CONSULTANCY SERVICES FOR THE DESIGN AND ...documents.worldbank.org/.../RP12640RP0P1100x3678… ·...

CONSULTANCY SERVICES FOR THE DESIGN AND IMPLEMENTATION OF COMMUNICATION AND SOCIAL INCLUSION PROGRAM AND OUTREACH (INCLUDING

SOCIAL IMPACT ASSESSMENT [SIA] AND RESETTLEMENT ACTION PLAN [RAP])

RESETTLEMENT ACTION PLAN FOR FAMILIES RESIDENT AT BALAKHANI LANDFILL

EPTISA Servicios de Ingeniería, S.L.in joint venture with

Resources and Waste Advisory Group L.L.C.

May 2011

RP1264

CONSULTANCY SERVICES FOR THE DESIGN AND IMPLEMENTATION OF COMMUNICATION AND SOCIAL INCLUSION PROGRAM AND OUTREACH (INCLUDING

SOCIAL IMPACT ASSESSMENT [SIA] AND RESETTLEMENT ACTION PLAN [RAP])


TABLE OF CONTENTS

1. FRAMEWORK FOR PREPARING THE RESETTLEMENT ACTION PLAN...............................................................................1

1.1 THE INTEGRATED SOLID WASTE MANAGEMENT PROJECT…................11.2 CONSULTING SERVICES...............................................................................11.3 PROCEDURES FOR PREPARING THE PLAN..............................................3

2. SITUATION OF THE RESIDENT FAMILIES..................................6

2.1 SETTLEMENT AT THE LANDFILL.................................................................62.2 FINDINGS OF THE 2007 SOCIO-ECONOMIC SUREY...................................62.3 HOUSING.........................................................................................................82.4 PRODUCTIVE ASSETS...................................................................................92.5 INCOMES.......................................................................................................102.6 HEALTH AND ENVIRONMENT ASSESSMENT...........................................10

3. THE CASE FOR RESETTLEMENT ASSISTANCE AND COMPENSATION.........................................................................12

3.1 BASIS OF CLAIMS........................................................................................123.2 LEGAL AND POLICY FRAMEWORK...........................................................133.2.1 AZERBAIJAN LEGAL CONSIDERATIONS..................................................133.2.2 GAPS BETWEEN LOCAL LAWS AND WORLD BANK GROUP POLICIES

....................................................................................................................... 143.3 ASSETS.........................................................................................................153.3.1 LAND..............................................................................................................153.3.2 HOUSING.......................................................................................................153.3.3 PRODUCTIVE ASSETS.................................................................................163.4 INCOMES.......................................................................................................17

4. PROPOSED RESETTLEMENT ACTION PLAN..........................18

4.1 THE NECESSITY FOR RESETTLEMENT.....................................................184.2 POLICY CONSIDERATIONS.........................................................................184.2.1 POLICY COMPARISONS..............................................................................184.2.2 PROPOSED COMPENSATION AND REPLACEMENT POLICY..................204.3 PROPOSED COMPENSATION AND REPLACEMENT PACKAGES...........204.4 COST ESTIMATES........................................................................................23

5 INSTITUTIONAL ARRANGEMENTS...........................................25

5.1 RESPONSIBILITIES......................................................................................255.2 IMPLEMENTATION SCHEDULE...................................................................265.3 RAP IMPLEMENTATION PLAN AND PROCESSES ...................................275.3.1 NEGOTIATIONS AND IMPLEMENTATION OF RAP AGREEMENT PROCESSES ...........................................................................................................27

5.3.2 GRIEVANCE MECHANISM...........................................................................305.3.3 MONITORING AND EVALUATION PROCEDURES...................................... 31

ABBREVIATIONS AND ACRONYMS

AZN : Azerbaijan Manat

CSIP : Communication and social inclusion program

IDP : Internally displaced person

ISWM(P) : Integrated Solid Waste Management (Project)

MED : Ministry of Economic Development

MRF Material recovery facility

PAP : Project affected people

PMT : Project Management Team

RAP : Resettlement Action Plan

RPF : Resettlement Policy Framework

SCRI : State Committee for Refugees and Internally Displaced Persons

SIA : Social impact assessment

TOR : Terms of reference

TS JSC : “Tamiz Shahar” Joint Stock Company

Consultancy Services for the Design and Implementation of Communication and Social Inclusion Program and Outreach (Including Social Impact Assessment [SIA] and Resettlement Action Plan [RAP])

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CONSULTANCY SERVICES FOR THE DESIGN AND IMPLEMENTATION OF COMMUNICATION AND SOCIAL INCLUSION

PROGRAM AND OUTREACH (INCLUDING SOCIAL IMPACT ASSESSMENT [SIA] AND RESETTLEMENT ACTION PLAN [RAP])


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1. FRAMEWORK FOR PREPARING THE RESETTLEMENT ACTION PLAN

1.1 THE INTEGRATED SOLID WASTE MANAGEMENT PROJECT

The Government of Azerbaijan’s Ministry of Economic Development (MED) is implementing the Integrated Solid Waste Management Project (ISWMP) to improve and support modernization of the solid waste management system in Baku. ISWMP, which is operationalized by MED’s Project Management Team (PMT) and supported by the World Bank, has the objective “to support the reform of the Greater Baku solid waste collection and disposal operations into an effective and sustainable system in the fields of (i) improving environmental conditions at the existing waste disposal sites, (ii) building-up operational, management and communication capabilities, (iii) rollout of collection services, and (iv) data collection and planning.” ISWMP has five components:

A. Institutional reform, capacity building and project management.B. Balakhani landfill rehabilitation and management.C. Closure and management of other dumps.D. Urgent collection equipment for under-served Baku districts.E. Technical preparation of post-project investments.

Resettlement and impact on livelihood occurs related to component “B. Balakhani landfill rehabilitation and management” of the project. The Government has created a joint stock company “Tamiz Shahar” JSC (TS) to “own and manage all assets related to solid waste utilization in Greater Baku”, with assumption of full control of the landfill being its first and most urgent project. The Government acted on the urgent need to rehabilitate and develop the Balakhani Landfill which had in use since 1963 but had come to be of serious concern to the environment and public health.

This component of the Project affects two groups of people in different ways: the six families who are resident at the site and who by necessity will be relocated in the course of the site rehabilitation works and those people who do not live on the landfill but earn a living from waste picking and whose source of income could be affected once the landfill is fully rehabilitated. The six families have a total of 14 members; this report refers to “six families” to describe the residents, except where there is need for specific reference to an individual.

1.2 CONSULTING SERVICES

MED has contracted a joint venture of EPTISA Servicios de Ingenieria SL (Spain) and Resources and Waste Advisory Group to provide consultancy services for the design and implementation of communication and social inclusion program and outreach [including

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Social Impact Assessment (SIA) and Resettlement Action Plan (RAP)]. The services to be provided by the Consultant /1 include assistance to TS and other agencies to improve their communications with each other, with the general public, with users of waste management services and with business interests involved in management of solid wastes and to the PMT to support TS in resettlement/ reorientation for those affected by development or closure of landfills in Greater Baku.

The TOR further state that the assignment will assist in the implementation of ISWMP’s five components, with the Consultant to carry out groups of activities in seven “tasks”:

1. Design of a communication and social inclusion program (CSIP);2. Training and capacity building for implementation and adjustment of the CSIP;3. Implementation of the CSIP;4. Social impact assessment (SIA);5. Preparation of a resettlement action plan (RAP);6. Development of RAP monitoring procedures;7. Preparation and disclosure of RAP monitoring reports.

The Consultant considered these groupings very carefully in the contexts of MED’s priorities and of the target groups for which programs are to be designed. The Consultant found that, in the case of development of the Balakhani Landfill, project affected people (PAP) fall into two quite distinct categories with very different needs for resettlement and/ or livelihood enhancement or replacement: (i) six families that have been resident at the landfill site and have earned their livings from waste picking and recycling; and (ii) waste pickers who earn their livings, but are not resident, at the landfill.

The Consultant, in the light of its early consideration of the seven tasks, the nature of the PAP and MED’s priorities, proposed that all of the work be put in three streams, with the tasks and their activities considered within them. The PMT agreed with the proposal which was subsequently formalized in the Inception Report. The three streams, which correspond to the primary subject groups of the Consultants’ work (landfill residents, non-resident waste pickers, those involved in TS’s communications networks), are:

Stream 1: Resettlement Action Planning for Landfill Residents.Stream 2: Resettlement Action Planning for Non-resident Waste Pickers.Stream 3. Design and Implementation of the Communication and Social Inclusion

Program.

The present RAP refers to the resident families at the Balakhani landfill site, with a separate RAP to be prepared for the non–resident waste pickers. Five of the six resident families came to live on the landfill site as Internally Displaced People (IDP), but as part of one extended family tree, seeking a place to live and a source of income. IDPs in Azerbaijan are entitled to compensation based on their IDP status, such compensation is coordinated by the State Committee for IDPs and Refugees (SCRI); however, the main purpose of the present document is to establish a resettlement action plan based on their status as PAP. Eligibility for compensation as PAP depends on land tenure and severity of impact. The project will closely monitor the implementation of the RAP with an agreed procedure and disclose it to relevant parties.

1 /.“The Consultant” refers to EPTISA Servicios de Ingeniería, S.L and Resources and Waste Advisory Group L.L.C. as the entity contracted to provide services to the PMT.

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1.3 PROCEDURES FOR PREPARING THE PLAN

Rehabilitation and development of the landfill have been under way since October 2009 when assets were transferred to TS JSC and the landfill rehabilitation project started. There is a history of communication, negotiation and ongoing litigation between TS JSC and the PAP. Prior to the commencement of RAP preparation, the PAP residents embarked on a campaign to influence the outcomes of their pursuit of compensation, by writing complaint letters to the senior ministers of the Government concerned with the matter, to government agencies and to the World Bank. The main grievance of the PAP was the erroneous assumption, borne from miscommunication and misunderstanding, they would be forcibly relocated from the landfill site without due compensation. The letters resulted in an escalation of grievance between all stakeholders in the project and the eventual awarding of a court order to TS JSC supporting the forcible eviction of the PAP. On the insistence of the World Bank and all Government stakeholders the court order was never enacted. The process of RAP preparation has done much to clarify the expectations of the PAP, assuage their fears and to ensure open constructive dialogue between the PAP and TS JSC. At the current time harmonious relations and due process have been restored.

The starting point for reviewing the situations of the six families is establishment of a reference point for the factual baseline. The Consultant has taken the view that the reference point (“cut-off” date) should be the date on which TS JSC assumed full ownership and management control of the landfill and the landfill rehabilitation project started; that is 14 October 2009. In trying to reconstruct accurately the situation of the PAP at the reference point, the Consultant team triangulated information and data by referring to different stakeholders and by looking at all available documents and photographs. Accurate reconstruction of the situation at the reference point is especially important to ensure equitable treatment for all people adversely affected by the Project and to avoid fraudulent claims in the best interests of both the Government of Azerbaijan and the World Bank.

The Consultant team closely followed the outline given in the TOR, together with the Resettlement Handbook of the IFC to develop the RAP and monitoring procedures. However, the RAP Handbook and the table of contents were designed for large infrastructure projects, affecting large groups of people; thus, some subheadings were found not to be relevant and therefore were left out from the RAP.

Preparation of the RAP has paid close attention to Azerbaijani legislation, the World Bank Resettlement Policy, the Resettlement Policy Framework prepared by MED and the general aim of the Project to implement state-of-the-art, environmentally sound waste management practices, occupational health and safety standards and protection of public health.

Census and Socio-economic Surveys

The first assessment of the situations of resident and non-residents at the landfill was via a socio-economic survey was carried out by “Synergetics” to determine the impacts of the Project. The draft socio-economic survey report is dated January 2008, while no final report was submitted. The preparation of the RAP has faced several challenges: (i) that the initial draft socio-economic survey was conducted in 2007, two years prior to the reference point cut off date, and was also never agreed as final or its contents verified, (ii) subsequent assessment of the PAP was conducted in 2011, some years after the cut-off date. In that time there have been many changes at the landfill site, in terms of operations and in the lives of the PAPs, as TS JSC started to make physical changes at the landfill site and exercised its full rights as its owner and operator.

The RAP therefore reconstructs, as its baseline for the conditions of the PAP at the cut-off date, a situation from the past. The Consultant has made investigations with the PAP,

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observed the assets at the landfill site and triangulated the information and data that it gathered by talking to key informants and by looking at various evidence such as documents, contracts and photographic archives.

Survey with the PAPs

The socio-economic assessment undertaken by the consultants was carried out in the framework of two meetings. This approach was possible due to the small number of people, who form one extended family, to be affected by the project. The first meeting, with representatives of the families, was to establish contact with the PAP and introduce the Consultant’s team and establish the purpose of its work. The second meeting, with the heads of the six families, was to add to understanding of the history of events since the families moved to the landfill site until the current time.

In the first meeting, two family heads – Family Head 1 and 5 – and another person appointed as negotiator consensually by the six families, attended the first meeting and expressed their willingness to negotiate with TS JSC and with members of the consultancy team. The negotiator is not a listed member of the PAP but a close relative of theirs. The consultants agreed to this as it was much easier to discuss with one appointed key member than talking to several family heads. During consultations and negotiation, he was always accompanied by a few other key members of the PAP. The meeting established that communication and consultation with the families was possible and welcome.

The second meeting, on 13 April 2011, was able to establish the family tree and the sequence of events for all the IDPs. The PAP clearly stated that they were keen to have an early solution to the problem. Their main demand is housing and livelihood restoration and they have a strong preference for cash compensation. They pointed out that, due to waste now reaching near their house, it has become difficult to live there and their health is gradually deteriorating.

Health Assessment

A health impact analyses was carried out to assess the perceived and actual hazards involved with living and carrying out economic activities in the direct vicinity or on the landfill site.

Documents and Discussions with Key Informants

The Consultant supplemented facts and opinions obtained from the PAP with reviews of available documents and discussions with concerned agencies and key informants. The aim was to ensure all possible information was used to assess the situations of the PAP and to inform design of the RAP.

Documents and photographic archives used included:

- The socio-economic survey carried out by “Synergetics”, dated January 2008 based on work conducted in 2007

- The census carried out by TS JSC and legal documents such as contracts and letters, used in the court case running from 15 July 2010 (the date of the first instance decision) to date between the PAP and TS JSC

- Photographs from the archives of MED, “Synergetics”, TS JSC, PMT and the World Bank.

Consultations with key informants to triangulate information collected included:

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- Interview with landfill operator of the Balakhani landfill from beginning of informal sector activities at the landfill site to date

- Interview with the secondary materials traders in a contractual relationship with TS JSC, active at the Balakhani landfill since 2002

- Focus group discussion with eight waste pickers in the premises of TS JSC at the Balakhani landfill site

- Discussion with the legal department of TS JSC.

The Consultants made several visits to the landfill to observe the physical assets at the premises there. The visit of 14 April 2011 was specifically for mapping and making an inventory of the assets.

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2. SITUATION OF THE RESIDENT FAMILIES

2.1 SETTLEMENT AT THE LANDFILL

Census

The six resident families came to the landfill in 1993-1994 in response to one of their leaders seeing the opportunity to earn livings from waste picking and recycling. Given that the families are IDPs, SCRI documented the families and their members and provided an initial census list of the PAP. In consultation with the PAP, the consultant’s research in 2011 led to the creation of the more accurate list. Five of the families, with a total of 12 members, are all related by birth or by marriage to form one extended family. The sixth family is a non-IDPs; One person who still lives at the landfill site, was employed by the families to work with them at the workshops and guard the assets. The SCRI and TS – JSC provided a list of the PAP which comprised of 14 people, which has been revised and corrections made, name of the family head highlighted, gender and age mentioned.

2.2 FINDINGS OF THE 2007 SOCIO-ECONOMIC SURVEY

The first socio-economic assessment of the resident and non-resident waste pickers was conducted as part of the appraisal work prior to the start-up of Project activities. The World Bank appointed the Center for Social Technologies (“Synergetics”) to carry out a socio-economic survey of people who collect solid waste in the Balakhani site for resale to earn their livelihoods. The draft report of the “Synergetics” study is dated January 2008.

Limits to what can be learned about the 14 members of the six families resident at the landfill from the “Synergetics” survey are set by (i) its concentration on waste picking, with no study of waste processing and trading; (ii) its not being required to prepare specific information on the resident families. Nevertheless, the survey report does give some findings on the six families, separated from the general interviewers because of their status as IDPs.

The “Synergetics” survey covered 11 members of the six IDP families living in the territory of Balakhani landfill (see pictures). Of those surveyed, 9 people had been living at the landfill for 14 years and 2 people for 5 years. The “Synergetics” survey stated “Most of surveyed IDPs (11 people) are from Kalbajar region, 1 is from Goranboy and 1 person is from Gusar. Two people from among family members are not IDPs. Eight were registered in Sabunchi district of Baku city, and 1 was registered in Goranboy region”. The numbers given do not clarify the numbers of residents, their IDP status or their regional origins.

There is discrepancy in the number of resident people as recorded officially and elsewhere. The SCRI list is the most authoritative and was made at a time that closely corresponds to the reference point for the RAP; the Consultant cannot obtain a list of the people interviewed by “Synergetics” for comparison. Therefore, the Consultant has (i) reported here the findings of “Synergetics” as given in its draft report; (ii) adopted the official SCRI list and modified in consultation with the PAP as definitive for planning purposes. The final list also has 14 people, of whom 12 are IDPs, 2 are not IDP’s and the 15th person is reportedly out of Azerbaijan and believed to be in Russia since 2009 as per the information by other people, including the members of the six families. Since her whereabouts is not known, her name has been removed from the current modified list and the name of the caretaker appointed by the six families has been included for record purpose only.

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Priority Concerns of IDP Families Living at the Balakhani landfill

The 2008 survey assessed the IDPs’ opinions on resettlement, with 8 of 11 family members considering resettlement necessary to prevent further negative impacts on their health from the unfavourable environment and thus they favour it (Table 1).

Table 1: Attitudes of IDPs towards Resettlement

Respondents Opinion Number of Respondents

Favour 8Oppose 2

Do not know 1

Total 11

Source: “Synergetics” 2008 Socio-economic Survey.

The overwhelming majority of surveyed IDPs (9 of 11) indicated the likelihood of loss of their main income source in case of resettlement, having in view that their main source of income was the waste picking activity at the Balakhani landfill. One of 6 IDP families living at the landfill declared that they would lose their dwelling built in the landfill territory over the period of living there (see picture below).

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All surveyed IDPs indicated employment as their most urgent need (Table 2).

Table 2: Resettlement Options Indicated by IDP Families

Mechanisms of Resettlement Respondents

Preferable area

Rural area 3Urban area 2

It does not matter 6

Total 11

Regional origin of neighboursWithin the IDPs from the same region 2

It is of no importance 9

Total 11

Term during which the families will be ready to resettleWithin 1 month 9

Within 3 months 1Within 6 months 1

Total 11

Necessary elements of social infrastructure

Bus stop 1Educational establishments (schools, kindergartens) 2

Medical establishments 6Shopping centres 2

Total 11

Source: “Synergetics” 2008 Socio-economic Survey.

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2.3 HOUSING

Out of the six families, four families claimed during the consultation held on 13 April, 2011 that they are entitled to compensation for loss of four separate houses in three different size of land occupied (Table 3) in existence in 2009.

Table 3. Resident Family Claims for Compensation for Loss of Houses

Owner Size Description Value

Family 1 130 square meters 3 room house with kitchen and balcony

USD 119 000 (residents’ estimate)

Family 2 and Family 6– 2 rooms each

96 square meters – combined

4 room wooden house

No value was estimated

Family 4, The daughter of Family 1

30 square meters Train carriage (wagon)

Bought for USD 5 000

Source: Opinions of resident families as given to Consultant.

Of these claims, the existence of only a smaller brick house in an obsolete state can be confirmed from photo archives from different sources, including TS JSC, “Synergetics” report and the World Bank supervision missions and from the field visit of the consultant team on 14 April, 2011.

The issue of verifying the PAP housing situation has also been complicated because of their IDP status and the claim that some of the families had previously been offered alternative housing through the Government assistance schemes for IDPs. Both the claimant families and the official letter dated 20 April 2010 from the head of SCRI, to Minister of MED, state that family head 5 and his family received a three-room apartment as provision based on their IDP status. The consultant was, however, unable to ascertain updated information about the housing and/ or other assistance provided to the families through the Government's IDP policy but he accepted receiving the house and staying there. Therefore, the proposals for re-housing have been based on verifiable information regarding the families housing conditions at the landfill at the reference cut-off point and in regard to the impact of the project regardless of the related but separate IDP status of the PAP. This established that family head 5 did not have a house at the landfill site according to the consultant’s review of photo archives and based on site observations. The family head 5 also did not claim another house as claimant of the landfill site probably in view of the housing he received from SCRI.

2.4 PRODUCTIVE ASSETS

Waste Recycling Facilities

The PAP claims to have owned two waste recycling workshops. The first was established in 2004 with assistance from a “foreign donor”; the workshop was 26x6 meters and included the first shredder for plastic. In 2006, the families obtained a second shredder for plastic waste and included washing lines in the workshops. The Consultant attempted to ascertain the true position of the assets in 2009, at the reference cut-off point, by site visits, key informant interviews and photo archives. These all confirm the existence of the productive assets at the cut-off date and subsequently.

The shredder lines for plastic and the open structures that contained them were situated within 30 meters from the body of the waste according to available photo-documentation. The recycling business had no licence for operation, nor did it have any environmental

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permit or health and safety protection practices in place or meet the improved waste management and environmental protection standards being promoted under the project.

Pigs

The PAP claim to have owned and operated a pig farm with assets as described in Table 4. The pigs were fed from the waste and were kept in sheds built from second hand waste materials. There is no other evidence to support the claim that the families had 120 pigs at the reference point.

Table 4: Assets of the Pig Farm in 2009

Item Quantity Description

Shed 2 Unstable structure made of second hand materials from such waste as foil, pallets, scrap, wood waste and cardboard.

Pigs 120 Pigs grazing on landfills represent a public health hazard.

Source: Opinions of resident families as given to Consultant.

2.5 INCOMES

The families claimed that the recycling business generated AZN 700-800 per family per month. This information was triangulated by comparing the findings of the “Synergetics” study and the Consultant’s socio-economic assessment conducted with the waste pickers from 28 March to 13 May 2011 that included a survey, a focus group discussion and interviews with key informants.

The “Synergetics” socio-economic survey estimated average income for a waste picker in 2007 of AZN 250-300. The Consultant’s socio-economic assessment of the waste pickers found their monthly earnings to average AZN 240 and to be in the range of AZN 120-360, depending on how productive they were. This suggests that the PAP families, comprising two adult workers, could make AZN 500-600 by picking waste materials and selling them to traders. Being one step higher in the recycling chain, operating as a small recycling business and traders, it is reasonable that they would make slightly more money than a waste picker. The calculations show that PAPs were making AZN 200 per family per month extra on trading and shredding waste as compared to waste pickers.

Incomes per family vary according to the number of working adults included. Since these people operated family businesses, it was never clear how much each person made. Family income is therefore the apt measure for assessing impact of the Project.

Table 5: Monthly Income Estimate for Typical IDP Family Household /1

Source of Income Total income

Picking waste and selling secondary materials

Shredding and trading waste

AZN 500-600 AZN 200 AZN 700-800

/1. Family of two adults and dependents.

Source: Consultant’s estimates.

The IDP families employed a non–IDP worker, whose income was AZN 150-200 per month, depending on how well the business was running /22.

2/2 Consultation with the PAP on 2 August, 2011.

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2.6 HEALTH AND ENVIRONMENTAL ASSESSMENT

The PAP carried out two income generating activities at the landfill site, pig breeding and recycling in the workshops; both were in an environment very hostile to their health /33. Furthermore, grazing pigs at landfills is a public health hazard. Recycling carried out in the conditions at the landfill site in workshops that are in derelict conditions does not fulfill occupational health and safety standards and environmental protection norms.

The environmental authorities initiated actions aimed at improving the disposal conditions at the Balakhani landfill in 2009. Currently, the total amount of wastes disposed of at Balakhani landfill per month is more than 250 000 - 300 000 m3, more than 80 per cent of municipal wastes generated in Baku City. The landfill does not have lining to prevent the permeation of leachate into ground waters /44. The waste is collected and disposed mixed at the landfill without prior segregation. After the waste is dumped, a group of waste pickers is sorting out various materials, including plastics, glass, cardboard and paper and ferrous and non-ferrous metals.

Up to 2009 the Balakhani waste disposal site and the Baku area faced serious problems with environmental and health and safety management practices. Baku residents well remember the fires and smoke in the landfill in those years, which endangered the environment and health of the Baku city residents earlier. Other environmental hazards to nearby residential areas were the infiltration of leachate into groundwater, dust and flying waste particles and increased populations of rodents, birds and insects.

When TS JSC took over the management of the landfill, the environmental benefits were immediate. Some of the measures implemented were to fence the landfill, stabilize the slopes, and ensure coverage of the landfill every 1 m to minimize the risk of fire, the smoke and the odours. This practice is also a good way to control the population of different animals in the area that may carry bacteria and spread diseases. The company also focused on controlling access of waste to the landfill and dumping of waste. The environmental and occupational health improvements are obvious, nevertheless the landfill still has the potential to impact health and environment negatively in a number of ways.

The exposure pathways and types of exposure associated with the landfill are complex and are especially harming persons living or working at the landfill site. These include:

air, water, soil and food; inhalation, ingestion and skin contact; a wide range of different chemicals, some of them known carcinogens, allergens, or

teratogens if exposures are sufficiently high and present in chemical mixtures with unknown synergistic effects; and

relating to landfilling practice, often many years before the time of exposure which may have been poorly documented or illegal.

Absorption through the skin is an exposure pathway of major concern for waste pickers, especially children (as they have thinner skin), caused by direct contact with the wastes. This is most effective exposure for volatile organic compounds and similar substances that dissolve readily in oils and fats and are small molecules.

Food and water are one of the most significant exposure pathways for many environmental pollutants connected to landfills. This pathway includes both drinking water as well as food

3 /3 The observations here on health and the environment follow from the Consultant’s Health and Occupational Safety Expert who visited the landfill as part of the assessment of conditions there.

4 /4National Caspian Action Plan of The Republic of Azerbaijan (2007-2017) and the second Environmental Performance Review (EPR) of Azerbaijan – 2010.

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and accidental or incidental ingestion. Groundwater systems can be easily contaminated with pesticides, fertilizers and industrial compounds around landfill sites. Accidental or incidental ingestion is significant in waste picking children who usually do not wash their hands before putting them in their mouths or eating. Contaminated foods can also be meats (fish, poultry, cattle, pigs etc.) that have been raised in the vicinity of a landfill. Therefore animal grazing at landfill sites and resale of these animals as food is a serious public health hazards and should be prohibited.

The shredder lines and the open structures that contained them were situated within a radius of 30 meters from the landfill according to the photo-documentation provided for review. According to the families, the workshops had also washer lines that are now not identifiable. The facility had no system of collecting the wastewater from washing the plastic and no waste water containment or treatment system. The workshops are not built on an impermeable platform, such as a concrete platform. The electrical lines and wiring were very close to the body of the waste, where even under circumstances of controlled waste disposal danger of fires, smoke and explosions are high, therefore putting the improvised business at high risk of fire.

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3. THE CASE FOR RESETTLEMENT ASSISTANCE AND COMPENSATION

3.1 BASIS OF CLAIMS

The Balakhani Landfill was a major source of environmental pollution and a nuisance for the surrounding residential areas. The landfill is located right next to the Boyuk Shor Lake and about 3 km from the residential area of the Balakhani settlement of Baku city. Since the PAP live on the landfill site, displacement of these people in the long term cannot be avoided if the landfill is to be closed and fully rehabilitated. Presently the existence of the built structures in the immediate vicinity of the waste body is both a danger to these structures and a hindrance to the operation of the landfill.

At first the residents lived in tents, started working in waste picking. Slowly they accrued income and built housing. In 2004 the families bought a shredder and built the first workshop, soon after that in 2006 they bought a second shredder, washing line and built the second workshop as well.

The six families lived at the Balakhani landfill site between from 1993 to 2009 but have no legal claim on the land that they have occupied and may be described as squatters or encroachers in the landfill area. They are not asserting long-standing or ancestral customary claims to property and claim compensation after fairly recent occupation of unused or unprotected land. The issue of the claim is further complicated by the land they have occupied being the property of the Baku City Executive Power (later transferred to TS JSC) and designated since 1963 for landfilling. The land is severely polluted by the municipal, medical and at times hazardous waste dumped there and has a negative market value for residential purpose. At the same time the resident families made a living from sorting and recycling the waste at the site thus saving precious landfill space and conservation and recycling of resources.

The PAP also earned income from pig farming, respectively grazing and selling pigs. The pigs were fed from the waste and were kept in sheds built from second hand and waste materials.

As waste disposal progressed at the site it became more and more difficult for the resident families to live at the landfill site. Today, waste is dumped right in the vicinity of the built structures, about 2 meters from the workshops and about 20 meters from the house. The waste body is 8-10 meters high and has a steep slope. Access to the built structures is through a pathway excavated in the body of waste and to reach the place one has to pass through leachate water.

It is clear that the conditions for access to their housing and trading of waste are made unfavourable for the PAP by the project. Cessation of trading and processing by the residents is clearly attributable to development of the landfill – the venue where they carried out these enterprises is no longer available to them as a result of (very sound) policies adopted by TS JSC in the interests of public safety and health. Besides ensuring compensation for the lost assets, the RAP is focused on provision for the residents to facilitate resumption of these enterprises.

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3.2 LEGAL AND POLICY FRAMEWORK

Considerations of the legal and policy frameworks are incorporated into the Resettlement Policy Framework (RPF) prepared by the MED in 2008 to guide resettlement for all components of ISWMP.

3.2.1 Azerbaijan Legal Considerations

The legal framework for resettlement in Azerbaijan differs from that of other countries because most resettlement is due to IDPs coming from the region of Garabakh and having special rights for compensation under a presidential decree enacted especially for the people with and IDP status. An added element of RAP preparation was recognition that the majority of PAP are officially registered as IDPs and therefore subject to additional legal protection for resettlement.

Local Laws and Customs Applying to Resettlement

Current Azerbaijan legislation providing instructions on matters relating to land, land acquisition and compensation for other property losses includes:

The Land Code, 25 June 1999; The Civil Code, 1 December 1998; Cabinet of Ministers Resolution No 42, 15 March 2000; Cabinet of Ministers Resolution No 110, June 1999.

The current Azerbaijan legislation on matters related to refugees and the IDPs includes: The law of the Republic of Azerbaijan “On status of refugees and internally displaced

(persons displaced within the country) persons”, May 21, 1999 The law of the Republic of Azerbaijan “On social protection of internally displaced

persons and persons equated to them”, May 21, 1999 Presidential Order #187, “About the State Committee of Azerbaijani Republic on

Affairs of Refugees and Compelled Immigrants”, February 1, 2005 Presidential Order #298, “About additions made to the “State Program on

Improvement of living conditions of refugees and compelled immigrants and on employment increase”, July 1, 2004

The law of the Republic of Azerbaijan “On status of refugees and internally displaced (persons displaced within the country) persons, May 21, 1999” provides general principles and defines the legal status and rights of IDP and non-IDP refugees, describes main principles and mechanisms of state assistance to these people.

Article 2 of the law of the Republic of Azerbaijan “On social protection of internally displaced persons and persons equated to them”, May 21, 1999” defines that those refugees who came from outside the territory of Azerbaijan due to conflict with Armenia are provided the equal entitlements and legal status as IDPs. The same law defines measures regarding the provision of shelters for IDP and non-IDP refugees and the social protection of IDP, in addition to the associated responsibilities of the State.

Presidential Order #187, “About the State Committee of Azerbaijani Republic on Affairs of Refugees and Compelled Immigrants, February 1, 2005” defines role and functions of SCRI as a central executive body responsible for the implementation of state policies on the settlement, repatriation and the social protection of IDPs and non-IDP refugees, in addition to the improvement of their household conditions.

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Presidential Order #298, “About additions made to the “State Program on Improvement of living conditions of the refugees and compelled immigrants and on employment increase”, December 31, 2007” provides amendments to the State Program approved on July 1, 2004. The revised Presidential Decree provides the Plan to develop apartment buildings and new settlements to accommodate IDPs and non-IDP refugees temporarily settled in Baku, Absheron and other Rayons. The Plan specifies that the new apartments to be built will be provided with necessary infrastructure, such as electricity, water supply, educational, cultural, health and other necessary social entities.

3.2.2 Gaps between Local laws and World Bank Group Policies

Many of the key tenets of the WB’s OP 4.12 are covered in full or in part by current Azerbaijani legislation. This includes:

the requirement to pay compensation in advance where land is compulsorily acquired (Land Code, article 70.5);

the need to compensate based on full market value or through grant of another land plot or building of equal quality, size and value (Land Code articles 8 and 70.5);

the need to avoid, wherever possible, impacts on agricultural land and forests (Cabinet of Ministers Decree No. 42, section I, article 2);

the requirement to compensate for losses, whether temporary or permanent in production or damage to productive assets and crops (Cabinet of Ministers Decree No. 42, Sections I and II); and

the provision for pre-judicial avenues for resolution of disputes and rights of appeal.

There are, however, six broad areas where provisions required under OP 4.12 extend beyond those required under Azerbaijan legislation. These are:

Resettlement planning and procedural requirementsThere is presently no requirement to prepare a formal Resettlement Action Plan (RAP) under Azerbaijan law, nor to undertake any of the component activities of a resettlement action plan such as, a ‘census’, socio-economic survey, consultation with project affected people, monitoring or reporting. There are no specific references in the legislation to ‘involuntary resettlement’. Also, there is no explicit consultation requirement in Azeri law.

Eligibility for compensationThe categories of people who must be compensated under Azerbaijan legislation are narrower than those defined under OP 4.12. Under the legislation, the only people and entities entitled for compensation are those with registered property rights, for example, registered landowners, leaseholders, users and those with registered third party rights or those who have legally obtained the right to register their title but whom, for some reason, have not completed registration. This potentially precludes many categories of affected people that would be entitled to compensation under the OP 4.12.

Provisions for Illegal land useAzeri law does not make provision for people with no legal title; but there were some cases when practice on the ground was often different. This practice on the ground does often adhere to the World Bank OP4.12; but as it is not in law, it is conducted on a discretionary case-by-case basis and is not systematically monitored.

Extent of compensation and resettlement assistanceUnder the current legislation in Azerbaijan, compensation is payable for loss of land, buildings, crops, profit and other damages arising from the acquisition of land for a project.

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However, moving cost or rehabilitation support to restore the previous level of livelihood are not recognized under the Azeri law as a responsibility of the Government and no government agency is charged to carry out such a responsibility.

Property measurementUnder the WB safeguard policies, compensation for lost properties will be calculated based on full replacement cost, in other words, compensation should be equal to what enables PAPs to restore their livelihood at the level prior to the resettlement. Under the Azeri law, compensation is equal to the market value of lost properties, but there is no explicit reference to depreciation.

Income restorationUnder the OP 4.12, lost income due to project implementation should be compensated. Azeri law, however, does not recognize compensation for such lost income.

3.3 ASSETS

3.3.1 Land

The residents informally occupied around 450 m2 of land at the landfill site from 1994 to 2009. The status of the residents could be best described as squatters, since they occupied a piece of land that was designated for industrial use. At the time of occupation the land belonged to the Baku City Executive Power and later it was handed over to TS JSC. During the entire time the residents lived on it, the land was designated and used for waste disposal. Therefore this land was and is polluted, inappropriate for residential use and has negative market value.

3.3.2 Housing

The families claimed that they had three units of housing, one brick house, one wooden house and one wagon bought and used for housing. However, photo evidence and observation at the site lead to an unambiguous conclusion that there was one structure at the reference point cut-off date that can be classified as a residential house.Family 1 live in this house, which was built from the resources of the extended family. There is no legal title for the construction, ownership or use of this building.

Table 6: Houses and Equipment to be Resettled


House 10x5m 1/3 of bricks, 1/3 of wood and 1/3 of scrap materials, with an asbestos roof

Latrine 1 Wooden and iron enclosure, ground floorWater tank 1 Plastic water tankElectricity line 1 Electricity line on poles all the way to the houseHeating and cooking

1 Wood based stove was used for heating and cooking as the house was not connected to the gas grid

Access road 1 Dirt road to the house was available.

Source: Consultant’s assessment of claims and reality of assets at the reference point.

As compensation for the loss of this housing necessitated by the project, the landfill residents are entitled to one piece of housing of at least 50m2. The main options for resettlement sites are:

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- A similar size house or apartment in the Balakhani District that would allow continued access of the house dwellers to waste picking at the landfill site

- A similar size house or apartment in a place agreed by the two family heads resident and the Government. This is likely to be in Baku City in the places where SCRI would be able to allocate housing. The Government of Azerbaijan is continuously building new housing as it strives to accommodate IDPs. The implementing agency for this aspect of the RAP will be the SCRI and this type of housing could be made available also to the PAP sooner than any other type of housing.

3.3.3 Productive Assets

Recycling EnterpriseThe workshops and equipment for the waste recycling business are an important part of the assets of the six families. The equipment in workshops and some of the materials used to build these might have a resale value. The Consultant concludes that loss of these assets is attributable to the redevelopment of the Balakhani Landfill which prevents use of the equipment and materials.

Table 7: Assets and Equipment of the Recycling Enterprise


Workshop 1 26x6m Partially made from brick up to 1.5 m height, the rest of the structure is made of wood, with a roof. The construction is not closed.

Workshop 2 10x6m Wooden structure with roof. The construction is not closed.Shredder 2 Two shredders, operational in 2009 and handling 5 tonnes of PET per

dayStorage place 2 Unstable structure made of second hand materials from the waste,

such as foils, pallets, scrap, wood waste, cardboard.

Source: Consultant’s assessment of claims and reality of assets at the reference point.

The information in Table 7 is based on claims of PAP during the meeting on 13 April. The existence of the assets, though they are in derelict state, was confirmed during a site visit on 14 April and from photo archives. The Consultant’s socio-economic survey in 2011 shows that 50-100 kgs of plastics are collected daily by each waste picker. If 60 waste pickers are working during one day at the landfill, this can amount up to 3-5 tonnes of plastic collected per day. Thus it is reasonable to assume that the resident families collected and traded up to 3-5 ton of plastic per day for shredding and resale.

Pig Farming

Difficulties are associated with assessing the impact of the Project on pig enterprises owned by the PAP and the validity of any resulting claim for compensation. The Consultant was unable to gather credible evidence to enable specification of the “before project” case for the pig enterprise; consequently, it became impossible to accurately project and compare the “without project” and “with project” cases to arrive at a conclusion on the merit of a claim for compensation. Little can be gathered about the parameters determining the value of the PAPs’ pig enterprise “before project”, such as the number of pigs, reproduction rates, turnoff rates, marketing, costs and returns. Measures for these parameters are needed for a reliable projection of development of the pig enterprise in with- and without- project cases.

The Consultant’s enquiries suggest that the six families had sold down their pigs prior to the reference point cut-off date, to where they numbered far fewer than claimed (Table 4). Representatives of the six families, at a meeting with the Consultant on 28 February 2011,

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gave the number of pigs owned as seven, which the Consultant believes applied at the reference point. The PAP confirmed on 3 August 2011 to the Consultant that they had sold all the pigs. Following imprisonment of the main entrepreneur in the families (which was after the reference point), their recycling enterprise stopped and they urgently needed cash for living and they therefore sold the pigs.

How the pig enterprise would have developed in the with- and without- project cases is a matter for conjecture. What is known is that the PAP had a pig enterprise before the Project started and that it continued for a short period afterwards, when the owners sold the pigs at prevailing market prices. The immediate reason for sale of the pigs was the owners’ need for cash, unrelated to the start-up of the Project. However, it cannot be concluded definitively that the PAP at the Balakhani Landfill ceased their pig enterprise either because of the Project or independently of it.

In either the with- or without- project case, the PAP may have either abandoned pig farming after selling out their stock in 2009 or resumed pig farming by purchasing new stock. The PAPs’ perception of likely profitability is likely to have had much greater influence on their decision to continue or abandon pig farming than is implementation of the Project. Implementation of the Project is likely to have had, however, a major influence on where the PAP carried on their pig enterprise. Formalization of TS JSC’s operations at Balakhani and including application of laws and public health standards on what could be done at the landfill would almost certainly result in the PAP having to relocate their enterprise outside the landfill.

Given that the PAP would have been required to relocate the pig enterprise to continue it, in both with- or without- project cases, compensation would be payable only for the impact of the Project on the cost of continuing. The cost of continuing the enterprise differs only for relocation of the pigs to a new site. Therefore, the RAP proposes that since such a scenario did not exist at the time of this survey, no compensation be offered to the PAP for either relocation or selling of the pigs, which took place in response to circumstances beyond the impact of the project.

3.4 INCOMES

The PAP have not indicated any desire for change in source of livelihood and would be happy to continue to do the same income generating activity if opportunities are provided. The PAP have stated that their monthly income from waste per family was AZN 700-800, which should be the target income in their new location. “Synergetics” found that non-resident waste pickers make AZN 250-370. With two adult members work at the landfill, monthly family income would be AZN 500-740. Ensuring that the PAP are no worse off will thus require generation of an additional AZN 200 per family. Enrolling the PAP as non-resident waste pickers would allow them to earn a minimum of AZN 500 per family. The above should be an interim arrangement and once the MRF is built, the adult family members should be provided with contractual jobs, as under this they would become entitled for other social security measures and bring them at par or better than their 2009 income, by buying from trader’s level.

The best source to fill the income gap of AZN 200 per month would be to facilitate resumption of the PAP’s recycling business at a place of their choice, outside the boundary of landfill. It is recommended that all adult family members be allowed to have free access to waste. Further, assistance should be given to transfer the recycling assets of the families to a site they select to resume the enterprise. The Government of Azerbaijan, as the investor in redevelopment of the landfill, would bear financial responsibility for transfer of the assets, with TS JSC to arrange the logistics. The cost estimates for the RAP (Table 11) provide for the transfer.

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4. PROPOSED RESETTLEMENT ACTION PLAN

4.1 THE NECESSITY OF RESETTLEMENT

MED, PMT and TS JSC have considered carefully the need for resettlement of the six families resident at the landfill and found two compelling reasons why resettlement is essential. Those considerations concluded that the six families should be relocated outside the landfill area with all basic amenities.

The prime objective of having a landfill is to protect public health and environment. Hence it is imperative that the creation and operation of a landfill is done without any human habitat within a safe distance. Hence any human settlement cannot be allowed within the boundaries of proposed or operational landfill sites. International standard conditions for landfill site require that there is no human habitat within a radius of 1000 metres of the landfill site and certainly not within the landfill boundary. Past research has shown that people who live near the landfill site has suffered from, or are susceptible to, several serious health risks.

The families were, at the reference point, residing at a location within the landfill which is of high priority for dumping waste. Their early removal from that location was thus essential for efficient operations. The possibility of relocating the six families within the landfill was considered and rejected; the whole area is designated for waste management and thus it is not a long term solution as in the future the presence of relocated families would again hinder waste management operations.

Health and safety consideration dictate that the six families should not reside within the landfill. The Consultant’s review of health and safety (Section 2.6) found that the landfill environment is not suitable for human residence.

4.2 POLICY CONSIDERATIONS

4.2.1 Policy Comparisons

The policies of the World Bank and the Government of Azerbaijan towards entitlements to compensation and resettlement assistance are set out in Table 8, together with the principles that the Consultant proposes to be applied for each category.

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Table 8: Entitlement Policies and Proposed RAP Practices

World Bank Policy for Rights to Claim Government of Azerbaijan Policy on Right to Claim

Proposed RAP Agreement

Land No right to compensation or entitlement for land, Fairly recent informal occupation of land

No right to entitlement. No land compensation

Housing/ shelter

The landfill residents made a personal investment to build/renovate the house.Same access to road infrastructure should be assured

Discretionary policy of the Azeri Government to be made on a case by case basis but no cash compensation.

Similar size housing with similar or improved utilities and infrastructure

Recycling business/Assets

Under the WB safeguard policy, these assets provided the livelihood and related income enhancement opportunities of the people. Therefore they are entitled to compensation and to income restoration at full replacement cost.

Compensation is equal to the market value of lost property but no explicit reference to depreciation.

Transfer of assets, as in valuable parts of equipment, machine or construction material retrieved to a place provided by the PAP for later resale or reuse.

Pig farming Under the WB safeguard policy, these assets provided the livelihood and related income enhancement opportunities of the people. Therefore they are entitled to compensation and to income restoration at full replacement cost.

Compensation is equal to the market value of lost property but no explicit reference to depreciation.

No compensation for the pig farming, as they voluntarily sold all the pigs at market value.

Income from picking waste materials

Lost income due to project implementation should be compensated.

Does not recognize compensation for such loss of income.

Contractual employment arranged by TS JSC that provides income approximately equal to the average earned by TS JSC personnel for a similar nature of work at the landfill in 2011.

Income from trading in waste materials and recycling

Is part of income generation activities, entitled for compensation/replacement

Does not recognize compensation for such loss of income.

The PAP is free to establish an entity and may restart their business in trading and recycling of waste at a place of their choice outside the premises and extended boundary of the landfill site, after obtaining proper licensing and tax registration or any other permission so required to run such a business. The PAP’s business entity would be subject to the same policies and rules of the Government of Azerbaijan as any other entities carrying out such a business/trading.

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4.2.2 Proposed Compensation and Replacement Policy

The proposed policy for each Project impact for each of the PAP is set out in Table 9.

Table 9: Proposed Compensation and Replacement Policies

Project Impact Affected Persons Compensation Policy

Loss of informal access to land

The six families No land compensation

Loss of housing Family 1 Similar or larger size house or apartment with similar or better access to utilities and infrastructure. The housing will be provided in Balakhani district, if available or at a mutually agreeable place.

Loss of assets of the recycling business

The six families Transfer of assets to place provided by the PAP for resale or further use. Building materials may be salvaged from the workshop constructions and sold or reused.

Necessary relocation of pigs

The six families No compensation as pigs were sold voluntarily by the families at market value.

Loss of income due to displaced access to waste

Adult members of the six families

Access to waste as the other waste picker or contractual employment in waste sorting or related activity such as part of landfill operation, incinerator operation or collection crew. If the employment is in the field of a related activity, training might be needed.

Income and benefits should accrue to the level of income or more that the PAP was earning before the project.*

Loss of income due to displaced access to trading and recycling waste


Access to trading waste materials subject to Azeri Tax Registration laws or contractual employment in waste sorting or related activity such as part of landfill operation, incinerator operation or collection crew. If the employment is in the field of a related activity, training might be needed.Income and benefits should be equal to or higher than those that the PAP were earning before the Project.

*One of the members, numbered 14 in SCRI list who has been missing but informed to be in Russia by the six families since the landfill operations begun, will also be entitled for “loss of income due to displaced access to waste” after providing her legal credentials as one of the relatives of the six families and an IDP. She will not be entitles for any housing as this has already been proposed to be awarded to just one family who were the original residents.

4.3 PROPOSED COMPENSATION AND REPLACEMENT PACKAGES

Estimated losses of land, assets and income requiring resettlement and income restoration based on rightful claims at the reference point of 14 October 2009 are:

- 50 m2 house- 2 plastic shredders operational in 2009- displaced source of income from waste picking, processing and trading and threat to

loss of livelihood of 6 families, 11 adult people, securing the income for a total of 14 people including the family members.

The general state of housing and assets was poor at the cut-off date, made of second-hand and low quality materials. The income generating activities were carried out without any legal form and registration in poor environmental and health and safety conditions.

Based on the entitlement matrix the options set out in Table 10 are considered to fully and fairly compensate the rightful claims. The unit for compensation is the family. Three options

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are offered; agreement between each family and the Government of Azerbaijan on individual choices should be sought during negotiations.

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Table 10: Proposed Compensation and Assistance Options

Claim Option 1 Option 2 Option 3

Loss of housing Similar or improved size house (or apartment) in Balakhani or in a mutually agreeable place

Loss of workshops and equipment Free transfer of assets to a place of the landfill residents’ choice. This will allow them to resell or use parts of the equipment from the workshop or materials used for the buildings.

Loss of pig farming No compensation as the pigs were sold by PAP at market priceIncome generated from access to free picking of waste

Income generated from access to trading waste

Be part of the TS list of permitted waste pickers who have access to waste picking at the landfill site or sorting plant for a minimum of three years.

Income and benefits should be equal to or better than that the PAP were earning before the Project. Employment will be offered to persons above the age of 18.

The PAP is free to establish an entity and may restart their business in trading and recycling of waste at a place of their choice outside the premises and extended boundary of the landfill site, after obtaining proper licensing and tax registration or any other permission so required to run such a business.

TS JSC to provide contracted employment, for a minimum of three years, as waste pickers. The incomes earned will be equal to the average earned by all TS JSC personnel similar nature of work at the landfill in 2011.

Income and benefits should be equal to or better than that the PAP were earning before the Project.

Employment contracts will be offered to persons above the age of 18.

Provide salaried contractual employment, for a minimum three years in a similar or related field, such as collection, sorting, waste processing, landfill operation, and incinerator operation with TS JSC or other relevant organization on a priority basis.

Provide training and induction as needed for the job on demand by the PAP.

Income and benefits should be equal to or better than that the PAP were earning before the Project.

Employment contracts will be offered to persons above the age of 18.

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4.4 COST ESTIMATES

The financial responsibility and authority for the RAP rests with the Government of Azerbaijan. The estimated costs to the Government are calculated as incremental – i.e., above the “without project” case – and for only those items directly attributable to the Project. Items already included in other projects or programs, such as monitoring and evaluation, planning and public consultations are not considered. Actual costs may differ from the estimates here (Table 11) as negotiations determine the final package.

While TS JSC will expend considerable sums on salaried or contract employment to replace the livelihoods lost by the six families, these are not considered as a cost to the Project. The work in the jobs taken by members of the six families would be needed in any event; it is also noted that TS JSC will benefit financially from the work done by these people. Application of the “with and without project” principle results in there being no incremental expenditure in providing employment to the members of the six families.

Table 11: Cost Estimate: Resettlement Action Plan

Item UnitUnit Cost

NumberTotal Cost

(AZN) (AZN)

A. One-time CostReplacement housing Residence 35 000 1 35 000

Administrative costs – housing Lump sum 1 000 1 1 000

Transportation of assets /1. Lump sum 1 000 1 1 000

Transportation of pigs /2. Lump sum 0 000 1 0 000

Baseline medical examination Per person 50 14* 700

On-the-job training /3. Lump sum 2 000 1 2 000

Total One-time Cost 39 700

B. Annual Cost

Medical examination Per person 50 28 1 400

Total Annual Cost 1 400

Base Cost 41 100

Contingencies /4. 8 420

Total cost 49 520

Notes

*Since one person is believed to be out of country since 2009, that cost is not calculated here

/1. For transport of the assets of the PAP's waste recycling enterprise./2. Notional for relocation of pig enterprise./3. For those who opt for employment at the landfill in jobs other than waste picking./4. Physical and price contingencies combined, at 20 per cent of base cost for all items.

No allowance is made for price escalation during implementation.

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Most of the costs would be incurred in the very early stages of implementation – i.e., within the March 2012. The expenditure schedule is estimated as:

Quarter Cost (AZN)

March 2012 47 840December 2012 840September 2013 840

Total Cost 49 520

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5. INSTITUTIONAL ARRANGEMENTS

5.1 RESPONSIBILITIES

Overall Responsibility and Coordination

The Government of Azerbaijan, as the investor for ISWMP, will assume overall responsibility for the Action Plan. It will assign the carriage of various parts of the Plan to agencies, most of which are already involved in ISWMP and would include the Ministry of Economic Development (MED), “Tamiz Shahar” Joint Stock Company, the State Committee for Refugees and Internally Displaced Persons (SCRI) and the Project Management Team for the Integrated Solid Waste Management Project.

MED will hold direct responsibility for implementing the Action Plan. Its major roles will be (i) appointing a team to negotiate agreement with the PAP on compensation and income restoration; (ii) coordinating – through the PMT – implementation of the Action Plan; (iii) monitoring progress and evaluation outcomes and incomes; and (iv) arranging funding for all activities.

The State Committee on Refugees and IDPs (SCRI) is the state institution in charge of refugees and matters on forced migration. The RFP provides that SCRI will be responsible for compensation for loss of housing structures by PAP. The entitlement matrix of the RFP includes, in part:

Type of Losses

Category of PAP

Proposed Entitlement Remarks

Demolition of structures

Residential houses

Alternative shelter to be provided

For IDPs and non-IDP refugees, SCRI should provide alternative shelters with sufficient infrastructure. For non IDPs, MED will consider other options

Source: RPF

Management of Elements of Compensation and Income Restoration

Housing. SCRI will be responsible for providing replacement housing agreed in negotiations with the PAP and in compliance with Government policy for IDPs. SCRI will cooperate closely with the Balakhani Municipality or any other municipality in obtaining suitable sites for housing/apartment.

Recycling enterprise assets. TS JSC will provide transport for movement of the assets of the recycling enterprise to a location agreed with the PAP.

Loss of pigs. MED will not disburse any compensation as the six families confirmed that they sold the pigs at market value when cash was needed for themselves due to circumstances not related to project impacts.

Income from picking waste. TS JSC will enlist the adult members of above age 18 to pick and sort waste at the landfill site or provide contract employment or arrange employment for PAP in the various activities in or associated with the landfill and will arrange training for PAP entering new jobs.

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Income from trading waste materials. The PAP is free to establish an entity and may restart their business in trading and recycling of waste at a place of their choice outside the premises and extended boundary of the landfill site, after obtaining proper licensing and tax registration or any other permission so required to run such a business on their own like any other trader. The PAP’s business entity will be subject to the same policies and rules of the Government of Azerbaijan as any other entities carrying out such a business/trading.

NegotiationsMED will appoint an individual or team to negotiate a compensation and income restoration package with the six families. The team will record accurately and comprehensively all discussions with the six families and will keep the PMT informed on progress and matters and issues arising. The Consultant will act as adviser in the negotiations. The final resettlement consultation agreement will be signed by the MED representatives and the PAP.

While the Government negotiating team will act in good faith, it may be that its aim of concluding an agreement with the six families is not possible. In that event, TS JSC will proceed with court action to evict the six families from the landfill. The PMT will, prior to resumption of the TS JSC legal action, prepare a plan for completion of the involuntary resettlement; that plan would include necessary supplements to the outcome of court action to ensure compliance with the World Bank’s resettlement policies.

5.2 IMPLEMENTATION SCHEDULE The proposed implementation schedule of the Resettlement Action Plan is in Table 12.

Table 12: RAP Implementation Schedule

Activity/Action Responsible Agency

Timeline

Finalization of RAP with the input from MED, World Bank, PMT

EPTISA August – September 2011

Negotiation with the PAP and involved role players; final negotiation completed and signed by relevant role players

PAP, Government of Azerbaijan, TS JSC PMT, SCRI

November – December – 2011

Licences or letter providing right to access waste provided to all adult members of the PAP

TS JSC /PMT/Government of Azerbaijan

Within 30 days from signing the RAP Agreement

Set up grievance and complaint mechanisms Government of Azerbaijan/ MED/PMT/SCRI

Within 30 days from signing of the RAP Agreement

Transfer of assets to a place provided by the PAP TS JSC Within 60 days from signing of the RAP Agreement

Provision of housing as per agreement Government of Azerbaijan/MED/ PMT /SCRI

Within 90 days from signing of the negotiation contract: Negotiation agreement to be signed by by end November – December 2011

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Provision of employment as per agreement Government of Azerbaijan (MED)

Within 60 days from signing of the negotiation contract: by end December – 2011

Supervision of RAP implementation MED/PMT, SCRI Until the Project ends in 2013

Monitoring, supervision and disclosure of RAP implementation

EPTISA Until the Project ends in 2013

5.3 RAP IMPLEMENTATION PLAN AND PROCESSES

5.3.1 Negotiations and Implementation of RAP Agreement Process

The initial dialogue with the six families indicated that they would be willing to shift outside the landfill site provided that their income through waste management or any other alternative livelihood option is restored for all the working members of the PAP.

After the consultant’s assessment of loss that may occur with PAP shifting from the landfill site, and conclusions on levels of asset loss and appropriate compensation, all institutions involved in the project (including the Government implementers and the World Bank) decided that a range of options on each of the three claims would be provided to the PAP, namely housing, alternative jobs and transport of the assets to a location indicated by them where they could continue to do trading and recycling after obtaining necessary permits/tax registration.

A methodology was prepared for negotiations with the PAP to discuss and agree the compensation actions.

The consultant briefed the PAP representatives in a meeting about the options that were identified to fully and fairly compensate for all project related impacts in accordance with World Bank and Azerbaijani policy.

Preparations for Negotiations

The PMT, which is responsible for the RAP, prepared for the negotiations to commence by:

(i) Ensuring the negotiating team was appointed and duly authorized to conclude and the agreement with PAP with their representatives

(ii) Briefing the negotiating teams about rules of negotiation, draft RAP as approved by PMT/World Bank and supplying it with all relevant documentation

(iii) Inviting the PAP to the initial meeting with the negotiating team.(iv) Presence of the consultant team to maintain neutrality

Methodology of negotiationsThe methodology followed for negotiations is widely accepted as best international practice for participatory decision making processes, negotiation and conflict resolution (including World Bank, UN Habitat, etc.). It includes the following steps:

Analysis of each party’s interest, influence and expectations over the current project Analysis of historical background of landfill residents Analysis of current legal situation related to landfill residents and its cases Analyse compensation options for the landfill residents

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Lobby and advocacy with each key stakeholder in part to increase their understanding of the situation

Strengthening PMTs’ competencies for dealing with landfill residents Calibrating and validating the approach methodology Direct negotiation with landfill residents with the presence of all stakeholders.

Contents of the negotiation meetings The participants of the negotiation meetings came prepared to the meeting having been familiarized with the compensation options identified through the RAP preparation process and the rules of the negotiation.

The consultant participated to ensure credibility and to facilitate the negotiations. The consultant reiterated whenever needed the facts and findings and the rightful claims and the options that were established during the RAP process. During the negotiations there were several discrepancies between what the landfill operators said and the PAPs claimed. Whenever possible, the consultants used evidences and re-verified with the negotiating parties.

The representatives of the MED followed an agenda jointly developed with PAP and the consultants to cover all the issues for in-depth discussion:

1. Introducing the negotiating parties and the facilitator 2. Laying out each parties reason and interest to participate in negotiation 3. Understanding the history of PAP settlement at Balalkhani4. Reconstructing the history of settlement since the beginning (particularly focused on

when one of the PAP members had received housing compensation from the government and clarifying the identity of the people who received this compensation)

5. Recalling the parties that the PAP have taken up contact and discussed with, listing names of agencies, governmental departments, etc.

6. Enquiring about the health situation of the PAP7. Finding out the current occupation and livelihood of the PAP 8. Clarifying the residence of the PAP and their current place of dwelling. 9. Understanding the legal status, IDP status, citizenship of the PAP10. Understand the kinship relationship and family relationship among the PAP11. Understanding who of the original list of 14 is part of the PAP and who are not and what

is the history 12. Enquiring about PAP’s intention to continue sorting waste at another location outside of

the premises of the landfill13. Understanding if and who of the PAP receive social security and unemployment benefits14. Understanding PAP’s minimum expectation from the SCRI/TS- JSC/PMT

Account of the consultation and Negotiation Meetings that lead to the RAP agreement

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The first meeting of RAP preparation between the Eptisa Consultants and the PAP was held on 26 Feb 2011. During this meeting the consultant invited the PAP to become familiar with the modernization of the landfill and its related impact on their income and health as well as reduction of pollution by developing the landfill site. The purpose of the meeting was to introduce the consultants, to explain their role and to establish a working relationship. The meeting established that communication and consultation with the families was possible and welcome. It was agreed that the families would later meet members of the consulting team for detailed discussions.

This first meeting was between the Consultant and two family heads, - and another person appointed by the six families as the key negotiator but not a PAP himself The purpose of the meeting was to reconstruct the history of the landfill settlement, all the assets they built over time and what would it take to provide a better alternative. It was also informed that at the time of this meeting they are not active in sorting and trading in waste at the landfill. It was agreed that the families would later meet members of the consulting team for detailed discussions of exact terms and conditions of the negotiations.

The first meeting held with the PAP reconstructed the history of their waste picking activities and their settlement. The PAP explained how from simple sorting to establishing the processing machines were bought and their income increased. They also said that when they started living, the situation was not so bad but gradually it worsened due to more and more waste being dumped approaching their settlement.

The second meeting, on 13 April 2011, was for detailed discussions of the situations of the families, of their aspirations and of their claims for assistance and compensation. The meeting was able to establish the family tree and the sequence of all the IDPs. It also brought to the table that the PAP are keen to have an early solution to the resettlement problem. Their main demand was housing and livelihood restoration and they stated a strong preference for cash compensation. They pointed out that due to waste reaching near their house, it has become difficult to live there and their health is gradually deteriorating. It was jointly decided that the third and critical meeting for actual negotiation will be held with all the stakeholders.

In parallel to this, MED also appointed a commission to look into all the problems of the PAP and chart out a course of action. The Commission consisted of all the relevant departments to expedite the process of RAP finalization. The third meeting, 2nd September 2011, was held with all the stakeholders at the MED office. After a discussion, the options were presented to the PAP. After carefully considering the options offered as compensation, the PAP tentatively agreed on the offer consisted of an apartment of 50 sq meter or larger size, the right to pick and sort waste along with other waste pickers, or a contractual job exceeding minimum salary of AZ 250, and transfer of all assets. The PAP sought some more time to discuss all the options with their family members and reach a consensus as to who would be the proprietor of the house and other key issues including arranging for power of attorney.

The fourth and the final negotiation meeting was held again at the MED office on 7 th December 2011. The PAP sought a house of bigger than 50 sq meter. The MED negotiator after talking to SCRI, agreed that a bigger apartment would be provided to the PAP, comprising a minimum of two rooms, kitchen and toilet. The PAP requested to inspect the promised apartment and it was accepted. A legal document prepared by the consultant was read out and PAP was requested to sign it so that all the legal formalities could be completed. The highlights of the final agreement was that within a given time frame of 90 days from the date of the signing of the agreement, PAP will provide all legal documents that will allow them to enter into legal

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ownership of the apartment. It was further agreed that the right to pick and sort waste at the landfill site within 30 days and transfer of all PAP’s assets to a place of their choice will be implemented within 60 days.

Final Agreed Compensation Package accepted and signed

Project Impact Affected Persons

Compensation Offered Agreed and accepted Compensation Package

Loss of informal access to land

The six families No land compensation Land not demanded or offered

Loss of housing

Family 1, who were the first to settle at the landfill site

Similar or larger size house or apartment with similar or better access to utilities and infrastructure. The housing will be provided in Balakhani district, if available or at a mutually agreeable place.

An apartment of more than 50 sq mt size offered and accepted in Ramana settlement in Sabunchu rayon of Baku city ( PMT and SCRI responsible for this).

Loss of assets of the recycling business

All the six families

Transfer of assets to place provided by the PAP for resale or further use. Building materials may be salvaged from the workshop constructions and sold or reused.

TS – JSC to carefully dismantle the workshop and other housing materials and transport it to a place asked by PAP within 60 days. Both parties agreed

Necessary relocation of pigs

The six families No compensation as pigs were sold voluntarily by the families at market value.

No compensation asked or demanded

Loss of income due to displaced access to trading and recycling waste


Access to trading waste materials subject to Azeri Tax Registration laws or contractual employment in waste sorting or related activity such as part of landfill operation, incinerator operation or collection crew. If the employment is in the field of a related activity, training might be needed.Income and benefits should be equal to or higher than those that the PAP were earning before the Project

PAP to inform PMT and TS JSC on whether they would be keen to start trading after securing tax registration or necessary license for such an activity within 60 days.

Loss of income due to displaced access to waste


Access to waste as the other waste picker or contractual employment in waste sorting or related activity such as part of landfill operation, incinerator operation or collection crew. If the employment is in the field of a related activity, training might be needed.

Income and benefits should accrue to the level of income or more that the PAP was earning before the project.

PAP accepted to be part of the list of waste picker doing picking and sorting. All adult members of PAP to be included in the list. TS JSC to notify PAP within 30 days or before 31st January 2012

5.3.2 Grievance MechanismThe State Committee for the Resettlement of Internal Displaced People and Ministry of Economic Development shall be the nodal agency to receive all complaints both regarding ownership transfer of houses as well as forwarding any complaints with regard to livelihood restoration. The procedure for addressing grievances will be:

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1. SCRI will appoint a contact person with whom the PAP will interact and register the complaint as well as a documented procedure for registering and handling complaints regarding housing. SCRI will coordinate with relevant government departments and process all related complains of the six PAP families within 30 days after registration of the complaint and keep MED in loop.

2. The MED will appoint a senior official as a contact person with whom the PAP will interact directly to register complaints regarding any matter pertaining to RAP. The MED will have a documented procedure for registering and handling complaints.

3. The SCRI contact person shall report directly to the Head of SCRI in the first 3 years of RAP implementation and MED. The MED contact person will have access to the SCRI complaints register and connected relevant information upon request. In case the PAP assess that their complaints have gone unheard or not responded to, as a last resort they can approach the court. All cost related to this shall be borne by the Government of Azerbaijan.

Ensuring access of PAP to contact points and knowledge of grievance procedure:

The appointed contact persons for the grievance mechanism (both SCRI and MED) will have the responsibility to inform the PAP about the mechanism. To this effect a meeting will be organized between the PAP and the appointed contact persons at the commencement of RAP implementation. At the meeting the PAP will receive on paper the names, the direct mobile and fixed phone contacts and the exact office hours of the grievance mechanism contact points, the RAP procedure for handling complaints and the relevant SCRI and MED procedures as per the RAP.

The grievance mechanism contact points on their own account shall create a database with the contact information of the PAP, including at least mobile phone numbers and physical addresses. The grievance mechanism contact points will have a documented procedure for verifying and updating the contact information database as often as they are notified by the PAP of a change and at least two times a year on their own initiative and shall keep record of these verification and changes.

Generally PAP are most easily reachable by mobile phones and they can easily make calls from their mobile phones. Besides informing through official letter, the PAP should also be contacted by mobile and informed with a record of such a call maintained by the SCRI – MED official. All communication including receiving complaints and responses must be in written. The PAP should also be entitled to receive a signed copy of the complaints lodged.

5.3.3 Monitoring and Evaluation Procedures

The procedure can include internal and external monitoring and evaluation. Internal monitoring includes performance and impact monitoring. The PAP will be monitored in the framework of an internal monitoring system according to the following procedure. The project sponsor may wish to include a completion monitoring by an external party; the procedure for the external party is not included in this draft RAP.

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Internal monitoring will be carried out by the Consultant until the end of 2013. Interaction with the PAP during this period will be at least once in six months. The first performance audit will be carried out upon implementation of the RAP, tentatively planned for March 2011.

For livelihood restoration and improvement, there will be three monitoring surveys, one at the beginning, when the right to pick waste will be offered and subsequently every year for two years on income level and health improvement.

The objective of the monitoring is to assess the physical progress of the RAP implementation (performance monitoring) and the effectiveness of the RAP (impact monitoring).

Indicators for performance monitoring will include, but not be limited to:

- Allocation of adequate housing - The transfer of assets- Payment of agreed cash compensation, if any - Employment level- Restoration of income and benefits to the 2009 October level or better- Health status of PAPs.

Indicators for impact monitoring will include, but not be limited to:

- Verification of PAP’s assets - Level of education- Perception of standard of living - Perceived level of health impacts from work place- Perceived level of health impacts at place of living- Level of income per family- Ownership of assets (housing for shelter, businesses, - Positioning of PAP into the waste trading scheme - Level of skills acquired by each PAP- Function/ position of PAP at TS JSC.

These aspects will be checked by site visits and observation of the housing received by the PAP, and at the working place of the PAP. Interviews will be carried out with family heads to survey them on the monitoring issues listed above. Information received from the PAP will be cross checked with the RAP implementing organizations through interviews, respectively the SCRI and the TS JSC.

Table 13 summarizes the RAP monitoring plan:

Table 13: Monitoring and Evaluation Framework

Activity Type of information collected / Indicators for monitoring RAP

Source of information

Responsible Indicators Frequency

Performance monitoring

-Allocation of housing-transfer of assets- Right to pick and sort waste or contractual employment of PAP

Questionnaire and interviews with PAP

Observation notes

Project consultant and PMT

House occupied and documents signedlicence to

Biannual monitoring report

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- health status- handling complaints

Interviews with implementing institutions

Biannual /annual narrative and financial report of implementing institutions

waste picking given and name appears on the list

Asset transfer

Impact monitoring

-Valorification of PAP’s assets (either by selling them or by reconditioning and putting into function)-level of education -level of perception of health benefits/risks-level of standard of living-level of income -positioning of PAPs in the waste trading scheme-number of trainings PAPs have been participated - new competencies acquired by PAPs at TS JSC-positioning of PAPs into TS JSC organisations framework

Interviews/ Observation notes

Observation notes

Focus group discussion notes

Project consultant and PMT

Health check up report

Income enhancement by 10-15%

Participation in training programs

Annual monitoring report

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