1

Millennium Challenge Corporation

USA

Millennium Challenge Account Moldova

Republic of Moldova

Service Contract PP2A1/THVAP/CS/QCBS/07

DDRAP - DETAILED DESIGN and RESETTLEMENT ACTION PLAN

with options for

RAP IMPLEMENTATION AND CONSTRUCTION SUPERVISION

for the

CENTRALIZED IRRIGATION SYSTEMS REHABILITATION ACTIVITY

SITE SPECIFIC RESETTLEMENT ACTION PLAN

CIS 11-7 LOPATNA

issue pre-

clearance comments approval

Dec 15, 2012

section type issue

8 R 3 Dec 15, 2012

Joint Venture

Agriconsulting Europe, BRL Ingénierie, SWS Consulting Engineering and HYDEA

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TABLE OF CONTENT

LIST OF TABLES ...................................................................................................................... 3

LIST OF FIGURES .................................................................................................................... 4

ANNEXES ................................................................................................................................. 4

LIST OF ABBREVIATIONS ..................................................................................................... 5

1. PROJECT OVERVIEW .................................................................................................. 6

1.1. CISRA overview ...................................................................................................................... 6

1.2. CIS Lopatna project overview ................................................................................................ 6

2. POTENTIAL RESETTLEMENT IMPACTS .................................................................. 8

2.1. Project area of impact ........................................................................................................... 8

2.2. Mechanism to minimize resettlement .................................................................................. 8

2.3. Categories of resettlement impacts ...................................................................................... 9

3. RESETTLEMENT ACTION PLAN OBJECTIVES ........................................................ 9

4. CENSUS AND SOCIO-ECONOMIC SURVEY ............................................................. 9

4.1. Objectives .............................................................................................................................. 9

4.2. Methodologies and tools .................................................................................................... 10

4.3. Categories of PAPs............................................................................................................... 11

4.4. Basic characteristic of project affected persons ................................................................. 12

4.5. Affected agricultural plots ................................................................................................... 16

4.6. Mitigation of resettlement impacts .................................................................................... 18

4.7. Magnitude of expected loss ................................................................................................ 19

5. LEGAL FRAMEWORK ............................................................................................... 20

5.1. Resettlement overview ....................................................................................................... 20

5.2. Legal framework for expropriation ..................................................................................... 20

5.3. Expropriation for public benefit scenario applicable to rehabilitation of CIS ..................... 22

5.4. Comparison between national legislation and WB OP 4.12 ............................................... 22

5.5. Real estate valuation process in Moldova .......................................................................... 23

5.6. Replacement cost ................................................................................................................ 23

5.7. Normative price of land ...................................................................................................... 24

6. INSTITUTIONAL FRAMEWORK ............................................................................... 24

6.1. Central governmental institutions ...................................................................................... 24

6.2. Local governmental institutions .......................................................................................... 25

6.3. Newly establishing committees .......................................................................................... 26

6.4. Private entities .................................................................................................................... 26

6.5. Roles and responsibilities .................................................................................................... 26

6.6. Approach for involving GoM authorities in RAP implementation ...................................... 29

7. COMPENSATION FRAMEWORK .............................................................................. 29

7.1. Eligibility and rights ............................................................................................................. 29

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7.2. Cut-off date ......................................................................................................................... 29

7.3. Valuation of affected assets ................................................................................................ 29

7.4. Compensation for affected assets....................................................................................... 31

8. PUBLIC CONSULTATIONS AND PARTICIPATION ................................................ 32

8.1. Objectives of community involvement ............................................................................... 32

8.2. Project stakeholders ............................................................................................................ 33

8.3. Public consultation strategy ................................................................................................ 33

8.4. Public consultation process ................................................................................................. 34

8.5. Consultation of absentee PAPs ........................................................................................... 35

8.6. Agreements ......................................................................................................................... 35

9. GRIEVANCE MECHANISM ....................................................................................... 36

9.1. Establishment of grievance redress committees ................................................................ 36

9.2. Terms of grievance redress ................................................................................................. 36

9.3. Grievance redress capacity building.................................................................................... 37

10. IMPLEMENTATION SCHEDULE .............................................................................. 37

10.1. Implementation schedule ............................................................................................... 37

11. MONITORING RAP IMPLEMENTATION ................................................................. 40

11.1. Goal and specific objectives ............................................................................................ 40

11.2. Monitoring indicators ...................................................................................................... 40

11.3. Monitoring framework .................................................................................................... 41

11.4. Management and implementation plan ......................................................................... 43

LIST OF TABLES

Table 1. Share of land users disaggregated by farm size

Table 2. Break-down of the land areas by farm size

Table 3. Number of affected persons and land plots disaggregated by categories and location

Table 4. Number of affected individuals by expression of interest, membership and participation

in the project

Table 5. Number of affected plots, total area and affected area disaggregated by categories of

PAPs

Table 6. Number of affected plots, total and affected areas disaggregated by categories of

individuals

Table 7. Number of affected plots, their total and affected area

Table 8. Magnitude of expected loss

Table 9. Roles and responsibilities in RAP implementation

Table 10. Estimated affected area disaggregated by affected annual crop varieties

Table 11. Number of affected trees disaggregated by affected fruit tree varieties

Table 12. Breakdown of the compensation calculations for lost annual crops and loss of access to

land

Table 13. RAP implementation budget breakdown

Table 14. RAP implementation schedule

Table 15. Monitoring indicators

Table 16. Internal monitoring framework

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LIST OF FIGURES

Figure 1. Location of CIS Lopatna

Figure 2. Land tenure structure (plots)

Figure 3. Fraction of time allocated for different types of activities

Figure 4. Average fraction of time allocated for different activities per affected family

members

Figure 5. Distribution of affected individuals by source of information

Figure 6. Distribution of affected individuals by type of impact

Figure 7. Distribution of affected individuals by number of affected land plots

Figure 8. Distribution of plots by estimated affected area

Figure 9. Distribution of plots by share of estimated affected area

ANNEXES

Annex 1. CIS Lopatna design drawings

Annex 2. Map of resettlement area of impact

Annex 3. Census and socioeconomic survey questionnaires

Annex 4. Distribution of affected individuals by satisfactory compensation value

Annex 5. List of individuals and companies that refused to participate in the project

Annex 6. National legal framework which have a relevance to land acquisition and resettlement

Annex 7. Description of temporary land expropriation for public benefit scenario applicable to

CIS rehabilitation

Annex 8. Divergences between Moldovan Legislation and the World Bank Operational Policy

4.12 on involuntary resettlement

Annex 9. Measures to be taken to implement resettlement in compliance with the provisions of

World Bank Operational Policy 4.12

Annex 10. Entitlement matrix

Annex 11. Breakdown of calculations of plantation recovery costs

Annex 12. Breakdown of calculations of compensations for loss of perennial plantations

Annex 13. Breakdown of compensations by PAPs, land plots and lost crops

Annex 14. Measures to prevent unjustified claims from the affected persons during the RAP

implementation

Annex 15. RAP Informational leaflet

Annex 16. List of participants at the FGD meeting in CIS Lopatna

Annex 17. Focus Group Discussion agenda

Annex 18. Identification and compensation payment to the absentee PAP

Annex 19. Power of Attorney template

Annex 20. Agreement between the PAPs and MCA

Annex 21. Instructions for RAP grievance redress mechanism

Annex 22. Grievance redress mechanism

Annex 23. RAP complexity areas

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LIST OF ABBREVIATIONS

AM Agency "Apele Moldovei"

CIS Centralized Irrigation System

DCC District Coordination Committee on resettlement and land acquisition

FGD Focus Group Discussions

GRM Government of the Republic of Moldova

ISRA Irrigation Sector Reform Activity

HH Household

LPA Local Public Administration

MCA Millennium Challenge Account

MDL Moldovan currency

NGO Nongovernmental organization

OP 4.12 Operational Policy 4.12 on involuntary resettlement

PAP Project affected person

RAP Resettlement Action Plan

RAPI Resettlement Action Plan Implementer

RLC Resettlement Local Committee

SLC Secretary of Local Council

SRC Secretary of Rayon Council

THVA Transition to High Value Agriculture

ToR Terms of Reference

WB World Bank

6

Harmațca

Țibuleuca

Susleni

Bul_ie_ti

Lopatna

Jora

de Sus

Jora deMijloc

Jora de Jos

Vîșcăuți

M_rze_ti

M_rzaci

Mihailovca

CIS Jora de Jos

CIS Lopatna

Localități / Cities_towns_villages

Hotarele administrative

r. Nistru

Localizare / Location

Legendă / Legend

Schema de localizare a CIS 11-7 Lopatna și 11-6 Jora de JosLocation scheme of CIS 11-7 Lopatna and 11-6 Jora de Jos

Chisinau

Cahul

Bender

Nistru

Nis tru

Balti

12-3 Cosnita

11-7 Lopatna

3-6 Grozesti

5-4 Leova Sud

14-13 Roscani

14-2 Criuleni

3-2 Blindesti

14-11 Puhaceni

11-6 Jora de Jos

6-9 Masivul Cahul

6-6 Chircani-Zirnesti

RO

MA

NI A

UC

RA

I NA

1. PROJECT OVERVIEW

1.1. CISRA overview

The Centralized Irrigation System Rehabilitation Activity (CISRA) is a component of the

Transition to High-Value Agriculture (THVA) Project, a Compact project financed by

Millennium Challenge Corporation (MCC) and implemented by Millennium Challenge Account

(MCA).

The main objective of CISRA is increase access to safe and reliable water supply by

rehabilitating up to 11 Centralized Irrigation Systems located on Nistru and Prut rivers. The

following CISs were selected for full rehabilitation: Group1 - Jora de Jos (11-6), Lopatna (11-

7), Criuleni (14-2); Group 2 - Blindesti (3-2), Grozesti (3-6); Group 3 - Cosnita (12-3),

Puhaceni (14-11), Roscani (14-13); Group 4 - Leova Sud (5-4), Chircani-Zirnesti (6-6), Masivul

Cahul (6-9).

1.2. CIS Lopatna project overview

The main objective of the project is to increase access of land users within the command area of

CIS Lopatna to safe and reliable water supply by fully rehabilitating the irrigation system.

Full system rehabilitation implies replacement of pumps and repair of pumping station buildings

as well as installing new primary, secondary and tertiary distribution network. While the whole

rehabilitation process may last up to two years, the installation of new pipelines would be

completed within a year.

CIS characteristics

CIS Lopatna is located in the central-eastern part of the Republic of Moldova (in the district of

Orhei). The total command area of the system is 506 ha of agricultural land plots located within

the administrative area of Jora de Mijloc commune that administers four villages: Jora de Jos,

Jora de Mijloc, Jora de Sus and Lopatna. Some agricultural land plots located in these villages

are served by CIS Jora de Jos which is located very close to CIS Lopatna. The location of these

two systems is presented below in Figure 1.

Figure 1. Location of CIS Lopatna

The system was completed in 1974 and has not

been rehabilitated since then. Although the pipe

network is in fairly good condition, there are

hydrants and valves that are not functioning or are

damaged beyond repair. The pumping station,

SPP, is currently functional and provides water to

the basin at SP. Irrigation is gravity-fed. Pump

station SP is in a state of ruin and beyond repair.

The irrigation method is sprinkler irrigation using a

number of 32-sprinkler equipment type hose and

reel “DS” and “Sigma” and fixed type sprinkler

equipment “DDN 70.

This CIS derives water from the Nistru River. The

system includes one pump station: SPP. Total

pipeline network is approximately 26.5 km

comprising 4.2 km of primary pipes, about 6.1 km

of secondary pipes and about 16.1 km of tertiary

pipes. Total number of hydrants is 342 units and

there are 29 manholes, 37 air release valves and about 48 washouts. Pipe diameters ranges from

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150 mm to 600 mm. Pipe material is steel, asbestos–cement, reinforced precast concrete or

RTNS (reinforced precast concrete with a thin core steel pipe). A set of drawings showing the

proposed technical design of the system can be found in Annex 1.

Project beneficiaries

The rehabilitation of CIS 11-6 Lopatna will serve 539 land users1 who cultivate on agricultural

plots in CIS command area and who will be able to benefit from irrigation water. Land users are

known to include land owners, renters and leasers. About 66% of the plots are cultivated by the

land owners while 34% of plots are cultivated on a rental basis. Most rented plots have based

on verbal agreements and not on official legal documentation. Verbal agreements to rent from

relatives are common. The structure of land use rights in the CIS area is shown in Figure 2 .

Figure 2. Land tenure structure (plots)

Within the CIS command area, almost all land users (about 99%) are small farmers who cultivate

less than 5 ha. Among them, almost three quarters are very small farmers cultivating less than 1

ha of agricultural land. The number of medium and large land users (with plot areas more than

10 ha) is small and accounts for about 1.1%. The share of land users disaggregated by farm size

is provided in Table 1.

Table 1. Number of land users disaggregated by farm size

<=1 ha 1.01-5 ha 5.01-10 ha 10.01-50 ha >50 ha TOTAL

77,7% 28,2% 0,9% 0,2% 0% 100 %

More than half of the CIS command area is cultivated by a quarter of small farmers (with farm

size ranging between 1 and 5 ha), with slightly more than one third of command area being

cultivated by very small farmers. In comparison, a few medium and large land users in the CIS

command area cultivate about 11% of land (see Table 2 bellow).

Table 2. Breakdown of land areas by farm size

<=1 ha 1.01-5 ha 5.01-10 ha 10.01-50 ha >50 ha TOTAL

37% 51% 7% 4% 0% 100 %

The number of land owners in the CIS command area in August 2011 was more than 9252, The

pool of potential beneficiaries may increase with time.

1 Irrigation Sector Reform Activity: Deliverable no 5- Expression of interest, Land users inventory, August 2011

2 Irrigation Sector Reform Activity: Deliverable no 5- Expression of interest, Land users inventory, August 2011

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Project positive impacts

The rehabilitation of CIS Lopatna will have sustainable positive impacts on crop production and

incomes. Along with ISRA component responsible for WUA establishment, strengthening and

CIS management transfer, the rehabilitation of CIS Lopatna will result in increased access of

land users to safe and reliable irrigation water supply. The access to and application of irrigation

water will facilitate increased crop productivity and quality and/or adoption of HVA crops which

will in turn result in increased sales, agricultural incomes and wages paid to agricultural labor.

Along with other Compact Program components, CISRA will ultimately contribute to rural

poverty reduction in Moldova.

2. POTENTIAL RESETTLEMENT IMPACTS

2.1. Project area of impact

Given the fact that the whole distribution network is located (buried) on private agricultural

plots, the rehabilitation works as such will negatively affect certain land users who cultivate

crops in the project area of impact. Based on ToR’s provisions . 20-m width easements has been

designed along the primary, secondary and tertiary pipelines. In case where the established

easement is not sufficient to ensure sufficient access of workers and machinery to the

construction site, the easement area will be enlarged.

To determine the impact area no field measurements were made; the methodology was based on

the use of GIS tools and available spatial information (aerial images, cadastral plans, maps of

irrigation infrastructure, topographic survey, etc.)3. In addition, field visits were made to conduct

inventory of all affected land plots along the pipelines. The map showing the project area of

impact is presented in Annex 2.

2.2. Mechanism to minimize resettlement

The project seeks to minimize resettlement and negative impacts in line with the WB OP 4.12

guidelines. It will explore all possible alternatives of project design, including pipeline

replacement alongside roads and land plots by the designers and RAP experts. It has been

applied especially for affected land plots cultivated by PAPs who disagree to participate in the

project as well as to the affected perennial plantations which represent the greatest expected loss

produced by the rehabilitation works.

The mechanism envisaged several steps as follows:

1. Preparation of CIS draft design (with new pipe alignment that was changed with 3 and 5

meters away from the old one);

2. Determination of the area of impact and identification of affected land plots (by applying

established easement parameters required for construction works);

3. Preliminary identification of affected crops by means of PAP census;

4. Verification, inventory and valuation of identified affected crops (by conducting site

visits);

5. Design of digital map showing the crop patterns within the area of impact and location of

affected land plots cultivated by PAPs who disagree to participate in the project;

6. Visual analysis of the map and examination of all possible alternatives of project design;

7. Verification, inventory and valuation of new affected land plots and cultivated crops in

case project design alternatives were found;

8. Analysis and comparison between project design alternatives and selecting the one that

minimizes resettlement to the greatest extent.

3 Field visits were made for valuation of perennial plantations and other affected assets

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2.3. Categories of resettlement impacts

The rehabilitation of CIS Lopatna will generate the following short-term negative socio-

economic impacts:

1. Loss of annual crops

2. Loss of perennial plantations

3. Temporary loss of access to land (unused land plots)

Loss of annual crops and perennial plantations, as well as temporary loss of access to land (in

case of unused plots) are the major impacts generated by CIS rehabilitation. Therefore, the

project will give rise to temporary economic displacement of the affected land users manifested

by temporary loss of income flows or means of livelihood because of obstructed access to the

land under construction works.

CIS rehabilitation will most likely not affect agricultural labor seasonally employed by the

affected commercial due to the following reasons:

1. the share of current anticipated affected area of impact is minor in relation to the total farm

area located within (and outside) the command area that may result in insignificant changes

in the demand for seasonal labor;

2. once the construction works and RAP implementation will be carried out in phases (by

sector and at different points of time), the allocation of human resources could be

temporarily changed by redirecting the labor force to other non-affected land plots;

3. the construction contractor will be looking to hire unskilled labor for numerous positions.

MCA-Moldova will ask that local labor be given a priority in filling those positions.

3. RESETTLEMENT ACTION PLAN OBJECTIVES

The main objective of the RAP is sustainable restoration or enhancing of affected persons’ pre-

project income level and living standards in conformity with objectives of World Bank policy

and best international practices regarding involuntary resettlement.

The specific objectives of the RAP are to avoid involuntary resettlement where feasible, or

minimize it by exploring all variable alternative project designs. In pursuance of this object, the

RAP will:

(i) Identify resettlement impacts, their magnitude and project affected persons

(ii) Outline measures to mitigate various losses caused by resettlement

4. CENSUS AND SOCIO-ECONOMIC SURVEY

4.1. Objectives

Being a key stage in RAP preparation, PAPs census and socio-economic survey had the

following objectives:

1. Enumerate and register PAPs and make preliminary inventory of the affected assets,

2. Identify the categories of impacts and magnitude of expected losses,

3. Identify basic socio-economic characteristics of PAPs and

4. Identify monitoring and evaluation baseline indicators.

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4.2. Methodologies and tools

Population

The PAP, included in the census and socio-economic survey are users (individuals and legal

entities) of agricultural land plots situated in the resettlement area of impact. For identification of

users of affected plots, the following data sources were used: (i) updated database (of December

2011) of the agricultural land plots owners (including long term renters) and cadastral plans in

the CIS Lopatna command area; (ii) inventory of land users conducted by ISRA team (of August

2011); (iii) ortho-photo map and the irrigation system infrastructure (pump stations, pipes,

hydrants, manhole, etc.); (iv) local cadastral engineers during field visits; (v) interviews with

PAPs.

The database developed by ISRA was used as basis in identification of users of affected plots.

Although information on land users collected by ISRA consultants was based on in-depth

knowledge of local situation, it wasn’t possible to use it fully because of out-of-dated cadastral

information. In this respect, updated ownership information from State Enterprise Cadastre was

purchased. Still, it was not sufficient to accurately identify all affected land users. Lack of

cadastral information on some land plots, unregistered ownership rights, inaccurate cadastral

maps and geodesic errors were the main issues limiting accurate identification of affected land

users. For instance, about 30 land plots were distributed after land privatization program. The

ownership titles for these land plots were not registered and issued due to lack of financial

resources. These plots are still legally owned by the mayoralty Jora de Mijloc but cultivated by

individuals. Eight land plots haven’t been registered as well and information about land

ownership couldn’t be found in the Cadastral Registry.

The issues of unregistered ownership rights were solved by field visits to identify affected land

users with the help of local cadastral engineer. The Project Affected Persons have been

identified in the field and the ownership rights registration does not represent an impediment to

calculate and provide appropriate compensations to PAPs.

In cases when cadastral plans did not correspond to real location of the land plots shown on

ortho-photo (there was a technical problem), land plots were adjusted in accordance with the

ortho-photo maps to minimize the errors while determining the impact area and potential

affected persons.

The list of PAPs was updated by field enumerators during the census and socio-economic survey

carried out in 2012.

Questionnaires

To conduct census and socio-economic survey, four questionnaires were developed: 2

questionnaires for census (one for individuals and the other one for legal entities) and 2

questionnaires for socio-economic survey (one for individuals and the other one for legal

entities). These are provided in Annex 3.

Interviews

The PAPs were interviewed individually and interviews took place in the mayoralty, PAP’s

houses or enumerator’s houses. The duration of interview within census differed from those

within socio-economic survey. During the census, average duration of interview varied from 15

minutes to 1 hour with average duration of 40 minutes (depended on number of respondent’s

affected land plots). Average duration of interview during the socio-economic survey was more

than one and half hours and had a very low response rate.

Enumerators were selected from those persons who were experienced in conducting of such kind

of surveys and who were well informed about current state of the agricultural land plots in CIS

Lopatna command area. These persons were regional and local consultants of the Rural

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Extension Service, cadastral engineers, teachers, etc. All enumerators were provided with

training prior to conducting of census and socio-economic survey, and were monitored and

supervised during survey implementation.

Data processing and storage

Collected data were processed in parallel with PAPs interviewing. For that purpose a database on

project affected persons was created in Microsoft Access 2010. The database includes tables for

data storage, forms for data processing and queries for data manipulation.

4.3. Categories of PAPs

The PAPs census and socio-economic survey were intended to collect data on the following

main categories of affected persons: (i) individuals, and (ii) commercial companies.

The results of the survey revealed some 406 individuals and commercial companies which will

be affected by loss of annual crops, perennial plantations and access to land as a result of CIS 11-

7 Lopatna rehabilitation (see Table 3 below).

Table 3. Number of affected persons disaggregated by place of residence and legal status

Place of

residence/ operation

Status Individuals

Plots Compa

nies Plots

Total

affected persons

Total

affected plots

Jora de Jos

Interviewed 35 66 1 2 36 68

Absent 8 15 1 2 9 17

Total 43 81 2 4 45 85

Jora de Mijloc

Interviewed 120 249 1 21 121 270

Absent 28 57 1 3 29 60

Total 148 306 2 24 150 330

Jora de Sus

Interviewed 104 189 2 3 106 192

Absent 24 43 0 0 24 43

Total 128 232 2 3 130 235

Lopatna

Interviewed 66 111 0 0 66 111

Absent 15 26 0 0 15 26

Total 81 137 0 0 81 137

Total

Interviewed 325 615 4 26 329 641

Absent 75 141 2 5 77 146

Total 400 756 6 31 406 787

Seventy seven affected persons (75 individuals and 2 companies) could not be found and

interviewed during the census. In addition, the land users/land owners cultivating about 8

affected land plots could not be identified due to lack of information in the cadastre registry and

limited time. Therefore, the information provided below does not include data on

absentees/unidentified PAPs. These will be identified, contacted and interviewed at the

beginning of RAP implementation.

Some categories of PAPs are disaggregated by sub-categories, including gender for affected

individuals and agricultural employees, and legal form for commercial companies. The total

number of interviewed affected individuals is 325, out of which 69% are men and 31 % women.

The total number of interviewed affected companies is 4; comprising 3 peasant farms and a

limited liability company.

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4.4. Basic characteristic of project affected persons

4.4.1. Affected individuals

Social information

The rehabilitation works of CIS Lopatna will affect 325 individuals. The age of individuals

varies from 21 to 83 years with a mean age of 54 years. About one-third of affected individuals

are aged between 61 and 70. A quarter of individuals are aged between 51 and 60 years.

Individuals older than 71 years account for 26% of the total number of affected individuals.

The majority of the affected individuals (about 66%) are married. Almost a quarter of affected

individuals are widowed; while 5% of them are divorced. In this regard, there is a significant

difference between men and women. The number of widowed women is greater than the number

of married women, and the number of divorced women is above the average.

Among affected individuals, about 26 persons are vulnerable persons. Most of these are

chronically ill and/or with disabilities. Only 3 women have disabilities and one woman is a

lactating mother.

The rehabilitation of the irrigation system will indirectly impact negatively 325 families of the

affected individuals. In 90% of cases, the affected individual is the head of the affected

household. Generally, the status of the head of household is less true for women.

Affected households account for 1060 persons. The number of members within a household

varies from 1 to 8 persons. Almost a quarter of the affected individuals have families consisting

of 2 members, followed by the families with 4 and 3 members. About 22% of affected persons

have large families consisting of 5, 6, 7 or 8 members.

Almost two thirds (63%) of affected households are taking care of 359 young people aged up to

25 years inclusively. The majority of families have one young person to care of; followed by

families with two young persons. Altogether, in the project impact area, there are 36 families

with 3 and 4 young persons.

There are 506 women in the affected households. Almost half of the affected households have a

woman as a member and a quarter of families have at least two women members.

The total number of persons aged over 61 years old and under the care of affected households is

142 persons. This accounts for almost a quarter of affected households who are taking care of

one such member, while the rest of households (about 10%) take care of two and three people

aging more than 61 years old.

Sixty six affected households are taking care of about 79 disabled or chronically ill persons.

Economic information

About 219 affected individuals have provided information about their own and other family

members’ occupations. This provides a response rate of 67%. Household work and paid

employment consume on average 25% and 8% of the total amount of time respectively.

Agriculture is the main occupation of affected individuals, who spend on average about 40% of

their time for that purpose. On the other hand, jobs abroad, care of children and other activities

consume 6%, 2% and 19% respectively. The fraction of time allocated for different types of

activities of affected individuals is presented in Figure 3.

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Figure 3. Fraction of time allocated for different types of activities

Although the fraction of time allocated for agricultural activities varies from 0% to 80%, almost

a quarter of affected individuals spend 41-60% of their total time on this activity. For 27% of

affected individuals, agriculture is also an important occupation consuming between 21-40% of

their time.

At the household level, agriculture is an important activity which consumes on average 29% of

total time of the household members. Other important activities, such as household work, jobs

abroad, and paid employment consume on average about 21%, 8% and 7%, respectively, from

the total time of family members of affected individuals. The average fraction of time allocated

for different activities per affected family members is shown in Figure 4 below.

Figure 4. Average fraction of time allocated for different activities per affected family members

Although the amount of time allocated for agricultural activity varies from 0% to 80%, in about

42% of affected households, agriculture consumes on average 1-20% of total time. For one-third

of the affected families, agriculture consumes between 21-40% of total time of its members;

while for 21% affected households agriculture is more important and accounts for between 41-

60% and 61-80%.

Only 36% of families of affected individuals have one or more members who are employed full

or part time. Most of these families of affected individuals consist of members employed on part-

time basis spending about 1-20% of time in paid employment. A further 10% of affected

households have members employed between 21 and 60% of the time.

0

20

40

60

80

100

120

Total Men Women

Agriculture Non-agriculture Salarized job Job abroad

HH work Care of children Studies Other activities

0 20 40 60 80 100 120

Total

Men

Women

Agriculture Non-agriculture Salarized job Job abroad

HH work Care of children Studies Other activities

14

Non-agricultural activity in Moldova is not an occupation at any members of affected household.

On the other hand, family members of almost one-third of affected individuals spent on average

1-80% of their time employed abroad.

Some 217 affected individuals have provided information regarding the income gained in 2011,

thus registering a response rate of 67%. The absolute majority of affected individuals and their

families (88%) live below the poverty line. In 2011, the poverty line threshold was set at 1500

MDL per person per month. The distribution of affected individuals by net income per family

member per year is presented in Annex 4.

Project related information

All affected individuals are aware of the irrigation system rehabilitation. This is due to the

information disseminated within awareness campaigns conducted by ISRA in 2011 and DDRAP

in 2012. The vast majority of informed individuals got information about irrigation system

rehabilitation from the project (DDRAP representatives). Another rather big part of affected

individuals was informed by neighbors. Other important sources of information included TV,

radio and newspapers. The distribution of affected individuals by source of information is shown

in Figure 5.

Figure 5. Distribution of affected individuals by source of information

In 2011, all affected individuals expressed their interest in establishing Water Users Associations

within and under support of ISRA. All of them became members of newly registered Water

Users Associations later in 2012. A vast majority of affected households (98%) have agreed to

participate in the project by granting the right to carry out construction/ rehabilitation works on

their land plots, as presented in the Table 4 below. The list of affected individuals who refused to

participate in the project is presented in Annex 5.

Table 4. Number of affected individuals by expression of interest, membership and participation

in the project

Affected individuals Expression of

interest

WUA

member

Participation

in project

Total affected individuals 325 100% 325 100% 319 98%

Men 223 100% 223 100% 217 97%

Women 102 100% 102 100% 102 100%

All affected individuals have declared that they were aware of compensation to be provided

under the project to minimize the economic displacement impact. The absolute majority favored

cash compensation for loss of income. About 9% affected individuals didn’t answer this

question.

Almost all affected individuals (98%) have expressed their opinion on potential effects/impacts

of irrigation system rehabilitation. According to an absolute majority of affected individuals

0

100

200

300

400

Project TV Newspaper Radio Neighbours Other source

Total Men Women

15

(98%), reduced crop production would be the main immediate effect of rehabilitation. Reduced

animal production and incomes are considered immediate effects of rehabilitation by 94% of

individuals. Increased job opportunities are considered as potential immediate effects by about

88% of the total affected individuals. The distribution of affected individuals by type of impact is

shown in Figure 6.

Figure 6. Distribution of affected individuals by type of impact

4.4.2. Affected commercial companies

There are 4 affected commercial companies; out of which three are peasant farms and one is a

limited company. They are all headed by men. The total number of the affected peasant farms’

and companies’ owners is 4. The registration certificates are available at all companies.

The peasant farms have registered an annual turnover of between 800,000 Lei and 900,000 Lei in

2011. The director of the limited liability company didn’t answer to this question.

The peasant farms only produce crops; while the limited liability company specializes in wine

production and marketing, in the CIS rehabilitation area the limited liability company is growing

annual crops, its vineyards are located outside CIS, therefore will not be affected by our project.

In 2011 these companies hired 25 persons. Crops are mainly marketed locally by peasant farms.

In 2011 only one peasant farm exported its products abroad.

In 2011, all affected companies expressed their interest in establishing of Water Users

Associations. Later all companies became the members of WUAs registered in early 2012. Also,

all affected businesses have agreed to participate in the project by granting the right to carry out

construction/ rehabilitation works on their land plots.

There is a high interest toward rehabilitation of irrigation systems from companies’ side, and all

they show sufficient awareness of this. The only source of information about rehabilitation is the

project (DDRAP representative).

All companies are aware of types of compensation to be provided. All of them have expressed

their interest in getting cash to cover loss of income but only the limited liability company

indicated a value of 6000 MD lei.

Reduced crop and animal production and income are considered as potential immediate effects

of rehabilitation by 3 companies. Also most of companies believe that rehabilitation will increase

job opportunities and environmental pollution.

0 50 100 150 200 250 300 350

Dicreased crop production

Dicreased animal production

Dicreased incomes

Increased job opportunities

Increased environmental

pollution

Women

Men

Total

16

4.5. Affected agricultural plots

The rehabilitation of irrigation systems 11-7 Lopatna will require an easement of slightly more

than 43 ha on some 787 land plots with a total area of around 360 ha. The information on

affected plots disaggregated by categories of PAPs can be found in the Table 5 below.

Table 5. Number of affected plots, total area and affected area disaggregated by categories of

PAPs

Place of

residence/operation Status

Affected

persons

Affected

plots

Total plots

area, ha

Total affected

area, ha

Individuals

Interviewed 325 615 279,1113 33,256

Absent 75 141 61,965 7,5142

Total 400 756 341,0763 40,7702

Companies

Interviewed 4 26 15,4615 2,1524

Absent 2 5 2,3335 0,3116

Total 6 31 17,795 2,464

Total

Interviewed 329 641 294,5728 35,4084

Absent 77 146 64,2985 7,8258

Total 406 787 358,8713 43,2342

The information about affected land plots provided below doesn’t include the affected plots

cultivated by affected persons who could not be found/ identified and interviewed during the

census.

4.5.1. Affected individuals

Most affected plots are cultivated by individuals. Each person has on average of 1.9 affected

plots. The total estimated affected area represents more than 33 ha, as indicated in the Table 6

below.

Table 6. Number of affected plots, total and affected areas

Affected individuals Nr. persons Nr. plots Total land

area, ha

Total affected

area, ha

Men 223 469 219,7825 26,0866

Women 102 146 59,3288 7,1694

Total 325 615 279,1113 33,256

About 96% of affected plots are cultivated by individuals on the basis of ownership rights; with

94% of plots having legal documentation.

More than half of affected individuals have only one affected land plot. For more than a quarter

of individuals (29%), the rehabilitation will affect 2 land plots. The remaining 18% of persons

will have up to 12 plots affected. The distribution of affected individuals by number of affected

plots is presented in Figure 7 below.

17

Figure 7. Distribution of affected individuals by number of affected land plots

The total area of affected plots is about 268 ha averaging 0.5 ha per plot. About 40% of plots

have a total area ranging between 0.2001 – 0.4000 ha, followed by about 20% of plots with area

ranging between 0.0001-0.2000 ha and 19% of plots with area ranging between 0.2001-0.4000

ha. The rest of affected plots (22%) have an area more than 0.6 ha.

Estimated affected area of land plots area is about 32 ha; its exact area will depend on location of

pipes, hydrants, manholes and valves. The vast majority of plots (90%) situated in the area of

impact have affected area between 0.0001-0.1000 ha. About 7% of plots have an affected area

ranged between 0.1001-0.2000 ha. Eighteen land plots have an affected area more than 0.2 ha.

The distribution of plots by estimated affected area is presented on the Figure 8 below.

Figure 8. Distribution of plots by estimated affected area

Plots within the impact area will be affected to a different extent. The majority of plots (82%)

will be affected to a lesser extent, with less than 20% of the surface area being affected. About

14% of land plots will be affected to a greater extent (21-40%). A few affected individuals will

not be able to cultivate anything on some 4 plots because the affected area will be between 80-

100%; with three of them being even affected at 100%. The distribution of plots by share of

estimated affected area is presented in Figure 9 below.

0%

20%

40%

60%

80%

100%

120%

Total Men Women

1 2 3 4 5+

84%

86%

88%

90%

92%

94%

96%

98%

100%

102%

Total Barbati Femei

0,0001 - 0,1000 ha 0,1001 - 0,2000 ha 0,2001 - 0,3000 ha

0,3001 - 0,4000 ha 0,4001 ha +

18

Figure 9. Distribution of plots by share of estimated affected area

4.5.2. Affected companies

The rehabilitation of the irrigation system will affect about 26 land plots cultivated by

commercial companies. On average, each company will have 6.5 affected plots. The total

estimated affected area constitutes slightly more than 2 ha, as presented in the Table 7 below.

Table 7. Number of affected plots, their total and affected area

Affected company Nr.

companies Nr. plots

Total land

area, ha

Total affected

area, ha

Peasant farms 3 25 13,0582 1,833

Limited liability companies 1 1 2,4033 0,3194

Total 4 26 15,4615 2,1524

The majority of affected plots (about 73%) are being cultivated on the basis of ownership right

while for slightly more than 60% of affected plots legal documentation is not available.

Rehabilitation will have a major effect on one peasant farm and require an easement spread out

on 8 land plots. The other companies are less affected and have 1 and 2 affected plots.

The total area of affected plots is about 7 ha averaging and averages 0.6 ha per land plot. The

majority of affected plots (91%) have a total area of up to 1 ha, although one plot has an area of

2.4 ha.

Subject to location of plots and irrigation infrastructure, the plots within the impact area will be

affected to a different extent. About 64% of plots within area of impact have an affected area

between 0.0001-0.1000 ha. The remaining 4 plots have an affected area between 0.1001-0.4000

ha.

Almost three quarters (73%) are affected on less than 20% of their area, while the remainder are

affected by up to 80% of their surface area.

4.6. Mitigation of resettlement impacts

4.6.1. Basic principles

0 100 200 300 400 500 600

0 - 20%

21 - 40%

41 - 60%

61 - 80%

81 - 100%

Women Men Total

19

A compensation package was prepared to address the resettlement impacts resulting from

irrigation system rehabilitation and to ensure that affected persons’ pre-project income level and

living standards would be restored. In developing this compensation package, next principles

were followed:

1. The project affected persons were informed and consulted about the compensation types

and methodologies used in calculating the compensation rates;

2. The compensation rates were calculated based on provisions of the WB OP 4.12, local

legislation and established guidelines with the use of data obtained from governmental

sources and existing relevant information materials;

3. The compensation rates cover full replacement costs of affected assets and are sufficient

to restore or increase affected persons’ income level and standard of living after

temporary land acquisition.

4.6.2. Types of mitigation measures

Two types of mitigation measures were developed in response to the identified resettlement

impacts, as follows:

1. Cash compensation for lost annual crops and temporary withdrawal/loss of access to land

on unused plots;

2. Cash compensation for lost perennial plantations, including recovery costs.

4.6.3. Implementation of mitigation measures

Cash compensation will be paid directly to eligible PAPs by bank transfer. MCA will select the

bank and will provide instructions related to payment details for each affected person at the

beginning of RAP implementation. The affected persons will contact the bank office in order to

get their compensation which will be paid only after the nominated beneficiaries present their ID.

Recipients will be required to sign compensation receipt upon receiving payment.

To increase the visibility of compensation payments, the RAP implementer will provide the

project affected persons with advance notice of the period, place and method of payments

through information meetings and public announcements posted at mayor office, WUA office

and other public places. This action will also increase transparency of compensation payments

that would prevent gender inequality.

4.7. Magnitude of expected loss

The rehabilitation works within CIS Lopatna will require an easement of slightly more than 43

ha of agricultural land, thus causing loss of annual crops and perennial plantations cultivated by

the affected persons. In terms of expected loss, the most affected are individuals with an

expected damage valued at more than 2.5 million MD Lei. In terms of impact type, loss of

perennial plantations constitutes the greatest damage among the existing resettlement impacts.

The magnitude of expected loss is presented in Table 8 below.

Table 8. Magnitude of expected loss

Nr. Affected

persons

Nr.

affected

persons

Loss of annual

crops and access

to land, MD lei

Loss of

perennial

plantations,

MD Lei

Total, MD Lei

1 Individuals 400 49377,43 2558553,00 2607930,43

2 Companies 6 3733,79 0,00 3733,79

Total 406 53111,22 2558553,00 2611664,22

20

5. LEGAL FRAMEWORK

5.1. Resettlement overview

Moldovan legislation doesn’t make explicit references to resettlement issues. However, there are

legal provisions relevant for RAP development and these address expropriation of land or

property for the public interest. Moldova has a legal framework that establishes the expropriation

as a legal operation by which the property and the property rights of private property are forcedly

transferred into the public property, in order to carry out the public utility works for national or

local interest, with fair compensation. The expropriation procedures are governed by the Law on

Expropriation for Public Benefit, No. 488-XIV adopted on July 8, 1999 and detailed by the

Government Decision No. 660 of 15 June 2006.

The main Moldovan laws and regulations pertaining resettlement are as follows:

1. Constitution of the Republic of Moldova (adopted on July 29, 1994);

2. Civil Code No. 1107-XV of June 6, 2002;

3. Land Code No. 828-XII of December 25, 1991;

4. Water Code No. 1532-XII of June 22, 1993;

5. Family Code No. 1316 of October 26, 2000;

6. Law On expropriation for public benefit No. 488-XIV of July 8, 1999;

7. Law On normative price and order of purchase and sale of land No. 1308-XIII of July

25, 1997;

8. Law On public administration No. 436-XVI of December 28, 2006.

National legal framework which has relevance to land acquisition and resettlement is provided in

Annex 6.

5.2. Legal framework for expropriation

The legal framework for the expropriation of the private property is provided by the law On

expropriation for public benefit No. 488-XIV, adopted on July 8, 1999. Particularly, the law

stipulates that activities towards soil erosion reduction, construction and rehabilitation of

irrigation and drainage systems are the works for public benefit which may require expropriation

procedure. The objects of expropriation for local interest can be:

• Real estate goods: land plots, basements, water tanks, forests, buildings, constructions

and other objects related to land, whose commutation is impossible or has irreparable

consequences, so, that they cannot be used for their purpose.

• The right to use the real estate goods for a period of up to 5 years, unless the parties

agree on another term.

Overview of the expropriation procedure

Expropriation can be carried out only after an act declaring the public benefit. This act, among

other things, will determine the state representative of the expropriation procedure. In

accordance with the current Moldovan laws, the expropriation process is based essentially on the

interaction between the state representative of the expropriation procedure and an expropriation

Committee created in order to protect the interests of the affected owners. If the state

representative and the affected owner cannot reach to an agreement, the procedure will be

submitted to the competent courts.

Public benefit

The public benefit may be established for objectives of national, local or common interest and

can be declared:

21

• for works of national interest - by the Parliament;

• for works of local interest of one administrative unit - by Local Council;

• for works of common interest of several rayons and/or municipalities - by their councils,

and in case of disagreements - by the Government;

• for works of common interest of several towns and/or villages within a rayon - by the

councils of these cities and/or villages, and in case of disagreement -by the District

Council.

The study preceding declaring of public benefit of national interest will be carried out by

committees established by Government. The members of these committees are:

representative of the central public administration unit which is legally responsible for

supervision of activities declared as public benefit works, representatives of the Ministry of

Environment, Ministry of Finance, Ministry of Economy as well as Chairman of the Rayonal

Council and mayor of the locality under whose jurisdiction the public benefit works will take

place.

In case of public benefit of local or regional interest, preliminary study will be carried out by the

committees established by the administrative-territorial units’ Councils. These committees will

consist of representatives of local public authority which is legally responsible for governance of

activities declared as public benefit works as well as representatives of Local Public

Administration who are responsible for finance and local budget management and

representatives of Rayonal Councils.

The purpose of preliminary study is to justify the need to declare activities as work of public

benefit of national or local interest. The results of the study shall be recorded in the minutes

which have to be submitted to entities.

The expropriation on a mutually agreed basis

The expropriation on a mutually agreed basis foresees the following:

• Inventory of all properties to be expropriated, including both land and buildings;

• Declaration of public utility of common interest;

• Informing population through announcements set in the Local Council office and

published in the Official Monitor of the Republic of Moldova;

• Expropriation proposal submission within 10 days after publication of the act declaring

the public utility, which will include notification to individuals and legal entities holding

legal rights on the object of expropriation, compensation offer, the transfer of assets and

property rights methodology;

• In case of disagreements regarding the compensation offer or other issues, the right

holders on expropriation objects will submit a grievance no later than 45 days after their

notification.

Grievance procedures will last 30 days after recording the claims. District Coordination

Committee on resettlement and land acquisition established on the basis of the Rayonal

Council’s Decision will be involved in the grievance procedure. This Committee will consist of:

• 3 specialists in running public utility works; they will elect directly or by secret vote, the

president who will manage the work of the committee;

• 3 owners of real estate goods chosen by lot or by vote of the majority of the real estate

owners from the municipality, city or village where expropriation objects are located.

The role of the District Coordination Committee on resettlement and land acquisition is

described under the institutional framework.

If the compensation offer is accepted by the affected person, a mutual agreement will be signed

and notarized, afferent costs being covered by the expropriator.

22

Expropriation: court proceedings

If the parties fail to reach an agreement on expropriation as stipulated by the law, expropriation

for public benefit can be made only on the basis of judicial decision with precursory equitable

compensation.

In case where amount of compensation is contested, the court will establish the expert committee

whose meetings may be attended by representatives of expropriating entity and expropriated

person or entity. When calculating the compensation offer, the expert committee and the court

will take into account the current market price of the real estate goods and the rights to use them

applicable in the respective area. The damages to owner or to holders of the other real rights

should be also considered; then these are proved with evidences.

In cases of land expropriation, the compensation offer shall not be less than the normative price

established by law. Fees and transaction registration costs of expropriation cases should be

covered by the expropriator in accordance with the national legislation in force.

Conclusion of the expropriation procedure

Compensation payment will be made on the basis of agreement between the parties. In the

absence of agreement, the court will decide on the most appropriate method to make payment on

the expropriated person’s bank account, the payment period being no more than 30 days after the

court’s decision.

5.3. Expropriation for public benefit scenario applicable to rehabilitation of CIS

Refer to Annex 7 which sets out the implications of temporary land expropriation for public

benefit applicable to the present project.

5.4. Comparison between national legislation and WB OP 4.12

There is limited correspondence between the Moldovan legislation and the World Bank

Operational Policy on involuntary resettlement OP4.12. The WB OP 4.12 is applied in situations

involving involuntary land acquisition and involuntary restrictions of access to parks and

protected areas defined by legal status. The WB OP 4.12 aims to avoid involuntary resettlement

as far as possible, or to minimize its negative social and economic impacts. Specifically, OP 4.12

stipulates that all projects should avoid or minimize the involuntary resettlement, but in cases

when people lose their homes or livelihoods as a result of the project implementation, their life

standards should be improved, or at least restored. OP 4.12 encourages the public participation to

resettlement planning and implementation. The key economic objective of OP 4.12 is to assist

the affected persons in their efforts to improve or at least to recover their incomes and their life

standards after the resettlement implementation. The WB OP 4.12 foresees that prior to the

project proposals assessment; the debtors should prepare appropriate resettlement planning

instruments.

Some of the main principles of the WB OP 4.12 are provided partially in the national legislation

and these are the following:

• The preliminary compensation payment is compulsory in cases when land and property

rights are acquired forcedly;

• The compensation offer should correspond to the market price or should be compensated

by a building or land plot with the same size and value;

• Other damages, such as temporary or permanent loss of crops or production assets,

should be compensated;

• Grievances should be examined and solved.

23

However, the WB OP 4.12 is more exigent as compare to Moldovan legislation regarding such

issues as:

• resettlement planning and procedural requirements;

• public hearings and participation in the project affected areas;

• compensation offer and, if necessary, other assistance to affected persons;

• compensation payment to all categories of affected persons;

• property assessment of eligible persons;

• incomes recovering;

• compensation for the informal users of the property or the property rights;

• compensation for the informal businesses;

• protection of socially vulnerable groups (poor and landless persons, women, elderly,

minorities, etc.)

More details on divergences between the current Moldovan legislation and WB OP 4.12

provisions are presented in Annex 8, and the measures to be taken to implement resettlement in

compliance with WB OP 4,12 are presented in Annex 9.

5.5. Real estate valuation process in Moldova

In the Republic of Moldova three methods are used for determining the value of goods4:

1. Expenses method is based upon estimation of the market value of the valuation object

including all expenses necessary for its creation up to current state or recovery its

consumption qualities;

2. Sales comparative analysis method: involves the estimation of the market value of the

economic good based on the comparative analysis of similar goods recently sold and the

sale prices adjustments to consider differences between these goods and valuation object;

3. Incomes method is based upon analyzing the information on incomes and expenses

related to the valuation object; it allows the determination of the price of affected asset on

the basis of net operational income which can be generated by this asset in future.

The conditions and the ways for applying these methods of valuation are established by the

Government of the Republic of Moldova5. The valuation of the real estate has to be carried out

by the companies which are licensed according to the national legislation.6

5.6. Replacement cost

Moldovan legislation has no reference to the term “replacement cost” but it uses the term

“construction cost” in relation to all costs linked to the construction of object. According to para.

19 of the Provisional Regulations on the assessment of real estate, the “construction cost” is being

determined based on the estimate norms and provisions of other normative documents.

The “replacement cost” is defined in the WB OP 4.12 as market value of a good, calculated as the

sum of all costs necessary for the replacement of this good in its current state, plus the cost of

any registration and transfer taxes. While determining the replacement cost, amortization of the

asset and value of salvage materials are not taken into account. The “replacement cost” is

determined as follows:

• For agricultural land, it is pre-project or pre-displacement, whichever is higher, market value

of land of equal productive potential or use located in proximity of the affected land, plus

4 art.6 of the law On appraisal activity No. 989 of 18.04.2022

5 The provisions for assessment of real estate are described in the Provisional Regulations on the assessment of real estate

(approved by Government Decision No. 958 of August 4, 2003) 6 Issued in conformity with provisions of the law On licensing of certain types of activities No. 451-XV of July 30, 2001

24

the cost of preparing the land to levels similar to those of the affected land, plus the

cost of any registration and transfer taxes.

• For land in urban areas, it is pre-displacement market value of land of equal size and use,

with similar or improved public infrastructure facilities and services located in proximity

of the affected land, plus the cost of any registration and transfer taxes;For houses and

other structures, it is a market cost of materials needed to build a replacement

structure with size and quality similar to or better than those of the affected

structure, or to repair a partially affected structure, plus cost of transportation of

building materials to the construction site and cost of any labor and contractors' fees. The

cost of any registration and transfer taxes are also paid and the value of benefits to be

derived from the project are included in assessment of an affected asset.

5.7. Normative price of land

The normative price of land is a measure of estimation of the land value equivalent to its natural and

economic potential expressed in national currency and it determined according to the law On

normative price and order of purchase and sale of land of 25.07.1997.

The tariffs for calculating the normative price of land are established for a conventional unit8

(degree-hectare), on the basis of the cadastral indices (quantitative and qualitative) listed in the

Annex to the above mentioned law, and are indexed based on the inflation rate by the Parliament, at

the Government proposal.

The normative price for the agricultural land plots, household plots and orchard plots is calculated

based on the plot area, soil fertility expressed in degrees and the tariffs indicated in the Annex to the

law On normative price and order of purchase and sale of land. If there were not effectuated

additional soil studies, the degree of the soil fertility is to be considered as the average degree of the

soil fertility of the administrative unit.

The normative price for the land plots designed for industrial objectives, transport, constructions or

other purposes than agriculture is calculated based on the country average soil fertility degree. The

formula used for land plots valuation is the following:

V = A x B x T, where:

A – Land plot area expressed in hectares;

B – Average soil quality (points) in the locality, or, if the owner requests, soil quality

established for the particular land plot;

T- Tariffs for calculating the normative price of land (for a unit degree-hectare) in MDL per

Position II of the Annex to the law On normative price and order of purchase and sale of land

(1997).

6. INSTITUTIONAL FRAMEWORK

To achieve specific goals and implement certain activities linked to resettlement, the following

institutions will be involved in the RAP implementation at different stages:

6.1. Central governmental institutions

The following central governmental institutions that have a national coverage of their

competence will be involved in RAP implementation:

1. Millennium Challenge Account (MCA) is a public entity established by the

Government of the Republic of Moldova through the Government Decision no.161 of

04.03.2010 to ensure efficient implementation of the Compact Agreement and

associated investment and technical assistance projects.

25

2. Agency “Apele Moldovei” (AM) established by the Government Decision No.1056 of

15.09.2008, is legally responsible for the implementation of state policies regarding

water resources management, water supply and sanitation. Its activities are under the

Ministry of Environment. The agency “Apele Moldovei” is the owner and operator of

the centralized irrigation systems.

After rehabilitation works are completed, based on as-build drawings AM, will develop

the electronic and paper graphical layers for the Pipeline Protection Area of Impact to

be provided to Local Councils and Mayors’ Offices.

3. Ministry of Agriculture and Food Industry (MAFI) established by the Government

Decision No. 793 of 02.12.2009 is responsible for development and implementation of

national agricultural policy, promotion of sustainable agricultural development as well

as for country’s food security.

4. National Bureau of Statistics (NBS) established by the Government Decision No.

1049 of 06.10.2005 subordinates to the Government and is the central public authority

responsible for keeping and proceedings of statistical data at the national and local

levels..

5. State Enterprise “Cadastru” (SEC) subordinates to the Agency for Land Relations

and Cadastre. It and its territorial branches have the following responsibilities: (i) to

obtain, systematize and keep the cadastral information; (ii) to perform the methodical

administration and control regarding the preservation of the cadastral documentation;

(iii) to organize the furnishing of the cadastral information, set up data structures and

the way of furnishing; (iv) to hold and administrate the cadastral data; (v) to ensure the

systematized cadastral information to the public administration authorities, legal

entities, as well as to individuals; (vi) to carry out services in the cadastral sphere and

real estate evaluation.

6.2. Local governmental institutions

Moldovan legislation allows the decentralization of the decision making process by applying

such legal concepts as “local autonomy”, “public services decentralization”, “public

consultations on problems of local interest”. There are two levels of local governmental

institutions: district level (rayon administration) and local level (town or village administration).

In this respect, the following local governmental institutions

1. Rayon Councils (RC) including Chairmen of Rayon Councils (RP) (including

Secretaries of Rayon Councils (SRC) and Rayon Agricultural and Food

Departments (RAFD) are responsible for local implementation of agricultural policies

developed by the Ministry of Agriculture and the local public authorities).The Rayon

Councils are the authorities responsible for district autonomy as deliberative bodies

while Rayon President (elected by the members of Rayon Councils) as executive body.

Also, Rayon Councils may establish public utility status for certain construction works

that are of public interest within their administrative area.

2. Local Councils (LC) (including Secretaries of Local Councils SLC) and Mayors.

The Local Councils are the authorities responsible for local autonomy as deliberative

bodies while Mayor as executive body. Also, Local Councils may establish public

benefit status of certain construction works within their administrative area based on

existence of elements justifying the public interest at local level.

Local Councils and Mayors’ Offices will establish special urbanism zones in the CIS

area through their urbanism and land use planning documentation according to the Law

no. 163 on construction works authorization as of 09.07.2010 and Law no. 835 on

urbanism and land use planning principles as of 17.05.1996. Constructions in CIS area

26

will be allowed only if they do not affect or are placed in the Pipeline Protection Area of

Impact of the pipelines in the rehabilitated CIS. The Pipeline Protection Area of Impact

will be provided by Agency “Apele Moldovei” (AM) on electronic and paper graphical

layers.

6.3. Newly establishing committees

For the purpose of RAP implementation and according to the Moldovan legislation, the RAPI

will support establishment of new resettlement committees at district and local levels, as follows:

1. The District Coordination Committee (DCC) on resettlement and land acquisition will be created in village Jora de Joss . DCC will coordinate resettlement activities at

district level including surveys (census and socio-economic survey), PAP consultations,

grievance redress. The DCC creation will be initiated by the RAPI and approved by the

District Council Decision in accordance with the law On expropriation for public bnefit

No. 488-XIV of 08.07.1999.

2. The Local Resettlement Committees (LRC): will be established in village Jora de

Mijloc through a Local Council Decisions. This committee will be in charge for redress

resettlement grievances.

6.4. Private entities

For the purpose of RAP implementation and according to the Moldovan legislation, certain

private entities will be involved in RAP implementation, as follows:

1. RAPI is the private company hired by MCA to implement RAP;

2. Public notaries are responsible for authentication of the real estate alienation contracts,

authentication of Power of Attorney, issuance of the ownership title, rent certificate, heir

certificate or other documents necessary for the resettlement activities.

3. Lawyers licensed per provisions of the Law on licensing of certain types of activities to

represent the interests of different dispute parties in the court.

4. Evaluation Companies licensed in accordance with the Licensing of Entrepreneurial

Activity Law No. 451-XV from 30.07.2001 to evaluate the assets;

5. Non-governmental organizations (Water Users Associations, Farmers Associations

and other) will facilitate PAPs’ participation at the consultation meetings and represent

the interest of its members.

6.5. Roles and responsibilities

The institutions and organizations will have specific roles and responsibilities in implementation

of RAP activities according to their mandate. The actions to be carried by these institutions and

the implementation timeframe are presented in the Table 9 below.

27

Table 9. Roles and responsibilities in RAP implementation

Nr.

Actions Description Responsible institution

Timeframe

1 Monitor and supervise RAP

implementation; make

compensation payments.

Supervise the implementation of RAP activities Monitor the efficiency of RAP implementation Make the compensation payments through bank transfer

MCA Throughout RAP

implementation

2 Receive temporarily

expropriated land plots Receive from RC temporarily expropriated land plots as the owner of CIS and

beneficiary of rehabilitation works AM

When land plots are

temporarily

expropriated

3 Provide statistical data Provide statistical data on country average yields of different crops that are used in

calculations of expected loss MAFI

Once when new affected

crops are identified

4 Provide statistical data Provide statistical data on market prices of various crops that are used for

calculation of compensation rates NBS

Once when new affected

crops are identified

5 Provide cadastral data Provide digital cadastral plans and ownership database SEC When additional

affected land plots are

identified

6 Establish and participate in

the resettlement committees

at local level

Establish the resettlement committees through decisions;

Receive and keep evidence of PAP complaints;

Chair the meetings and delegate members (cadastral engineer) to participate in the

meetings

LC, SLC,

Mayor Since the second month

of RAP implementation

7

Carry out preliminary

research for determining the

public utility status of

construction works

Determine the elements justifying public utility status of rehabilitation works; Prepare minutes of the meeting documenting the elements justifying public utility

status of rehabilitation works LC

Since the second month

of RAP implementation

8 Establish and participate in

the resettlement committees

at district level

Establish the resettlement committees through decisions;

Receive and keep evidence of PAP complaints;

Chair the meetings and delegate members (resettlement specialists from RAFD) to

participate in the meetings.

RC, RP, SRC,

RAFD Since the second month

of RAP implementation

9 Establishing public benefit

status for construction works

Prepare and approve the act establishing public utility status of construction works Inform public about this decision Publish the decision in Official Monitor

RC Since the second month

of RAP implementation

10 Redress grievance at district

level Facilitate the communication between all parties involved in the resettlement

activities; DCC

Since the second month

of RAP implementation

28

Receive complaints and intimations from the SRC;

Carry out the grievance redress in cases when PAP complaints cannot be solved at

local level;

Carry out preliminary research of the expropriation objects and to justify the public

utility works for local interest;

Decide upon the possibility of declaring activities as public utility works;

Determine the environmental, socio-economic or other pre-requisites for public

utility works and including them into territorial planning and urban plans approved

by laws;

Examine the expropriation proposals and PAP complaints;

Take justified decisions regarding the compensation offer to the PAP.

11 Redress grievance at local

level

Provide support to affected persons in the field of resettlement, compensation types

and rates, eligibility criteria, etc;

Receive complaints and intimations from the SLC;

Examine complaints and intimations submitted by affected persons;

Take decisions on complaints received;

Transmit the Minutes to SLC.

LRC Since the second month

of RAP implementation

12 Evaluate RAP

implementation Evaluate RAP implementation

Resettlement

monitoring During and .after RAP

implementation

13 Authorize the Power of

Attorney

Authorize the Power of Attorney given by absentee PAPs to designated persons to

sign the agreement and permission to carry out construction works on PAPs land

plots Public notaries

When absentee PAPs

are not found in place

14 Represent the interests in the

court Represent the project's interest in the court when the PAPs complaints are not

redressed by resettlement committees and reach the competent court Lawyers

When PAPs complaints

are not redressed by

resettlement committees

and reach the competent

court

15 Evaluate affected assets Evaluate affected assets according to Moldovan legislation Evaluation

company When new affected

assets are identified

16 Participate in the

resettlement committees Participate in the resettlement committees and represent the interests of

members/PAPs NGOs

(WUAs, etc) Throughout RAP

implementation

29

6.6. Approach for involving GoM authorities in RAP implementation

With the support of MCA, RAPI will take the lead in involving relevant governmental

authorities in RAP implementation. To this end, RAPI will ensure a proper visibility and

increase awareness of decision-makers within relevant governmental institutions regarding RAP

implementation activities.

In the first month of RAP implementation, RAPI will organize a launching conference for

decision-makers within relevant governmental institutions to present the main and specific RAP

objectives, major activities envisaged, roles and responsibilities of each governmental institution

and the expected results of RAP implementation. The launching of RAP implementation will

also be reflected in national and local mass-media.

RAPI will also ensure that the representatives of involved government institutions are fully

informed about the progress and accomplishments in implementing RAP activities by regular

submitting of RAP implementation progress reports

7. COMPENSATION FRAMEWORK

7.1. Eligibility and rights

The criteria by which the affected persons will be considered eligible for compensations were

established and disclosed to public by carrying out consultations with the project affected

persons and other stakeholders. The entitlement matrix provides detailed information on

eligibility criteria that have to be fulfilled by different categories of PAPs in order to receive

various compensation types according to the type of loss/impact generated by resettlement. The

entitlement matrix is presented in Annex 10.

7.2. Cut-off date

The cut-off date for RAP Lopatna was established as February 29, 2012.

7.3. Valuation of affected assets

7.3.1. Valuation methodology

The valuation process was conducted in three stages: preliminary identification of affected

assets, inventory of affected assets and valuation of affected assets. The affected assets were

preliminary identified during the PAP census and socioeconomic survey.

Following the census, the valuation experts carried out a number of field visits to conduct

inventory of preliminary identified affected assets. Additional field visits were undertaken to

make an inventory of those affected assets that census could not identify; the owned/used by

PAPs that could not be found and interviewed. The inventory of the affected assets focused on

the followings: the full name of the asset; the purpose of the asset; the cadastral code; the number

of manufacturing and some technical features of the asset operating.

The inventory of the land plots was based on the documents certifying their right of use and

location schemes. The inventory of land plots took into account the category of the agricultural

works in progress: autumn plowing, autumn sowing, multiannual sowing, greenhouses

preparation etc. The inventory of the nurseries took into account the planting material (seeds,

seedlings), the age of plants, the purpose of plants etc. The inventory of the perennial plantations

took into account the plantation age, the physical condition of the plantation, the number of

cuttings or trees located in the project area of impact.

30

The results of inventory represented the basis for determining the value of affected assets, and

compensation level respectively. During the valuation process, a combination of expenses

method and income method was used to determine the value of affected assets.

7.3.2. Results of the inventory of affected assets

The results of the inventory of affected assets revealed that the rehabilitation of CIS Lopatna will

affect agricultural land plots cultivated with annual crops and perennial plantations. Still there

are about 3 land plots with an affected area of 0.1656 ha that are fallow (unused plots).

The mostly affected annual crop is maize that accounts for 61% of the total affected area,

followed by sunflower (26%), wheat (4%), barley (3%), peas (2%), onion (2%) and other annual

crops. Estimated affected area disaggregated by affected annual crop varieties is shown in Table

10.

Table 10. Estimated affected area disaggregated by affected annual crop varieties

Nr. Crop name Estimated affected

area, ha

1 Potatoes 0,044

2 Onion 0,4257

3 Beans 0,0975

4 Sun flower 6,6935

5 Wheat 1,0746

6 Water melon 0,3194

7 Corn 15,5259

8 Peas 0,4734

9 Barley 0,529

10 Onion 0,3798

11 Other annual crops 9,3207

12 Unused plots 0,1656

Total 35,0491

Rehabilitation will affect perennial plantations such as fruit orchards, vineyards, fruit tree

nurseries and planting material (layers). Mostly affected fruit plantations are apple orchards that

account for about 54% of the total number of affected fruit trees, followed by apricot plantations

(14%), plum plantations (12%), quince (11%) and other fruit tree varieties, as presented in the

Table 11 below.

Table 11. Number of affected trees disaggregated by affected fruit tree varieties

Nr. Perennial crop Number of affected

trees/bushes

1 Apple 843

2 Raspberry 423

3 Walnut 7

4 Peach 137

5 Plum 184

6 Cherry 7

7 Table grapes 5000

8 Apricot 210

31

9 Quince 165

10 Layers (planting material) 33236

11 Almond 2

Total 40214

7.4. Compensation for affected assets

7.4.1. Compensations for loss of annual crops and loss of access to land

The determination of compensation for loss of annual crops and loss of access to land was made

according to Moldovan law.7 The loss of agricultural incomes caused by temporary economic

resettlement of the cultivated or uncultivated land plots was calculated at the rate of 2% per year

of the normative price of the rented land plot. The formula applied to the normative price is

presented below:

V = A x B x T, where

A – Land plot area (ha);

B – Soil fertility average locality, or, if the owner requests, soil fertility established for the

particular land plot;

T- Tariffs for calculating the normative price of land (g/ha) in MDL in accordance with the Position

II from Annex to the law no.1308 On normative price and purchase and sale of land.

Table 12 below shows the calculations made to determine the compensations for lost annual

crops and loss of access to land plots.

Table 12. Breakdown of the compensation calculations for lost annual crops and loss of access to

land

Nr. Crop name

Estimated

affected

area, ha

Average soil

fertility,

points

Tariff,

g/ha

Rental

per

year, %

Compensation,

Lei

1 Potatoes 0,044 61 1242,08 2 66,67

2 Onion 0,4257 61 1242,08 2 645,08

3 Beans 0,0975 61 1242,08 2 147,75

4 Sun flower 6,6935 61 1242,08 2 10142,91

5 Wheat 1,0746 61 1242,08 2 1628,38

6 Water melon 0,3194 61 1242,08 2 484,00

7 Corn 15,5259 61 1242,08 2 23526,98

8 Peas 0,4734 61 1242,08 2 717,36

9 Barley 0,529 61 1242,08 2 801,61

10 Onion 0,3798 61 1242,08 0,02 575,53

11 Other annual crops 9,3207 61 1242,08 0,02 14124,01

12 Unused plots 0,1656 61 1242,08 0,02 250,94

Total 35,0491 53111,22

Breakdown of total compensations by affected persons is presented in the Annex 13.

7 art. 17(2) of the law On tenancy in agriculture no. 198 of 15.05.2003

32

7.4.2. Compensations for loss of perennial crops

The compensations for the loss of the perennial plantations were calculated at the total

replacement cost according to OP 4.12. It includes the value of the lost harvest, plantation

recovery costs, and loss of income during the recovery period. Therefore when calculating the

compensation for affected orchards, there was taken into account both direct and indirect costs

related to soil preparation, plantation establishment and maintenance until the state before

resettlement and the loss of harvests until the plantation starts fruit.

The volume of the capital investments for establishing orchards and vineyards until the fruitful

period (plantation recovery costs), as well as the information on market prices and average

harvest per 1 ha were established on the basis of surveys carried out by the valuation expert and

studies made by ACSA8. Detailed calculations of the plantation recovery costs are presented in

Annex 11.

The calculations were made according to the following formula:

Tc= Pm x Pr x Ac x Nc x 80% + Rc x Nc, where

Tc – Total compensation (lei)

Pm – Average yield (kg/tree)

Pr – Average wholesale price (lei/kg)

Ac – Period required to recover the lost harvest (years)

Rc – Recovery costs (lei/tree)

Nc – Number of affected trees

The breakdown of calculations made to determine compensation for lost perennial plantations is

presented in Annex 12.

Total amount of compensation for loss of perennial plantation is 2558553,00 MDL. Breakdown

of total compensations by affected persons is presented in the Annex 13.

8. PUBLIC CONSULTATIONS AND PARTICIPATION

8.1. Objectives of community involvement

The rehabilitation of the CIS will raise the agricultural productivity and incomes. Thus it will

bring benefits to each individual, in particular, and to the whole community, in general. Still,

during the construction phase some of the land plots will be affected, being temporary unusable

for agricultural production. Farmers could potentially lose earnings related to crop production

from areas along the easements required for pipe-laying and other rehabilitation interventions in

the tertiary network. One of the main RAP objectives is to minimize the negative impacts of the

project.

The World Bank OP 4.12 stipulates that any displaced persons and their communities including

any host communities should be provided with timely and relevant information, consulted on

resettlement options. The communities and project affected persons should be also offered

opportunities to participate in planning, implementing and monitoring resettlement.

The primary objectives to involve communities and to consult with the PAPs are to:

• Develop constructive public opinion that will lead to the execution of a fair and

participatory project;

• Promote an environment for the participation and decision making of the communities in

solving their own problems;

8 Business in fruit production. Practical guidelines. ACSA, 2010. Business in grape production, ACSA, 2009.

33

• Encourage a participatory process of all entities involved in the project’s development;

• Develop a community participation and consultation plan for its future implementation of

a final Resettlement Action Plan for the THVA project.

• Encourage the PAPs to be open-minded to share insight information about the

land tenure, to make known their concerns and claims and to be transparently informed

about the project and grievance process for their own rights and for lodging complaints.

8.2. Project stakeholders

Informational campaign and public consultations were focused on various groups of

stakeholders. The stakeholders were those who have an interest in the project development, and

who will be involved in the further consultative process. The main groups of stakeholders are:

Project Affected Persons (PAP)

There are 406 affected persons, from which 329 were contacted directly by the project team and

ACSA local consultants, as well as during the WUA meetings.

Water Users Association (WUA)

WUA meetings are the main source of information, the sector representatives and the WUA

President being the most credible sources of information. That is why the communication with

PAP was accomplished through WUA representatives.

Local Public Authorities (LPA)

Mayoralty representatives are directly linked to the project, as they have a major influence on

RAP implementation. Therefore, public consultation meetings were attended by mayor, Local

Council secretary, cadastral engineer and other mayoralty representatives. The cadastral engineer

was also involved in the PAP identification process. The participants at the consultation

meetings discussed measures to be undertaken by local authorities for preventing unjustified

grievance regarding to the compensation offer during the RAP implementation, and these are

presented in the Annex 14.

Community people

For a better knowledge of the current situation in CIS Lopatna and implicitly a better RAP

development, public consultation process involved representatives of different social categories

such as: social workers, medical assistants, teachers, pensioners etc. Even if they have limited

influence over the project outcome, they are project opinion-makers, who will directly or

indirectly benefit of the project activities.

8.3. Public consultation strategy

For a better RAP development, a consultation strategy was developed and implemented

throughout the RAP preparation process. The consultation strategy was designed to: (i) inform

PAPs on the potential adverse impacts of CIS rehabilitation activities; (ii) inform the PAPs on

the resettlement action planning to mitigate the adverse impacts; (iii) provide opportunities for

people to voice their concerns and participate in the resettlement planning process. The specific

objective was to consult individuals and WUA members in an open and honest way, using the

following principles as a guide:

• Communications are relevant to the circumstances of PAPs and should address their

specific concerns;

• The project team communicates using a variety of different ways which include direct

communication, public events, press releases and announcements;

34

• The project team makes sure that information is available in a variety of formats – to

ensure that it reaches or is accessible by all sections of the project area.

8.4. Public consultation process

Effective resettlement planning requires regular consultations with a large number of

stakeholders, including project affected persons and those who can play a significant role in RAP

development and implementation.

8.4.1. Public consultations

The consultation process was focused on information dissemination, determining the number of

resettlement cases, improving the consultation strategy and finally fulfilling public expectations

concerning the impact and benefits of the project. Also, the consultation meetings served as a

platform for obtaining agreement of WUAs on cut-off date before the beginning of the census

and socio-economic survey. Therefore, the information dissemination campaign was conducted

through:

• Announcements on the City Hall billboards and other public popular places;

• Direct meetings with PAPs in CIS command areas facilitated by WUAs, and

• Focus Group Discussions.

These were carried out prior to commencement of the Census and Socio-economic Survey with

the aim of increasing PAP awareness on RAP preparation. During the field surveys a number of

community meetings, discussions and interviews were conducted with households and

commercial entities, including WUA members. In addition, the local administration, cadastral

technicians, community leaders, NGOs and other stakeholders were consulted in interviews and

Focus Group Discussions.

Individuals or groups who were not present at the time of registration but who have legitimate

claims will be entitled to receive compensation if they could substantiate that they already had

usufruct rights before the cut-off date.

8.4.2. Summary of expressed views

WUA members, PAPs, LPA representatives, local formal and informal leaders, social institute’s

representatives were informed about the RAP objectives, in general, and Census and Socio-

Economic Survey objectives, in particular. Also informational leaflets and announcements

regarding to the cut-off date were distributed to PAPs and posted on the City Hall billboard (see

Annex 15).

In order to identify and evaluate people’s perceptions and expectations on RAP development and

implementation, a full day Focus Group Discussions (FGD) meeting was organized by the

project team. At the FGD meeting took part 11 persons, representing different social segments:

social assistants, farmers, local public authorities, pensioners (see Annex 16). Good practice

encourages seeking out the views of women, because they provide with a more complete picture

of potential risks, impacts, and opportunities relating to the Project. Thus, 36% of participants at

the FGD meeting were women (4 persons).

All the participants were informed in advance about the FGD objectives and topics to be

discussed. The FGD meeting agenda is presented in Annex 17.

According to information communicated by the FGD participants, agriculture is the main

occupation in CIS Lopatna, but not the main source of income. Main agricultural occupations are

nurseries and crop production as sunflower and corn. The majority of persons, especially

women, employed in agricultural sector are owners of land plots. Men are mostly working

abroad.

35

When the irrigation system will be rehabilitated, villages situated in CIS Lopatna will be able to

self-supply with food, by cultivating agricultural products which are currently bought from the

city. Also the prices for the land plots will rise and implicitly the incomes will increase. An

expected benefit is the decreasing of the water fee.

Small landowners mostly will not be negatively affected. In case when the irrigation system will

not be possible to use, the negative impacts will be much bigger, because there are no other

sources of irrigation in CIS Lopatna. The impossibility of irrigation will deteriorate the planting

material quality in nurseries. Thus, the loss of incomes will increase.

Besides, they expressed a view that due to rehabilitation works about 50 seasonal employees

might lose their places of works. The Consultant explained that the extent of resettlement area of

impact (affected area) is minor if compared to the whole farm area and the rehabilitation works

will be carried out in phases, that is why it is considered that rehabilitation works will not affect

seasonal labor.

The main fear expressed by the participants at the FGD meeting is the beginning of the

construction phase during the agricultural period, thus the loss of the expected harvest will be

much bigger. In this context, the participants requested to be informed objectively and with at

least one year in advance about the start date of the rehabilitation works, so that they will be able

to plan their agricultural activities in order to minimize the losses. Another concern expressed by

the participants is the limiting access to hydrants by landowners on whose territory such

hydrants are located, as well as the disagreement of some PAP regarding the compensation offer

and implicitly the refuse to cooperate with the project team.

The irrigation system rehabilitation will contribute to creation of more places of work. Due to

increased production efficiency and decreased costs, agricultural employees’ salaries will grow.

Also, the business environment will be improved. It will be possible to raise high value crops,

which now is not possible in CIS Lopatna area. Following the irrigation system, a cannery and

recreation center are going to be built.

The participants at the FGD meeting mentioned that the RAP implementation will raise people’s

credibility to the project and will consolidate its positive image.

8.5. Consultation of absentee PAPs

About 77 PAPs could not be found during census. In addition, there are a couple land users that

could not be identified. The identification and compensation procedure of the absentee and/or

unidentified affected persons is presented in Annex 18.

For the absentee affected persons who are living abroad a Power of Attorney template was

developed and it is presented in Annex 19.

8.6. Agreements

The results of PAP census and socio-economic survey revealed a high project participation rate

among PAPs. It means that most of PAPs will allow construction works to be carried out on their

land plots. Still, there are about 6 PAPs that do not agree to participate in the project. The list of

these people is provided in Annex 5. It should be also mentioned that project participation rate

among absent/unidentified PAPs is unknown.

Despite high project participation rate, the agreements haven’t been collected due to delays in

identification of PAPs caused by delayed preparation of detailed design schemes of irrigation

system. Therefore field visits and consultations will be conducted by RAPI at the beginning of

RAP implementation in order to get the agreements signed by most, if not all, affected persons.

The RAPI will facilitate singing the agreements by both heads of households when possible

36

(both household heads are at home). Affected persons not available during RAP implementation

will be able to designate a person (through authorized Power of Attorney) to sign the

agreements. The notary costs will be covered from RAP budget.

The affected persons should receive an informational leaflet about RAP objectives and impacts,

an inventory of the affected assets classified by loss of crops and/or perennial plantations with

the indication of the compensation value, and an agreement between PAP and MCA which has

to be signed by each affected person (agreement template is provided in Annex 20). All signed

agreements will be collected and submitted to MCA.

Persons who refuse to participate and sign any agreement will be informed that the land will be

temporarily acquired according to the law On expropriation for public benefit (No. 488-XIV of

July 8, 1999) and compensation rates will be determined under provisions of this law.

In addition, all PAPs will be informed and requested not to plant perennial plantations on the top

of buried pipeline in order to allow system operators to access broken pipes for further

maintenance/repair. According to Moldovan legislation, access to private land should be granted

by the land owner unless the public utility status is set for construction/maintenance/repair works

and law on expropriation is applied. In this respect, it is recommended to amend WUA statute

with provisions related to compulsoriness of members to allow access to agricultural plots on as-

needed basis.

9. GRIEVANCE MECHANISM

9.1. Establishment of grievance redress committees

With the support of RAPI, the grievance redress committees will be created during the first two

months of RAP implementation, as follows: (i) District Coordination Committee (DCC) on

resettlement and land acquisition located in town of Orhei; (ii) and a Local Resettlement

Committee (LRC) located in Jora de Mijloc commune. The RAPI will also provide support to

organize and carry out the committees’ meetings.

The Resettlement Local Committees created by the Local Council Decision will consist of 5

members, out of which 2 women, as follows: the mayor who will be the LRC chairperson, the

cadastral engineer, the representative of WUA Administrative Council, representative or formal

leader of PAPs, and representative of local NGOs/farmers associations/teacher. The formal

leader and the local NGO/farmers association representative will be selected by the project

affected persons following an information session organized by RAPI in each locality from CIS

11-7 Lopatna within the first month of RAP implementation.

District Coordination Committee on resettlement and land acquisition established by the District

Council Decision in accordance with the law On expropriation for public benfit No. 488-XIV

adopted on July 8, 1999, will consist of 7 members, out of which 3 women, as follows: 3

relevant specialists from Rayon Council, 3 representatives of PAPs and a representative of WUA

Administration Council. The representatives of PAPs will be selected by the PAPs themselves

following an information session organized by RAPI in each locality from CIS 11-7 Lopatna

within the first month of RAP implementation.

9.2. Terms of grievance redress

The duration for grievance redress process by the Local resettlement Committees and the District

Coordination Committee on resettlement and land acquisition is 30 days. The Local Resettlement

Committee must give a written response to the PAPs not later than 14 days after official receipt

of the submission. If the answer is unsatisfactory, the complainant has the right to submit the

complaint to the District Coordination Committee on resettlement and land acquisition, which

will give its answer within 14 days.

37

9.3. Grievance redress capacity building

Due to lack of limited experience in applying in Moldova the principles of the WB OP 4.12

regarding to the involuntary resettlement, the members of the District Coordination Committee

on resettlement and land acquisition and Local Resettlement Committees, together with the

secretaries of Local and Rayon Councils (in charge of receiving and keeping evidence of

complaints), will be provided with two trainings focused on grievance redress mechanism. The

trainings will be organized and delivered by RAPI.

The first training, which will take place within the first 2 months of the RAP implementation,

will aim to instruct participants on:

• How to keep evidence and examine complaints from project affected persons;

• How to identify and compensate the absentee affected persons;

• How to prevent unjustified complaints on compensation offer during RAP implementation;

• Case studies;

• Terms of references and tasks for each created committee.

Each training participant will receive a folder with the following informational materials:

• The instruction on how to keep evidence and examine the complaints from project affected

persons, submitted in written version during the RAP implementation (see Annex 21);

• Procedure of identification and compensation of absentee affected persons;

• Measures to prevent unjustified complaints regarding to the compensations;

• An interactive presentation of the step by step grievance redress (see Annex 22).

10. IMPLEMENTATION SCHEDULE

10.1. Implementation schedule

RAP implementation

The RAP implementation schedule is closely linked with the rehabilitation works. The

resettlement will be minimized and the actual area of impact determined by RAPI and

Construction Supervisor for each sector under construction on the basis of the construction

design. If additional PAPs are identified, an addendum to the list of PAPs will be prepared and

submitted to MCA for approval. Signed agreements with PAPs are needed for obtaining

construction permits while compensation payments for the actual area of impact need to be made

in full to all PAPs preferably before the rehabilitation works can begin. RAP implementation will

start earlier than the excavation works by preparing and delivering resettlement mitigation

measures, implementing the grievance redress mechanism and procedures, and carry out

monitoring activities.

From contractor mobilization until putting irrigation system in operation, the rehabilitation

works will last 2 years. However, the main rehabilitation works that give rise to resettlement,

namely installation of new primary, secondary and tertiary distribution network, will be carried

out in phases (by sector) and completed within 1 year thus affecting only one agricultural season.

In this respect, the RAP will be implemented over one and a half years while the rehabilitation

works affecting land plots is being undertaken. The RAP activities to be implemented are

reflected below in the Table 14.

Prioritization of RAP implementation based on complexity areas and areas under

construction works

38

The results of census and inventory of affected assets revealed the complexity areas that may

affect RAP implementation. There are three types of complexity areas: (i) high difficulty areas,

(ii) middle difficulty areas, and (iii) low difficulty areas.

High difficulty areas (highlighted in red) represent the land plots cultivated by PAPs who

disagreed to participate in the project by granting the right to access land plots for construction

works to be carried out. Middle difficulty areas (highlighted in yellow) represent the land plots

cultivated by PAPs that could not be found/ identified during the census. Low difficulty areas

(highlighted in green) represent the land plots cultivated by PAPs that agreed to participate in the

project. The map showing the complexity areas is presented in Annex 23.

Implementation of RAP activities will be prioritized according to the above-defined complexity

areas. RAPI will initially start working with high difficulty areas by conducting negotiations

with PAPs that expressed disagreement to participate in the project. If unsuccessfully, RAPI will

inform DCC about these cases that will consequently initiate temporary land expropriation for

public benefit.

Secondly, RAPI will focus on finding and interviewing the land users that could not be identified

or found during the census. The project participation status of these persons is unknown and

therefore their identification at early stage of RAP implementation is imperative.

The rest of PAPs who expressed agreement to participate in the project will be approached at a

later stage in order to negotiate the compensations and get the agreements signed.

The RAP implementation activities such as determining the actual area of impact, calculating the

compensations and delivering the payments, will be also prioritized on the basis of land sectors

being under construction.

Gender action plan

The RAP will be implemented in a gender sensitive manner. The following actions will be

undertaken during RAP implementation to ensure gender equality and equity:

1. Gender disaggregation data is kept throughout the cycle of RAP implementation

2. DCC and LRC will consist of representatives of both genders, women being represented

in a proportion of 30%

3. DCC and LRC members will be provided gender training and technical assistance

4. Whenever is the case, no gender discrimination will be made during valuation process

5. The compensation payments for temporary acquisition of land plots will be made with

advance notification of the period, place and method of payment through information

meetings, public announcements and mails sent to affected household members.

6. The agreements will be signed by both heads of household when possible

39

Table 14. RAP implementation schedule

RAP implementation activities/months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 24 Holding launching conference Support to initiate and carry out preliminary research for

determining elements justifying public utility status

Support to establish public utility status for construction

works

Verify and update the list of PAPs and actual area of

impact, minimize resettlement based on construction design

Interview additional PAPs, and valuate additional affected

assets as necessary (in case of changes in the detailed design

of irrigation system)

Identify and interview absentee PAPs, valuate their affected

assets and calculate compensations

Inform PAPs by carrying information meetings and sending

out notification of entitlements by post

Negotiate and collect signed agreements, including those

from absentee PAPs

Establish resettlement committees at local and district level Prepare and deliver trainings to resettlement committees’

members

Implement resettlement mitigation measures (compensation

payments)

Implement grievance redress mechanism and procedures Carry out internal monitoring activities Reporting (quarterly basis)

CIS rehabilitation activities/months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 24 Submission of construction authorization application to

relevant authorities

Start Contractor excavator work

Completion of construction works for primary, secondary

and tertiary distribution network

Putting irrigation system in operation

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11. MONITORING RAP IMPLEMENTATION

RAP implementation will be subject to internal monitoring in order to report on the effectiveness

of RAP implementation, including the physical progress of resettlement and rehabilitation

activities, the implementation of mitigation measures, the effectiveness of public consultations

and the sustainability of income restoration and development efforts among affected persons. It

will provide with the feedback on RAP implementation and to identify problems and successes

as early as possible to allow timely adjustments of implementation arrangements.

Internal monitoring will be performed by RAPI. MCA will also monitor and oversee RAP

implementation.

11.1. Goal and specific objectives

RAPI will establish an internal monitoring system (performance monitoring system) to be

implemented during the whole process of RAP implementation, including rehabilitation

activities. The main goal of performance monitoring is to ensure achievements of RAP

objectives and its successful implementation.

The specific objectives of internal monitoring are to ensure the followings:

1. Actions and commitments provided in the RAP are implemented fully and timely

2. Eligible PAPs receive full compensation entitlements on time

3. Complaints and grievances of PAPs are followed up and appropriate correction measures

are taken, where necessary

4. PAPs related actions and measures are effective for restoring of their income level

11.2. Monitoring indicators

In order to measure and report on the performance of RAP implementation, a set of monitoring

indicators were developed. The Table 15 below provides information on indicators by specifying

the indicator name, definition, baseline and targets, and gender disaggregation.

The baseline was established on the basis of the results of census and socio-economic survey that

describe the situation of project affected persons before intervention/rehabilitation. The targets

were set on the basis of RAP objectives and implementation activities, results of PAPs census

and socioeconomic survey and experience of staff involved in RAP preparation.

Table 15. Monitoring indicators

Indicator name Indicator definition Baseline Target Gender

disaggregation

Implementation

schedule followed

RAP implementation activities are

implemented within established

timeline No

Monitoring reports

submitted Number of quarterly and final

reports submitted by RAPI to MCA 0 7 No

Problems occurred,

solved and/or

corrective actions

adopted

Number and nature of problems

occurred during RAP

implementation 0

To be

determined No

Number and nature of problems

solved during RAP implementation 0

To be

determined No

Absent PAPs identified

and consulted

Rate of absentee PAPs identified

and consulted (effectively

interviewed versus planned) 77 100% Yes

41

Additional PAPs

identified and

interviewed

Number of additional PAPs

identified and interviewed due to

changes in the design of irrigation

system

0 To be

determined Yes

PAPs informed and

consulted

Number of information and

consultation sessions carried out 0 2 No

Number of participants at

information/consultation sessions 0 406 Yes

Final agreements with

PAPs signed

Number of final agreements with

PAPs signed 0 406 Yes

Completion date of collecting final

agreements with PAPs Month 7 No

PAPs compensated on

time

Rate of persons effectively

compensated (planned versus

effectively compensated) 0 100% Yes

Completion date of delivering

entitlements to PAPs Month 10 No

Rate of disbursed payments

(planned versus effectively

disbursed) 0 100% No

Number of Databases for tracking

compensation payments developed

and functional 0 1 No

Resettlement

committees established

Number of resettlement committees

established 0 2 No

Number of resettlement

committees' members 0

12/5

women Yes

Number of persons trained 0 14/5

women Yes

Grievance redress

established and

functional

Number and object of complaints

submitted (justified versus non-

justified) 0

To be

determined Yes

Number of complaints solved at

local and rayon committee levels 0

To be

determined Yes

Number of cases sent to the court

(initiator and issue of dispute) 0

To be

determined Yes

Completion date of grievance

redresses Month 7 No

Pre-project PAPs

income levels and

living standards

restored

Net income per affected family

member in the rehabilitation year 936 936 Yes

Number of PAPs satisfied with

inputs 0 90% Yes

Number and types of compensation

use 0 2 Yes

11.3. Monitoring framework

The monitoring framework aims at structuring the internal monitoring system of RAP

implementation. It includes detailed information about the data collected (performance

indicators), data collection sources, data collection instruments and methods, as well as period

and frequency of data collection and reporting. Data collection and reporting will be

responsibility of RAPI through its monitoring expert.

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Performance indicators

The progress made in RAP implementation will be measures and reported against performance

indicators which are SMART. The indicators will mainly measure the results directly produced

by RAP activities, thus being connected with the RAP implementation schedule and plan.

Data sources

Generally speaking, monitoring data will be collected from different sources such as quarterly

reports of RAP implementer, PAP database, consultation logs, and grievance logs from rayon

and local based resettlement committees, court verdicts issued by first instance, bank by which

compensation payments are made, MCA disbursement plan and reports, and others. Also, the

project affected persons will be an important source of data in the process of monitoring RAP

implementation.

Data collection instruments

Under monitoring system, quantitative and qualitative data will be collected by using the

following instruments: (i) documentation review; (ii) direct observations; (iii) individual

interviews; and (iv) focus group discussions.

Data collection/reporting period and frequency

During RAP implementation, the data will be collected on monthly and quarterly basis. It will be

analyzed and reported through quarterly and final reports.

The internal monitoring framework is presented in the Table 16 below.

Table 16. Internal monitoring framework

Objectives Indicators Data sources Collection

instruments

Collection/reporting

periods and frequency

Actions and

commitments

provided in the

RAP are

implemented fully

and timely

Implementation

schedule followed Quarterly reports of

RAPI Documentation

review Quarterly during

RAP implementation Monitoring reports

submitted Quarterly reports of

RAPI Documentation

review Quarterly during

RAP implementation

Problems occurred,

solved and/or

corrective actions

adopted

Quarterly reports of

RAPI Documentation

review Quarterly during

RAP implementation

Consultation log Documentation

review Quarterly during

RAP implementation

Absent PAPs

identified and

consulted

PAP database

Quarterly reports of

RAPI

Documentation

review

Individual

interviews

Once within first

three months of RAP

implementation

Additional PAPs

identified and

interviewed

PAP database

Quarterly reports of

RAPI

Individual

interviews

Once within first

three months of RAP

implementation

PAPs are informed

and consulted

Quarterly reports of

RAPI

Consultations log

Signed list of

participants

Documentation

review

Direct

observation

Once within first

four months of RAP

implementation

Final agreements

with PAPs signed

Quarterly reports of

RAPI

Final agreements

with PAPs

Documentation

review

Quarterly within first

7 months of RAP

implementation

43

Eligible PAPs

receive full

compensation

entitlements on

time

PAPs compensated

on time

Quarterly reports of

RAPI

PAPs

Bank

MCA disbursement

plan

Documentation

review

Focus group

discussions

Individual

interviews

Once when

completed

Complaints and

grievances of PAPs

are followed up and

appropriate

correction measures

are taken, where

necessary

Resettlement

committees

established

Decisions of local

and rayon based

resettlement

committees

Signed list of

training participants

Documentation

review

Direct

observation

Quarterly until

completed

Grievance redress

established and

functional

Grievance logs of

local and rayon

based resettlement

committees

Court verdicts

PAPs

Documentation

review

Individual

interviews

Quarterly until

completed

PAPs related

actions and

measures are

effective for

restoring of their

income level

Pre-project PAPs

income levels and

living standards

restored

PAPs

Individual

interviews

Focus group

discussions

After 1 year of RAP

implementation

11.4. Management and implementation plan

Operational implementation plan

One of the key instruments of internal monitoring system is the performance monitoring activity

implementation plan. The tentative implementation activities and schedule are presented in the

internal monitoring framework table. However, RAPI will develop more detailed and concrete

implementation schedule.

Information management system

RAPI will set an Information Management System in order to facilitate monitoring data storage,

analysis and reporting. It will include a database and a documentation system. The database will

mainly store and process monitoring data based on which the performance indicators will be

analyzed. The documentation system will be established to ensure that all monitoring actions,

instruments and reports are stored systematically.

Internal monitoring unit structure and responsibilities

The internal monitoring unit will be composed of RAP monitoring specialist who will coordinate

and participate in monitoring activities. The RAP monitoring specialist will report directly to

RAPI coordinator and will be supported by the experts involved in office and field RAP

implementation. The RAP monitoring specialist will have the following responsibilities:

• Set up and coordinate internal monitoring system

• Coordinate, oversee and participate in implementing monitoring plan, including data

collection, storage and analysis against monitoring indicators

• Communicate the results and report on performance indicators

Reviewing and updating monitoring plan

The internal monitoring plan will be subject revised and updated on when needed basis in order

to adjust to the changes operated in RAP implementation activities and/or improve the

monitoring system and performance measures.