LAND ACQUISITION PLAN FOR THE PURPOSE OF CONSTRUCTION OF

PLOVDIVTSI DAM, RUDOZEM MUNICIPALITY - BULGARIA

June 2014

INTRODUCTION This Land Acquisition Plan (LAP) has been prepared by the Ministry of Regional

Development of the Republic of Bulgaria to outline the actions undertaken for the acquisition

of land required for the construction of the „Plovdivtsi” dam and its ancillary components (i.e.

reservoir, “sanitary zone”, access road, transmission line, etc) and a drinking water treatment

plant in the area of Plovdivtsi village, Rudozem municipality. The completion of this project

is part of the Municipal Infrastructure Development Project (MIDP), implemented by the

Ministry of Regional Development and Public Works with a credit facility of the International

Bank for Reconstruction and Development.

This Plan has been prepared in conformity with the applicable Bulgarian laws and the

requirements of the MDIP’s Land Acquisition Policy Framework (LAPF) dated March 2009

which is in line with theWorld Bank Operational Policy on Involuntary Resettlement OP 4.12.

The LARPF includes an analysis of the applicable legal framework, valuation criteria,

entitlement matrix, stakeholder engagement and grievance mechanism, among other details. .

This Land Acquisition Plan complements the findings of the “Social Due Diligence in

Respect of Construction of Plovdivtzi Dam” (November 2007) which describes the previous

land acquisition associated to Plovdivtzi Dam and the drinking water treatment plant

conducted between 1998 and 2007. It must be noted that the land acquisition related to the

construction and operation of the Plovdivtsi” dam and the drinking water treatment plant does

not involve the physical displacement of population.

Between 1998 and 2000 the Government of Bulgaria acquired from public entities and private

land owners a total of 553,600 m2 (55.36 hectares) of land for the project, distributed as

follows: 447 680 m2 (44.76 hectares) for the Plovdivtsi” Dam reservoir and Sanitary and

Security area of belt I; 36,962 m2 (3.69 hectares) for the associated access road; and 66,100

m2 (6.61 hectares) for the transmission line, while for the construction of the drinking water

treatment plant it acquired 3,000 m2 (0.30 hectares). 86% of the land was publicly owned and

only 14% was owned by 39 individuals.

Between 2008 and 2014 the Government initiated the additional acquisition of 11,149 m2

(1.15 hecatres) of public lands and 9,926 m2 (0.99 hectares) of private lands distributed in 13

properties. The land rights from the public entities and private owners have been transferred

to the project. The compensation for the private owners, which includes market value for land

and other losses amounts to BGN 34, 923 (approximately USD 25,000). The money has been

set aside in an escrow account and efforts have been made to inform affected people about the

compensation, but as of April 2014 only 14% of the compensation has been collected.

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OBJECTIVES AND PRINCIPLES The premise governing this LAP is that land acquisition may cause hardship and

impoverishment, and therefore where it is not feasible to avoid land acquisition, project

affected persons (PAPs) will consulted and compensated 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. To support this objective, the following principles will

apply:

During the sub-project preparation process, consideration of technical options shall

involve a concurrent assessment of potential associated land acquisition impacts, so

that, where feasible, design alternatives to minimize such impacts can be identified as

early as possible.

Consultation arrangements during the project sub-component preparation process shall

be transparent and inclusive to ensure that all persons affected by involuntary land

acquisition are consulted on the mitigation measures.

Compensation for lost assets shall be provided before land and other assets are taken

into possession.

I. LAND ACQUISITION CONDUCTED BETWEEN 1998 AND 20071

By Order N 370 of 10.08.1998 the mister of Finance approved the expropriation of 80 569

m2 (8,05 hectares) of land which were private agricultural lands for the construction of

Plovdvtzi dam. The expropriation of these properties was also approved by the Minister of the

Regional Development and Public Works by Order N RD 02-14-1010 of 16.09.1998.

As of November 2007 the State had acquired by way of expropriation 74,591 m2 (7.45

hectares) of private agricultural lands for the dam reservoir from 31 owners and 3,962 m2

(0.39 hectares) of private agricultural land for the supporting road from a total of 8 land

owners, for a total area of 78,553 m2 (7.85 hectares).

The “Social Due Diligence in Respect of Construction of Plovdivtzi Dam” conducted on

November of 2007 concluded that procedures implemented for the acquisition of lands for the

construction of the Plovdivtzi Dam were in compliance with the objectives of the World Bank

OP 4.12 on “Involuntary resettlement" and the construction of the Plovdivtzi Dam has not,

and will not, imply displacement of population.

Table 1. Summary of Land Acquisition 2000 to 2007

Public

land

(hectares)

Private

land

(hectares)

Total land

required

(hectares)

Total land

acquired

(hectares)

% land

acquired

Dam reservoir

and Sanitary and

Security area of

belt I

37.30

(84%) 7.46 (16%) 44.76 44.76 100%

Access road 3.30 0.30 (1%) 3.69 3.69 100%

1 A full description of the land acquisition process between 1997 and 2007 can be found in the “Social Due

Diligence in Respect of Construction of Plovdivtzi Dam” available at

http://www.mrrb.government.bg/en/?controller=articles&id=652

(89%)

Potable water

treatment plant 0.30

(100%) 0.30 0.30 100%

Electric power

line

6.61

(100%) 6.61 6.61 100%

TOTAL 47.51

(86%) 7.76 (14%) 55.36 55.36

II. LAND ACQUISITION FROM 2008 TO 2014

a. COMPLETED ACTIONS IN RESPECT OF ACQUISITION OF PUBLIC

LAND LOTS OWNED BY RUDOZEM MUNICIPLAITY

By Ordinance № АК-02-23-779 of 19.12.2012 of the Head of Region of Smolyan an

expropriation procedure in favor of the state has been ordered for construction of a project:

‘„Plovdivtsi” dam and drinking water treatment plant’ in the local land area of Plovdivtsi

village, Rudozem municipality, lots and lot parts – private municipal ownership, located in

the local land area of Plovdivtsi village, Rudozem municipality, Smolyan region, described in

detail in terms of type, area, location, title holders and size of monetary compensation, as

follows:

List of land lots –municipal ownership, subject to involuntary expropriation and included in project ‘„Plovdivtsi” dam and drinking

water treatment plant’ in the local land area of Plovdivtsi village

S

Seri

al

№

Lot №

Type of

area

Permanent use

manner

Total property

area,

Decares

Area subject to

expropriation

Locality

Type of title of

ownership

Name of title holder

Monetary

compensation,

BGN

1

2

3

4

5

6

7

8

9

10

1.

33006

Rural

Pasture

common

pasture land

0,916

0,916

Demerdeshev

o

Private municipal

Rudozem

municipality

BGN 2872

2.

33016 Rural

Pasture

common

pasture land

1,351

1,351

Grobat Private municipal

Rudozem

municipality

BGN 4237

3.

34005 Rural

Pasture

common

pasture land

2,091

2,091

Vulchenatsko Private municipal

Rudozem

municipality

7235

4.

28035 Rural

Natural

meadows

0,380

0,380

Rupsko Private municipal

Rudozem

municipality

1192

5.

28067 Rural

Natural

meadows

0,396

0,396

Alikovo Private municipal

Rudozem

municipality

1242

6.

28065 Rural

Natural

meadows

0,026

0,026 Alikovo Private municipal

Rudozem

municipality

82

7.

28064 Rural

Natural

meadows

0,133

0,133 Alikovo Private municipal

Rudozem

municipality

417

28041 Rural Shrubs pasture 0,392 0,392 Alikovo Private municipal Rudozem

8. municipality 1229

9. 28025 Rural

Natural

meadows

0,145

0,145 Alikovo Private municipal

Rudozem

municipality

455

10.

28012 Rural

Pasture

common

pasture land

1,652

1,652 Alikovo Private municipal

Rudozem

municipality

5180

11.

28022 Rural

Pasture

common

pasture land

1,924

1,924 Alikovo Private municipal

Rudozem

municipality

6033

12.

28070 Rural

Pasture

common

pasture land

0,400

0,387 Alikovo Private municipal

Rudozem

municipality

1214

13.

28073 Rural

Pasture

common

pasture land

0,793

0,356 Alikovo Private municipal

Rudozem

municipality

1116

Hectares 1.06 1.11

Total BGN 32504

Decares 10.60 11.15

M2 10,599.00 11,149.00

The total value of the compensation is equal to BGN 32 504 and it has been fully paid

into the account of Rudozem municipality on 12 March 2013. The expropriation procedure of

land lots – private municipal ownership, should be deemed as closed on 12 March 2013, with

payment of the total value of the compensation determined for the land lots acquired by the

state.

b. COMPLETED ACTIONS ON THE ACQUISITION OF PRIVATE

LAND LOTS OWNED BY INDIVIDUALS

In the acquisition process of land, which is within the scope of Plovdivtsi Dam project, the

consultations with the affected people were carried out in two stages:

1. Discussion of the draft of Plovdivtsi Dam detailed structure scheme containing

information on the land subject to expropriation and according to which the

expropriation is made;

2. Conducting negotiations with the owners of the properties subject to expropriation;

On July 9th

, 1998 in Plovdivtsi village was held a meeting of representatives of

Rudozem municipality and the owners of the affected land. During the meeting were

considered matters of significance for this area, as well as matters about the claims of the

owners on the price of the properties and perennial plants subject to expropriation. The

detailed structure scheme of erection and regulation of the following project: Plovdivtsi Dam

and Purifying Station for drinking water on the land of Plovdivtsi village, Rudozem

municipality was subject to public discussion and all interested parties were invited. The

invitation notice for the above was put up in Plovdivtsi village and in the building of the

municipality in town of Rudozem. At the same time the notice was also published in a local

daily newspaper (Rodopi vest newspaper, issue 46/29.04.2011). A public discussion was held

on May 4th

, 2011 in Plovdivtsi village cultural club and the draft was available to all

interested parties every working day in the building of the municipality of Rudozem village.

There is a record evidencing the public discussion, which was signed by the affected

persons who attended it. The record contains all their questions and comments. The claims

made by Plovdivtsi village residents were included in the draft. The detailed structure scheme

was adopted on the grounds of Resolution No. 356 of Rudozem municipality`s municipal

council and the resolution was promulgated in State Gazette, issue 74/21.09.2011. The draft

of detailed structure scheme was announced to the interested parties by its promulgation in

State Gazette, issue 82/21.10.2011. No complaints were received by the interested parties

against the detailed structure scheme for construction of Plovdivtsi Dam.

In June 2012 in 5 consecutive days were carried out negotiations with the persons the

properties of whom are subject to expropriation according to the draft of detailed structure

scheme for the construction of Plovdivtsi Dam. The negotiations were conducted by

commission with members: representative of the Ministry of Regional Development and

Public works, representative of the municipality and the independent assessor who took part

in the preparation of the assessment. The affected parties were notified about the negotiations

in advance by letter of notice sent to each of them and by a notice put on the board for

announcements in the building of Rudozem municipality. Some of the affected persons

participated in this procedure, during which they were informed in detail about the necessity

of expropriation of their property, as well as the way of determination of the assesment of

their land.Some of the persons gave their consent with the specified market value and signed

declarations for consent.

Order No. AK-02-23-780/19.12.2012 of the district governor of Smolyan district

decreed expropriation for state necessity with the purpose of construction of project:

Plovdivtsi Dam and Purifying Station for drinking water on the land of Plovdivtsi village,

Rudozem municipality, properties and parts of properties – private ownership located on the

land of Plovdivtsi village, Rudozem municipality, Smolyan district. The order was

promulgated in State Gazette, issue 7/2013. On January 8th

, 2013 Rudozem municipality

announced in public the sequestration order by putting it up on the information board of

Rudozem municipality and on the information board of Plovdivtsi village.

By Ordinance № АК-02-23-780 of 19.12.2012 of the Head of Region of Smolyan an

expropriation procedure in favor of the state has been ordered for construction of a project:

„Plovdivtsi dam and drinking water treatment plant“ in the local land area of Plovdivtsi

village, Rudozem municipality, land lots and lot parts – privately owned by individuals,

located in the local land area of Plovdivtsi village, Rudozem municipality, Smolyan region,

described in detail in terms of type, area, location, title holders and size of monetary

compensation, as follows:

List of land lots – private ownership, subject to involuntary expropriation and included in project ‘„Plovdivtsi” dam and drinking

water treatment

plant’ in the local land area of Plovdivtsi village

Seria

l

№

Lot №

Permanent use manner

Total property

area,

decares

Area subject

to

expropriation

Locality

Type of title of

ownership

Monetary compensation,

BGN

1

2

4

5

6

7

8

10

1. 028010

Pasture

common pasture land

0,439

0,439

Alikovo

private

1377

2.

050044

Wooded territory

1,3

0,16 Alikovo private

674

3.

028008

Pasture

common pasture land

0,056

0,056 Mustetsa private

194

4.

028078

Pasture

common pasture land

1,411

1,077 Rupsko private

3377

5.

028083

meadow

0,31

0,31 Rupsko private

972

6.

028074

Pasture

common pasture land

0,745

0,745 Vodenitsata private

2336

7.

028071

Pasture

common pasture land

0,542

0,004 Alikovo private

13

8.

034018

Pasture

common pasture land

0,199

0,199 Alharnarnik private

689

9.

034010

Pasture

common pasture land

1,193

1,193 Menkovo private

4128

10.

034009

Pasture

common pasture land

3,851

3,851 Vulchenatsko private

13 332

11.

033023

Pasture

common pasture land

0,752

0,752 Grobat private

2358

12.

050045 Wooded territory

1,000

1,000 Menkovo private

4210

13.

050041 Wooded territory

0,300

0,300 Menkovo private

1263

Decares 10.80 9.93 34923 BGN

Hectares 1.08 0.99

M2 10,798.00 9,926.00

The total amount of the compensations provided to private land owners equals BGN 34 923

and it has been transferred by the Ministry of Regional Development and Public Works into

an account of the regional administration of Smolyan region on 21 Dec 2012. The

compensations of the owners were determined on the grounds of market values made by

independent assessors, two times updated – in March 2012 and in August 2012. The

documentation concerning expropriation contains the market value of each property. The

assessors calculated the compensations by comparing the market assessment and the

normative assessment. The market assessment was made on the grounds of concluded deals

concerning the sale of similar properties in the recent year before the date of the assessment

and along with it evidences were presented about the prices of already implemented deals. For

the calculation of the normative assessment were taken into consideration the requirements of

the Regulation on the way of assessment of prices of agricultural land and the Regulation of

assessment of land property in forest territories. These normative acts rely on determination

of compensation criteria in order to guarantee the assessment objectivity and the justice of the

replacing benefit like for instance the land statute, location, loss of income and other

economic factors. The final compensation is determined on the basis of which price is higher

– the market or the normative. The costs for acquisition of ownership on the affected lands,

including associated taxes and registration fees, are borne by the state and therefore they are

not part of the compensations determined.

The affected persons have been notified of the amount of their compensations and of their

right to receive them by designating bank accounts of their own, where the funds shall be

transferred throw the publishing Order No. AK-02-23-780/19.12.2012 in State Gazette and

throw the announcement the order on the information board of Rudozem municipality

building and on the information board of Plovdivtsi town hall. In State Gazette, issue 7 of

2013 was published Order No. AK-02-23-780/19.12.2012 of the district governor of Smolyan

district about expropriation of the affected land for the purpose of construction of project:

Plovdivtsi Dam and Purifying Station for drinking water on the land of Plovdivtsi village,

Rudozem municipality. The abovementioned order explicitly stated that the specified

compensations shall be available in International Asset Bank AD and once the order comes

into force, any affected person the name of whom has been listed in the order, is entitled to

receive their compensation, also explicitly specified, in any bank branch. This order was

announced in public on January 8th

, 2013 on the information board of Rudozem municipality

building and on the information board of Plovdivtsi town hall. The above method of

announcement in the local administrative buildings was described in a record as of

08.01.2013 of commission of Rudozem municipality.

As of 25 September 2013 only few of the affected persons have demanded payment and have

received their compensation, as follows:

Total

amount of

compensatio

n

Total value of unpaid

remuneration as of 25

September 2013

% unpaid

1. Family 1

BGN 1377

BGN 98,35

7,14%

2.

Family 2

BGN 674

BGN 674

100%

3.

Family 3

BGN 194

BGN 194

100%

4. Family 4

BGN 3377

BGN 34,50 1,02%

5. Family 5

BGN 972

BGN 972

100%

6.

Family 6

BGN 2336

BGN 2336

100%

7. Family 7

BGN 13

None 100 %

8. Family 8

BGN 689

BGN 689

100%

9. Family 9 100%

BGN 4128 BGN 4128

10. Family 10

BGN 13 332

BGN 13 332

100%

11. Family 11

BGN 2358

BGN 2358

100%

12. Family 12

BGN 4210

BGN 4210

100%

13. Family 13

BGN 1263

BGN 1263

100%

TOTAL VALUE: BGN 34 923 BGN 30 288,85 87%

As of 25 September 2013 out of the total value of compensations BGN 34 923 due

to affected persons, few of these persons have received their compensation payments equaling

BGN 4 634.15. 30288,85 (87% of total compensation) is still pending to be claimed.

The reason for non-payment of the whole amount of compensations is attributed to

the lack of filed requests on part of the affected persons to receive the relevant amounts in

cash or by way of bank transfer. The persons have been notified that the allocated

compensation amount was transferred by the MRDPW into a special bank account with CB

“International Asset Bank” and they should ask from each bank branch receipt of the

respective compensation in cash /if it is up to BGN 1000/ or designate a bank account of their

own for remittance of the allocated compensation by “International Asset Bank”.

Payment of the compensations due to the remaining persons is expected whereas

the amount has been transferred into a special bank account, and upon request of an affected

person, the bank transfer may be ordered at any point of time.

Upon declared willingness by the entitled persons, due compensations of up to

BGN 1000 may be paid in cash.

The respective compensation amounts earn an interest until the time of their receipt,

which is payable to the persons entitled to compensation together with the principal

compensation amount.

III. COMPLETED ACTIONS ON THE COMPENSATION OF THE INFORMAL

USERS OF LAND

A field study on the informal use of land needed for the construction of Plovdivtsi dam was

carried out on October 24th

, 25th

and 26th

2011. The field study was conducted by a Commission

of 3 experts including: representative of the MRDPW, representative of Rudozem municipality

and an appraiser. The results of the study have been laid down in a Protocol signed by the

Commission members.

During field study conducted were found the following forms of informal use of the land in

the area of Plovdivtsi dam: the ground of the dam area is used for pasture of 12 cows, 14 goats and

4 sheep, which are property of 10 households in total. The cows are usually locked in the barn and

the hay cut from the ground`s place of the dam area is spread around. Hay-making season is

within the period from June to September – October. Usually the goats and the sheep are taken out

to pasture there every day or every two days. Some of the people asked say that most of the grass

on the ground is cut to reduce the risk of fire and not to serve as fodder. Most cattle owners do not

care about the future damming of the dam lake because there is sufficient land for pasture.

Currently on the territory of the site are not being performed activities that would affect the

informal use of the land i.e. up till now there have been no impacts on economic activities of

informal users.The mayor of Rudozem municipality assumed the responsibility to provide land,

property of the municipality, to be used for pastures by the informal users when the dam

construction activities impede the formal use of the land.

IMPLEMENTING SOCIAL COMMITMENTS IN CONNECTION WITH PLOVDIVTZI

DAM WATER

COLLECTION.

Prior to the completion of the expropriation file for the private properties falling within the

Plovdvtzi Dam reservoir and SSA a meeting was held between the persons concerned,

representatives of Rudozem Municipdty, representatives of the dam designer

Vodokanalengineering OOD and investor control, Geos OOD, Smolyan. The meeting was

held on 9 July 1998 and a Protocol has been drafted thereof (Protocol N 11), containing

multiple requests, most of which had been complited. However, as of April 2014 the

following commitments are pending:

Commitment Pending Corrective Action Deadline

Rudozem Municipality

And the contractor commit

themselves to restore the

village old irrigation

systems, namely to

conduct water to the

water-mill and to buildup

two irrigation channels on

the two sides of the

village.

The village old irrigation

systems has not been

restored. The restoration

of the irrigation systems is

connected with the

completion of the dam and

will directly result as the

effect of the Plovdivtzi

Dam construction.

After the construction of

the dam will provide

water for irrigation. Will

be restored canals.

After the construction of

the dam.

The necessary quantities

of running water for

drinking and household

needs to all points of the

village shall be ensured.

The provision of the

necessary quantities of

running water for drinking

and household needs are

connected with the

completion of the dam and

will directly result as the

effect of the Plovdivtzi

Dam construction.

Built a new plumbing. Already done!

The Municipality and the

contractor shall build

playgrounds and sports

grounds in the school area.

No playgrounds are put in

place. There are no sports

ground in the school area

since the school has been

closed. The opening of a

kindergarten is envisaged..

Carry out a tender for the

construction of

multifunctional

playground.

12.2014

Grievance Redressal Mechanisms

The Expropriation Laws provide for an appeals process against the proposed award for

compensation. The PIU staff also play an advisory and facilitating role in resolving

grievances. Grievances related to land acquisition impacts should be pursued at the

municipality/ community level with facilitation by PIU staff together with design consultants

in order to find technical solutions that avoid or further minimize the need for land

acquisition. Solutions to grievances related to compensation amounts, delays in compensation

payments should be pursued directly by the designated authorities in liaison with the PIU staff

who will inform PAPs about the avenues for grievance redress, and will maintain a record of

grievances received, and the result of attempts to resolve them.

Attachments:

1.Order No. AK-02-23-780/19.12.2012 of the district governor of Smolyan district.

2. Record as of 08.01.2013 of commission of Rudozem municipality.