Uzbekistan: Central Asia Regional Economic Cooperation ...

Social Monitoring Report

Biannual report: January - June 2021 Project Number: 48414-006 ADB Loans 3963/3965-UZB June 2021

Uzbekistan: Central Asia Regional Economic Cooperation Corridor 2 Karakalpakstan Road (A380 Kungrad to Daut-Ata Section) Project Prepared by the Committee for Roads under Ministry of Transport of the Republic of Uzbekistan for the Asian Development Bank.

CURRENCY EQUIVALENTS (As of 1 May 2020)

Currency unit – Uzbekistan Sum (UZS) UZS 1.00 = $ 0.000095

$1.00 = UZS 10,477.86

ABBREVIATIONS ADB – Asian Development Bank BCP – Border Control Point CAREC – Central Asia Regional Economic Cooperation GCDP – Gender and Community Development Plan GRC – Grievance Redressal Committee FGD – Focus Group Discussion LARP – Land Acquisition and Resettlement Plan LMCRE – Land Management Control and Real Estate State Enterprise PMU – Project Management Unit PRoW – Proposed Right of Way RoW – Right of Way SSO – Social Safeguards Officer SPS – Safeguard Policy Statement UZS – Uzbekistan Sum (currency) WIM _ Weigh-in-Motion SCR/CR - State Committee of Roads/Committee of Roads AH - Affected Household PAM - Project Administration Manual IR - Involuntary Resettlement AP - Affected Person

NOTES

(i) The fiscal year (FY) of the Republic of Uzbekistan, its ministries and committees end on 31 March. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 31 March 2021.

(ii) In this report, "$" refers to US dollars. This social monitoring report is a document of the borrower The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

GLOSSARY

Affected persons Affected persons (APs) are the members of the affected households those who experience full or partial, permanent or temporary physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) resulting from (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Although this definition of affected person is at variance with the usage in the Safeguards Policy Statement (SPS) 2009, this is how it is understood and officially used in Uzbekistan, and it is not different from ‘displaced person’ defined in the SPS-2009.

Affected household

A household consists of one or more people who live in the same dwelling and also share at meals or living accommodation, and may consist of a single family. In the project, household is the unit for compensation and all the members in a household are considered as affected persons.

Compensation Payment for an asset to be acquired or affected by a project at replacement cost.

Cut-off-date The date after which people will not be considered eligible for compensation i.e., they are not included in the list of Affected households (AHs) as defined by the census. If the country expropriation law does not specify a cut-off date, normally, the cut-off date is the date of the detailed measurement survey which will be based on the detailed and final engineering design.

Economic Displacement

Loss of land, assets, access to assets, income sources, or means of livelihoods as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Entitlement The range of measures comprising cost of compensation, relocation cost, income rehabilitation assistance, transfer assistance, income substitution, and relocation which are due to /business restoration which are due to AH, depending on the type and degree nature of their losses, to restore their social and economic base. All entitlements will be given to all affected households as per the entitlement matrix.

Inventory of Loss

The inventory of assets getting affected by project.

Illegal/Non recognizable

HHs that are not registered their business, agriculture, residential and orchard and those who have no recognizable rights or claims to the land that they are occupying and includes people using private or state land without permission, permit or grant i.e. those people without legal lease to land and/or structures occupied or used by them. ADB’s SPS explicitly states that such people are entitled to compensation for their non-land assets.

Khokimiyat Local government authority that interfaces between local communities and the government at the regional and national level. It has ultimate administrative and legal authority over local populations residing within its jurisdiction.

Land acquisition

The process whereby a person is compelled by a public agency to alienate all or part of the land s/he owns or possesses, to the ownership and possession of that agency, for public purposes, in return for fair compensation.

Land Use rights According to Land Code (article 17) real persons (can have the land plot under the right of lifelong inheritable possession and land parcel use transferred as descent. This right is given to individual residential housing construction and collective gardening and vineyard (orchards), peasant farms. Juridical persons (enterprises, stores, and business) can possess land parcels according to the right to permanent possession, permanent use, temporary use, lease and property. In two above cases when person wants to sell the Property (land and building), he will sell the building & structure and subsequently land parcel will be sold as an attachment (right is being sold).

Leaseholder Juridical person (farm) running agricultural production with the use of land

parcels granted to him on a long-term lease. Lease term is limited up to fifty years but not less than for ten years. Leaseholder cannot sell - buy, mortgage, present, exchange the land

Low Income Low-income households are classified as households where the monthly per capita income is less than US$ 2 per capita per day).

Meaningful

Consultation A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v)enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

Replacement cost

Replacement cost is the principle to be complied with in compensating for lost assets. Calculation of which should include: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments, if any. Where market conditions are absent or in a formative stage, APs and host populations will be consulted to obtain adequate information about recent land transactions, land value by types, land titles, land use, cropping patterns and crop production, availability of land in the project area and region, and other related information. Baseline data on housing, house types, and construction materials will also be collected. Qualified and experienced experts will undertake the valuation of acquired assets. In applying this method of valuation, depreciation of structures and assets should not be taken into account.

Severely Affected

Households

Severely affected households are those who lose more than 10% of their productive asset (income generating productive land) and or physically displaced

Significant impact

200 people or more will experience major impacts, which are defined as; (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating).

Vulnerable Households

Low-income households, female-headed households with no support, the elderly headed household with no support, households having physically challenged persons

Table of Contents

EXECUTIVE SUMMARY ...................................................................................................... 1 PROJECT DESCRIPTION .................................................................................................... 1

A. PROFILE OF THE SUBPROJECT AREA ............................................................................................... 1 B. SUBPROJECT ROAD DESCRIPTION ....................................................................... 1 C. PROJECT MANAGEMENT AND CONTRACTORS TEAM ......................................... 5 D. SCOPE AND REQUIREMENTS OF SOCIAL MONITORING REPORT ....................... 6 E. OBJECTIVE OF SEMI-ANNUAL MONITORING REPORT .......................................... 6 F. COMPLIANCE TO ADB PROJECT ADMINISTRATION MANUAL (PAM) ................... 6 G. COMPLIANCE WITH ADB SPS 2009 ......................................................................... 8 H. SUBPROJECT ECONOMIC IMPACTS ..................................................................... 11 I. PROJECT CATEGORIZATION & INVOLUNTARY RESETTLEMENT IMPACT ........ 12 J. MONITORING OVERVIEW AND OBJECTIVE .......................................................... 13 K. ONGOING PROJECT ACTIVITIES ........................................................................... 14 L. LARP AND SOCIAL SAFEGUARD MONITORING RESULTS, JAN – JUNE 2021 .... 14

SCOPE OF SOCIAL SAFEGUARD MONITORING REPORT (SSMR) ............................... 14 M. STATUS OF LARP IMPLEMENTATION ................................................................ 15

A. PAYMENT OF COMPENSATION ..................................................................................... 15 B. CORRECTIVE ACTION FOR LARP IMPLEMENTATION ...................................................... 17

N. PROBLEMS ENCOUNTERED; GRIEVANCES RECEIVED & ADDRESSED ............ 17 O. STAKEHOLDERS CONSULTATION ........................................................................ 18 P. LABOUR, HEALTH AND SOCIAL PROTECTION ..................................................... 18 Q. GENDER ACTION PLAN .......................................................................................... 18 R. GRIEVANCE REDRESSAL MECHANISM ................................................................ 19

A. GRIEVANCE REDRESSAL COMMITTEE .......................................................................... 19 B. FUNCTIONS OF GRC .................................................................................................. 20 C. REPUBLIC OF UZBEKISTAN’S COMPLAINT HANDLING SYSTEM: ....................................... 20 D. DOCUMENTATION OF GRIEVANCES: ............................................................................. 20 E. DISCLOSURE .............................................................................................................. 21

S. RESETTLEMENT BUDGET ESTIMATES ................................................................. 21 T. CONCLUSION ......................................................................................................... 22

Tables TABLE 1: SUMMARY OF INVOLUNTARY RESETTLEMENT IMPACTS ............................ 12 TABLE 2: BUDGET ESTIMATE .......................................................................................... 21 Figures FIGURE 1: LOCATION OF KARAKALPAKSTAN ROAD PROJECT ..................................... 2 FIGURE 2: LOCATION OF WIM AT KM 2.7 IN ROAD A373 (NEAR ROHAT POST) ............ 3 FIGURE 3: LOCATION OF WIM AT KM 817.9 IN ROAD M39 (NEAR ERKIN POST) ........... 3 FIGURE 4: LOCATION OF EXISTING WIM AT KM 192.4 IN ROAD A373 (NEAR KAMCHIK PASS) ................................................................................................................................... 4 FIGURE 5. PROOF OF PAYMENT TO THE OWNER AND TO THE TENANT OF AFFECTED STRUCTURE .................................................................................................. 16 FIGURE 6. PROOF OF PAYMENT TO THE TENANT OF AFFECTED STRUCTURE. ....... 16 Annexures APPENDIX 1: TYPICAL CROSS SECTION OF THE PROJECT ROAD ............................. 24 APPENDIX 2. REPORT OF INDEPENDENT VALUATOR .................................................. 27 APPENDIX 3: APPLICATION OF THE OWNER AFFECTED STRUCTURE ....................... 37

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APPENDIX 4: AGREEMENT ABOUT THE ALLOCATION OF LAND, DEMOLITION OF BUILDINGS AND COMPENSATION FOR THE DEMOLITION OF A BUILDING ................ 39 APPENDIX 5: STRUCTURE OWNER’S NOTICE ............................................................... 43 APPENDIX 6: LETTER OF STATEMENT OF THE OWNER ABOUT RECEIVING THE COMPENSATION. .............................................................................................................. 46 APPENDIX 7: CONTRACT AGREEMENT OF THE TENANT ............................................. 49 APPENDIX 8: LETTER OF NOTIFY OF THE MOTEL-OWNER. ......................................... 53 APPENDIX 9: RESOLUTION OF KHOKIM OF KENGRAD DISTRICT................................ 54 APPENDIX 10: CONSULTATIONS WITH APS AND LOCAL COMMUNITY ....................... 57 APPENDIX 11: GRC-INTRODUCING ACTIVITIES. ............................................................ 58 APPENDIX 12 COVID 19 SAFETY REGULATIONS AND MEASURES ............................. 61

EXECUTIVE SUMMARY 1. The proposed project involves the rehabilitation and upgrading of a 240-kilometer section along the existing A380 between Kungrad and Daut-Ata terminating at the border control point (BCP) between Uzbekistan and Kazakhstan. The existing road will be upgraded to a two lane with shoulders and with cement concrete pavement. The project road follows the existing A-380 from kilometrage 0.000 to about 9.207 and then re-aligns to the left from until 79.000 with a maximum separation distance of almost 4.6 kms. Between 79.000 and 119.00 the project alignment again follows the existing A380. The project alignment then runs parallel on the left-hand side to the existing road until 109.000 km at a distance of about 35m. The separation distance increases to about 850m from 109.000 to 219.000km and from there joins the existing road alignment to Kazakhstan. Of the total 240km project road, 61.5kms or 25 percent will follow the existing alignment while the rest will be a realigned new road. 2. The project has incurred with the permanent acquisition of land under private ownership which measured 0.0613 ha belonging to 1 owner, acquisition of 311.62 ha of valley and other land plots not used in agriculture and 1.5 ha of valley and other land plots for construction of training centers at Jaslik and Karakalpakstan, totaling 313.18 ha and owned by the State. Further, the project will involve temporary acquisition of 915.77 ha of valley and other land plots not used in agriculture for the open pits and owned by the State. In addition, two of the proposed new WIM facilities will involve use of 1.67 ha of land, which is currently managed by Uzavtyoul regional department, a unit of CR, being land parcels abetting the highway and free from encumbrance. The improvements proposed for the third existing WIM facility involves only installation of equipment within the available facility. The project consists of 2 Packages, consisting each in three lots of 40 km road section (Package 1: Lot 1 – 964-1004 km; Lot 2 – 1004-1044 km; Lot 3 – 1044-1084 km. Package 2: Lot 4 – 1084-1124 km; Lot 5 – 1124-1164 km; Lot 6 -1164 – 1204 km). Package 1 does not have any land acquisition and resettlement impact, the only permanent acquisition of land under private use is affected in the Package 2 (road section Lot 6 – 1164-1204 km). The permanent acquisition of land for the road project will cause economic displacement to 2 families, comprising of 1 structure owner who would be losing the rental income derived from the structure that will be affected and 1 tenant who is having a restaurant in the affected structure. Further, 1 motel-owner will face non-significant impact by way of temporary disruption during shifting of water and gas supply pipeline to his motel as part of utility shifting. There is no impact to common property resource in this project. Altogether the project will cause impact to 2 families and temporary disruption to 1 family. 3. The existing right-of-way has been considered for the proposed improvement and the existing right-of-way (RoW) for the entire length could not be utilized as widening in most part of the road was not possible due to the international gas pipeline running close to the existing road. 1 Hence, the road construction would entail acquisition of 313.18 ha of land comprising of 0.0613 ha of land under private use, 311.62 ha of valley and other land plots not used in agriculture for the project right-of-way2 and 1.5 ha of valley and other land plots not used in agriculture and proposed for construction of training centers at Jaslik and Karakalpakstan.2 4. The basic objective of this Social Safeguard Semi-annual Monitoring Report is to assess the progress of social safeguards and resettlement impacts are undertaken during the implementation of the civil construction works of the project including the payment of compensations to the APs.

1 Existing Right-of-Way (RoW) is the land on which the existing gravel road or the existing A380 traverses and

includes the land abetting the carriageway as per the cadastral records. 2 The cross section of the project road is wider than the one of the existing gravel roads. Also, at junctions, the

police control and border crossing point, additional lanes will be added. Thus, the project ROW is different from the existing ROW.

5. In dealing with Government and ADB policies and procedures, Project Administration Manual (PAM) has been disclosed by ADB in August 2020 which describes the essential administrative and management requirements to implement the project on time, within budget for which PAM is mandatory and serves as the main document describing implementation details. In compliance with the PAM, the project authority / Executive Agency follows and fulfills the requirements which mentioned in the PAM. Moreover, in compliance with the issues of Involuntary Resettlement (IR) mentioned in the ADB SPS 2009, the project authority/PMU gives prioritize to be fully complied with those raising IR issues.

6. In compliance with the ADB safeguard policy, the Social Safeguard Semiannual Monitoring Report is required to submit to ADB twice a year throughout the entire project cycle. This social monitoring report is prepared dealing with the implementation process and progress of the approved LARP while civil construction workers are being continued. The monitoring report covers the payment of compensation, community’s involvement and perception on the project activities, undesired adverse or additional social impacts on the community settlements etc. during the civil construction works that need to into account. 7. CR has prepared Land Acquisition and Resettlement Plan (LARP) based on the final and detailed design for the 240 km long Kungrad to Daut-Ata section of A380, proposed under Third CAREC Corridor Road Investment Program and the proposed three weigh-in-Motion (WIM) facilities. In conducting the socio-economic census survey subsequent to finalization of the LARP, it has been addressed social issues derived from the acquisition of land and other assets, resulting in physical and / or economic displacement to families / individuals / community, either direct or indirect which is in compliance with ADB's Safeguard Policy Statement, 2009 and legislations of the Republic of Uzbekistan. 8. In dealing with the land acquisition for the project, an Updated LARP was finalized by Executing Agency at the beginning of February 2021. The updated LARP was approved by ADB and disclosed at ADB website on 11 February, 2021. Completion of its implementation is a condition for commencing civil works for Package 2. ADB review and approval of LARP implementation report is required before civil works start. This LARP implementation report is prepared for this purpose. 9. Immediately after completing the LARP, steps have been taken to implement the LARP dealing with the payment of compensation to the affected families/ persons. The civil construction works under the implementation stage has not yet been started as of 30 June 2021. Despite, in accordance with the ADB SPS 2009, the respective authority of the government has made the full amount of compensation to all affected persons who lost assets due to land acquisition (structure owner and the tenant) prior to the construction work as per RP entitlement. 10. During the census and socio-economic survey, 7 FGDs were conducted in Jaslik and Karakalpakstan along the project road and a total of 99 persons (including 84 women) participated in the consultation meetings. All relevant aspects of project design, details of land required and impact to private property were discussed with the affected communities. 11. As per Project Administrative Manual (PAM) disclosed in August 2020, the project is classified as Effective Gender Mainstreaming (EGM) and will build two multipurpose community complexes with facilities for livelihood trainings. In line with ADB Effective Gender Mainstreaming (EGM), a Gender Action Plan (GAP) has been prepared and the ongoing activities GAP will be monitoring throughout the project cycle in which women will be involved in the project activities. 12. The policy framework and entitlements for the project is based on national laws: Land

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Code of the Republic of Uzbekistan, 1998, the various Resolutions of the Cabinet of Ministers, and ADB’s Safeguard Policy Statement (SPS), 2009. 13. Grievance Redressal Committee (GRC) was established to receive, evaluate and facilitate the resolution of displaced persons concerns, complaints and grievances. The GRC was in place 22-25 February 2021, GRC will function during the entire life of the project including the defects liability period. 14. The Project Director, PMU, CR, is overall in charge of coordination with the Khokimiyat of Kungrad District for social safeguards compliance. 15. Next Steps: The following actions planned to be completed for the next period of July–December 2021: (i) monitoring the process on unanticipated LAR impacts and compensation process; (ii) monitoring and assessment of complaints received by the project; (iii) monitoring of emerging and unanticipated LAR impacts during the construction and developing required actions and measures to mitigate any impacts if required; (iv) regular coordination with the EA/PMU.

PROJECT DESCRIPTION A. Profile of the Subproject Area 1. The project road lies entirely within the District of Kungrad, Republic of Karakalpakstan and provides connectivity to two major settlements viz. Jaslik and Karakalpakstan. Both these settlements are away from the project road which passes along uninhabited barren land. 2. Kungrad district spread over an area of 76 thousand km2, is one of the biggest districts in the republic and constitutes 12 percent of Uzbekistan’s territory and 46 percent of Karakalpakstan’s territory. The population3 is 128.3 thousand people and comprises of 80.9 thousand people (63%) living in urban areas and 47.4 thousand people (37%) in rural areas. The total employed is 52,580 residents, with 42 percent employed in formal sector and 58 percent employed in informal sectors. The level of unemployment is 10 percent and the average salary is 2,017,800 UZS.3 3. Jaslik is a settlement of Kungrad district in Republic of Karakalpakstan and is 5km away from the project road. It has a population of 4,027 persons, comprising of 51.2 percent women and 48.8 percent men. Karakalpakstan settlement is spread over an area of 18,000 km2. It has a population of 3,254 persons, comprising of 52.3 percent men and 47.7 percent women. B. Subproject Road Description 4. This report is the 1st Semiannual Social Safeguard Monitoring Report (SSMR) prepared for Second CAREC Corridor 2 Road Investment Program, Karakalpakstan Road (A380 Kungrad to Daut-Ata Section) Project, prepared by the construction supervision Consultant (SC) –DONGSUNG ENGINEERING CO.LTD This project is one among three Multi Tranche Financial Facility (MFF) project currently under implementation by Republican Road Fund of the Republic of Uzbekistan and is financed by the Asian Development Bank (ADB). The proposed project involves the rehabilitation and upgrading of a 240-kilometer section along the existing A380 between Kungrad and Daut-Ata terminating at the border control point (BCP) between Uzbekistan and Kazakhstan. The existing road will be upgraded to a two lane with shoulders and with cement concrete pavement. The project road follows the existing A-380 from kilometrage 0.000 to about 9.207 and then re-aligns to the left from until 79.000 with a maximum separation distance of almost 4.6 kms. Between 79.000 and 119.00 the project alignment again follows the existing A380. The project alignment then runs parallel on the left-hand side to the existing road until 109.000 km at a distance of about 35m. The separation distance increases to about 850m from 109.000 to 219.000km and from there joins the existing road alignment to Kazakhstan. Of the total 240km project road, 61.5kms or 25 percent will follow the existing alignment while the rest will be a realigned new road. The location of the road is presented in Figure 1. The design typical cross section is given in Appendix 1.

3 As on 01 January 2019, State Committee of the Republic of Uzbekistan on Statistics.

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Figure 1: Location of Karakalpakstan Road Project 5. The weigh-in-Motion (WIM) facility proposed at km 2.7 in road A373 (near Rohat Post) and at km 817.9 in road M39 (near Erkin Post) envisages the design, supply and installation of WIM systems to allow the collection of axle load data and implement enforcement against overloading to protect the accelerated deterioration of transportation infrastructure. These two facilities proposed will enable the State Committee of Roads to: (i) implementing axle load control data collection process that provide the required data to the specified accuracy; (ii) implementing enforcement process, using data collected, against overloaded vehicles owners and drivers; and develop a WIM system team within a wider intelligent transportation system group who can successfully manage Axle Load Control and enforcement process.

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Figure 2: Location of WIM at km 2.7 in road A373 (near Rohat Post)

Figure 3: Location of WIM at km 817.9 in road M39 (near Erkin Post)

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Figure 4: Location of Existing WIM at km 192.4 in road A373 (near Kamchik pass)

Location of WIM at km 2.7 in road A373

Location of WIM at km 817.9 in road M39

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C. Project Management and Contractors Team 6. Agencies involved in Investment Program Implementation: The EA for CAREC Corridor 2 Road Investment Program was under the Republican Road Fund, subordinated to the Ministry of Finance of the Republic of Uzbekistan. A Project Management Unit (PMU) has been established as implementing agency. 7. Since Presidential Decree “On measures for further improvement of the Road Management System” dated on 14.02.2017 No.4954 the State Committee for Roads of the Republic of Uzbekistan is created and the main responsibilities are as follows:

a. pursuing a unified technical policy in the field of highways; b. development and implementation of state programs for the development of

roads; c. identifying prospects for the development and improvement of the road

network; d. formation of international transit corridors of highways; e. providing a comprehensive solution to the issues of financing, designing,

building, repairing and operating roads, taking into account the interests of road users in the context of modern traffic flows, as well as organizing effective customer service activities;

f. monitoring the quality of construction, reconstruction, repair and maintenance of roads;

g. coordination of work to ensure the safety of the existing network of inter-farm rural highways, streets of cities, urban settlements, villages and villages with their maintenance at a high transport and operational level; and

h. organization of research and development, the introduction of innovative technologies and modern standards in the field of design, construction, reconstruction, repair and maintenance of roads.

8. Since that State Committee for Roads as EA is responsible for the implementation of the project. The previous Project Management Unit (PMU) is moved to State Committee on Roads of the Republic of Uzbekistan which is responsible for the overall land acquisition and resettlement (LAR) activities. The PMU has a designated safeguards specialist, who is specialized in safeguards activities and is responsible for ensuring that all the activities related to land acquisition and involuntary resettlement are being followed and implemented in accordance with Uzbekistan's legislation and policies and ADB's Safeguards Policy Statement (SPS), 2009.

Location of Existing WIM at km 192.4 in road A373

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9. Project team: PMU hired International Project management and construction supervision Consultant (CS) - DONGSUNG Engineering Co. Ltd. in JV with IRD Engineering S.R.L. in association with Rhythm Plus LLC. This Consultant is responsible to monitor the entire project implementation and construction activities of the contractor and preparing biannual / annual progress reports, which included the implementation of the safeguard issues that may occur during implementation of the project. All mitigation measures during construction will be implemented by the contractor and these will be monitored by the SC. The Project works will be carried out by a JV “Polat Yol Yapi San. ve Tic A.S. and North West Construction LLC” for Lot 1, 2, and 3 and Chinese JV for Lot 4, 5, and 6.The PMU specialist responsible to oversee project’s safeguard issues, gender and GRM is Ms. Shahnoza Mirzaeva. D. Scope and requirements of Social Monitoring Report 10. Before commencing the construction of the civil works, the resettlement impacts were screened and classified dealing with ADB SPS 2009 in which the project is categorized as B. Accordingly, in March 2019, IR impacts were identified by conducting the households socioeconomic census survey of the affected households throughout the alignment of 240 km during the design phase. Subsequently, a Land Acquisition and Resettlement Plan (LARP) were prepared by the PMU and payment was also given to the respective project affected persons as per determining the loss of assets. 11. Thus, the scope of this social safeguard semi-annual monitoring report is to explore the progress of the involuntary resettlement (IR) impacts and assess the status of the RP implementation process. The requirement of the internal social safeguard monitoring activities focuses on the current status of implementation of the social safeguard issues, progress in implementation of the social program and provision of feedbacks and suggestions for the full compliance with ADB and Government of Uzbekistan rules and regulations. This Semi-annual Social Monitoring Report is mandatory in compliance with the ADB social safeguards policy that covers the status of social safeguard implementation activities for the period of January to June 2021. E. Objective of Semi-Annual Monitoring Report 12. The basic objective of this Semi-annual Monitoring Report is to assess the progress of social safeguards and resettlement impacts are undertaken during the implementation of the civil construction works of the project including the payment of compensations to the APs. The specific objectives are: assess the compensation and resettlement activities for which affected people are able to rebuild their livelihood prior to the land acquisition; identify the further IR impacts, if any, during the construction phase in which any new settlements are affected by the civil construction works; assess the life skill training and status of restoration of livelihoods; review the community consultations, discloser process, grievances & grievances redress mechanisms; assess status of the affected person in line with the rehabilitation and livelihood restoration program; monitor how surrounding communities are involved in the ongoing constructions activities for which they are getting economic / financial benefits, assess the safeguard measures at construction sites and other social issues that may come into the surface during the implementation phase. F. Compliance to ADB Project Administration Manual (Pam) 13. In line with Government and ADB policies and procedures, the Project Administration Manual (PAM) disclosed in August 2020 describes the essential administrative and management requirements to implement the project on time, within budget for which PAM is mandatory and serves as the main document describing implementation details. The project

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authority keeps in compliance dealing with the following issues mentioned in the Project Administrative Manual (PAM), August 2020.

Table 01 Compliance to PAM Details in line with PAM, August 2020 Compliance

Status Remarks

Semi-annual Social Monitoring reports that cover emerging IR-related issues during project implementation will be prepared and submitted to ADB for review and disclosure. If any unanticipated LAR impacts and risks arise during construction, PMU will promptly ADB, with detailed description of the event and proposed corrective action plana

Ongoing In compliance with ADB Safeguards Policy, PMU will submit Social Safeguards Sami-annual Monitoring Report to ADB twice in each year

The LARP will be updated as necessary and compensation and rehabilitation assistance will be disbursed prior to award of contract.

Complied

A project specific grievance redress mechanism (GRM) will be established by co-opting the country legal requirements to receive and facilitate the resolution of project affected persons’ concerns, complaints and grievances about the social and environmental performance at the project level.

Compiled GRM established at the PMU level, and it will be at the project level

The GRM will aim to provide a time bound and transparent mechanism to voice and resolve social and environmental concerns linked with the project. The project specific GRM is not intended to bypass the government’s own redress process, rather it is intended to address project affected people’s concerns and complaints promptly, making it readily accessible to all segments of affected persons and is scaled to the risks and impacts of the project. Hence, depending on the nature and significance of the grievances or complaints, the GRM will comprise procedures to address grievances at the local level (through the Khokimyat, the Contractor, the Engineer or the PMU).

Complied

The GRC will be in place immediately after the project is approved. The GRC will continue to function, for the benefit of the affected persons, during the entire life of the project including the defects liability period.

Compiled GRM will also be placed at the project level

More serious complaints, which cannot be addressed at the local level, will be forwarded to the central level. The affected households and communities will be made aware of the Project grievance redress mechanism they can follow to seek redress, including, if necessary, resort to the courts through the Government’s grievance mechanism. The affected households and communities are free to refer their complaints to the courts at any time during the GRM process. All costs involved in resolving the complaints (meetings, consultations, communication and reporting/information dissemination) will be borne by the Project.

On going Community access to GRM will be prioritized

Providing information to project-affected people and other stakeholders. ADB works closely with its borrowers and clients to ensure two-way communications about ADB projects with project-affected people and other stakeholders. This is done within a timeframe, using relevant languages, and in a way that allows project-affected people and other stakeholdersb

Compiled It will be continued in the implementation period

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Documentation of Grievances:The complaint / grievance will be redressed in 6-weeks’ time and written communication will be sent to the complainant. A complaint register will be maintained both at PMU, with details of complaint lodged, date of personal hearing, action taken and date of communication sent to complainant. Further, all stakeholders will have access to ADB’s Accountability Mechanism12, however, they are expected to exhaust the project level grievance mechanism and the republics inbuild grievance system before writing to the banks complaint resolution mechanisma

On going The complaints received from the community will be registered for taking in to account.

a Karakalpakstan, approved Project Admirative Manual, August 2020. b Operational Manual, ADB, January 2019. Source: Asian Development Bank. 14. The land acquisition and rehabilitation assistance for this project is in accordance with the Land Code of the Republic of Uzbekistan, 1998, the various Resolutions of Cabinet Ministers and ADB Safeguards Policy Statement (2009). 4 G. COMPLIANCE with ADB Safeguards Policy Statement 2009 15. In compliance with the ADB SPS 2009, the project has prepared a Land Acquisition and Resettlement Plan (LARP) by conducting socio-economic households census survey based on the final and detailed design of the road project. The LARP finds and outlines the impacts of the project resulting in involuntary resettlement, the magnitude of impact, mitigation measures proposed, provision of land for land under private use, compensating for structure, eligibility criteria for availing rehabilitation and resettlement assistance, baseline socio-economic characteristics, entitlements based on type of loss and tenure, the institutional arrangement for delivering the entitlements and mechanism for resolving grievances and monitoring. Finally, the project authority keeps in compliance with the following ADB safeguards policy:

Table 2: Compliance to Social Safeguard Covenants Details in line with ADB Safeguards Policy Compliance

Status Remarks

Safeguard Requirements: The safeguard policies require that (i) impacts are identified and assessed early in the project cycle; (ii) plans to avoid, minimize, mitigate, or compensate for the potential adverse impacts are developed and implemented; and (iii) affected people are informed and consulted during project preparation and implementationa

Compiled During the design phase, IR impacts are identified, avoided, minimized and LARP has been prepared accordingly compensated to the affected persons. Affected people were informed of the project impact and consulted during the LARP preparation stage.

Indigenous People: (i) recognition of Indigenous Peoples’ cultural identity and rights to their ancestral lands and resources, (ii) fair sharing of development benefits among affected Indigenous Peoples communities and the rest of society, and (iii) meaningful and culturally appropriate consultation with Indigenous Peoples communities in planning and

Compiled No Indigenous People are found in and around the project alignment as the project has been determined as C categorization.

4 Resolution of Cabinet Ministers No. 97 dated 29 May 2006, Resolution of Cabinet Ministers No. 146 dated 25

May 2011, Resolution of Cabinet Ministers No. 3857 dated 17 July 2018 and Resolution of Cabinet Ministers No. 5495 dated 01 August 2018, Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 12.11.2019 No. 911

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implementing projects that are likely to affect their livesb Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedulec

Compiled Livelihood restoration strategy - has been developed.

Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementationc

Compiled Compensation for the land acquisition and resettlement already paid to the entailments (project affected persons)

Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reportsc

Ongoing Monitoring of the resettlement impacts will be the ongoing process throughout the entire project cycle, and Monitoring Report will be submitted to ADB and will be disclosed

Core Labor Standards and Gender Issues: Core labor standards and gender issues as part of the safeguard policy statement. Core labor standards and broader social protection issues are already included in ADB’s Social Protection Strategy (2001). Gender considerations need to be reflected also in the safeguard policies where these are specifically related to safeguard aspectsd

Ongoing The Project has taken in to account the issue of core labor slandered and Gender for which a Gender Action Plan (GAP) has already been prepared, and GAP activities will be monitored. The issue of core labor slandered will be followed up during the civil construction works dealing with 2 the assigned contractors

Consultation & Participation: ADB needs to clarify what “meaningful consultation” means. For policy application, it would refer to a process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issuesc

Ongoing Consultations with the different stakeholders including project affected persons have already been informed and consulted during the preparation of project and LARP.

Scope and Triggers: The involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such

Ongoing

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losses and involuntary restrictions are full or partial, permanent or temporary; Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible; improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housingd Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood statusd

Following up during the entire civil construction phase

Land Acquisition through the negotiated settlement is not required at the planning and the preparation of the LARP. Despite, negotiated resettlement issue may be surfaced during the construction phase that will be taken into account as per policy.

Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assetsd

N/A Project affected person non-title to land were not found during the preparation of LARP. However, the issue will be taken in to account during the civil construction period

Providing Information to Project-Affected People and Other Stakeholders to facilitate dialogue with project-affected people and other interested stakeholders, including women, the poor, and other vulnerable groups, ADB works closely with the borrower or client to ensure that information about sovereign and non-sovereign projects is provided in a timely manner, form, and language(s) understandable to them4 and in an accessible place. This process starts early in the project preparation phase to support consultations and allow stakeholders’ views to be adequately considered in the project design and continue at each stage of project preparation, processing, and implementation. Relevant information about major changes to project scope and likely impacts is also shared.

On going

ADB will require borrowers/clients to engage with communities, groups, or people affected by proposed projects, and with civil society through information disclosure, consultation, and informed participation in a manner

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commensurate with the risks to and impacts on affected communities. For projects with significant adverse environmental, involuntary resettlement, or Indigenous Peoples impacts, ADB project teams will participate in consultation activities to understand the concerns of affected people and ensure that such concerns are addressed in project design and safeguard planse

a ADB. Safeguards Policy Statement 2009, page-5 b ADB. Safeguards Policy Statement 2009, page-7 c ADB. Safeguards Policy Statement 2009, page-9 d ADB. Safeguards Policy Statement 2009, page 17 e ADB. Safeguards Policy Statement 2009, page 20 Source: ADB. 2009. Safeguards Policy Statement H. Subproject Economic Impacts 16. ADB has a long tradition of supporting regional integration and cooperation through the CAREC Program, and its activities will support Uzbekistan’s emerging role as a driver of regional cooperation. ADB will promote regional power trade within the CAPS and regional connectivity along major CAREC corridors; it will rehabilitate last-mile transport infrastructure near borders, modernize cross-border gas pipelines, and support various sanitary and phytosanitary measures and certifications to boost the prospects for regional trade and WTO accession. 17. With the above perspective, economy road network is a key element of the Republic of Uzbekistan in line with the CAREC corridors. The modernization of this key section of CAREC Corridor 2 will help boost Uzbekistan’s trade, particularly with the Russian Federation and the People’s Republic of China, Uzbekistan’s two major trade partners. It will also enhance Uzbekistan’s role in transiting international goods and shipments by reducing transport costs and time. In addition, it will facilitate economic corridor development among Kazakhstan, Uzbekistan, and Tajikistan, as the improved road will boost industrial and tourism activities. 18. Effective functioning and sustainable development are significant for its economic growth, integrity and national security, as well as to improve living standards and livelihoods. In dealing with national growth roads are an essential part of the transport infrastructure. The share of road transport accounts for 89.2 percent of the volume of freight traffic. Annually on average, vehicle fleet is increased by 7–10 percent in the country. Also, there is a steady increase in long-distance journeys. 19. The primary economic benefits of the investment program are cost savings from vehicle operation, reduction in travel time, and lower transaction costs related to transportation. Other benefits are:

i. the establishment of international transport corridors; ii. improvements in road transport efficiency; iii. increase in freight and passenger transport due to improvements in the quality

of roads, iv. increase axle load capacity to 13 tons, and v. less road crashes due to improvements in road safety.

20. The settlements are located in the project area which may away from the project road would have improved connectivity with major trading, educational and administrative centers. Further, the improved road will reduce the travel time to the residents of the settlements along this road, to work place, hospitals and markets. Improved connectivity to the district

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headquarters and to the border of Kazakhstan will lead to industrial growth along the project road that will result in creating employment generation. However, the project will require land under private use and removal of a structure for improving the road, resulting in adverse economic impact to two families, they have already received compensation, which is very insignificant in comparing with the development. I. Project Categorization & Involuntary Resettlement Impact 21. In line with ADB’s Safeguard Policy Statement (SPS), 2009, the project was screened in the beginning in which the project categorized as “B” for involuntary resettlement. This resettlement plan is based on the census and socio-economic survey carried out in March 2019 based on final and detailed design of the road project. The census survey identified 1 family losing their land and/or structure, 1 commercial tenant who would be affected and 1 family who would be facing temporary disruption during utility shifting. The salient findings of the census and socio-economic survey is presented in the following sections. 22. The project involves acquisition of land under private use measuring 0.0613 ha belonging to 1 owner, acquisition of 311.62 ha of valley and other land plots not used in agriculture, 1.5 ha of valley and other land plots for construction of training centers at Jaslik and Karakalpakstan and temporary acquisition of 915.77 ha of valley and other land plots not used in agriculture, all for the A380 road project and the proposed training centers. All land required for the project are owned by the State. These lands are barren and uncultivable due to the low soil fertility and absence of irrigation. Two of the proposed new WIM facilities will involve use of 1.67 ha of land, which is currently managed by Uzavtoyul regional department, a unit of State Committee of Roads, being land parcels abetting the highway and free from encumbrance. The improvements proposed for the third existing WIM facility involves only installation of equipment within the available facility. The involuntary resettlement impacts have been summarized in Table 1.

Table 1: Summary of Involuntary Resettlement Impacts Impacts Extent /

Numbers Remarks

Permanent Land Acquisition - Private Usea

0.0613 ha

Permanent Land Acquisition - Valley and other land plots not used in agriculture

313.12b ha

Permanent Land Acquisition - Land plots along the highway

1.67c ha

Temporary Land Acquisition - Valley and other land plots not used in agriculture

915.77 ha

Affected Families 3 Physically Displace Families (Loss of Residence)d - Economically Displaced Families (Loss of Rental/Business Income)e

2

Non-Significant Impact 1 Total Affected Personsf 12 Non-titled Affected Persons - Affected Employees - Affected Structure 1

Affected Private Trees - Affected Common Property Resources 1 Total a Land under private use, required for strengthening and widening of the road. b Includes 311.62 ha of land required for strengthening and widening of the road and 1.5 ha of land for

construction of training centers at Jaslik and Karakalpakstan c Includes 1.67 ha of land required for the two WIM facilities and the land is managed by Uzavtoyul regional

departments (a unit of State Committee of Roads) and is free from encumbrance. There is no land

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requirement for the third existing WIM facility involving installation of equipment. d Comprises of 1-structure owner losing the structure and the tenant. e Involves temporary disruption to 1 motel-owner during shifting of water and gas supply pipeline. f Title as per land code comprises of right of lifelong inherited possession, permanent use, term (temporary)

uses and lease (Article 17 of Land Code). In this project the title is permanent use and the tenant with license. Source: Census and Social Survey, March 2019

23. There are no affected families in this project who would qualify under the vulnerable category. None of the affected families belong to low-income group 5 10 and there are no indigenous peoples, nor families headed by elderly or families having differentially abled persons. The project will cause impact to 1 woman headed family, where the woman is receiving pension, her adult son is employed and is having salaried income, the family income reported is 1,310,000 UZS and the rental income loss arising out of the affected structure constitutes 28 percent of the family income. Since the family headed by the woman has an adult earning member and the family income is above the low-income category, the affected family has not been considered as vulnerable. J. Monitoring Overview and Objective 24. Monitoring Specialist is assigned by PMU for the internal monitoring of LARP for which specific monitoring parameters has been established to report on:

i. compensation of affected structures and other assets; ii. Status of land allocation; iii. payments for loss of income; iv. relocation of affected local Chaykhana v. income restoration activities.

25. In dealing with the PMU, the Social Specialist will be responsible for overall internal monitoring of the social safeguard’s activities and evaluation of the project’s progress. The Social Specialist will monitor and verify LARP implementation process to determine whether resettlement goals have been achieved, livelihood and living standards have been restored, and provide recommendations for improvement. 26. The first social safeguard monitoring report will confirm if all provisions in the LARP including compensation payments and rehabilitation assistance have been provided fully (compensation already paid). Contract award will be subject to the submission of the LARP implementation compliance report approved by the ADB. Subsequent monitoring will also identify concerns and grievances from stakeholders and the issues related to the Involuntary Resettlement (IR) that may arise during project implementation and recommend appropriate corrective actions. The monitoring reports will be sent to ADB by PMU twice a year for the entire project period.6 27. The monitoring involves administrative monitoring to ensure that implementation is on schedule and problems are dealt with on a timely. CR through PMU is tasked: (i) monitor the progress of implementation of LARP, (ii) verify the compliance with safeguard measures and their progress toward intended outcomes, (iii) monitor disclosing periodic monitoring reports, (iv) submit semi-annual resettlement reports (SRMR) to ADB. 28. This LARP implementation report contains: (i) Accomplishment to-Date (ii) objectives attained and not attained during the period and explanation if not attained, (iii) problems encountered, grievances received and addressed, consultations carried out during the reporting period, if any, and (iv) suggested options for corrective measures.

5 Low income is measured as 1.5 times of basic calculation amount per-capita in the given family. The definition

of income is given as a total amount of revenues for the last 12 months obtained by all family 6 Karakalpakstan, approved Project Admirative Manual, August 2020.

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K. Ongoing Project Activities 29. After Notice to Proceed, CSC first mobilized their international and local Consultants and Team leader of the project. The CSC Consultants started working under the guidance of the TL to review and updating of design with ancillary tasks to get preparation for staring of actual physical construction works. In parallel, monitoring of implementation of Land Acquisition and Resettlement (LARP) and Social Safeguards aspects of the project including preparation of site specific ESMPs and other safeguards related reports to satisfy project and ADB conditionality and as contractual obligations

L. LARP and Social Safeguard Monitoring Results, Jan – June 2021

Scope of Social Safeguard Monitoring Report (SSMR) 30. SSMR has been prepared for PMU and ADB by the Social/Resettlement Specialists of the supervision consultant through assessments of social safeguards and LAR related issues that may occur within the period of construction and develop mitigation measures, required respectively. 31. Social safeguard monitoring objects are the following:

• Land acquisition and resettlement issues (permanent / temporary); • Compensation payments; • Unanticipated LAR and social issues; • Labor, Gender, Health, and Social Protection issues; • GRM and complaints.

32. The following activities were carried out by Consultant during the current reporting periods for monitoring purpose:

• Review of Project Documents: The documents/reports included LARP Compliance Monitoring Report, meetings with the civil contractors and other relevant project reports. The purpose of such a documents review was to get necessary secondary data about the project in general and to understand about the current project implementation status particularly in connection to LAR and social issues;

• Site visit and examination: As a part of monitoring Consultant visited the project sites and conducted required survey, investigations and consultation among different project stakeholders The site visit was conducted at:

i. June -27-July 9 2021 –Project International and National Social Safeguard and

Resettlement Specialists visited project sites together. During the site visit, Consultants carried out inspection of the project area and conducted consultations with Contractors. The site visit also covered monitoring on temporary land acquisition issues and compensation payment status through consultation with the contractor In addition, Consultant also presented the project position about the provision of Labor, Gender, Health, and Social Protection issues of the contractor and explained, how the social and health safety and labour issues following Labour Code of the Government of Uzbekistan should be maintained by the contractor.

• Prepared Survey Instruments: To conduct impact evaluation and socioeconomic survey, a short questionnaires and checklist for consultation were prepared. As a

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part of the next site visits Consultant will be conduct surveys and consultations as planned.

• Site visit report: A field visit report was prepared after completion of site visiting,

consultation meetings with civil contractors. The objective of such consultation meetings was to understand and assess their understanding/perception level about the project and their participation/ involvement in different activities of the project from beginning to date as well as monitoring of any complaints related to the project implementation.

• Monitoring report: After compilation of data/information collection through

documents review, survey, consultation, all data has been analyzed and incorporated into this report.

33. The main results of monitoring for the current reporting period (January – June 2021) are furnished in this section below: M. Status of LARP Implementation 34. Immediately after completing the LARP, steps have been taken to implement the LARP dealing with the payment of compensation to the affected families/ persons. The civil construction works under the implementation stage has not yet been started as of 30 June 2021. Despite, in accordance with the ADB SPS 2009, the respective authority of the government has made the full amount of compensation to the all affected persons who lost assets due to land acquisition (structure owner and the tenant) prior to the construction work as per RP entitlement.

a. Payment of Compensation

(i) compensation of affected structures and other assets: 35. In accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 12.11.2019 No. 911 "On additional measures to ensure guarantees of property rights of individuals and legal entities and to improve the procedure for withdrawal and compensation of land” independent evaluator “Nukus Baxolash via Konsalting” LLP conducted the valuation of the affected structure. As submitted evaluation report of independent valuator amount of compensation payment for structure was 259,501,352 UZS. (Appendix 2). 36. Affected structure owner submitted Application regarding no objection to the demolition of the structure (Appendix 3). 37. Also, Agreement about the allocation of land, demolition of buildings and compensation for the demolition of a building, dated February 02, 2021 was signed between KUNGRAD DISTRICT Khokimiyat and the owner of the affected structure, and it was endorsed by Notary. (Appendix 4) 38. On 22 February 2021, full amount of compensation for permanent structures was paid to the owner of local Chaykhana prior to the construction works for Package 2. (Figure 5) and (Appendix 5). 39. Moreover, one-time rental assistance in amount of 1 110 000 sums, relocation assistance in amount of 735 000 sums and 1 155 000 sums of other types of compensation payments were paid to the owner of the structure on March 12, 2021 by the Kungrad district administration. (Appendix 6).

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40. Considering the above-mentioned, full amount of compensation was paid to the owner of the structure and the tenant prior to the construction works for Package 2 as per the approved LARP provisions. 41. An agreement was signed on 6 March 2021 between the tenant and the local authorities about payment of compensation, according to which the local government obliged to pay all types of compensation, such as one time livelihood assistance to commercial tenant, relocation assistance and provisional sum towards livelihood assistance for temporary disruption to livelihood mentioned in LARP. (Appendix 7) On 10 March 2021, full amount of compensation was paid to the tenant (Figure 6). 42. A meeting conducted by PMU on 23 February, 2021 with a motel-owner who will face non- significant impact by way of temporary disruption during shifting of water and gas supply pipeline to his motel. During the meeting he was introduced to and provided with the Uzbek version of the LARP, the detailed information was provided on the factors that might affect his business during the construction. Also, it was explained to him that the Committee of Roads ensures the contractor will restore the affected utilities and keep monitoring this process during the implementation of the contract. No objection was stated by him to the implementation of this project (Appendix 8).

Figure 5. Proof of payment to the owner and to the tenant of affected structure

Figure 6. Proof of payment to the tenant of affected structure.

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(ii) Status of land allocation: 43. Khokimiyat of Kungrad adopted a resolution on 12 March, 2021 that allocated 0.0613 hectares of land for the construction of a teahouse to the structure owner, thus the land allocation process is fully completed (Appendix 9).

(iii) payments for loss of income 44. Compensation payment was made by Local Khokimiyat’s Budget in accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 12.11.2019 No. 911 "On additional measures to ensure guarantees of property rights of individuals and legal entities and to improve the procedure for withdrawal and compensation of land”.

(iv) Consultation with APs 45. During the 22-25 February 2021, PMU staff did several consultations and meetings with the affected persons (structure-owner, tenant and motel-owner) to obtain their views, concerns and grievances (see Appendix 10), APs were provided with the general information on the project benefits and other construction related information. Also, GRC were discussed and explained as how to file grievances and responsible parties to address project related LARP complains. 46. The Result of the consultations is summarized as follows:

• No grievance regarding to land acquisition and payment of compensation; • There is high expectation of employment opportunities in the construction 5

rest stops with market stalls and 2 multipurpose community complexes are required to build in Jaslik and Karakalpakstan.

b. Corrective Action for LARP Implementation

47. Meanwhile, payment of compensation has been fully performed before commencing the civil constriction works. Despite the fact, the measures are taken for the mitigation if any adverse Involuntary resettlement impacts are observed during the implementation of the project due to civil construction works which will be the results of the regular monitoring of the implementation. The results of the regular monitoring of the implementation of mitigation measures for the project affected people will be ensured fully compliance with the requirements of the Entitlement Matrix of LARP. 48. It is assumed that during the implementation stage of the project’s civil construction works may require additional land for the temporary use which are acquired generally temporary in nature for which negotiated settlement is required with the landowners. If any new settlements or lands affected due to the civil works during the implementation stage for which appropriate actions/ steps will be taken to mitigate the temporary use of land in compliance with the Entitlement matrix of LARP. N. Problems Encountered; Grievances Received & Addressed 49. As of 30 June 2021, no grievances regarding to land acquisition and payment of compensation was received at all. All issues related to payments and compensation were discussed and resolved in the working process with local authorities.

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O. Stakeholders Consultation 50. In line with the ADB SPS 2009, meaningful consultations and timely disclosure have been undertaken in accordance with the consultations and disclosure plan provided in the LARP. During the preparation of the LARP in all 07 consultations/ focus group discussion were conducted in which opinions of the project affected persons and other stakeholders were taken into the account. 51. Stakeholders’ consultations will be continued during the entire civil construction works dealing with the implementation of the project to involve the men and women in the project activities for taking their opinions on any of the positive or adverse impacts on their livelihoods. Moreover, local communities especially project affected persons, those who are living in and around the project area, will be involved in the planning and implementation of the livelihood’s restoration program to be implemented under the project. 52. The LARP has already been updated as necessary, moreover, compensation and rehabilitation assistance has also been disbursed by February 2020. The GRC has been established at PMU level which is placed after project is approved. The GRC will continue to function, for the benefit of the affected persons, during the entire life of the project including the defects liability period. Semi-annual social monitoring reports that cover emerging IR-related issues during project implementation will be prepared and submitted to ADB for review and disclosure. If any unanticipated LAR impacts and risks arise during construction, PMU will promptly ADB, with detailed description of the event and proposed corrective action plan.

P. Labour, Health and Social Protection 53. During the site visits of the project area, Consultant conducted consultations and prepared training in connection to the PAM’s requirements for labor, gender, health, and social protection issues. As a part of monitoring, Consultant defined the main issues with the core labor standards and laws and regulations of Uzbekistan, as well as ADB's health, safety and social protection of the implementing civil works at the construction site- and site-specific plans preparation. Also during the consultations, Consultant explained that the Covid 19 Safety Regulations and Measures should be included in the Health and Safety Plans. The following recommendations included in the Appendix 12 Q. Gender Action Plan 54. The project is classified as Effective Gender Mainstreaming (EGM) and will build two multipurpose community complexes with facilities for livelihood trainings. The community complexes will house the tele medicine facility to facilitate consultations by members of the community with health professionals. This will be coordinated by the local health care professionals in the local government. It will also build 5 rest stops with market stalls for women and separate sanitary facilities. The ITS component will install CCTVs to monitor critical incidents including those involving women, the elderly, children, and persons with disabilities and will submit yearly reports on sex-disaggregated data on road crashes by type of incident and road user as well as on critical incidents. The project will conduct road safety programs, awareness raising programs on sexually transmitted infections (STIs), human trafficking, sexual harassment, exploitation and abuse in the context of travel and safety. The project will ensure compliance with core labor standards.7 55. In line with ADB Effective Gender Mainstreaming ( EGM) , a Gender Action Plan ( GAP) has been prepared and the activities GAP will be monitoring throughout the project cycle in which women will be involved in the project activities.

7 Project Administrative Manual, ADB, August 2020

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R. Grievance Redressal Mechanism

a. Grievance Redressal Committee

56. As mentioned in the PAM, a project specific grievance redress mechanism (GRM) is required to be established by co-opting the country legal requirements to receive and facilitate the resolution of project affected persons’ concerns, complaints and grievances about the social and environmental performance at the project level. The aim of GRM is to provide a time bound and transparent mechanism to voice and resolve social and environmental concerns linked with the project. 57. The project specific GRM is not intended to bypass the government’s own redress process, rather it is intended to address project affected people’s concerns and complaints promptly, making it readily accessible to all segments of affected persons and is scaled to the risks and impacts of the project. Hence, depending on the nature and significance of the grievances or complaints, the GRM will comprise procedures to address grievances at the local level (through the Khokimyat, the Contractor, the Engineer or the PMU). More serious complaints, which cannot be addressed at the local level, will be forwarded to the central level. The affected households and communities will be made aware of the Project grievance redress mechanism they can follow to seek redress, including, if necessary, resort to the courts through the Government’s grievance mechanism. The affected households and communities are free to refer their complaints to the courts at any time during the GRM process. All costs involved in resolving the complaints (meetings, consultations, communication and reporting/information dissemination) will be borne by the Project.8 58. In compliance with the Project Administrative Manual disclosed by ADB in August 2020, Grievance Redressal Committee (GRC) was established at PMU level. The GRC was in place 22-25 February 2021, met with all affected persons, held a consultation among the local community members (9 persons). Announcements were posted in densely populated areas of Karakalpakstan and Jaslyk villages (Appendix 11). GRC provided an opportunity to the affected persons to have their grievances redressed prior to approaching the Court of Law. GRC is aimed to provide a trusted way to voice and resolve concerns linked to the project and to be an effective way of approach to address affected persons concerns without allowing it to escalate resulting in delays in project implementation. 59. The GRC will continue to function, for the benefit of the affected persons, during the entire life of the project including the defects liability period. The response time prescribed for the GRCs would be six weeks. Since the entire resettlement component of the project has to be completed before the construction starts, to resolve the pending grievances, the GRC, at PMU level, will meet at least once every month in the first year of resettlement plan implementation and as and when required thereafter. GRC will review grievances involving eligibility, valuation, resettlement and rehabilitation entitlements, relocation and payment of assistances. 60. First Level GRC: First level GRC will be a single contact point with the jurisdictional Road Engineer, PMU, and the Khokim of Kungrad District. Aggrieved persons can contact either of them and they will be responsible for receiving, hearing and resolving the grievances. 61. Second Level GRC: Second level GRC will be a 3-member committee at PMU, chaired by Project Director, PMU, Safeguards Officer, PMU acting as its member secretary and the Road Engineer, PMU.

8 Project Administrative Manual, ADB, August 2020

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b. Functions of GRC

62. Field Level Complaint Handling System: The Road Engineer, PMU will hear grievances at least once in a month in the respective offices in Kungrad. Petitions received from affected persons or any person, of any concerns or complaints or grievances will be taken up. The PMU will maintain a register of all grievances received with details of date of receipt of the grievance, date of hearing, if any, along with nature of complaint/concern, action taken and date of communication sent to the complainant. Communication, in writing will be sent to the aggrieved person about the date, time and venue of the hearing and make it known that s/he is entitled for a personal hearing. 63. Decision of the PMU will be final unless an appeal is preferred to the 2nd level GRC at PMU. The complaint/concern will be redressed in 6-weeks’ time and written communication will be sent to the complainant about the decision taken. If the complainant is not satisfied with the decision of the PMU, s/he will have the right to approach the court of law.

c. Republic of Uzbekistan’s Complaint Handling System.

64. In addition to the project level grievance redressal mechanism, affected persons can submit their grievances through the Virtual reception of the President of the Republic of Uzbekistan, that contributes to the unquestioning implementation of the constitutional rights of citizens to appeal to the President of the Republic of Uzbekistan. Through this information system, any persons can send their applications, suggestions and complaints to the President of the Republic of Uzbekistan. 65. The online portal provides contact details of the persons of various agencies and state committees and the days and time at which they are available to resolve grievances, with an option of sending the grievance through an email also.9 The portal has provisions for checking the status of the grievance and further appeal if the appellant has been harassed for raising the grievance. 66. The Law of the Republic of Uzbekistan on the Appeals of Individuals and Legal Entities was introduced on 29 October 2014 and this law replaced the earlier law on Appeal of Citizens that was introduced on 13 December 2012. This law guarantees the right to appeal and prescribes the requirements of an appeal, its form and structure. Further, the timeline for addressing the appeal, the procedure for personal hearing, need for maintaining record of appeals and procedure for second appeal are prescribed.

d. Documentation of Grievances. 67. The complaint/grievance will be redressed in 6-weeks’ time and written communication will be sent to the complainant. A complaint register will be maintained both at PMU, with details of complaint lodged, date of personal hearing, action taken and date of communication sent to complainant. Further, all stakeholders will have access to ADB’s Accountability Mechanism, however, they are expected to exhaust the project level grievance mechanism and the republics in build grievance system before writing to the banks complaint resolution mechanism.

9 Republic of Uzbekistan Website. https://pm.gov.uz/ru#/map_app_root

https://pm.gov.uz/ru#/map_app_root

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e. Disclosure 68. This LARP Implementation Compliance Report has been disclosed in the ADB and CR websites along with the gist of the Report translated in Uzbek language.10 Hard copies of the gist of the LARP Implementation Compliance Report in Uzbek language are available at the office of the PMU and distributed to the affected persons. 69. Information will be disseminated to affected persons at various stages. Information including magnitude of loss, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments, displacement schedule, civil works schedule will be disclosed by the PMU with assistance from the Khokimiyat. This will be done through focus group discussions and made available to affected persons as brochures, leaflets, or booklets, etc. in Karakalpak. 70. Hard copies of the LARP Implementation Compliance Report are also available at: (i) the offices of the PMU (CR); and (ii) office of the Khokimiyat; as soon as the plans are available and certainly before initiating land acquisition (withdrawal/redemption) process for the project. Electronic version of the resettlement plan will be placed on the official website of the CR and in Asian Development Bank website. In addition, all safeguard documents including the quarterly progress reports, list of eligible affected persons will be disclosed. The LARP Implementation Compliance Report will be maintained on the website throughout the life of the project.11

S. Resettlement Budget Estimates 71. The budget for this project is based on data and information collected during census and socio-economic surveys conducted in March 2019. The unit rates for structure adjusted due to the agreement between structure owner and the local administration according to the legislation of Uzbekistan. The total budget for Kungrad and Daut-Ata section of A380 is estimated at 385.31 million UZS.

Table 2: Budget Estimate Item Input

Unit Rate Quantity Amount in

UZS Status of

Compensation Compensation Land Cost ha - 313.18sa 71,121,120 In Process Permanent Structures Sq.m - - 259,501,352 Paid R&R Assistance One-time rental assistance to owner

One Time

1,110,000 1 1,110,000 Paid

One time livelihood assistance to commercial tenant

One Time

14,700,000b 1 14,700,000 Paid

Relocation assistance for owner and commercial tenant

One Time

735,000 2 1.470.000 Paid

Provisional sum towards livelihood assistance for

LS

1,225,000c

1

1,225,000

Paid

10 Committer for Roads website. http://www.uzavtoyul.uz/en/ 11 ADB SPS 2009 (Safeguards Requirements 2) does not apply to negotiated settlements. The policy encourages

acquisition of land and other assets through a negotiated settlement wherever possible, based on meaningful consultation with affected persons, including those without title to assets. A negotiated settlement will offer adequate and fair price for land and/or other assets. Also, an independent external party will be engaged to document the negotiation and settlement processes. In cases where the failure of negotiations would result in expropriation through eminent domain or the buyer could acquire the property regardless of its owner’s decision to sell it or not, will trigger ADB’s involuntary resettlement policy. The Safeguard Requirements 2 will apply in such cases, including preparing a resettlement plan.

http://www.uzavtoyul.uz/en/

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Item Input Unit

Rate Quantity Amount in UZS

Status of Compensation

temporary disruption to livelihood Additional assistance to the owner

One time

1,155,000 1 1,155,000 Paid

Administrative Cost Disclosure Expensesd LS - - - Training for PMU Staffe LS - - - Hiring of the independent valuer19

LS - 1 -

Sub total 350 282 472 10 % Contingency 35 028

247.2

Total 385 310 719,2

Total in UZS Million 385.31 a If the land that Khokiyamat has committed to make available for the project to build 2-training centers (at

Jaslik and Karakalpakstan), involves any additional cost, the same will be made available by the project. 15 Per capita basic calculation amounts as of February 2021 is 245 000 UZS and the same for a family of 5 members for 1-year (245 000 x 5 members x 12 months)

b Per capita basic calculation amounts as of February 2021 is 245 000 UZS and the same for a family of 5 members for 1-year (245 000 x 5 members x 12 months)

c Per capita basic calculation amounts for February 2021 is 245 000 UZS and the same for a family of 5 members for 1-month (245 000 x 5 members x 1 months) is provided.

d Provided under project cost e Included in the scope of the supervision consultant f Hiring of the independent valuer will be implemented at the expense of local Khokimiyat and will be read out

at the expense of 10% of contingencies T. CONCLUSION The permanent LAR impacts based on the detailed design were covered by LARP updated and disclosed at ADB website in February 2021. All compensation payments were paid to project affected persons. 72. As a part of the Loan agreement Social safeguard Consultant conducts semiannual monitoring of social and LAR risks during the contraction period. The main objective of the report is monitoring of LAR and social risks and development of mitigation and remedial measures for social and IR impacts, as required. 73. The overall progress resulted by social safeguard monitoring for January –June 2021 are shown in table below.

Indicator Progress Next stage of monitoring LAR Issues (permanent impacts)

Land acquisition Completed Completed Compensation payment for lost structures Completed Completed

Associated compensation payments Completed Completed

Temporary land acquisition In progress Under monitoring Unanticipated LAR impacts Civil works are not started Under monitoring Grievance redress mechanism On-going (functioning

efficiently) All complaints will be under

monitoring Social safeguard monitoring at stage of construction work

Civil works are not started, site specific plans and

ESPMs under the development

Under monitoring and revision

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74. Recommendation for next Social safeguards monitoring and evaluation report:

i. Monitoring the process and progress status on rest/due compensation payments for temporary land acquisition;

ii. Assessment the potential unanticipated LAR impacts; iii. Monitoring the process of site specific plans development; iv. Monitoring and assessment of complaints received upon the project; v. Develop required actions and measures to mitigate any impacts, if required; vi. Regular coordination with the EA / PMU.

24

Appendix 1: Typical Cross Section of the Project Road

Typical cross section applied for new construction

Typical cross section applied on existing earth road fill.

25

Typical cross section applied on existing road

Typical cross section applied on police check post.

26

Typical cross section applied on boarder check post

27

Appendix 2. Report of Independent Valuator

28

29

30

31

32

«Nukus evaluation and consulting» LIMITED LIABILITY COMPANY

« I CONFIRM » «Nukus evaluation and consulting» LLC Director

33

F. S. Kutlimuratova

«02» February 2021

To Sarsenbaeva Bazarkhan EVALUATION REPORT on determining the market price of the building "Chaykhana" with the

cadastral number 23:15:12: 01:01:0059, located at the address: "Karakalpakstan" PFY, Kungrad district

Sequence number and date: 144/02-2021 “02” February 2021 Evaluation date: January 1, 2021

In accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 12.11.2019 No. 911 "On additional measures to ensure guarantees of property rights of individuals and legal entities and to improve the procedure for withdrawal and compensation of land" to receive compensation for the non-performing object. The type of value being detected: Market value Rationale for evaluation: Contract No. 105/02-21 dated February 2, 2021 Customer: Sarsenbaeva Bazarkhan Executor: “Nukus evaluation and consulting” LLC

Nukus - 2021 TABLE OF CONTENTS 1. Evaluation Resume (Follow-up Letter) 2 2. Evaluation task and key facts and conclusions 3 2.1. Basic facts and conclusions 3 2.2. Evaluation task 3 2.3. General information about the customer and evaluation 6

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2.4. Evaluation databases 6 2.4.1. Market value description 6 2.5. Evaluation approaches and methods 7 2.6. Apply evaluation approaches 8 2.6.1. Comparative approach 8 2.6.2. Income approach 9 2.6.3. Cost approach 11 3. Assumptions and limiting conditions adopted in the evaluation process 12 4. Terms and concepts 14 5. Description of the evaluation process 15 6. Measures to be taken in the evaluation of real estate 16 6.1 General rules for real estate evaluation 17 6.2. Collection and analysis of information for evaluation 19 7. Restrictions on the use of the estimated valuation value 20 8. Classification of the object of evaluation and the rights being assessed 21 8.1. A set of documents describing the object of evaluation 21 8.2. Classification of the object of evaluation 22 8.3. Analysis of the market segment belonging to the object of evaluation 22 8.4. Analysis of the most optimal and most efficient use of real estate 31 8.5. Peculiarities of valuation of certain types of real estate 32 9. Evaluation approaches and methods used in real estate evaluation. 33 9.1 Evaluation of real estate with a comparative approach 34 9.1.1. Estimation of real estate evaluation with comparative approach 36 9.2. Valuation of real estate with an income approach. 40 9.3. Valuation of real estate with a cost approach. 46 9.3.1. Calculation of real estate evaluation with cost approach 52 10. Coordinate the results of the evaluation approaches used and determine the final value

of the evaluation object 60 10.1. Conclusion on the final value of the object of evaluation 61 11. A set of information, laws, and legal documents used in the evaluation process 62 12. Applications 62

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"02" February 2021 Citizen: Sarsenbaeva Bazarkhan No. 144/02-21

According to the agreement No.105/02-21, with Citizen Sarsenbaeva Bazarkhan dated February 2, 2021 "On the provision of evaluation services"; Sarsenbaeva Bazarkhan owns the “local café - Chaykhana” building - with a total area of 256.33 sq.m. Located at: PFY «Karakalpakstan», Kungrad district. In accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 12.11.2019 No. 911 "On additional measures to ensure guarantees of property rights of individuals and legal entities and to improve the procedure for the seizure and compensation of land plots» in order to receive compensation for the non-functioning property as of February 2, an evaluation of the situation was carried out.

The evaluation was carried out in accordance with the Law of the Republic of Uzbekistan "On Evaluation Activity", the Unified National Evaluation Standard (UNES), and other laws and regulations, based on the current real estate market conditions at the date of the evaluation process, taking into account special characteristics.

The Real Estate Market Value Report is a subjective opinion of an evaluator based on the qualifications and experience of the evaluator, based on calculations and analysis made at the date of the evaluation in accordance with information from the real estate markets.

The Evaluation Database, calculations, analysis and conclusions are described in the relevant sections of the report, and the Evaluation Report is valid for the purposes specified in it, so that all sections and appendices are interpreted in it as a single document.

The opinions, comments, and results presented in the Evaluation Report are based on the value of the evaluation object in accordance with the resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 12.11.2019. According to Resolution No. 911 "On additional measures to ensure guarantees of property rights - individuals and legal entities and to improve the procedure for the seizure and compensation of land plots", for the demolition of a non-residential building in order to obtain compensation, we declare that you can use the evaluation report sent to you only to achieve the purpose of the evaluation.

According to the opinion of the evaluator, national café - "Chaykhana" belonging to the citizen Sarsenbaeva Bazarkhan located in the territory of Kungrad region, PFY of the city of "Karakalpakstan", with cadastral number 23:15:12:01:01:0059 from 12.11.2019 in accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan from the date of the evaluation of property rights in full- on "ensuring guarantees of property rights of individuals and legal entities, as well as on additional measures to improve the procedure for the seizure of land plots and compensation" According to Resolution No. 911, the market value determined in order to compensate for the considered demolition object, is: 259 501 352, 0 (Two hundred fifty-nine million five hundred one thousand three hundred fifty-two) sum.

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The value determined by the evaluator is advisory in accordance with article-18 of the Law of the Republic of Uzbekistan "On evaluator activities", determines the cost of selling property based on the interests of the owner of the property.

If you have any objections to the content of the Evaluation Report and the calculations it contains, please contact our organization. Thank you for working with us and using our service. Director of the Organization F. S. Kutlimuratova Evaluation Specialist F. S. Kutlimuratova

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Appendix 3: Application of the owner affected structure

To: Khokim of Kungrad region

38

K. Holmuratov From Sersenbaeva Bazarkhon, living in the Kungrad district of the Republic of Karkalpakstan PFY.

Application

Through this application, I would like to declare that my family and I have no objections to the demolition of this “local cafe – Chaykhana”, for public use, located at 1184 km of the “A-380 Guzor- Bukhara-Nukus-Beyneu” highway passing through the territory of Karakalpakstan PFY, of the Kungrad district. Owner of the Property: Sersenbaeva Bazarkhon Passport No.: NKA 0101364

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Appendix 4: Agreement about the allocation of land, demolition of buildings and compensation for the demolition of a building

40

About the allocation of land, demolition of buildings and compensation for the demolition of a building

CONTRACT AGREEMENT

The Kungrad district, Karakalpakstan Street, is located in Kungrad district,

engaging notary in private practice, which approved by side of the D.O. Kudaybergenov. Two thousand twenty-first year on the fifth day of February (05.02.2021).

From our side: Sarsenbaeva Bazarxan, a resident of 301, Kazakh village, Kungrad district, Karakalpakstan PFY (10.01.1962, STIR 473875263, PASSPORT

41

SERIES KA 0101364 Issued by the Department of Internal Affairs of Kungrad district of the Republic of Karakalpakstan on 30.12.2013) subsequently (Hereinafter referred to as the owner of the property in the contract) from one side, Order of the Khokim of the Kungrad district of the Republic of Karakalpakstan No. №3-JK dated January 29, 2021, and Tursunbekov Timur Jamalatdinovich, head of economic affairs of Kungrad district Khokimiyat, acting based on power of attorney No. 01-362 dated February 4, 2021, resident of Tleumuratov street, Kungrad district (hereinafter referred to as the payer of compensation in the contract) on the other hand, the decisions of the President of the Republic of Uzbekistan No. PK-4563 of January 9, 2020, and the Cabinet of Ministers of the Republic of Uzbekistan No. 124 of March 5, 2020, in accordance with A 380 “Guzor-Buhoro-Nukus- Beyneu” As part of the project for the reconstruction of 964-1204 km of the highway with the cement- concrete pavement, 1184 km of the road compensation to the owner of the building, which is planned to be demolished due to obstruction of the road infrastructure, and Articles 353, 354 of the Civil Code of the Republic of Uzbekistan, In accordance with Articles 41 and 86 of the Land Code, we have signed an agreement with the following content:

1. I am a “property owner” with a plot of land belonging to me a local café “Chaykhana” located in the Kungrad district, Karakalpakstan PFY, I gave it to the “compensator”. I “Compensator” demolished the local café “Chaykhana” building on the above-mentioned plot of land that I have undertaken to pay compensation to the "owner".

2. The total land area of the local café “Chaykhana” is 612.56 sq.m., the total area is 123.0 sq.m., useful area 79.56 sq.m. The inventory value is 3494657 (Three million four hundred ninety-four thousand six hundred fifty-seven) Sum and the State Unitary Enterprise of Land Management and Real Estate Cadaster of Kungrad district “Notary” through AAT dated received on February 5, 2021, and confirmed by the electronic reference number №3007773.

3. To the owner of the local café “Chaykhana” building and the land plot by the notary of the State notary office No. 2 of Kungrad district Khujanov Akjolbek Kuandikovich approved on January 14, 2015, and registered under number 1-214 in accordance with the contract of sale, Kungrad District Land Management and Real Estate Cadaster Service by the State Registration Unitary Enterprise Registered on January 14, 2015, with number 1594 and cadastral number 23:15:12:01:01:0059.

4. The amount of evaluation of the building by agreement of the parties ”Nukus evaluation and consulting” According to the LLC’s evaluation report No. 144/02 - 2021 dated February 2, 2021, the 259-501-352 (Two hundred fifty-nine million five hundred one thousand and three hundred fifty-two) Sum indicated in the amount of.

5. Within 10 working days after the signing and approval of the contract, the "compensation payer" transfers the amount of compensation specified in paragraph 4 of the contract to the account of the building "owner" and undertakes to pay the amount and the building "owner" vacate the building and land from the date of receipt of compensation. The deadline for submission was set at 15 days by agreement.

6. Construction materials from the building located on the land plot belonging to the owner are left at the disposal of the "owner".

7. If there are cases of change or termination of the contract, it is documented by a notary. The notaries explained that the parties had the right to go to court if no agreement was reached.

8. The parties were acquainted with the relevant laws of the Republic of Uzbekistan under this agreement.

42

9. Payments for state duties and other legal services for the documentation of this contract were made by the "compensator".

10. The contract is made in the triplicate format, one copy is kept in the notary office, and one copy is given to the "owner", one copy given to the "compensator".

11. The meaning and terms of this agreement have been clarified to us and are consistent with our purpose.

12. In accordance with Article 357 of the Civil Code of the Republic of Uzbekistan, this agreement comes into force from the date of approval and is binding on the parties to perform their obligations.

13. The terms of this agreement are the Civil Code of the Republic of Uzbekistan, land code, ownership and property rights, protection guarantees law, and other regulations – regulated by legal documents. Signatories

Property owner “COMPENSATION PAYER” SARSENBAEVA BAZARXAN Kungrad dstr. Karakalpak PFY, KAZAK Auli, 301-home

KUNGIROT DISTRICT Khokimiyat Kungrad dstr. Garazsizlik street 20-home

Passport: КА 0101364 KР Kungrad PIIB by Issued on 30.12.2013.

T-N: 234020003001000001010

STIR 473875263 STIR: 201039878, MFO 00014 SARSENBAEVA BAZARXAN Tursinbekov Timur Jamalatdinovich

No. 202101969000179 registered with the registry number. 245 000 (Two hundred and forty-five thousand) Sum a state duty was charged. 98 000 (ninety-eight thousand) Sum was charged for paid legal and technical services. Notary D.O. Kudaybergenov

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Appendix 5: Structure owner’s Notice

44

45

To: Khokim of Kungrad district Q.Khalmuratov Kungrad district, A resident of Karakalpakstan PFY Kazak village, house 301 From: Sarsenbaeva Bazarxan

Letter of Notify The fact that my building Chaykhana, located at 1184 km of the highway «A-

380 Guzar-Bukhara-Nukus-Buyneu», passing through the territory of Karakalpakstan PFY, Kungrad district, is being removed for state needs, the legal consequences of this seizure, my rights, and obligations in this case, in particular, my rights to the payment of compensation and the allocation of land were explained by the Kungrad district Khokimiyat administration.

I understand all my rights and obligations and declare that I have no objection to the demolition of the Chaykhana building belonging to me if compensation payments are made. The Chaykhana building was valued at 259,501,352 (two hundred and fifty-nine million five hundred one thousand three hundred and fifty-two) sums by an independent evaluation organization, and I have no objection to this price.

If this amount is provided by the khokimiyat, I have voluntarily entered into a notarized agreement with the district khokimiyat to vacate the building and have no objection to its demolition. According to the contract, the building materials leftover from the demolition of the building will also remain with me. No one exerted any mental or physical pressure on me when I signed this contract.

I received the above-mentioned 259,501,352 (two hundred and fifty-nine million five hundred one thousand three hundred and fifty-two) sums in compensation on February 22, 2021. The amount of this compensation includes all costs associated with the Chaykhana building, i.e. the cost of the building, relocation costs, and lost profits. As of 2020, individuals and legal entities on a rent basis have not used the Chaykhana building. The previous renter, Khudaibergenova Anar, signed a contract on April 7, 2018, and left the building in 2019 without fulfilling the terms of the contract. I agree to the compensation payments made to me and state that I have no other objections. I wrote this statement with my own hand and word. February 22, 2021. ---------Signature Sarsenbaeva B.

46

Appendix 6: Letter of statement of the owner about receiving the compensation.

47

48

To: Hokim of Kungrad district Q.Khalmuratov From: Sarsenbaeva Bazarkhan, resident of Kungrad district, Karakalpakstan PFY

Letter of Statement

My Chaykhana teahouse, located at 1184 km of the highway A-380 Guzar-Bukhara- Nukus-Buyneu, passing through the territory of Karakalpakstan PFY, Kungrad district, is being confiscated for state needs, the legal consequences of this seizure, my rights and obligations in this case; in particular, my rights to compensation were explained by the Kungrad district administration.

The teahouse building was valued at 259,501,352 (two hundred and fifty-nine million five hundred one thousand three hundred and fifty-two) sums by an independent evaluation organization, and I have no objection to this price.

I received the above-mentioned 259,501,352 (two hundred and fifty-nine million five hundred one thousand three hundred and fifty-two) sums in full compensation on February 22, 2021.

In addition, all expenses related to the teahouse, 735 000 (seven hundred thirty-five thousand) sums for relocation expenses, 1 110 000 (one million one hundred ten thousand) sums for one-time rent and 1 155 000 (one million one hundred and fifty-five thousand) sums for other types of compensation payments, a total of 3,000,000 (three million) sums in cash was paid on March 12, 2021 by the Kungrad district administration.

By the decision of the khokim of Kungrad district No. 9279/3 dated March 12, 2021, 0.0613 hectares of land were allocated for the construction of the Teahouse (Chaykhana).

I agree with the compensation payments and the land allotted for the construction of the Teahouse, and I have no other objections.

No one has put any mental or physical pressure on me. I wrote this statement with my own hand and word. March 12, 2021 -----------Signed Sarsenbaeva B.

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Appendix 7: Contract agreement of the tenant

50

In compensation for the inconvenience caused to the demolition of the building

51

CONTRACT AGREEMENT The Republic of Uzbekistan, Republic of Karakalpakstan, Kungrad district.

Two thousand twenty-first year on the sixth day of March (06.03.2021) Republic of Karakalpakstan, Kungrad district, K. Nurmuhammedov Street, Notarized by a private Notary A.U. Yusupov. We are parties: "Bir Oyna" service, providing public services to businesses in Kungrad district of the Republic of Karakalpakstan March 1, 2017, sole proprietor registered under No. 133, A resident of the Republic of Karakalpakstan, Nukus, Amudarya Street, 37, KUDAYBERGENOVA ANAR DURISBERGEN KIZI (born in 05.03.1998, STIR 562077626, passport serial KA 0489030, the Republic of Karakalpakstan by Kungrad RIIB given on 09.03.2015) in the future (hereinafter referred to as the COMPENSATION RECEIVER in the contract) from one side, Republic of Karakalpakstan, by Kungrad district khokim side 2021, 29 January No.3-JK Decree and 2021, March 6 №01-800 based on a power of attorney TURSINBEKOV TIMUR JAMALATDINOVICH, acting head of Kungrad district of khokimiyat (henceforth referred to in the contract as the “COMPENSATION PAYER”) on the other hand, the President of the Republic of Uzbekistan dated January 9, 2020, No. PK-4563, Based on the laws of the Cabinet of Ministers of the Republic of Uzbekistan dated March 5, 2020, of A380 Guzar-Bukhara-Nukus-Beyneu of the highway of 964-1204 km section of reconstruction with cement concrete pavement within the project on the 1184 km section of this road located non-residential building due to obstruction of road infrastructure to pay compensation to the renter of the building where the demolition is planned and Articles 353, 354 of the Civil Code of the Republic of Uzbekistan, Based on Articles 41 vs 86 of the Land Code, we have concluded an agreement with the following content:

1. Me “COMPENSATION RECEIVER” The teahouse building belonging to SARSENBAEVA BAZARKHAN According to the lease agreement dated 17.04.2018 for 36 months, each month 370,000 sums for a total of 13,320,000 sums for temporary use by adding a plot of a land rented building given to the “COMPENSATION PAYER”. Me “COMPENSATION PAYER” above- mentioned plot of land demolishing the teahouse building to “COMPENSATION RECEIVER” I undertook to pay compensation.

2. The total area of the teahouse building is 612, 56 sq.m. Total area 123.0 sq.m. Useful area 79.56 sq.m. The inventory price of the building is 3 494 657 sums.

3. The Given teahouse building and land plot belong to SARSENBAEVA BAZARKHAN according to the contract of sale dated January 14, 2015.

4. By agreement of the parties “land acquisition and resettlement plan” The following compensation payments will be made as specified (According to clause 129):

- One-time living help to the tenant - 14.7 million sums - Tenant moving expenses – 735 000 sums - Compensation for the temporary suspension of the tenant's living income -

1,225,000 sums, a total of 16,660,000 sums. 5. Compensation amounts specified in Clause 4 of the Agreement “COMPENSATION

PAYER” Within 10 working days after the signing and approval of the contract, the bank undertakes to transfer the payment to the account of the «COMPENSATION RECEIVER " and vacate the building and land within 15 days after receiving the "compensation".

6. If there are circumstances to change or to add to the contract, it is will be re-registered by a notary. It was explained by the Notary that the parties have the right to appeal to the court if they do not reach an agreement.

7. The parties were explained with the relevant laws of the Republic of Uzbekistan

52

under this agreement. 8. Payments for state duties and other legal services for the execution of this contract shall

be made by the "COMPENSATOR PAYER". 9. The contract was made in “3” copies and given to the parties. 10. The terms and conditions of this Contract Agreement have been clarified to us, and are

consistent with our purpose. 11. Following Article 357 of the Civil Code of the Republic of Uzbekistan, this agreement

shall enter into force on the date of its approval. 12. The terms of this Agreement are regulated by the Civil Code of the Republic of

Uzbekistan, the Land Code, and other normative legal acts. SIGNERS

“COMPENSATION RECEIVER” “COMPENSATION PAYER” UDAYBERGENOVA ANAR DURISBERGEN KIZI”

KUNGRAD DISTRICT KHOKIMIYAT, Kungrad district, 20 Garezsizdik street

(05.03.1998, STIR 562077626, passport

serial KA 0489030, Karakalpakstan Republic, from the side of Kungrad

RIIB, given in 09.03.2015

Checking account

234020003001000001010

STIR 562077626 STIR 20103987, MFO 00014 ) KUDAYBERGENOVA ANAR DURISBERGEN KIZI

ed) TURSINBEKOV TIMUR JAMALATDINOVICH

A notary A.U. Yusupov approved this agreement on March 6, 2021, who is engaged

in private practice in Kungrad district, located on K. Nurmuhammedov Street, Kungrad district of the Republic of Karakalpakstan, following the current regulations.

The parties met, were acquainted with the content of the Agreement, and signed the agreement. The identities of the signers have been identified, from which the ability to deal was checked, when they were interviewed, they were not suspected of incompetence and (protests) did not arise. There is no relevant information about the incompetence and mental weakness of the parties at the time of this notarial act. No. 202101969000 Registered with Register No. 877. 245,000 sums of state duty were collected. A service fee of 171,500 sums collected for legal and technical services. NOTARY (SIGNATURE) A. U. YUSUPOV (STAMP)

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Appendix 8: Letter of notify of the motel-owner.

From Head of “Alyan” farm Alyanov Bauetdiyn

Letter of Notify On February 23, 2021, I was introduced to the Uzbek version and provided with a copy of the land acquisition and resettlement plan document (LARP) by the PMU staff of the Project Highway reconstruction A-380 Kungrad - Daut-Ata. The detailed information was provided to me on the factors that might affect my own business during the construction. The questions and problems that might occur during the project implementation explained to apply the application. I have no objection to the implementation of this project.

Alyanov Bauetdiyn (signature)

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Appendix 9: Resolution of Khokim of Kengrad District

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No. 279/3 March 12, 2021

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To: Sarsenbaeva Bazarkhan, a resident of Kungrad district, Karakalpakstan Township living

in a citizen’s assembly about the allocation of land for the construction of Chaykhana "Teahouse" based on the right of lifelong use

Articles 6 and 23 of the Land Code of the Republic of Uzbekistan, Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated January 28, 2019, No. 63 "On allocation of land plots for state and public needs", Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated November 16, 2019, Resolution No. 911, considering the report of the Architectural and Urban Planning Council under the Ministry of Construction of the Republic of Karakalpakstan and the conclusion of the commission on land allocation,

I VERDICT I. To accept for reference the report of the Architectural and Urban Planning Council

under the Ministry of Construction of the Republic of Karakalpakstan and the conclusions of the commission on land allocation.

II. To allocate 0.0613 hectares of land for the construction of a teahouse to Sarsenbaeva Bazarkhan, a resident of Kungrad district, Karakalpakstan, based on the right of lifelong use.

III. To the Citizen Sarsenbaeva Bazarkhan; Preparation of architectural and planning assignments (APT-1, APT-2) project and other relevant documents for the design of construction works in accordance with the regulations specified in the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated May 18, 2018 No 370: To oblige to pay payments for land allocation works based on appendix 2, chapter 2, and paragraphs 8, 12 of the resolution of the Cabinet of Ministers of the Republic of Uzbekistan from January 28, 2019, of No. 63: Do not use this land for any purpose other than that specified in the field Strict observance of landscaping, sanitary-hygienic, ecological requirements, and fire safety rules during any construction and repair works Based on this decision to assign the task of timely completion of construction work of the building within 2 years from the date of allotment of the state registration of the land plot.

IV. In accordance with Article 36 of the Land Code of the Republic of Uzbekistan in case of non-fulfillment of the above conditions and untimely commissioning of the object to determine the return of land to the land fund of the khokimiyat and termination of the right to land.

V. To entrust the district construction department (G. Ibraimov) with state control over compliance with the norms and rules of urban planning established at the construction site, as well as other legislation on urban planning.

VI. To instruct the Kungrad district branch of the State Enterprise of Land Management and Real Estate Cadaster of the Republic of Karakalpakstan (T.Allanov) to carry out the state registration of the land allocated following this resolution.

VII. To assign the control of execution of this resolution to the deputy Khokim of the district A.Kosymbetov.

Hokim of Kungrad district (stamp) (signed) Q Xolmuratov

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Appendix 10: Consultations with APs and local community

SL. No Name Date Photo 1 Structure owner

Bazarkhan Sarsenbaeva 23.02.2021

2 Hostel owner Bauvidin

Alyanov 22.02.2021

3 Former tenant Anar

Kudaybergenova 22.02.2021

4 Community of

the village “Karakalpakstan”

22.02.2021

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Appendix 11: GRC-introducing activities.

GRC meeting in Karakalpakstan village (22.02.2021)

GRC meeting with hostel-owner (22.02.2021)

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GRC meeting with Head of Jaslyk village (22.02.2021)

Announcements of GRC posted in densely populated areas.

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Appendix 12 COVID 19 Safety Regulations and Measures

1. To prevent the spread of COVID-19 in the Republic of Uzbekistan, Decree of the President of the Republic of Uzbekistan No. 5969 "On Priority Measures to Mitigate the Negative Impact of the Coronavirus Pandemic and Global Crisis on the Economy" ("UP-5969") dated March 19, 2020 and the Resolution of the Cabinet Ministers of the Republic of Uzbekistan No. 176 "On additional measures against the spread of coronavirus infection" ("PKM-176") dated March 23, 2020 were adopted. 2. Following safety regulations according to WHO recommendations and Uzbek legislation during the execution of the any activity must be respected by all Parties and Stakeholders. All regulations must be observed and implemented in practice every day. The following directions must be followed by all stakeholders as precaution to COVID-19 at the present time to reduce risks during the corona epidemic:

• No handshake • Non-essential physical work that requires close contact between workers should not

be carried out • Work requiring physical contact should not be carried out • Plan all other work to minimize contact between workers • Wash hands often (every 1-2 hrs or frequently as possible) with soap for at least 20

seconds • Use hand sanitizer • No person should enter the work site other than the authorized persons mentioned

by supervisor during start of work • Using of mouth and nose protection (mask – as much as practicable) • All must implement social distancing by maintaining a minimum distance of 1.5-2m

from others at all times to eliminate the potential of cross contamination. • Organize the work processes so that the hygienic distance of 1.5 m is safely

maintained. • If this is not possible, form permanent teams and avoid staff changes in the teams if

possible. Keep the number of team members as low as possible • In the event of unavoidable contact with other people or if the protective distances

cannot be maintained (<1.5 m), employees should be provided with mouth and nose protection or full visor when working outdoors and worn by them,

• Mouth-nose protection or breathing masks class FFP 1 when working in closed rooms;

• Class FFP 2 respirators or motor-assisted respirators when working in confined spaces.

• Avoid face to face meetings – critical situations requiring in-person discussion must follow social distancing i.e., 1.5-2m from others.

• Conduct all meetings via conference calls, if possible. Do not convene meetings of more than 10 people. Recommend use of cell phones, texting, web meeting sites and conference calls for project discussion

• All individual work group meetings/ talks should follow social distancing • At each job briefing /toolbox talk, employees are asked if they are experiencing any

symptoms, and are sent home if they are • Each worksite should have laminated COVID-19 safety guidelines and hand washing

instructions • All restroom /toilet facilities should be cleaned (min twice a day), and hand washing

facility must be provided with soap, hand sanitizer and paper towels • All surfaces should be regularly cleaned, including mobiles, table tops /surfaces, door

handles, laptops, records, etc.

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• All common areas and meeting areas are to be regularly cleaned (min twice a day) and disinfected at least twice a day

• Regular cleaning of the interior of the buildings, construction site and company vehicles must be properly organized.

• To avoid external contamination, it is recommended everyone bring food from home • Please maintain Social Distancing separation during breaks and lunch. • Cover coughing or sneezing with a tissue, then throw the tissue in the trash and wash

hands, if no tissue is available then cough /sneeze into your upper sleeves or elbow. Do not cough or sneeze into your hands.

• Clean your hands after coughing or sneezing thoroughly by using soap and water (minimum for 20 seconds). If soap and water are not available, please use a hand sanitizer. The Contractor shall ensure adequate quantities of sanitizer and soap are made available at all locations including site offices, meeting rooms, corridors, washrooms /toilets, etc. as appropriate.

• Avoid touching eyes, nose, and mouth with your hands. • To avoid sharing germs, please clean up after yourself. DO NOT make others

responsible for moving, unpacking and packing up your personal belongings • If you or a family member is feeling ill, stay home! • Work schedules are adjusted to provide time for proper cleaning and disinfecting as

required. • The employer is responsible for implementing the necessary protective measures

against the transmission and spread of the corona virus. • The aim is to prevent infections. • The protection of risk groups among the employees has Priority. • Further activities • Name contact persons in the company for the employees on the subject of corona. • The employees on personal and organizational hygiene rules (including distance

requirement, “cough and • Instructions on sneezing”, hand hygiene, mouth-nose protection, personal protective

equipment). • Explain protective measures to the employees and make them understandable with

instructions (e.g. through • Information signs, notices, floor markings etc.). • Document the instruction in writing and have it confirmed in writing by the employee. • In infection contingency plans, regulate how to deal with suspected cases of COVID-

19 diseases. Activities if necessary:

• In particular, fever, cough and shortness of breath can be signs of infection with the coronavirus.

• If a disease is suspected in the company, a contactless fever measurement can be carried out.

• Ask people with these symptoms to leave the company premises / construction site immediately.

• You should immediately call a doctor or the doctor for clarification • Contact the health department. • Determine how those diagnosed with confirmed infections are identified and informed

about those who are diagnosed with • There is also a risk of infection from contact with the infected person. This also

includes suppliers and others • Observe trades according to the construction site regulation.

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