external independent group.

212. Outcome evaluation often uses proxy (or indirect) indicators. Many people, for exam-ple, are reluctant to divulge their actual income. Proxy indicators can be used to help determine whether affected people are re-establishing (or improving) their livelihoods and standard of living. These kinds of indirect indicators may include nutritional status,

7 These definitions are those used by the US Environmental Protection Agency (US EPA): www.epa.gov







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school attendance, or the purchase of certain items such as vehicles or household appliances.

213. The following table summarizes and illustrates these four different Monitoring and Eval-uation concepts.

Table 14: Components of Monitoring and Evaluation

Input Monitor-ing

Output Monitor-ing

Outcome Eval-uation

Compliance Auditing

Scope Measures inputs into the resettle-ment and com-pensation pro-gramme

Measures out-puts of the reset-tlement and compensation programme

Assesses whether desired objectives and outcomes have been reached as they were set in initial commit-ments

Audits compli-ance with recog-nised interna-tional references (for instance EBRD PR5)

Examples of in-dicators or typi-cal questions

Person-hours of

project staff dedi-

cated to census

operations every

month

Number of vehi-

cles available for

the programme

Amounts paid in

compensation

every month

Number of peo-

ple having re-

ceived cash com-

pensation every

month

Number of busi-

nesses re- estab-

lished every

month

Grievances, in-

cluding

outcomes of

grievances and

average time for

processing and

redress

What is compen-

sation used for?

Is compensation

paid at full re-

placement cost?

Is compensation

paid prior to tak-

ing of posses-

sion of affected

property?

Have resettle-

ment planning

documents been

meaningfully dis-

closed to af-

fected groups

and has consul-

tation taken

place prior to fi-

nalizing resettle-

ment and com-

pensation strate-

gies

Are livelihoods

restored?

Examples of data collection and analysis methods

Monthly progress reports (technical and financial) prepared by the project imple-mentation unit with a list of in-put indicators in-cluding 3 to 5

Monthly progress reports (technical and financial) prepared by the project imple-mentation unit with a list of out-put indicators in-cluding 3 to 5

Six-monthly or yearly monitor-ing and evalua-tion reports pre-pared internally and including a list of indicators agreed with ex-ternal evaluators – Analysis and

Quarterly (for larger resettle-ments) to six- monthly visits by a group of two experienced so-cial auditors dur-ing the active phase of reset-tlement, then yearly visits until







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Input Monitor-ing

Output Monitor-ing

Outcome Eval-uation

Compliance Auditing

Key Perfor-mance Indicators (KPIs)

Key Perfor-mance Indicators (KPIs)

evaluation by ex-ternal evaluators

completion. Completion audit will include a comprehensive livelihood survey to be compared with baseline conditions

Responsibility Internal: Data is gathered and pro-cessed by project imple-mentation unit

Internal: Data is gathered and pro-cessed by project imple-mentation unit

External: based on internally gathered data (inputs and out-puts) and sup-plemental exter-nal investiga-tions such as random inter-views or focus groups held by the external evaluators

External: based on internally gathered data (inputs and out-puts) and supple-mental external investigations such as random interviews or fo-cus groups held by the external evaluators

11.2 Input and Output Monitoring

214. TAP will use indicators and KPIs shown in the following table to carry out input and output monitoring of its land acquisition and compensation activities.

Table 15: Input and Output Indicators

Indicator Source of Infor-mation

Fre-quency

KPI8

Input indicators

Overall spending Financial records

Quarterly Yes

Distribution of spending by:

– Cash compensation

– Rehabilitation - livelihood restoration

– Consultation and engagement

– Vulnerable people

– General implementation services & overhead

Financial records

Quarterly

8 Key Performance Indicator







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Number of full time staff dedicated to land acquisition & com-pensation, with distribution in-house / outsourced if applica-ble, and distribution by skill type

HR Depart-ment

Quarterly Yes

Number of vehicles, computers, GPSs, and other equipment as applicable available to the resettlement & compensation programme

Count Quarterly

Number of PAPs by category (consistent with categories in the entitlement matrix)

Census and grievance management

Quarterly Yes

Output indicators

Number of people having received cash compensation in the period with distribution by compensation type and by classes of amounts

Data man-agement system

Monthly Yes

Number of individual compensation agreements signed in the period

Data man-agement system

Monthly

11.3 Outcome Monitoring & Evaluation

215. TAP will use indicators and KPIs shown in the table below to carry out outcome moni-toring of its land acquisition and compensation activities.

Table 16: Outcome Indicators

Indicator / Issue Measured How Frequency KPI

Grievances

Average time for grievance processing

Measure time interval between grievance reg-istration and closure and time between griev-ance registration and first acknowledgement of receipt

Quarterly

Number of open grievances and trend in time

Data Management System Quarterly Yes

Number of grievances opened in the period and trend in time

Data Management System Quarterly

Number of grievances closed in the period and trend in time

Data Management System Quarterly

Compensation

Average time for payment of compensation

Measure time between compensation agree-ment and payment

Quarterly Yes

Has compensation been paid at full replacement

Compare results of real estate market survey for similar properties with compensation paid.

Yearly Yes







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cost? Is compensation up-dated to take account of in-creases in real estate value?

Investigate whether recipients of cash compen-sation were able to purchase a similar property

Use of compensation What has compensation been used for? Sur-vey of compensated households

Yearly Yes

Livelihood Restoration

Business re-establishment (if relevant)

Have affected businesses been successfully re- established (if applicable)? Survey of activi-ties and sales over a sample of businesses

Yearly

Jobs and employability Are affected wage earners still employed in their former jobs? Survey of employment over a sample of wage earners and comparison with the baseline

Yearly

Income Are incomes restored? Survey of occupations and income over a stratified sample of PAPs and comparison with baseline

Yearly and at Completion Audit

Yes

11.4 Compliance Monitoring and Completion Audit

11.4.1 Compliance Monitoring

216. TAP will procure the services of an external compliance auditor to check whether the implementation of the programme complies with this framework and international re-quirements (PR 5). The scope of work of the compliance auditor will include the tasks summarized in Table 17.

Table 17: Compliance Monitoring

General Assess overall compliance with LRF commitments and PS5;

Interview a representative cross-section of affected households and enterprises:

to measure the extent to which project affected people's standards of living and livelihood are being restored or enhanced

to gather their opinions on compensation delivery, resettlement housing and grievance management

Compensa-tion process

Review if entitlements are delivered in time (as set out in the LRF) and, if not, whether delays are justifiable

Assess whether compensation is at replacement value

Livelihood restoration

Assess the extent to which the quality of life and livelihoods of affected households are restored, verify that measures to restore or enhance project affected peoples’ quality of life and livelihoods are being implemented and assess their effec-tiveness

Review any livelihood restoration / rehabilitation programmes and the extent to which they are assisting in providing alternative livelihoods for affected households to help offset the impacts of displacement







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Monitoring & Evaluation

Review internal monitoring and reporting procedures to ascertain whether these are being undertaken in conformance with the LRF

Review internal monitoring records as a basis for identifying any potential areas of non-compliance, any recurrent problems, or potentially disadvantaged groups or households

Grievances Review grievance records for evidence of significant non-compliance or recurrent poor performance in resettlement implementation or grievance management

Vulnerable people

Assess the vulnerable people screening, tracking and assistance systems, related records, and performance to determine compliance with this framework and further LRPs if such are warranted

Implementa-tion

Assess whether resources are adequate for implementing commitments in this framework and any training or capacity building requirements;

Assess the data management system and its outcomes;

Compare actual progress with initial schedule;

Review any situations of fraud, corruption or extortion and the way they have been managed.

217. Compliance monitoring will take place twice a year during the active phase of land

acquisition and compensation. The external auditor will dedicate approximately 10 days to each of these missions, with most of this time dedicated to field visits, including interviews with key informants and affected people. Each of the auditor’s missions will be sanctioned by a report prepared independently for TAP. The auditor will be selected amongst reputable individuals with significant international experience in resettlement.

11.4.2 Completion Audit

218. TAP will organise that a completion audit be carried out by an external auditor (poten-tially the same as that involved in the compliance monitoring). The overall goal of the completion audit is to verify that this Livelihood Restoration Plan as implemented has been effective in restoring project affected peoples’ standards of living and livelihoods. Accordingly, the completion audit has the following objectives:

Assess the effectiveness of measures to avoid and minimize displacement impacts by comparing project actual impacts on land and people versus those documented in the LRF;

Verify that all entitlements and commitments described in the LRF have been de-livered;

Determine whether LRF measures have been effective in restoring or enhancing affected peoples’ living standards and livelihood;

Check on any systemic grievances that may have been left outstanding;

Identify any corrective actions necessary to achieve completion of LRF commit-ments.

219. The Completion Audit will focus on livelihood restoration. Methods to assess whether livelihoods are restored will be carefully devised. They will mainly include quantitative surveys, resulting in a comparison with the baseline data. This will be done over a







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statistically significant sample of affected households chosen from all interested com-ponents of the Project. Macro-economic factors will be taken into consideration when interpreting the results of the comparison (for example inflation, real estate cost, gen-eral growth of the economy or recession).

220. In addition, the Completion Audit will utilize qualitative approaches to gather data and assess household standards of living. Particular attention will be paid to assessing the impact of land acquisition on the circumstances of vulnerable households.

221. The Completion Audit report will present conclusions on the effectiveness of livelihood restoration and identify any corrective measures that would be necessary to complete rehabilitation of PAPs.

222. The Completion Audit could be undertaken by the same consultant also in charge of Compliance Monitoring (see above section 11.4.1). In addition to this individual (team leader), a team of enumerators will be recruited to carry out the verification surveys. The Completion Audit will be carried out two years after the active phase of land ac-quisition and compensation is complete (including reinstatement and hand back), or when the Compliance Auditor deems appropriate.







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12. Implementation Arrangements

12.1 Overall Organization

223. The LEA process is centrally managed from TAP headquarters in Switzerland, but ad-dresses all in-country requirements in the greatest detail. A dedicated LEA project ex-pert is based in Lecce, Italy, with responsibility for day-to-day management of the LEA activities, quality assurance and control.

224. Oversight for LEA activities is provided by the LEA + Permitting Support Manager based in Baar, Switzerland.

Figure 13: Project Management Department Italy

12.2 Implementation Schedule

225. An implementation schedule is provided in Table 18.

rePlan Implementation

Advisors

LEA + Permitting Manager

LEA Project Expert

SLA Advisor

Social Advisor

Administrator

CAI + SLA Contractor







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Table 18: Implementation Schedule

12.3 Budget

226. Table 19 presents the budgeted amount for land easement and acquisition preparation and implementation in Italy.

Table 19: Budget

Cost Budgeted Amount (€)

1. Easement Compensation 459,048

2. Lease Compensation 510,002

3. Crop Compensation 1,838,485

4. Land acquisition compensation 998,809

5. Livelihood Restoration Support Programs 2,317,103

6. Contingency 739,123

7. Transaction costs 580,018

8. Management costs (including M&E) 687,769

9. Total Budget 8,130,357










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Appendix 1: Key Terminology

Term Proposed Meaning and Comments

Involuntary resettlement Stricto sensu, “resettlement” refers to a form of compen-sation whereby affected people are offered replacement housing and “resettle” to that housing. However, “in-voluntary resettlement” has taken a broader significa-tion and is used as an overarching term covering both impacts (“involuntary resettlement impacts”) and com-pensation measures associated to land acquisition and/or restricted access.

– “Involuntary resettlement” understood as an impact is caused either by project-related land acquisition or by re-striction of access to land or natural resources. Impacts covered by “involuntary resettlement” include both “physical displacement” (relocation or loss of shelter) and “economic displacement” (loss of assets or access to assets that leads to loss of income sources or means of livelihood). Reset-tlement is considered involuntary when affected individuals or communities do not have the right to refuse land acqui-sition that results in displacement. This occurs in cases of expropriation or restrictions on land use based on eminent domain and negotiated settlements in which the buyer can resort to expropriation.

– “Resettlement” understood as a compensation measure is generally used in a broad sense that covers all forms of compensation, not only those entailing physical relocation to replacement housing.

Land acquisition / Land access

In the sense of EBRD PR5 and other similar interna-tional requirements, “land acquisition” is understood to include both full purchases of property and purchases of rights other than full property rights, such as rights-of way. In the last few years, specialists have often pre-ferred to use “land access” rather than “land acquisi-tion”, to cover not only actual purchases but also other forms of access to land, such as temporary occupation or acquisition of rights other than full property rights (rights of way or certain usufruct rights).

Physical displacement Loss of dwelling or shelter as a result of project-re-lated land access, which requires the affected per-son(s) to move to another location. Physical dis-placement typically entails economic displacement too, as physically displaced people usually lose ac-cess to land, employment, or business opportunities associated to their former location, and most special-ists use “physical displacement” to cover both physi-cal and economic impacts.



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Economic displacement Loss of assets (including land) or access to assets that leads to loss of income sources or means of livelihood as a result of project-related land acquisition or re-striction of access to natural resources. People or en-terprises may be economically displaced with or without experiencing physical displacement. Usually the term “economic displacement“ is used when affected people are not also physically displaced (see above “physical displacement”).

Affected person – Project Af-fected Person (PAP) – Dis-placed person

Person or enterprise experiencing either physical or economic displacement.

Informal right holder Person or group of persons recognised by custom, un-written rules, or other socially accepted processes as holding certain ownership or usufruct rights over an asset or resource, although these usufruct rights are neither formalised in a legal document such as a title nor officially registered. Typical situations where infor-mal right holders are encountered include:

– Slum dwellers in urban settings, where neither landlords nor occupants have formal ownership or occupation rights;

– Road side or street side businesses established on a pub-lic space (a contradiction typical of such businesses is that while their occupation of the public domain is not recog-nised, their existence as a business is recognised through registration or payment of taxes);

– Customary land holders in rural settings, where access to land derives from unwritten customary rights;

– Customary usufruct rights over natural resources such as water bodies, grazing land, forest, that can be held at indi-vidual or group level.

Informal ownership or occupation of agricultural land may or may not enjoy a certain level of recognition in written law. Land tenure legislation in some juris-dictions does recognise customary community rights over land or other resources and formally empowers traditional institutions to informally manage these re-sources. Other jurisdictions ignore customary rights completely. Informality of occupation or ownership is not a “black-and-white” situation and there are many gray areas: informal right holders may be illegal from the standpoint of some authorities, and legal or even encouraged for others (see road side businesses above).



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Compensation Payment in cash or in kind for loss of an immoveable asset or a resource that is acquired or affected by the project. This is typically understood to include all forms of compensation, including the provision of replace-ment land and housing, also sometimes referred to as “resettlement” stricto sensu. In some jurisdictions, com-pensation in cash is referred to as “indemnification” to distinguish it from other forms of compensation. For bet-ter clarity, compensation should be used only in the context of the loss of an immoveable asset. It does not include allowances paid or provided in respect of various inconveniences not directly related to the loss of an immoveable asset or vulnerability, nor should it include livelihood restoration allowances or activities.

Allowance Cash paid in respect of losses or resettlement related expenses other than losses of immoveable assets. For example, tenants can be provided with a cash “allow-ance” to support their effort to secure alternative hous-ing. A moving “allowance” can be paid to people who have to relocate as a result of Project land access. An “allowance” should be distinguished from compensa-tion, which is intended to cater for the loss of an im-moveable asset.

Livelihood A livelihood comprises the capabilities, assets (includ-ing both material and social resources) and activities required for a means of living. A livelihood is sustaina-ble when it can cope with and recover from stress and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermin-ing the natural resource base. (Chambers & Conway, 1991, quoted by UNDP – Guidance Note on Liveli-hoods, 2010)

Livelihood restoration Specific allowances or activities intended at supporting displaced peoples’ efforts to restore their livelihoods to pre-project levels. Livelihood restoration should prefer-ably be distinguished from compensation. Livelihood restoration measures typically include a combination of cash or other allowances and support activities such as training, agricultural assistance or business en-hancement. Livelihood restoration is sometimes re-ferred to as “rehabilitation”, a term used in a number of Asian jurisdictions.



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Resettlement Action Plan (RAP)

A planning document generally structured like an im-pact assessment, presenting:

– Displacement impacts resulting from land access entailed by a given project or sub-project,

– Impact minimisation and mitigation measures,

– Impact compensation measures for those displacement im-pacts that cannot be minimised or mitigated,

– Arrangements associated to the implementation, monitoring and evaluation, and funding of the compensation measures.

A number of guidance documents specify requirements of various institutions such as the World Bank, the In-ternational Finance Corporation, the Asian Develop-ment Bank, etc… pertaining to the structure and sub-stance of RAPs. A RAP is expected to be based on a detailed inventory of affected assets, the associated census of affected people, and a valuation of compen-sation for affected immoveables, which require the Pro-ject to be in such a development stage that a final or quasi final footprint can be assessed. For project with significant displacement impacts, most International Fi-nance Institutions require RAPs to be submitted and ap-proved for finance to be made available to the Project, although timing and disclosure details may vary from one IFI to another.

Resettlement Framework (Livelihood Restoration Framework)

Where a project or sub-project is not defined to such a level that a final footprint is available, and if displace-ment impacts are of lesser significance, a resettlement or livelihood restoration framework may be deemed ac-ceptable for the Project to proceed to approval by an IFI. A resettlement or livelihood restoration framework includes an outline description of impacts and all princi-ples applicable to compensation, but the census of af-fected people and inventory of affected assets are not provided. The resettlement or livelihood restoration framework is typically expected to be complemented by a RAP or LRP at a further stage of project development.



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Replacement value This is usually calculated as the market value of the asset plus transaction costs (e.g. taxes, stamp duties, legal and notarization fees, registration fees, travel costs and any other such costs as may be incurred as a result of the transaction or transfer of property). In applying this method of valuation, depreciation of structures and assets should not be taken into ac-count. For losses that cannot easily be valued or com-pensated for in monetary terms, in-kind compensation may be appropriate. However, this compensation should be made in goods or resources that are of equivalent or greater value and that are culturally ap-propriate. With regard to land and structures, replace-ment costs are defined as follows:

Agricultural land—the market value of land of equal productive use or potential located in the vicinity of the affected land, plus the cost of preparation to levels similar to or better than those of the affected land, and transaction costs such as registration and transfer taxes.

Land in urban areas—the market value of land of equivalent area and use, with similar or improved in-frastructure and services preferably located in the vi-cinity of the affected land, plus transaction costs such as registration and transfer taxes.

Houses and other structures—the cost of purchas-ing or building a new structure, with an area and qual-ity similar to or better than those of the affected structure, or of repairing a partially affected struc-ture, including labour and contractors’ fees and trans-action costs such as registration and transfer taxes.



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Vulnerable groups Vulnerable or “at-risk” groups includes people who, by virtue of gender, ethnicity, age, physical or mental disa-bility, economic disadvantage or social status may be more adversely affected by displacement than others and who may be limited in their ability to claim or take advantage of resettlement assistance and related de-velopment benefits. Vulnerable groups in the context of displacement also include people living below the pov-erty line, the landless, the elderly, women- and children-headed households, ethnic minorities, natural resource dependent communities or other displaced persons who may not be protected through national land com-pensation or land titling legislation. These groups should be identified through the process of environmen-tal and social appraisal (see PR 1).

Adequate housing Adequate housing or shelter can be measured by qual-ity, safety, affordability, habitability, cultural appropri-ateness, accessibility, and locational characteristics. Adequate housing should allow access to employ-ment options, markets, and basic infrastructure and services, such as water, electricity, sanitation, health-care, and education. PR 5 affords adequate housing and security of tenure to displaced persons at resettle-ment sites.

Security of tenure A resettlement site offers security of tenure if it protects, to the greatest extent possible, the resettled persons from forced evictions.



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Appendix 2: Legal Review

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