1.1 LAND ACQUISITION AND RESETTLEMENT POLICY FRAMEWORK The purpose of RPF is to clarify land acquisition and resettlement principles, together with organizational arrangements under the Albania Land Administration and Management Project (LAMP). Because of the nature and design of component A and component C of the project, the zone of impact of subprojects or the precise sitting alignments cannot be determined before appraisal. Therefore, the Government of Albania submitted a Resettlement Policy Framework consistent with the World Bank O.P 4.12 on Involuntary Resettlement, as a condition of appraisal. For each investment carried out by the Municipalities and financed wholly or in part by the Bank, specific Resettlement Action Plans consistent with the principles included in this RPF will be submitted to the Bank for approval when detailed investment planning information and the scope of the civil works become available. Contracts for civil works shall not be signed until the Bank has cleared the respective RAP. This RPF covers the following elements, consistent with the provisions described in the World Bank Policy, OP 4.12 on Involuntary Resettlement: If there is any discrepancy between national or local regulations and practices and the present document, this RPF shall prevail in the context of the LAMP project. Components for which land acquisition and resettlement are required The scope of the works and other details on all specific sites for investments under both components A component C of the LAMP project are not known in advance. The designs for specific investments will be determined during implementation. The land acquisition and resettlement, if any, caused by the activities supported by the Project will be carried out following well-established procedures specified in Albanian laws and procedures relating to land purchase and expropriation and World Bank Operational Policy (OP) 4.12 and Bank Procedures (BP) 4.12 on Involuntary Resettlement. These procedures are further specified in the following sections which also provide detailed guidelines regarding documentation and impact assessment. Principles and objectives governing resettlement preparation and implementation The premise governing the RPF is that land acquisition and involuntary resettlement may cause hardship and impoverishment, and therefore, (i) land acquisition causing involuntary resettlement will be avoided or minimized, and viable alternative project designs that reduce or eliminate displacement will be explored; and (ii) where it is not feasible to avoid displacement, displaced persons will be meaningfully consulted and assisted in their efforts to improve or restore their livelihoods and standards of living to levels prevailing prior to the beginning of project implementation. The objective of this RPF is to ensure that where land acquisition is unavoidable, all project affected persons (PAPs) will be compensated for their lost assets at replacement cost, and, in the event of resettlement, be provided with assistance to help them improve, or at least restore, their livelihoods and standards of living to pre-displacement levels. To support this objective, the following principles will apply:

1. During the sub-project preparation process, consideration of technical options shall involve a concurrent assessment of potential associated land acquisition impacts,

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so that, where feasible, design alternatives to minimize such impacts can be identified as early as possible.

2. Consultation arrangements during the sub-project preparation process shall be transparent and inclusive to ensure that all persons affected by involuntary land acquisition or resettlement understand and have an opportunity to comment on the mitigation measures.

3. Municipal project proposals involving land acquisition or resettlement shall include the costs of compensation/rehabilitation in the budgets

4. Replacement housing sites or agricultural land will be located as near as possible to the land lost.

5. Lack of formal title/ ownership document to assets lost (land/house/business) will not bar a PAP from receiving assistance to achieve the objective of this Policy Framework.

6. Compensation for lost assets shall be provided prior to the date these are taken into possession, and relocation assistance shall likewise be provided well before PAPs are displaced.

7. If compensation cannot be paid or deposited before the assets acquired are taken into possession, interest will be paid on the beneficiary’s account at market rate on the amount awarded from the date of award till the date of payment.

Legal framework reviewing the fit between Albanian laws and regulations and Bank policy requirements, and measures proposed to bridge any gaps between them Law 8561, dated 22.12.1999, On Expropriations and Temporary Takings of Private Property for a Public Interest and four Council of Ministers Decisions define the procedures for expropriation of immovable property in Albania. The expropriation of private properties is done only for a public interest and with fair compensation. Expropriation is completed by a Decision of the Council of Ministers based on the proposal of the Minister, who is competent under the law. In general, expropriations may be carried out for projects and investments in the territory of Albania, for the protection of archaeological, historical or cultural monuments and for the protection of public health and security. Law 8561 requires that direct notification procedures for the intent to expropriate begin within 10 days after the relevant Ministry accepts the expropriation request. In addition, a one week publication period in a national newspaper is required. The valuation of property is determined by a Valuation Commission that bases the calculation on the last 3-month average of purchases and sales registered in the Immovable Property Registration System. In reference to expropriation of property with corresponding cash compensation, World Bank Policy OP 4.12 states that payment of cash compensation for lost assets is appropriate, where active markets for land, housing, and labor exist, and there is sufficient supply of land and housing and displaced persons are able to use such markets. In Albania, there are no major legal impediments to the land market that prevent displaced persons from purchasing alternative land with the compensation received from the government as a result of the expropriation process. Furthermore, Albania has an increasingly active market in immovable property that a review of recent purchases indicates that current application of compensation at “market value” corresponds to the Bank standard of full replacement cost. Some vulnerable persons may require special assistance to assure that they use their compensation in a suitable fashion to acquire shelter and not spend it on consumption or inviable investments.

Notification of the final Decision of the Council of Ministers on expropriation is made directly to the owners of the expropriated property, who have the right to appeal in court within 30 days from receiving notice but only as to the amount of compensation specified in the decision. An appeal against a decision of the Council of Ministers for the expropriation does not suspend the implementation of the decision and the respective procedure for the re-registration of the expropriated property. In addition to the Ministries involved in the expropriation, there are other institutions that hold relevant information and must be consulted in the process as well. One of the main institutions is the Immovable Property Registration Office (IPRO). The IPRO administers all spatial and legal ownership data related to immovable property. In addition to ownership information, other real rights are registered in the IPRO was well. For example mortgages, liens, leases and easements are registered for each property. When the propertyto be expropriated is located in a cadastral zone that has completed the process of First Registration and the data have been transferred to the IPRO, it holds the records of legal ownership and the process of expropriation can proceed in a relatively straight forward manner. When a Cadastral Zone has not completed First Registration, the expropriating entity relies on documents issued by the local land commissions in rural areas and several other types of documents for urban areas. World Bank OP 4.12 embodies the principle that a lack of legal land title/ ownership document does not disqualify people from resettlement assistance; under relevant Albanian legislation, discrepancies with this principle arise. Specifically, according to the 1998 Urban Planning Law, buildings without construction/building permits are considered illegal and no indemnity or expropriation shall be made for illegal buildings, either by state organs or by the private persons who are implementing the approved urban plans. Therefore, within the scope of this Project, participating Municipalities will be encouraged to exclude sites that are occupied by large illegal settlements or sites where there are multiple or competing claims to land. If site alignments require the acquisition of land occupied by individual encroachers/ squatters who do not have formal legal rights/ ownership documents to land, yet have a claim on such land or assets, the expropriating entity will assist these PAPS in the legalization of their property defraying the costs of taxes and fees (but not overdue taxes). The property wll then be duly compensated and their owners will be provided compensation for their loss of buildings or assets and other assistance as necessary. Categories of affected persons, eligibility criteria for defining the various categories, and compensation package It is likely that expropriation will require land acquisition and result in the loss of land and assets and perhaps the loss of shelter or sources of income. Therefore, under OP4.12, it is necessary to consider the possibility of the adverse impact of relocation or loss of shelter as well as loss of assets or loss of livelihood. As indicated elsewhere, the eligibility criteria to receive compensation will include those project affected people (PAPs) who have formal legal rights to land and those who have recognizable rights (such as, for example, heirs to landed property who have not yet divided the property amongst themselves). Those who do not have formal or recognizable legal rights to land they are occupying shall be compensated for lost assets and provided such other assistance as may be necessary to achieve the objectives of this policy. The practice in Albania to date has been to follow existing legislation and to compensate owners with a lump sum of cash to be used for land acquisition and construction of new

housing. If land is the preferred option of project affected people, they will be provided with land that is at least equivalent to the advantages of the land taken. If land is not the preferred option, cash compensation will be offered at levels that will be sufficient to replace the lost land and other assets and include moving allowances etc). Often, project affected people, if displaced, will move to another part of the land they already hold or will buy alternative land in the vicinity. Therefore, it is expected that the nature and scope of displacement will not require the establishment of resettlement sites. The following entitlement matrix describes the eligibility for compensation and/or rehabilitation assistance for impacts/losses for different types of assets and for different categories of project affected persons.

TABLE 4: ENTITLEMENT MATRIX

ASSET ACQUIRED TYPE OF IMPACT ENTITLED

PERSON COMPENSATION ENTITLEMENT

AGRICULTURAL LAND

No displacement: • Less than 90% of land

holding affected, • The remaining land

remains economically viable

Farmer/title holder

• Cash compensation for affected land equivalent to market value

Displacement: • More than 90% of

land holding lost OR • Less than 90% of land

holding lost but remaining land not economically viable

Farmer/title holder

• Compensation in cash for the entire landholding. • Relocation assistance (costs of shifting + allowance until

first harvest)

COMMERCIAL LAND

No displacement: Land used for business partially affected, limited loss

Title holder/ business owner

• Cash compensation for affected land

Displacement: Premise used for business severely affected, remaining area insufficient for continued use

Title holder/ business owner

• Compensation in cash. • Relocation assistance (costs of shifting + allowance) • Opportunity cost compensation equivalent to 2 months net

income based on tax records for previous year (or tax records from comparable business, or estimates).

Business person is lease holder

• Opportunity cost compensation equivalent to 2 months net income based on tax records for previous year (or tax records from comparable business, or estimates), or the relocation allowance, whichever is higher.

• Relocation assistance (costs of shifting)

RESIDENTIAL LAND

No displacement: Land used for residence partially affected, limited loss, and the remaining land remains viable for present use

Title holder

• Cash compensation for affected land

Displacement: Premise used for residence severely affected, remaining area insufficient for continued use or becomes smaller than minimally accepted under zoning law/s

Title holder • Compensation in cash. • Relocation assistance (costs of shifting + allowance)

Rental/lease holder

• Assistance in rental/lease of alternative land/property • Relocation assistance (costs of shifting + allowance)

BUILDINGS & STRUCTURES

No displacement: Structure partially affected but the remaining structure remains viable for continued use

Owner

• Cash compensation for affected building and other fixed assets

ASSET ACQUIRED TYPE OF IMPACT ENTITLED

PERSON COMPENSATION ENTITLEMENT

Displacement: • Entire structure

affected OR • structure partially

affected but the remaining structure is not suitable for continued use

Owner

• Cash compensation for entire structure and other fixed assets without depreciation, or alternative structure of equal or better size and quality in a location acceptable to the PAP.

• Right to salvage materials without deduction from compensation

• Relocation assistance (costs of shifting + allowance)

Rental/lease holder

• Cash compensation for affected assets (verifiable improvements to the property by the tenant – e.g. a fence)

• Relocation assistance (costs of shifting + allowance equivalent to four months rental costs)

Squatter/ Informal dwellers

• Right to salvage materials without deduction from compensation

• Assistance to find alternative secure accommodation • Rehabilitation assistance if required (assistance with job

placement, skills training)

STANDING CROPS Crops affected by land acquisition or temporary acquisition or easement

PAP (whether owner, tenant, or squatter)

• Cash compensation equivalent to average of last 3 years

market value for the mature and harvested crop

TREES Trees lost Title holder • Cash compensation based on type, age and productive value of affected trees

TEMPORARY ACQUISITION Temporary acquisition

PAP (whether owner, tenant, or squatter)

• Cash compensation for any assets affected (e.g. boundary wall demolished, trees removed)

Mechanisms for consultations In addition to documenting the expropriation procedures indicated above, once the scope of the civil works is identified for Component C, the Municipality and other appropriate institutions will hold public consultations with affected persons to discuss the expropriation and its implications, to which all land users whose lands will be affected by the expropriation will be invited. Prior to implementation, affected people will be consulted on their options and rights pertaining to resettlement, and, to the extent possible, offered choices based on technically and economically feasible resettlement alternatives. The content and results of the consultation will be recorded in minutes that are maintained in the sub-project files and made available to the Department of Local Government Finance (DLGF) of the Ministry of Interior (MOI) and the Bank team. For investments under Component A, the Immoveable Property Registration Office (IPRO) will carry out all the above listed functions. Description of the implementation process The implementation of resettlement activities will be coordinated with the implementation of civil works to ensure that displacement of people or acquisition of land or other assets does not occur before necessary mitigation measures for resettlement including payment of compensation or resettlement assistance have been carried out. To repeat, land and related assets will be taken only after compensation has been paid. Although the authority to expropriate and demolish property is enshrined in Albanian law, Bank Policy sets additional conditions for the review and clearance of Resettlement Action Plans and also assures the right of appeal prior to the carrying out of relocation or demolition. Arrangements for funding resettlement

The overall responsibility for resettlement and expropriation for for Component A of the Project is under the Ministry of Justice, and for Component C, under the Ministry of Interior (MOI)). However, the financial responsibility for resettlement and expropriation procedures for Component C lies with the participating Municipalities, and with the IPRO, for investments under Component A As noted above, the land acquisition transfer must be fully completed, and payment made, before any work can begin on the expropriated or acquired property. Land acquired for municipal infrastructure should be duly registered in the name of the respective municipality before construction can begin. Responsible Institutions and/or Agencies The following agencies and institutions are responsible for the coordination and delivery of each activity in the entitlement policy: Immovable Property Registration Office for each District which is under the authority of the Central Registration Office are responsible for identifying and verifying property boundaries and ownership and other real rights such as leases and concessions. Land Administration and Protection Offices

(formerly Cadastre Offices) will clarify land allotment certificates (Tapis) for agricultural land that has not been formally registered and transferred to the Immovable Property Registration Offices. The participating Municipalities will be responsible for the provision of resettlement assistance under Component C, and the IPRO under Component A

In addition to the above state agencies, the overall responsibility for the implementation and enforcement of the Land Acquisition & Resettlement Policy Framework rests with the DLGF. Within the DLGF, there shall be an Environmental/ Resettlement/ Legal Officer. His/ her principal tasks under this Policy Framework are to:

• Provide training on the Policy Framework to the concerned Municipalities, • Ensure that the identification and planning of land acquisition and resettlement are

integrated into the project preparation process • Draft TORs for preparation and implementation of Resettlement Plans, and review

draft Resettlement Plans for compliance with this Policy Framework. • Supervise implementation of Resettlement Plans, and compliance with

documentation requirements for land obtained through purchase, or transfer of available government land,

• Facilitate and monitor resolution of grievances related to land acquisition, • Liaise with other government agencies as required.

The preparation of a Resettlement Plan for a particular project in the Municipality can be incorporated in the TOR for the design consultant involved in the project in question, and implementation of the Resettlement Plan can be part of the assignment of the contractor. Municipalities shall not engage in expropriations or demolitions in anticipation of project involving resettlement. If, for some reason such as a situation in which health or safety is endangered, this should become necessary, the Bank should be consulted in advance. After a census has been conducted of all the homes and other structures to be expropriated a cut-off date may be declared, after which no new occupants, new structures or improvements to existing structures will be eligible for compensation.

The key activities and responsible actors in the planning and implementation of specific Resettlement Plans are outlined in Table 5 below:

Table 5 – Responsible authorities for resettlement activities

RESETTLEMENT ACTIVITY RESPONSIBLE AUTHORITY

RESPONSIBLE AUTHORITY

Component A Component C Assessment of Impacts & Inventory of Losses

IRPO Municipalities

Census of PAPs (socio-eco info) IPRO Municipalities Valuation of Assets IPRO Municipalities Consultations with PAPs IPRO Municipalities Drafting of Resettlement Plan IPRO Municipalities Payment of Compensation and Relocation Assistance (to the individual one-on-one as cash transferred to Bank Accounts)

IPRO Municipalities

Expropriation of land and assets IPRO Municipalities Monitoring and Evaluation MOJ MOI

Grievance Redress mechanisms The Expropriation Law provides for an appeals process against the proposed award for compensation. In addition, the Urban Planning and Construction Police laws allow for administrative appeals against a decision for demolitions. The new National Territorial Planning Law provides an opportunity for administrative or legal appeals for any stakeholder dissatisfied with the outcome of a planning process (Articles 85-87). The Office of the Ombudsman in Tirana receives complaints from citizens against government actions that affect their rights. The DLGF’s Environmental/ Resettlement/ Legal Officer also plays a role in resolving grievances. Solutions to grievances related to land acquisition impacts shall be pursued at the community level with facilitation by DLGF staff together with design consultants in order to find technical solutions that avoid or further minimize the need for land acquisition. Any grievance shall be recorded by the official who receives it (see Annex 1). Procedures shall be established providing for time limits to the resolution of grievances or disputes. Solutions to grievances related to compensation amounts, delays in compensation payments or provision of different types of resettlement assistance shall be pursued directly by the designated land acquisition and resettlement staff in the relevant Municipality. If complainant fails to receive a satisfactory solution, the matter may be elevated to the DLGF. The designated DLGF staff will ensure that community members and in particular PAPs are informed about the avenues for grievance redress, and will maintain a record of grievances received, and the result of attempts to resolve these (see Table 6). This information will be entered into the Management Information System (MIS) and be included in the regular progress reporting. Process for preparing and approving resettlement plans and arrangements for monitoring

The concerned Municipalities will prepare a site-specific Resettlement Action Plan (RAP) for each subproject proposal that involves land acquisition and submit it for Bank review prior to commencing physical works. The RAP will include details about any prior steps taken, such as notification or consultation with owners, and description of the land acquisition process and mitigation measures. However, Municipalities shall refrain from taking anticipatory actions in future or proposed subproject areas with respect to demolitions or relocations before receiving Bank clearance. Precipitous taking of land or demolitions could result in the Bank’s refusal to finance a specific subproject. This shall include the following: information on the amount of land and other assets that will be acquired from each of the PAPs, socio-economic survey information; the Entitlement Matrix (see Table 5) defining the specific compensation rates and standards; description of resettlement sites if that is an option; implementation schedule for resettlement activities; and detailed cost estimate. This will be submitted to the Bank for review and approval. The implementation of the RAP will be monitored by DLGF as well as Bank supervision missions. Resettlement Plan Specific Resettlement Plans shall be submitted to the Bank once final designs are approved and accepted. Further, the implementation of the specific Resettlement Plan(s) will only begin after it is found acceptable by the Bank. The Resettlement Plan will cover the following:

1. A census of persons affected/displaced by involuntary land acquisition including an inventory of lost assets and valuation of these, and socio-economic data (see Tables 7 and 8)

2. Description of the compensation and other resettlement assistance to be provided 3. Description of the consultations with affected/displaced persons about acceptable

alternatives 4. Identification of vulnerable people in the project area and special arrangements

made to assure that such people do not undergo significant adverse impacts from relocation.

5. Institutional responsibility for implementation and procedures for grievance redress 6. Arrangements for monitoring and implementation 7. A time-bound implementation plan coordinated with the works timetable and a

detailed budget. Each RAP will establish a baseline through the census of PAPs which will comprise socio-economic data, the inventory of assets lost, and the compensation and resettlement benefits awarded to the PAPs (Tables 7 and 8). The sources of funding for the different activities in the Resettlement Plan shall be clearly specified in the budget. The World Bank cannot finance cash payments or land purchase. The time-bound implementation plan will specify the delivery of land acquisition compensation and rehabilitation entitlements in relation to the timing of physical construction activities.

Table 6. Reporting Format for Grievance Redress

Name of Complainant

Type of Grievance Grievance resolution Affected, but not informed about impacts

and options

Compensation awarded is inadequate

Compensation not paid before

asset acquisition

Resettlement benefits awarded are not provided

Other Date of complaint

Date resolved Pending Case referred to the Court

Complainant A Complainant B Complainant C Complainant D Complainant E

TOTAL

Table 7. Reporting Format for Land Acquisition & Resettlement (Socio-Economic Data)

Project name and location: _______________________________________________ Date: _________________________

ID # Name of PAP1 Gender Age Education Source of

income (occupation / employment)

Estimated total annual income (average of last 3 years)

Estimated income 6 months after relocation

1 List all family/household members starting with the head of household.

Table 8. Reporting Format for Land Acquisition & Resettlement (Inventory of Assets Lost, & Delivery of Compensation) : _______________________________________________ Date: _________________________

Name of PAPs Inventory of Assets acquired through land acquisition and

value of compensation awarded

Resettlement

Rehabilitation

Compensation

Agricultural Land Residential or Commercial Land2

Buildings (Residences, Shops)

Other Assets Total value of Comp3

Date Of Com4

Date of Poss5

<#% >#% CV6 Partly Fully CV Partly Fully CV Trees /crops

Temp. CV RA7 SK Or JB8

2 Partly = No resettlement since the land is partially affected, and the remaining land remains viable for present use. Fully = Resettlement since the land is severely affected, and the remaining area insufficient for continued use. 3 Total value of Com(pensation) = The total monetary value of compensation for different types of lost assets. 4 Date of Com(pensation) = The date on which the compensation payment was made to the PAP. 5 Date of Poss(ession) = The date on which the assets acquired were physically taken into possession for the community project. 6 CV = Compensation Value at replacement costs assessed in Lekes. 7 RA = Relocation Assistance provided only to displaced persons/families. This comprises costs of shifting to a new residence, plus an allowance of local average cost of living over a two month period. 8 SK = Skills training, and JB = Job placement for displaced PAPs who have experienced a decline in income as a result of the relocation, and who need assistance regarding income restoration.