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ODRA RIVER BASIN FLOOD PROTECTION PROJECT 7436 POL

LA&RAP – LAND ACQUISITION AND RESETTLEMENT ACTION PLAN Sociological, Legal and Factual Constraints

COMPONENT B3

Issue Date By Verified by Client's

Approval Description

IV 05.05.2016 Marta Rak

World Bank Review Mar 2016

CONTRACT FOR SERVICES:

“DESIGN AND CONSTRUCTION SUPERVISION OF THE FLOOD PROTECTION WORKS TO UPGRADE THE WROCLAW FLOODWAY SYSTEM (WFS)”

SFG2409 V2

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CONTENTS Abbreviations .................................................................................................................................................. 3

Key Definitions ............................................................................................................................................... 3

1. Introduction ...................................................................................................................................................... 5

1.1 Objectives and principle ............................................................................................................................ 5

1.2. Characteristics of Component B3 which is part of the Project of Modernization of Wroclaw Floodway System implemented under Odra River Basin Flood Protection Project 6

2. Minimization of impact ................................................................................................................................. 7

2.1 Minimizing size of the area to be occupied during design stage ............................................ 7

2.2 Minimizing impact during construction period ......................................................................... 7

2.3 Community Engagement and Information ..................................................................................... 8

3. Permits and Stakeholders ........................................................................................................................... 8

3.1 Identification of number of properties and groups of people under the impact of development ................................................................................................................................................... 9

4. Legal framework and valuation methods ............................................................................................. 11

4.1. Acquisition of property – existing regulations in the light of Polish legislation ............... 11

4.2. Legal constraints – detailed information ...................................................................................... 12

4.3. Property acquisition – World Bank Operational Policy OP 4.12. ......................................... 14

4.4. Identified gaps and corrective measures .................................................................................... 15

4.5. Valuation methods ............................................................................................................................. 17

4.6 Special procedures ............................................................................................................................. 20

5. The census and socio-economic research .......................................................................................... 21

6. Entitlement Matrix ........................................................................................................................................ 22

7. Public consultations and participation of interested parties ........................................................... 25

7. Complaints ..................................................................................................................................................... 27

7.1. When to establish a mechanism for complaints related to the Project .............................. 27

7.2. Managing complaints ........................................................................................................................ 27

7.3. Organizational procedures .............................................................................................................. 27

7.4. Ways of filing a complaint ................................................................................................................ 27

7.5 Audits and independent appeal mechanism ............................................................................... 28

8. Monitoring and evaluation ......................................................................................................................... 28

8.1 Typical diagram for management of complaints (in accordance with WB requirements)30

8.2 Form for filing a complaint to the Consultant (based on WB Guidelines) .......................... 31

9. Plan of action ................................................................................................................................................ 32

10. Cost and funding source ......................................................................................................................... 32

10.1. The amount of compensation related to lease agreements: .............................................. 32

10.2. Compensation for closing down ROD: ...................................................................................... 32

10.3. Compensation for expropriation of the property at Fryzjerska Street: ............................. 32

11. List of applied documents ................................................................................................................. 33

Attachments .................................................................................................................................................. 33

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Abbreviations LA – Land Acquisition RAP – Resettlement Action Plan DZMiUW – Lower Silesia Board of Amelioration and Water Structures – the Employer, the Developer, Project Implementation Unit – including Representative of Lower Silesian Voivodship – Developer in view of the Special Purpose Act – also referred to as the Responsible Entity JV Sweco/Artelia/Ekocentrum – international joint venture; supporting DZMiUW Wroclaw in the scope of preparation of the technical design, construction supervision and supervision during Defect Notification Period BŚ - WB – International Bank for Reconstruction and Development (IBRD) CEB – Council of Europe Development Bank ORBFPP – Odra River Basin Flood Protection Project WFSM – Wroclaw Floodway System Modernization Project, a part of a bigger Odra River Basin Flood Protection Project EMP – Environmental Management Plan IFC – International Finance Corporation ROD – Family Allotment Gardens Special Purpose Flood Act - Act on special proceedings to prepare the implementation of project of flood control facilities of 8th July 2010 (Journal of Laws, No. 143 item 963). Special purpose decision - a decision permitting implementation of the project issued on the permitting Special Purpose Flood Act

Key Definitions The following key definitions are used in this document (based on, but not limited to, definitions contained in IFC Handbook for Preparing Resettlement Plans). Definitions as indicated below: Property price – Negotiated with the owner amount due to the owner for a property or part of a property determined on the base of a value assessed by the real estate expert. Economic displacement - Loss of benefits, income or means of livelihood resulting from land acquisition or obstructed access to resources (land, water, or forest) resulting from the construction or operation of a project or its associated facilities. Vulnerable groups - People who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by resettlement than others and who may be limited in their ability to claim or take advantage of resettlement assistance and related development benefits. Replacement cost - Replacement cost’ is the method of valuation of assets (e.g. buildings, land, etc) that helps determine the amount sufficient to replace lost assets which is usually the market value plus the transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account. Compensation - Payment in cash or in kind for an asset that is acquired or affected by a project at the time the asset needs to be replaced. Compensation is paid before the asset is taken for project purposes and in compliance with WB Operational Policy compensation is paid before accessing the plot. OP 4.12 on Involuntary Resettlement – This Operational Directive embodies the basic principles and procedures that underlie the IBRD’s approach to involuntary resettlement associated with its investment projects. Project-affected person “PAP” - Any person who, as a result of the implementation of a project, loses the right to own, use, or otherwise benefit from a built structure, land (residential, agricultural, or pasture), annual or perennial crops and trees, or any other fixed or moveable asset, either in full or in part, permanently or temporarily.

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Involuntary resettlement - Resettlement is involuntary when it occurs without the consent of the displaced persons or if they give their consent without having the power to refuse resettlement (e.g. through the possibility of expropriation if negotiations fail). Expropriation — the process whereby property law of a given person to a particular property is limited or required to be relinquished by an individual act. Voluntary Sale/ Purchase – also known as willing buyer/willing seller, is a transaction of acquisition of the property from its previous owner / holder for the amount accepted by both parties and where the owner has the option to say no. If the project has the possibility of resorting to expropriation if negotiations fail, then the purchase is not considered voluntary (i.e. willing buyer/willing seller). Allotment user – an adult natural person authorized under the law to use an allotment at ROD; Allotment garden – basic family allotment unit, the area of which does not exceed 500 m2, used to meet the needs of allotment user and his family in the field of horticultural crops, leisure and recreation; Right to the allotment garden – legal claim to use the allotment established in accordance with the law; Family allotment – specified area or areas designated for the family allotments and comprising of the allotments and the common area for use by allotment users, provided with garden infrastructure; Garden infrastructure – buildings and structures, fences, pathways and roads, playgrounds, community centers, water boosting stations, water pipes and power lines, as well as other facilities located at the family allotments for common use by the people using the allotments and provided for ensuring proper function of the family allotments, unless they are part of the company; Garden Association, Polish Allotment Gardens Association (PZD) - a nationwide association which continues 120 year old tradition. PAGA operates on the basis of the Act of December 13th 2013 on family allotment gardens. The purpose of family allotment gardens is to meet leisure, recreation and other social needs of local community by providing common access to ROD and allotments which allow for own gardening and increases environmental standards. Closing down of family allotment or part thereof – disposal or expiry of the rights of Allotment Gardens Association (PZD) to the property occupied by family allotments or part thereof and release of the property by the Association. Livelihood Restoration - Measures that will be undertaken to assist physically and economically displaces PAPs to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. Assistance must continue after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living.

Cut-Off Date – Date of completion of the census and assets inventory of persons affected by the project. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. Similarly, fixed assets (such as built structures, crops, fruit trees, and woodlots) established after the date of completion of the assets inventory, or an alternative mutually agreed on date, will not be compensated.

Resettlement Action Plan (RAP) - The document in which, in line with OP 4.12 and local regulations, a project sponsor or other responsible entity specifies the procedures that it will follow and the actions that it will take to mitigate adverse effects, compensate losses, and provide development benefits to persons and communities affected by an investment project.

Stakeholders - Any and all individuals, groups, organizations, and institutions interested in and potentially affected by a project or having the ability to influence a project.

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1. Introduction This Action Plan and Plan of Land Acquisition for Component B3, called LA&RAP B3 is a complementary document which specifies details of earlier documents, i.e. the Framework Document on the Resettlement and Acquisition of Land for Odra River Basin Flood Protection Project (RAP) for the Modernization of Wroclaw Floodway System in section implemented by Lower Silesia Board of Amelioration and Water Structures in Wroclaw (DZMiUW) of June 20051. The land acquisition process associated to Component B3 will result in permanent acquisition of 842 plots and temporary occupation during construction of 858 plots. The land acquisition (in terms of plots which are the subject of agricultural use, and additionally subject to the lease) will result in permanent acquisition of 45 plots and temporary occupation during construction of 47 plots over a total area of about 15 hectares being leased. The Project will also affect 5 areas of Polish Allotment Gardens Association requiring the permanent acquisition of 5,2 ha which involves the demolition of 172 garden allotments. One household (Family X) will be affected by physical displacement.

1.1 Objectives and principle This LA&RAP was prepared for the Project of Modernization of Wroclaw Floodway System (WFSM), the part covering the impact of the Project’s implementation on demolition of Family Allotments and on the leaseholders of properties owned by the Municipality or the Treasury and in trust of Agricultural Property Agency located on site of new flood protection facilities constructed under Component B3. The LA&RAP covers also a case of expropriation of a private property resulting in physical displacement. This document is complementary to Odra RAP “RAP- RESETTLEMENT ACTION PLAN Sociological, legal

and factual constraints” (http://odra-wroclaw.pl/plan-dzialan-ang-rap) which covers general principles and describes different social groups under the impact of MWFS Project.

The objective of this LA&RAP is to ensure the adequate management of land acquisition required for the

project in accordance to Polish law and WB OP 4.12 on Involuntary Resettlement.

The LA&RAP specifies procedures and actions that will be taken to mitigate adverse effects, compensate losses, and provide development benefits to those affected by the project land acquisition and restricted access to resources (i.e. project affected persons “PAP”).

Objectives:

Land acquisition and resettlement will be minimized or avoided where possible. Where

resettlement is unavoidable, the procedures and requirements outlined in this LA&RAP will be

followed to minimize adverse impacts.

Project affected persons (PAPs) should be assisted in their efforts to improve their livelihoods and

standards of living or at least to restore them, in real terms, to levels prevailing prior to the

beginning of project implementation.

All Project affected persons (PAPs) will be meaningfully consulted and be active participants in

the negotiated settlements and will have access to adequate and accessible grievance redress

mechanisms. Consultations will consider gender issues and take into account the needs of

stakeholders who may be considered vulnerable.

Guiding principles:

The DZMiUW will aim to achieve negotiated agreements on land acquisition with all PAPs based

on the principles set out in this LA&RAP. DZMiUW will negotiate fairly and openly with all PAPs to

1 See http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/11/10/000012009_20051110131140/Rendered/PDF/RP3160vol.03.pdf

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reach mutually acceptable agreements on compensation. Expropriation will only be undertaken

as a last resort where negotiation fails.

Implementation results will be documented, monitored and, after completion, evaluated.

Engagement and compensation will be carried out with equal consideration of women and men.

Particular attention should be paid to households headed by women and other vulnerable groups,

and appropriate assistance should be provided to help them improve their status.

Compensation will be fully provided prior to land take for project purposes.

Upon completion of construction, restore land as best as possible to its original condition in the

event of temporary disruption so as to enable landowners/users/lessees to resume their pre-

project activities;

Lack of legal title should not be a bar to compensation and/or rehabilitation to eligible PAPs as

per WB OP 4.12.

In all cases efforts will be exhausted to reach negotiated agreements and forced evictions will be avoided as much as possible.

1.2. Characteristics of Component B3 which is part of the Project of Modernization of Wroclaw Floodway System implemented under Odra River Basin Flood Protection Project

Construction of Odra-Widawa spillway canal (Component B3) is to provide a safe by-pass for transfer of 300 m³/s of water under catastrophic conditions from Odra River to Widawa River Valley and then its discharge into Odra River already downstream from Wroclaw. For this purpose the following will be provided: construction of a new flap weir at the inlet to Odra-Widawa Canal, renovation of embankments including demolition of part of embankments and construction of new sections farther away from Widawa River channel (widening of the terrace), increase of capacity of one railway bridge and five road bridges.

Facilities/tasks implemented by DZMiUW under Component B3 are indicated in the table below.

Table No. 1.1. Facilities executed under Component B3

Component Name of Task Name of Structure

B3 Construction of structures / facilities for flood protection of the City of Wroclaw as part of the activities related to the modernization of Wroclaw Floodway System for Odra – Widawa spillway canal located in Widawa River Valley including the bridges

B3.1 Odra-Widawa Spillway – Flap weir (WFS Facility No. 40) B3.2 Redevelopment of road bridge (WFS Facility No. 41.1) B3.3 Redevelopment of railway bridge (WFS Facility No. 41.2) B3.4 Extension of the canal (WFS Facility No. 41.3) B3.5.Redevelopment of B. Krzywoustego road bridge (WFS Facility No. 42.1) B3.6 Redevelopment of B. Krzywoustego railway bridge (WFS Facility No. 42.1.1) B3.7 Canal – new right bank embankment (WFS Facility No. 44.1) B3.8 Canal – new left bank embankment (WFS Facility No. 44.11) B3.9 Swojczyce – new embankment (WFS Facility No. 44.12) B3.10 Kowale – new embankment (WFS Facility No. 44.13) B3.11 Kowale – modernization of the embankment (WFS Facility No. 45.6) B3.12 Wilczyce – new embankment (WFS Facility No. 44.2) B3.13 Embankment modernization (WFS Facility No. 45.5) B3.14 Wilczyce – embankment modernization (WFS Facility No. 45.2) B3.15 Embankment modernization (WFS Facility No. 45.1) B3.16 Embankment demolition (WFS Facility No. 46.1) B3.17 Zgorzelisko (do ul. B. Krzywoustego) – new embankment (WFS Facility No. 44.3) B3.18 Redevelopment of road bridge in Widawa (WFS Facility No. 42.2) B3.19 Redevelopment of Pegowski road bridge (WFS Facility No. 42.3) B3.20 Redevelopment of Pegowski railway bridge (WFS Facility No. 42.3.1) B3.21 Increase of the capacity of bridge over Old Widawa River in Psary (WFS Facility No.

43) B3.22 Krzywoustego – railway line – new bank (WFS Facility No. 44.14) B3.23 Sołtysowice (embankment along downtown bypass) (WFS Facility No. 44.15) B3.24 Polanowice – new embankment (WFS Facility No. 44.16) B3.25 Pracze Widawskie – new embankment (WFS Facility No. 44.17) B3.26 Pracze Widawskie – embankment demolition (WFS Facility No. 46.2) B3.27 Świniary embankment modernization (WFS Facility No. 44.18) B3.28 Krzywoustego – railway line, embankment modernization (WFS Facility No. 45.3) B3.29 Psie Pole – new embankment (WFS Facility No. 44.4) B3.30 Kłokoczyce – new embankment (WFS Facility No. 44.5) B3.31 Krzyżanowice – new embankment (WFS Facility No. 44.6) B3.32 Krzyżanowice – embankment modernization (WFS Facility No. 45.4)

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Component Name of Task Name of Structure B3.33 Psary – new embankment (WFS Facility No. 44.7) B3.34 Psary ring embankment (WFS Facility No. 44.8) B.3.35 Szymanów – new embankment (WFS Facility No. 44.9) B3.36 Szewce – new embankment (WFS Facility No. 44.10) B3.37 Paniowice – flood bank demolition (WFS Facility No. 19)

Component B3 (apart from flap weir and Odra-Widawa Canal as well as renovation of road and railway bridges) includes construction/renovation of flood banks along Widawa River channel. The embankments will protect Widawa River Valley against flood under conditions when Widawa River is used as relief canal for Wroclaw and for transfer of water from Odra River in the amount of 300 m³/s during controlled flow. Total length of embankments (new and renovated) for Component B-3 is approx. 38.4 km.

The Project covers the area of 116.8 ha (permanent occupation), impact area during construction works is 190.5 ha (total for permanent and temporary occupation) and is located within the boundaries of four municipalities: Wrocław, Długołęka, Wisznia Mała, Oborniki Śląskie.

Table No. 1.2 Summary of areas and number of properties under permanent (including permanent occupation of public plots according art. 33) or temporary occupation (excluding WFS Structure No. 40).

Number of

plots Total (ha)

Plots owned by legal entity

% Privately owned

%

Permanent occupation 797 117.4975 409 51.3% 388 48.7%

Permanent occupation (Art. 33)

45 5.1893 45 100% 0 0%

Temporary occupation 858 65.9322 562 65.5% 296 34.5%

TOTAL 1 700 188.6190 970 58.4% 691 41.6%

* after decisions of Ministry of Infrastructure and Development (18.09.2015 and 23.09.2015)

2. Minimization of impact

2.1 Minimizing size of the area to be occupied during design stage

During the design stage a principle of minimizing the size of area for permanent and temporary occupation was applied. Alternative design options in form of retaining walls or sheet pile walls have been introduced where flood protection structures are close to buildings or natural habitats. The same solutions were applied in case of individual property owners, i.e.: - it was agreed with the owner that the retaining wall on the property (Swiniary Precinct) where historic mill is located will be clad in facebrick; as well as legal entities, i.e.: - HORTICO S.A. (alternative design of a section of the embankment to avoid occupation of the parking area). - FUND CAPITAL "RUBIKON" JOINT STOCK COMPANY partnership limited by shares (change in technology for construction works to avoid dismantling the company’s fence and the danger of intrusion into the business).

2.2 Minimizing impact during construction period

PAP were able to lodge their proposals and comments regarding proposed activities thanks to the

extensive information campaign about the planned Widawa development and opening of the information

point.

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On 25.08.2014, Mr. Y, owner of Stand No. 235/4, AM1 Wilczyce Precinct, submitted to the Employer a

letter requesting waiver of temporary occupation of his property. The request was justified by the fact that

this property is an important source of additional income for him and his wife as their pension is very

small. In view of this situation the temporary occupation was abandoned.

2.3 Community Engagement and Information

The DZMiUW published an information brochure which was mailed to all owners of properties to be

occupied permanent and temporarily. The brochure indicated that in accordance with the provisions of the

law it is possible to obtain 5% increase of the compensation for early release of the property, which can

be done by signing a relevant document. A group of representatives of the Consultant authorized by the

Employer approached property owners to sign such documents which entitle to additional compensation.

According to the arrangements carried out with PZD, DZMiUW signed an agreement in which it was

agreed ROD isolation of plots land (by temporary fence) for the duration of the works to protect allotments

gardens against accidental damage.

3. Permits and Stakeholders The administrative decisions on environmental constraints (Environmental Decision) have been obtained for all thirty seven facilities/tasks within Component B3 implemented by DZMiUW. These decisions are final. In case of facilities within Component B3, four decisions for development implementation have been obtained (22.09.2014). All decisions are final at the time of writing this report. Scope of Component B3 was divided into two contracts for works: B3-1 and B3-2. The Contractors have been appointed for both contracts and agreements have been signed on 23.09.2014 for Contract B3-1 with SKANSKA S.A. and for Contract B3-2 with Mota-Engil Central Europe S.A. In May and June 2014 property appraisal experts have been selected to prepare reports on market value of the properties under permanent occupation and the amount of damages incurred on the properties under temporary occupation. All appraisal reports were prepared.

Main parties involved at present in the preparation and implementation of the Project WFSM in the part performed by DZMiUW:

Lower Silesia Board of Amelioration and Water Structures (DZMiUW) – a local government unit of Lower Silesian Voivodship without legal personality, supervised by the Board of Lower Silesian Voivodship. DZMiUW Wroclaw performs tasks of the Self-Government set out in separate Acts (including Act of 5 June 1998 on voivodship self-government – consolidated text, Journal of Laws of 2001, No. 142, item 1590, as amended), in particular, within the scope of the modernization of rural areas, environmental protection, water management, including flood protection, equipping and maintenance of flood control warehouses. Moreover, DZMiUW Wroclaw carry out tasks of government administration law entrusted to the Lower Silesia Marshal and the Marshal's own responsibilities under the provisions of the Act of 18 July 2001, the Water Law (consolidated text, Journal of Laws of 2005 No. 239, item 2019, as amended) - including the ownership of water, water management and drainage and water companies.

JV Grontmij/Artelia/Ekocentrum - international Joint Venture (JV); the entity responsible for preparation of the technical design, construction supervision and supervision at defect notification period etc.

Additional entities involved in implementation of impact mitigation measures and covered by this document are:

Agricultural Property Agency (APA) – state agency established on 15.07.2003 in place of State Treasury Agricultural Property Agency. APA is a state legal person seated in Warsaw. The base

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for APA operation is the Act on management of agricultural property of State Treasury of 19th October 1991 and the articles currently given in form of the Regulation by the Minister for Rural Development. The same Minister supervises APA.

APA does not have its own tasks. It implements tasks arising from the state policy. APA deals with:

Development and improvement of the area of structure of family farms, Ownership and other property law related activities in relation to agricultural property of State

Treasury – on behalf of State Treasury, in particular: o real estate, o restructuring of properties, o rational use of properties, o administration, o selling approved by the Chairman.

Polish Allotment Gardens Association (PAGA) is a nationwide association which continues 120 year old tradition. PAGA operates on the basis of the Act of December 13th 2013 on family allotment gardens. The purpose of family allotment gardens is to meet leisure, recreation and other social needs of local community by providing common access to ROD and allotments which allow for own gardening and increases environmental standards. PAGA has a three instance organizational structure. At the national level PAGA is managed and represented by the National Council consisting of 39 to 55 people, headed by the President of the National Council. District Boards are involved at the regional levels. ROD Boards are involved at local government level.

Gmina Wrocław - since 1990 gmina is a basic unit of local government in Poland. The Act of 8th March 1990 on local government is a base for operation of gmina (Journal of Law of 2013, Nr 0, Item 594). The responsibilities of gmina include all public matters of local importance not defined for other entities. The tasks are divided into own – statutory and commissioned – allocated by the state authorities. In the case of Gmina Wrocław the situation is special because of city status of gmina which is carrying out tasks of the county.

3.1 Identification of number of properties and groups of people under the impact of development

3.1.1. Lease of properties The land acquisition process will result in permanent acquisition of 45 plots and temporary occupation during construction of 47 plots over a total area of above 15 hectares being leased. The Project will also affect 5 areas of Polish Allotment Gardens Association requiring the permanent acquisition of 5,2 ha which involve the demolition of 172 garden allotments. One household (Family X) will be affected by physical displacement. Agricultural plots owned by Gmina Wroclaw or State Treasury and under the management of APA are located within the area impacted by the development. These plots are leased by individuals and legal entities engaged in farming. Summary of the plots in a form of a table, providing information regarding leaseholders is included in Attachment No. 1 (not be made public due to the protection of personal data). Within the area of the development sixty five plots are leased by individuals and twenty seven by legal entities (Table 3.1).

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Table No. 3.1 Properties leased within the area of the development

Lease Holders

No. off plots

Total (ha)

Number of

PAPs

ARPA Municipality

Permanent occupation

Temporary occupation

Permnent occupation

Temporary occupation

Private Legal entity

Private Legal entity

Private Legal entity

Private Legal entity

Permanent occupation

45 9.6888

9 8 - - 24 2 - -

Temporary occupation

47 5.7115

- - 9 14 - - 21 3

TOTAL (ha) 15.4003 1.9409 5.4209 0.5705 3.5914 1.7273 0.5997 1.1911 0.3585

3.1.2. Allotments Individuals who practice gardening at the allotments managed by Polish Allotment Gardens Association are the next group affected by the Project implementation. Family Allotment Gardens have been founded on properties owned by Gmina Wrocław and are leased by Polish Allotment Gardens Association (mailing address: ul. Bobrowiecka 1; 00-728 Warszawa). In the city of Wroclaw PAGA is represented by Regional Association Wroclaw (mailing address: ul. Starogroblowa 4, 54-241 Wrocław). Implementation of the Project requires partial closing down of the allotments and temporary occupation for construction of WFS Facility No. 44.15, 45.1 and 44.1. Table 3.2 shows the areas to be affected. Information regarding reference numbers and area of occupied properties as well as information regarding owners and lease holders are contained in Attachment No. 2 (not be made public due to the protection of personal data). Detailed schedule of information regarding allotment gardens, type of occupation and their users is provided in form of a table including information about particular ROD in Attachment No. 6.

Table No. 3.2 Number of properties affected and number of allotment gardens and people affected by the Project

Name of allotment

garden

Number of properties affected

Affected area, ha

Number of individual gardens

Number of gardens

belonged to Association

Number of gardens

belonged to individual persons

Kłos 4

5,2625

19 3 16 Aster 5 54 2 52

Grudka 3 10 1 9 Leśna

Polana 2 82 21 61

Podgrodzie 1 72 4 68 Total 15 237 31 206

3.1.3. Physical Resettlement One family, Family X, owner of the Stand No. 10 AM 3, Widawa Precinct, will be resettled from the area of development. The property is registered at the Land Register under no. WR1K/00080XXX/X Area of the property: 0.5795 ha

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Arable land:

Ps IV 0.2178 ha

B-Ps IV 0.1470 ha

Ps III 0.2147 ha

Legend: Ps – pastures; B-Ps – stand with residential building rights This is an agricultural property with residential buildings. Photographs of this property are included in Attachment No. 3. Information about Family X and their status are attached to this LA&RAP in separate Sheet (Attachment No. 7) (Attachment not be made public due to the protection of personal data). Family X subjected to resettlement under component B3, will be allowed to remain on the property until end of August 2016 (agreement signed in December 2015). They owned the land and will receive compensation for land and assets. DZMiUW offered to help in finding the new property but they decided to get a legal advisor to help with the process – amount of compensation should cover cost of the assistance, very favorable valuation and addition of 10,000 PLN. DZMiUW will monitor the situation – a residential house will be bought for the owner and his wife and a flat for their daughter. The owner plans to continue farming.

4. Legal framework and valuation methods

4.1. Acquisition of property – existing regulations in the light of Polish legislation The most important Polish legal acts relating to the acquisition of property associated with the construction of flood control facilities and plant are as follows: The Constitution of the Republic of Poland as of 2nd April 1997 (Journal of Laws No. 78, item 483,

as amended), Act on Real Estate Management, as of 21st of August 1997 (consolidated text, Journal of Laws of

2010 No. 102 item 651, as amended), The Law on Spatial Planning and Development as of 27th March 2003 (Journal Laws No. 80, item

717, as amended), Act - Environmental Law, 27th April 2001 (consolidated text, Journal of Laws of 2008 No. 62 item

627, as amended). Law - Water Law of 18th July 2001 (Journal of Laws, of 2005, No. 239 item 2019, as amended). Act - Civil Code of 23rd April 1964 (Journal of Laws No. 16, item 93, as amended). Act on special proceedings to prepare the investment implementation within the scope of flood

control facilities of 8th July 2010 (Journal of Laws, No. 143 item 963, as amended), Act on Family Allotments, as of 13th December 2013 (Journal of Laws No. 2014, item 40 as

amended). The Decree of the Council of Ministers of 21st September 2004 on valuation of real estate and

preparing appraisal report (Journal of Law No. 207, Item 2109 as amended). Local site development plans.

Essential base documents of valuation:

National Common Principles of Valuation Standards, professional standards in accordance

with the resolutions of National Council of Polish Federation of Real Estate Valuers dated 7th

April 2009 including professional standards with symbols KSWP and KSWS and interpretation

and temporary interpretation as good practice principles.

Valuation of forest properties – A. Nowak (Olsztyn).

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4.2. Legal constraints – detailed information

4.2.1 Allotment gardens Act of 8th July 2010 on special rules for implementation of the projects for construction of flood protection structures (Journal of Law No. 143, Paragraph 963 as amended) contains the following provisions on Family Allotment Gardens (used further abbreviation ROD). Art. 18. Provisions of Article 18-24 of the Act of 22nd November 2013 on Family Allotment Gardens (Journal of Law of 2014 Paragraph 40) do not apply to family allotment gardens covered by the permit to implement the project; Art. 21 Paragraph 10: "10. In the event that the building permit relates to family allotments established in accordance with the Act of 22nd July 2013 on family allotment gardens, the entity in which interest the allotment or its part will be destroyed is obliged to: 1) pay the allotment’s users – compensation for plants, equipment and structures located on allotment; 2) pay the allotment’s association – compensation for equipment, buildings and structures provided for

common use of allotment’s users and ensuring proper operation of allotments; 3) provide replacement property for rebuilding family allotment gardens." Special Act on Flood Protection did not include, unlike for example Special Act on Roads, the necessity to establish obligations arising from the equivalent of the aforementioned Article 21 Paragraph 21 of Special Act of Flood Protection in the decision. This revision was supposed to dispel doubts that have arisen in judicial and administrative jurisdiction as to the nature of those obligations and the manner of their enforcement (i.e. whether they are liability claims asserted before the ordinary courts, or whether they are administrative law settled in a way of compensation decision). The recent judgment of the Supreme Administrative Court which was issued in view of previous Act of 2005 on Family Allotment Gardens and after the judgment of Constitutional Tribunal, based on Special Act on Roads in terms of compensation for permanent closure of allotments the Supreme Administrative Court stated that: 1. The principle of fair compensation is based, inter alia, on the fact that the compensation may not be in any way reduced, and not just by the way it was calculated, but also by its mode of payment. In particular it applies to the date of payment of the compensation (preferably together with expropriation) and its availability (i.e. it should not be paid in installments). The situation which can be regarded as breach of the principle of fair compensation, and at the same time equal treatment, is the situation when one group of entities deprived of rights to property as a result of permit to implement a road project would receive a compensation by way of an administrative act issued (as a principle) within 30 days from the time when the permit for road construction becomes final (Art. 12 Paragraph 4b of the Act of 10th April 2003 on special rules for preparation and implementation of public road projects, i.e. Journal of Law of 2008, No. 193, Paragraph 1194 as amended), while another group entitled to compensation would have to assert their property right before the court, at their own cost and risk and unpredictable time apply for equivalent for individual rights for expropriated earlier for public purpose. 2. The provision of Art. 18, Paragraph 1g of the Act of 10th April 2003 on special rules for preparation and implementation of public road projects does not preclude the application of Art. 12, Paragraph 4a and Art. 12, Paragraph 4f of the Act, and therefore it is necessary to establish the rights and entities referred to in Art. 12, Paragraph 4f of the Act. The provision of Art. 18, Paragraph 1g, Point 1 and 2 provides only for modification of the compensation as referred to in Art. 12, Paragraph 4, due to "separation" of property rights referred to in Art. 18, Paragraph 1g, Point 1 and 2, from the right to the land. Compensation has to cover all property rights lost or expired as a result of permit for road development. Entities with rights to properties as referred to in Art. 18, Paragraph 1g Point 1 and 2, definitely belong to the group of "former owners", as referred to in Art. 12 Paragraph 4f of the Act. The right to compensation for the property rights under Art. 18 Paragraph 1g Point 1 and 2 has been determined in a similar way to the right to compensation for expired right to perpetual lease and limited property rights (Paragraph 4d and 4c), which also have not been mentioned in Paragraph 4 Art. 12 of the Act of 10th April 2003 on special rules for preparation and implementation of public road projects, but there is no doubt that compensation for these rights is entitled by identifying persons entitled to compensation in Art. 12 Paragraph 4f of the Act. 3. Abolition of the obligation to provide free of charge replacement plot to restore the allotment which was previously a substitute for compensation for property right vested in Allotment Garden Association gives rise to the obligation to pay a compensation for expired lease right. The compensation paid as a result of

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issue of a decision, on the basis of Art. 12 Paragraph 4a in conjunction with Paragraph 4f and 4d of the Act of 10th April 2003 on special rules for preparation and implementation of public road projects, is intended to provide a fee for establishment of rights to the land indicated ("provided") by the entity in which interest the allotment or its part was destroyed, or provide the equivalent of lost right if restoration of the allotment will not be possible for some reason. The mere provision of replacement land where restored family allotment gardens could possibly be restored, does not take place by way of administrative act and the responsibility may be fulfilled only by signing of a relevant agreement on the basis of the Act of 21st August 1997 on Law on Real Estate (Journal of Law of 2010 No. 102, Paragraph 651) and the Act of 8th July 2005 on family allotment gardens (Journal of Law No. 169, Paragraph 1419 as amended). Contrary to the above in the guidelines of MTBGiM position is presented on compensation for properties allocated for development, where it was stated that the nature of claims under Art. 18g of Special Act on Roads (equivalent of Art. 21 Paragraph 10 of Special Act on Flood Protection) is civil. The current law on Family Allotment Gardens states that the allotments are established on land owned by the Treasury, local government or garden associations (Art. 7). Land owned by State Treasury or local governments may be sold by agreement, handed over free of charge of for a fee for perpetual use to garden associations for the purpose of establishing and running ROD – in a manner specified in the Law on Real Estate. Land designated for newly established and restored ROD should be rehabilitated and reclaimed by the land owner. Municipality is obliged to provide access roads, power supply, water and to take into account public transport. By agreement between the Municipality and garden association the above obligation may be over by the association. In this case the agreement specifies the settlement details (Art. 9 and 10 ROD). In addition, at the request of the association, by resolution the Municipality may establish ROD on the land owned by the Municipality. The resolution mentioned above describes in particular the criteria and method of appointing garden association which will be a party to signing of the agreement as mentioned in Art. 9. To establish ROD on the land owned by the County or the Province these regulations shall apply accordingly. In respect of the land owned by the State Treasury, with the exception of properties which are managed by the Minister responsible for the Treasury, the competence of the municipal council is in hands of a starost with the consent of the governor of the Province. The provision of Paragraph 2 shall apply mutatis mutandis. At the same it should be noted that the legislator did not specify what was meant by "providing a replacement property" – was it indication of such property and obtaining one of the rights to the property or was it signing of an agreement by the entity in the interest of which it was to terminate one of the contracts as referred to in Art. 9 ROD Act. In common language “provide” (zapewnić) means «something will happen or someone gains something» (Polish Dictionary PWN). Moreover, in case when restoration of ROD is not possible for various reasons, payment of the compensation should also be considered, which should be an adequate to the loss of the right – provided that such a right existed at the time of issue of special decision. The problem of determining compensation and the obligation to provide replacement property or the payment of equivalent compensation may occur in case of ROD which don’t have any legal rights to the property but will be allotment gardens within the meaning of the law (Art. 66 of ROD Act). Baseline data are attached to this LARAP in separate Excel table (Attachment 6). On 02.03.2015 two agreements have been signed between Regional Board of Allotment Gardens and the Client (Ref. No. 2/2015 and 3/2015), where Regional Board of Allotment Gardens indicated number of allotment gardens to be totally demolished and gardens to be partially demolished. The parties have agreed that replacement allotment gardens will be offered to people using them at the same ROD or at another ROD in Wroclaw. The Client will provide cost estimate of all plants and infrastructure in demolished allotment gardens and based on this report compensation will be paid to the users of demolished gardens. In case of partially demolished allotment gardens which are suitable for further use the evaluation will cover plants and infrastructure on demolished section only and section under temporary occupation which will be returned to the user on completion of construction works. In case of more than 25% of the area of the allotment garden being a subject to permanent occupation the garden will be totally closed down and all plants and improvements will be evaluated. The survey of assets in allotment gardens will be carried out by an independent property appraiser appointed by DZMiUW at their expense.

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In addition, in accordance with applicable laws, DZMiUW undertook to pay to Regional Board of Allotment Gardens in Wroclaw:

- compensation for the loss of the right to perpetual usufruct of properties which are subject to permanent occupation;

- compensation for demolition at various ROD’s of facilities and building structures intended for common use by allotment garden users, used to ensure proper operation of allotment gardens and owned by Regional Board of Allotment Gardens, such as water wells, power supply lines, fencing, internal roads which will not be rebuild, in the amount established in estimate provided by property appraiser.

DZMiUW undertakes to make good or rebuild demolished or damaged outside ROD fence and gates which are property of Polish Allotment Gardens Association. In addition it was agreed that a temporary fence will be provided during construction works to protect area of the allotment gardens. Power lines which clash with proposed flood banks will be re-routed in accordance with DZMiUW design which obtained all necessary permits and have been made available for inspection by Regional Board of Allotment Gardens. 4.2.2 Leaseholders Rights of lease holders in case of temporary and permanent occupation: 1. In case of permanent occupation obligation of payment of the compensation depends on whether the occupied property was owned by State Treasury or local government or was it owned by other entities prior to issue of a special decision. 1.1. in case of properties which were not owned by State Treasury prior to issue of special decision but have been owned by other entities and which became State owned as a result of spec decision – provision of Art. 123 Paragraph 2 of the Act on Law On Real Estate will apply, according to which lease, rental or lending as well as permanent management of expropriated property expire within three months from the date when decision of expropriation becomes final. In this case Law on Real Estate does not allow for payment of compensation for expiry of rights to lease, rent and loan related to expropriation. This means that in case of permanent occupation of the properties which became state-owned as a result of spec decision there is no obligation to pay compensation for expiry of lease, rent or loan agreement. 1.2. different regulation will apply to the properties which have been owned by State Treasury or local government prior to issue of the spec decision. In such cases the provision of Article 26 Paragraph 2 and 3 of Special Act on Flood Protection will apply, according to which the rent, lease or loan of the property to be developed and which is owned by State Treasury or local government unit, shall expire within 30 days from the date the permit to implement the project becomes final. Compensation is due for the loss which results from expiry of the above agreements. 2. In case of temporary occupation of the property the person using the property under the agreement, i.e. leasehold or rental at the time of occupation is entitled to compensation. Preliminary works on Component B3 included pre-emptive action to identify potential tenants on stands owned by State Treasury – APA, Gmina Wrocław or State Treasury – State Forests. Letters were sent to these units listing occupied properties and requesting disclosure of potential tenants, their personal data and dates for lease expiry. After obtaining this information further letters were prepared asking for termination of agreements for sections of properties under permanent occupation and in case of agreement which were to expire in the period before or during issue or validation of the permit – not to extend the agreements in question. Information about the lease holders was forwarded to real estate experts for valuation of compensation payable to the eligible group.

4.3. Property acquisition – World Bank Operational Policy OP 4.12. OP 4.12 Involuntary Resettlement is applied whenever the implementation of the Project requires:

a) involuntary occupation of the property resulting in:

(a) relocation or loss of shelter,

(b) loss of assets or access to assets,

(c) loss of income sources or standard of living,

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b) the involuntary restriction of access to parks and protected areas resulting in adverse impact on

the livelihoods of the persons affected by the Project.

To address the impacts of these activities, the borrower is obliged to prepare a Land Acquisition and

Resettlement Action Plan depending on the fact whether the specific interventions and related impacts

have been identified or not.

The following obligations result under OP 4.12:

Involuntary resettlement should be avoided where feasible, and if it is not feasible to avoid

resettlement, its range and impact should be minimized;

Resettlement process should be planned and implemented as development activity providing

means and assets allowing PAPs to participate in benefits resulting from implementation of the

Project. Support should be offered to social groups affected by resettlements in order to improve

their economic status, income and livelihood, or at least restore their status to the situation prior

to the Project implementation;

The resettled should receive compensation at replacement value, assistance in relocation and

support in the transition period;

Particular attention should be paid to vulnerable social groups and individuals (e.g. single

mothers, the handicapped, the poor);

The communities should be given opportunity to participate in planning, implementation and

monitoring of the resettlement process;

As regards rural or farming lands, even when it is possible to apply financial compensation, land-

for-land compensation is recommended, if economically feasible; Farms that lost their fixed

assets entirely and became entirely unprofitable should receive compensation in the amount

equal to the value of the entire farm;

The impact of the Project on PAPs is considered as significant if the land acquisition is more than

20% of the total productive area.

Monitoring of resettlement is required as well as evaluation of its efficiency.

4.4. Identified gaps and corrective measures In the LA&RAP there are identified a gaps between OP 4.12 and Polish Law, below in Table 4.1 are identified corrective measures.

Table 4.1. Identified gaps between OP 4.12 WB and Polish Law and corrective measures.

OP 4.12 Polish law Corrective measures

Disbursement of damages ought to take place prior to the physical

occupation of the area for the needs of Task implementation

Flood Act provides for a possibility of occupying the area and commencing works prior to

the damages disbursement.

In all the cases a condition for commencing works is the reception of confirmation that

PAP was notified in advance of the commencement of works, compensation was

disbursed and permit was obtained for entering the area.

The only exceptions are situations with administrative proceedings due to the failure

of negotiations, absence of owners and impossibility of determining such owners.

Compensation for loss of income or lowered standard of living.

Special Act provides for the payment of the compensation

to the user of the allotment garden for plants and

infrastructure only for the gardens which is subject to

temporary or permanent occupation.

Wherever the continued use of the allotment garden is economically unjustified and does not provide for recreational needs, i.e. if the occupation involves more than 25% of the

allotment area, the compensation will cover cost of all plants and infrastructure owned by the user and surveyed on the particular stand.

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OP 4.12 Polish law Corrective measures

Compensation of the impact related to loss of goods or

access to goods

Special Act provides for the payment of the compensation

to PZD for the equipment, buildings and structures of the

allotment garden which are provided for the use by all allotment users and are

ensuring proper function of allotment gardens

DZMiUW will pay out to OZ PZD Wroclaw compensation in accordance with current

regulations:

- compensation for loss of permanent lease hold on the property.

- compensation for destroyed equipment and structures in particular ROD allotment gardens which are provided for the use by all allotment

users and are ensuring proper function of allotment gardens, and which are owned by

PZD i.e. wells, power lines, fence and passageways, which will not be reinstated, and in the amount indicated in the appraisal

report.

In addition DZMiUW undertakes to repair or reinstate destroyed fencing, vehicle and

pedestrian gates owned by ROD vehicle and pedestrian gates owned by PZD. It was

agreed that the allotments will be protected by temporary fencing during the construction

period.

Power lines which clash with proposed embankments will be relocated by the Contractor appointed by DZMiUW in

accordance with the design provided by DZMiUW, and which obtained relevant

permits Lower Silesia Governor and have been submitted to OZ PZD for review.

WB Policy requires compensation for the income

loss (eg. from economic activity, agricultural activity, etc.) in connection with real estate

occupation for the needs of the planned Task implementation

The provisions of Polish law do not provide for compensation for income loss as a result of

Task implementation.

Those who lost their income or employment will receive support (health insurance,

vocational training, etc.) from Labour Offices.

In the case of entrepreneurs it is possible to use general mechanisms under the Civil Code (covering the damage incurred and lost profit).

WB policy requires equal treatment of PAP and

establishment of clear and unified principles for procedures of payment of compensation for temporary occupation during the

entire period of Project implementation

In case of Contract B3-2 the decisions 25/14 and 26/14

issued by Lower Silesia Governor on 22.09.2014 indicated that temporary

occupation of the property takes place after reaching an

agreement between the parties and payment of the

compensation under the provision s of the Civil Code.

These decisions have been appealed to the Minister. The

Minister issued revised decisions on 18.09.2015 and

23.09.2015, where current provisions on temporary

occupation have been replaced by restrictions in use for the duration of the works. This

changed the way of occupying the properties and

establishment of the compensation.

Establishment of uniformed procedure for determination and paying out the

compensation for temporary occupation for each PAP for the entire period of Project

implementation:

- preparation of appraisal reports for each property under temporary occupation in

accordance with the Civil Code and uniformed principles regarding period of occupation

- signing of the protocols of taking over of the property where Owner/User expresses voluntary consent for occupation of the

property

- signing of the protocols for establishment of the amount of compensation in accordance

with appraisal reports

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OP 4.12 Polish law Corrective measures

Particular attention must be paid to the needs of vulnerable social groups, including poor people, elder people, lonely mothers,

children, ethnic minorities

Polish law does not require to plan particular measures for the purpose of additional support to vulnerable social groups (elder

people, the disabled, poor people and other with special

needs).

Dispossessed people will be granted any necessary help in obtaining support of offices

and institutions offered to citizens.

Additional activities will also be undertaken to ensure the achievement of goals specified in

OP 4.12.

WB policy requires additional compensation for expenditures

incurred by PAP in connection to physical movement (eg. transport

of materials) and granting support related to the

resettlement.

Support for covering costs of movement and other related

costs arising from the need for re-locating to a new place by citizens and companies is not

anticipated.

In order to cover costs of movement and other related costs it is possible to apply general

mechanisms under Civil Code for the achievement of goals specified in OP 4.12.

Compensation for assets loss is based on their market value plus all transaction costs (eg. taxes, fees) and it should be sufficient

for the effective reconstruction of lost assets (reconstruction value)

Valuation methods used may result in lowering of the value of real estate compared to market

prices.

Real estate valuation will be entrusted to an independent and experienced expert. Such an opinion should be verified by PIU. The person

dispossessed ought to be granted with sufficient time to become familiar with the

expert’s opinion. In case of any doubts concerning the amount of damages, such

valuation must be carried out by an independent expert before the Voivode.

In all the cases the valuation must indicate a reconstruction value.

Obligation of the DZMiUW – establishing of Grievance mechanism and dispute

resolution

None

The procedure for lodging complaints was established as described in RAP for Odra as well as LA&RAP in accordance with OP 4.12

BŚ.

Monitoring of resettlement implementation

None Process of resettlement of Family X is being monitored in accordance with OP 4.12 BŚ.

Rap preparation, disclosure & consultation

None Preparing LA&RAP, publication on the website, carrying out public consultation in

accordance with OP 4.12 BŚ.

4.5. Valuation methods 4.5.1 Type of determined value

Estimation of a value takes place on the basis of the Regulations, Art. 20, Paragraphs 4, 5 and 8 of the

Act of 8th July 2010 on special rules for implementation of the projects for construction of flood protection

structures in connection with Art. 130, Paragraph 1 of the Act on Law on Real Estate (Journal of Law of

2010, No. 102, Paragraph 651 as amended).

Purpose of the valuation is to determine a value of the ownership or leasehold and value of the buildings

to be able to establish an amount of compensation. According to Art. 20 Paragraph 8 of the Act of 8th July

2010 on special rules for implementation of the projects for construction of flood protection structures

(Journal of Law of 2010, No. 143, Paragraph 963 as amended): „To determine the amount and payment

of the compensation provisions of the Act of 21st August 1997 on Law on Real Estate shall apply mutatis

mutandis, subject to Art. 21”.

Pursuant to Art. 128 Paragraph 2 and 3 of Law on Real Estate:

„2. If expropriated property or leasehold right to the property are subject to other rights, compensation

shall be reduced by the amount equal to the value of those rights.

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3. If expropriated property which is owned by local government unit is subjected to leasehold rights, then

the compensation shall be reduced by the amount equal to the value of those rights.”

According to Art. 20 Paragraph 5 of the Act of 8th July 2010 on special rules for implementation of the

projects for construction of flood protection structures if a property which is state-owned or owned by a

local government has been perpetually leased, the leasehold expires on the day when the permit for

implementation of the project becomes final.

In case when the property was previously owned by public entity (State Treasury or Local Government

unit), but right of perpetual lease has been established for another individual, then the compensation due

to public entity, as the owner, is reduced by the amount equal to the value of perpetual leasehold paid out

to the tenant, which results from the proper application of Art. 128 Paragraph 3 of Law on Real Estate.

Possession of the property must be taken from the person who is currently in its possession – if the

property remained leased – it should be taken over from current leaseholder.

According to Art. 130 Paragraph 1 of the Law on Real Estate: „The amount of compensation is

established in accordance with condition, purpose and value of expropriated property on the date of issue

of expropriation decision”.

According to Art. 134 Paragraph 1 of the Law on Real Estate market value of the property determines the

compensation amount, subject to Art. 135. According to Paragraph 3 of this Article, value of the property

for the purpose of compensation is determined by its current use, if the use of the property consistent with

the expropriation purpose does not cause increase of its value. According to Paragraph 4 of Article 134 of

the Act: if the use of the property consistent with the expropriation purpose does cause increase of the its

value, then value of the property for the purpose of establishing compensation amount is determined by

alternative usage.

According to Art. 151 Paragraph 1 of the Law on Real Estate – market value of the property is the most

probable price obtainable on the market, determined taking into account sold prices and taking into

account the following assumptions:

1. the parties to the contract were independent of each other, have not been forced and had a firm

intention to conclude the contract;

2. the time necessary for marketing the property and to negotiate contract conditions has elapsed.

4.5.2 Choice of approach, methodology and technique of valuation

Valuation methodology is based on the requirements described in Chapter IV, Section 1 of the Act of 21st

August 1997 on Law on Real Estate (Journal of Law of 2010 No. 102 Paragraph 651 as amended), the

Regulation of the Council of Ministers of 21st September 2004 on valuation of properties and preparing

appraisal report (Journal of Law of 2004, No. 207, Paragraph 2109 as amended) and National Common

Principles of Valuation Standards.

Pursuant to Art. 152 of Law on Real Estate:

1) Methods for determination of value of the property which are the approach to its valuation are

dependent on the accepted types of factors which affect the value of the property.

2) Valuation of the property takes place using the following approach: income or cost comparison, or

mixed which has elements of previous approach.

3) By using comparative or income approach a market value of the property is determined.

Pursuant to § 29 of the Regulation on the valuation of real estate and preparation of appraisal report:

„1. In determining value of land which is subject to perpetual leasehold a comparative approach should

apply, taking into account prices obtained for sale of undeveloped land which was subject to a leasehold,

including percentage value of annual fees and period of unused lease right.

2. If the property market relevant to the location of the property does not provide information on sale of

properties which are subject to perpetual leasehold rights, but a sale of a property with ownership right

took place, then market value of the leased property is determined on the basis of a relation between

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prices of leased properties and prices of owned properties obtained in other comparable real estate

markets.

3. If during determination of value of leased land there is no possibility of applying principles described in

Paragraph 1 and 2, then value is determined as a ratio of value of undeveloped leased land and a

correction coefficient calculated using the following formula:

𝑾𝒌 = (𝟏 −𝑺

𝒓

𝑹) ∗

𝒕

𝑻+ −𝟎. 𝟐𝟓 ∗

𝑻−𝒕

𝒕

where:

Wk – correction coefficient;

Sr – percentage rate of the annual fee not exceeding 3 %;

t – number of years without lease rights;

T – number of years with lease rights;

R – average capitalization rate determined by property market research by appraiser expert, but not less

than 0.09 and no more than 0.12.(…)”

Valuation methodology by average price adjustment:

According to Paragraph 4 Item 4 of the Act on valuation of properties and preparing appraisal reports

„using the average price adjustment method for comparison should be taken from the market relevant to

the location of the property being valued, taking into account at least dozen similar properties that have

been traded and the transaction price is known, as well as conditions of sale and characteristics of the

property.

Value of the property is determined by adjusting the average price of similar properties using correction

coefficient and taking into account different individual characteristics of these properties.”

Using this method the following procedure is applied in accordance with guidance note NI.1:

Description of a local market where the property is located, establishing type, area and period for

checking transaction prices,

Determination of type and number of market features affecting prices on the local market,

including weight of the market characteristics,

Characteristic of assessed property including exposing its market features,

Description of the property and its minimum price (Cmin) market features as well as its maximum

price (Cmax) market features,

Determination of the average price (Cavg) from the selection of analyzed transactions or from a

group of representative properties (representative samples),

Determination of the extent of sum of corrective coefficients as [Cmin/Cavg, Cmax/Cavg],

Determination of market value of assessed property in accordance with the formula:

𝑾𝑹 = 𝑪𝒂𝒗𝒈 × ∑ 𝒖𝒊𝒏𝒊=𝟏

where:

ui – represents value of the coefficient reflecting impact of the feature on the value of the property,

n – number of corrective coefficients corresponding with predetermined number of market features of the

property.

For land the comparative unit will be - 1 m2 of the area. Adjustments of the unit prices of sold properties

are carried out based on the weight of features.

Methodology for valuation of building structures:

Cost estimation, replacement cost, indication methods are used to determine value of building structures

which are owned separately from the land.

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Cost estimation is based on determining value of the property assuming that this value corresponds with

the replacement cost reduced by a deterioration degree.

Value of land component is an amount equal replacement cost reduced by a deterioration degree of these

components or cost of their permanent closure.

The essence of the cost estimation approach is the assumption that the buyer will not be willing to pay for

the property more than the cost of construction of the structure in the same technology or of the same

function, in the same place and the same degree of wear.

As the result of this assumption two types of costs can be identified:

replacement value

recovery value.

Replacement cost method requires technical information of the evaluated structures, prices of building

materials and construction works and degree of wear of the structures.

Replacement cost is the cost of construction of the structure (exact copy) identical with the evaluated

structure. The property appraiser takes into account the same design, equipment, quality of construction

works, and includes cost of defects and redundant elements of equipment or structure as well as

discontinued materials. Replacement cost includes also cost of construction of structures closely

associated with the evaluated building, preparation of the site and cost of the design and supervision.

Current cost of construction of a copy of the building should be indicated in determining the replacement

cost of the structure. If the materials used for construction of the structure are no longer available then

price of the materials closest to materials used in the past should be allowed for when determining value

of the property.

In all cases effective replacement value will be achieved. They are determined using e.g. indicator technique – cost of replacement of the structure is equal to

number of characteristic units multiplied by units evaluation.

Data on the number of characteristic units (m, m2, pcs, etc.) are obtained from measurement.

Replacement cost Wo is:

Wo = P x C

where:

P – number of characteristic units

Ci – cost of replacement of characteristic unit including cost of the design and supervision.

Methodology for valuation of trees and plants:

The valuation of trees and other plants takes place using a specific technique. Net thickness of the wood

log (without bark) is determined using empirical formula and it is based on detail tree survey in

Dendrology Report.

Value of individual trees is determined by multiplying wood log thickness by sale price of relevant local

forest inspectorate (Oborniki Śląskie Forest District) wood range taking into account cost of felling and

logging.

4.6 Special procedures Depositing funds in the court account (escrow accounts)

Pursuant to the Art. 133 of the act on property management, the Client submits the amount of

compensation to the court deposit in accordance with the decision of the Governor obliging the Client to

pay the compensation to the deposit, which is equivalent to fulfilling the obligation. The above can take

place only in the following two cases: if an authorized person rejects accepting compensation or its

payment is hindered significantly (lack of capacity of a creditor, its longer absence in the country, lack of

appointing a proxy, natural disasters, marital law) and when compensation for expropriation applies to

properties with an unregulated legal status (Decision of the Province Court of Administration in Lublin

2005-02-25, case ref. No II SA/Lu 884/04).

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Depositing compensation in the court account entails the same effects as disbursing such a

compensation and obliges a creditor to reimburse depositing costs to the debtor.

If the Court overrules such an application, such a fee shall not be subject to reimbursement and if a

creditor (as a party to the proceedings) is represented by a legal counsel or attorney, the Court may

impose the payment of the amount of PLN 120 for representation remuneration.

ALGORITHM:

STEPS ACTIONS TO BE TAKEN YES NO COMMENTS

Step 1 Issue by the Governor of a decision on establishing the compensation obliging to pay the compensation to the court deposit

Step 2 Not taking any actions

Step 2 Filing a motion for placing the benefit object in the court deposit

Step 3 - Step 2 and step 3 must be carried out simultaneously

Step 3 Paying a court fee of PLN 100

Step 4 Accepting a motion by the Court Step 5

Step 4a Overruling a motion by the Court Complaint

Step 5 Paying the funds to the deposit account indicated by the Court

Step 6 Proceedings concerning releasing the deposit

Step 7 Paying the funds to the deposit account indicated by the creditor

Step 8 Reimbursement of the costs for filing a motion to the debtor by the creditor

5. The census and socio-economic research Family Allotment Gardens Assumptions for implementation: Appreciating a positive role of allotment gardening which is an area of social life contributing to satisfy social, leisure and recreational needs of the population, especially families with children, pensioners and the disabled by providing the conditions for active and healthy lifestyle and protection of the environment, it is considered necessary the ensure the continued existence and development of family allotment gardens as a permanent infrastructure of the municipalities and which should be taken into account in the process of their development for the benefit of present and future generations. Close contact with the District Board of Polish Allotment Gardens Association was established to: - provide detailed survey of gardens for liquidation, recognize the situation of persons maintaining liquidated gardens; - in other ROD nearby identify possible allotments which have not been used and which would be an alternative for the people who interested in continuation of this type of leisure. Leaseholders Private individuals – farmers are main leaseholders of the properties which are subject to occupation. They lease 73 out of 92 leased properties. In this case owners of big farms prevail, of which one farmer is leasing fourteen plots in the area of development. There are also farmers who lease 6-7 properties. Loss to the crops will be minimized due to the fact that the works commence in winter, damage will occur to sown winter seeds, but in each case loss of crops will be compensated. Owner of the property at Fryzjerska Street A brief social survey was conducted for Family X. Owner of the inhabitable property at Fryzjerska Street is rather poor person. He is 53 years old, economically active (farmer), married. There are two more persons in the family: daughter and grandchildren of preschool age. Wife is also the farmer.

22

Implementation of the project gives this family a chance to improve life standard by improvement of the living conditions and change of the residence to the area protected from flood.

The date of obtaining Permits for Project implementation i.e. 22.09.2014 is considered to be a cut-

off date for social and economic survey.

6. Entitlement Matrix Taking into account the scale of the development comprising of construction of structures and plants for flood protection, potential impacts resulting from the acquisition of land and assets should be identified and mitigated. The priority purpose for all institutions involved in the construction and operation of embankments should be developing the consensus with the public. This can be achieved by:

implementation of the policy of consultation and dialogue with the residents,

identify, avoid, minimize, mitigate or compensate impacts during construction and operation of

embankments.

The table below include the list social groups and potential impacts, resulting from location of property nearby the embankments.

Table No. 6.1. Social groups, problems and preventive measures / help offered

Impacts / losses PAP identification Compensation

Permanent property loss with residential

facilities and structures

Owners

compensation in money,

covering all transaction costs

assistance in resettlement

Permanent property loss

Owners, perpetual usufructuaries

compensation in money,

covering all transaction costs

Holders of properties

compensation in money for the loss of the right

to the property,

assistance in starting the usufruct of a similar

property.

Lessees

compensation in money for the losses incurred

in connection with the agreement expiration,

covering transaction costs

Illegal possessors of properties

lack of compensation for the property loss

support in obtaining adequate institutional

support if the loss of property causes the loss of

income (necessity of additional diagnosing and

monitoring of such cases)

Illegal possessors of servitude (if identified)

for illegal possessors of servitude - support in

finding a solution enabling the use of a given

property.

Permanent limitations in the property

operation Owners

Compensation in money for the loss of rights to

property usufruct,

covering transaction costs.

Non-residential Owners, perpetual Compensation in money in the amount of the

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Impacts / losses PAP identification Compensation

facilities and structures (stables, fencing, technical infrastructure etc.)

holders replacement value for the lost assets,

Transfer or reconstruction of the assets lost.

Holders

Compensation in money in the amount of the

replacement value for the lost assets,

Transfer or reconstruction of the assets lost.

Illegal possessors of

facilities and structures

(if identified)

Compensation in money in the amount of the

replacement value for the lost assets,

Transfer or reconstruction of the assets lost.

Loss of plants

Owners, perpetual

holders

Compensation in money, including the costs of

seeding and caring for the plants as well as the

crops lost,

Enabling harvesting

Holders

Compensation in money, including the costs of

seeding and caring for the plants as well as the

crops lost,

Enabling harvesting

Lessees

Compensation in money, including the costs of

seeding and caring for the plants as well as the

crops lost,

Enabling harvesting

Illegal possessors of properties (if identified)

Enabling harvesting

Loss of trees

Owners, perpetual holders

Compensation in money, including the costs of

seeding and caring for the tree stand as well as

the crops lost,

Holders

Compensation in money, including the costs of

seeding and caring for the tree stands as well

as the crops lost,

Lessees

Compensation in money, including the costs of

seeding and caring for the tree stands as well

as the crops lost,

Illegal possessors of properties (if identified)

enabling trees felling and collecting timber

Impact on entrepreneurs and

employment in connection with

property occupation

Individual business activity (if identified)

Compensation in money for the profit lost in the

transient period,

Institutional support for people liquidating their

business activity.

Granting “land for land” compensation on the

conditions enabling the continuation of

agricultural/orchard activity or compensation in

money,

Compensation in money enabling starting an

agricultural/orchard activity on a new property.

Non-government organisations (if

applicable)

Granting compensation in money

Compensation in money enabling starting a

business activity on a new property.

Micro-entrepreneurs (employing to 10

Granting compensation in money

Compensation in money enabling starting a

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Impacts / losses PAP identification Compensation

workers) (if identified) business activity on a new property.

compensation in money,

Institutional support for people liquidating their

business activity.

granting indemnity in the form of compensation

in money

Compensation in money enabling starting an

agricultural/orchard activity on a new property.

Small-entrepreneurs (employing to from 10 to

50 workers) (if identified)

compensation in money,

Workers on civil law contracts (if identified)

Granting the entrepreneurs with compensation

enabling the maintenance of as many job

positions as possible,

Institutional and social support for the

unemployed

Employees on job contracts (if identified)

Granting the entrepreneurs with compensation

enabling the maintenance of as many job

positions as possible,

Institutional and social support for the

unemployed

Loss or limitation of access to social

infrastructure

All PAP residing on the area affected by the

Project implementation

Reconstruction of social infrastructure on a

different area,

If infrastructure reconstruction on a different

area is impossible or unfounded – providing

access to the existing social infrastructure.

Temporary ensuring of recreation sites.

Commune property Commune Reconstruction or replacement of destroyed facilities upon consultations with the commune.

Temporary property occupation

Owners, perpetual holders

compensation in money,

Recovering the property to its initial condition

Illegal possessor of a property

Recovering the property to its initial condition

Lessees, holders of properties

compensation in money,

Recovering the property to its initial condition

Replacement properties In case of ROD replacement land should be provided to restore allotment gardens in addition to the payment of compensation. Hence, efforts have been taken to obtain land for restoration of ROD. The relevant letters have been sent to APA and Gmina Wrocław. APA replied that that they do not have any land which could be used to restore family allotment gardens. Gmina Wrocław proposed three potential

25

locations on the outskirts of the city. Unfortunately these properties do not meet the criteria for restoration of allotment gardens. It was agreed with PZD that on their own the Allotment Association proposes all users, who want to continue growing gardens the new allotment gardens in order to at least partially satisfy expectations or claims of people who wish to continue this type of leisure activity. However, general aim will be to develop a consensus which will allow for payment of appropriate compensation.

7. Public consultations and participation of interested parties

This document draft is subject to a public consultation procedure carried out in compliance with

the World Bank Operational Policy OP 4.12.

Upon having drawn-up a LA&RAP document draft, its electronic version is posted on public

websites and its printed version is provided for the interested parties. Detailed information on a possibility

of reading this document and a possibility of filing proposals and comments (including contact details,

such as e-mail, address of a place where it is possible to read such a document draft, office hours,

telephone number) is published in local press and on the websites of an entity implementing the Works

Contracts B3-1 and B3-2. After 21 days from publishing the document, a meeting is organised for the

interested parties, in which the Contracts are presented and all the aspects connected with property

acquisition are discussed. All the questions and comments as well as answers, which were reported (by

e-mail, telephone) are read out in the meeting. During the meeting, the participants' additional questions

and comments are recorded. If an answer requires additional time, contact details of a person are

recorded and an answer is sent by mail or post within 7 days. Minutes of the meeting are drawn-up and

sent to the World Bank. Any comments from the public which must be considered are included in

LA&RAP and its final version is prepared. LA&RAP in this form is also sent to the WB in order to obtain

an approval clause (“no objection”).

Final LA&RAP document after obtaining “no objection” clause from WB will be available to

interested parties by publishing on PIU website and will remain there until the completion of the Project.

Any updates of LA&RAP document will be published as well.

Table No. 7.1. Preliminary identification of interested parties participating in public consultations, entities influencing LA&RAP preparation and implementation.

Interested Outside Party Type of the influence on LA&RAP

Ministry of Infrastructure and Development

1. Consideration of an appeal against PNRI 2. Consideration of an appeal against a decision on a

compensation amount

Dolnośląski Governor 1. PNRI issuance 2. Issuing a decision determining a compensation amount

Starost in Powiat Wrocławski and Trzebnicki

1. Assistance in recognising the needs of local community 2. Direct participation in public consultations

Wrocław President 1. Wrocław Commune Representation as the entity subject to

expropriation 2. Informing on community consultations 3. Direct participation in public consultations

Wrocław City Council 1. Informing on public consultations 2. Direct participation in public consultations

Entities subject to expropriation 1. Determining the needs and losses incurred in connection with

the planned expropriation 2. Choice of a type and amount of compensation 3. Direct participation in public consultations

26

Interested Outside Party Type of the influence on LA&RAP

Wrocław City – estates Strachocin, Swojczyce, Kowale, Zgorzelisko-Gorlice, Zakrzów, Kłokoczyce, Sołtysowice, Polanowice, Psie Pole, Widawa and Świniary, in wrocławski district, in Wilczyce (Długołęka Community) and in trzebnicki district, Krzyżanowice, Psary, Szymanów, Szewce, Biskupice (Wisznia Mała Community) and Paniowice (Oborniki Śląskie Community)

1. Direct participation in public consultations

A report on the public consultations held shall constitute an appendix to this LA&RAP. Public consultations during the stage of issue of Environmental Decision and Special decision

Local community was informed about the Project during the process of issue of administrative decisions:

- Environmental Decision (in a period 11.05.2010 – 31.01.2012) and

- Project Implementation Decision (in a period 14.07.2014 – 22.09.2014),

by way of notices posted on websites of the authorities conducting the proceedings (Regional Director for

Environment Protection in Wrocław and Dolnośląski Governor) and as is customary, on publicly available

notice boards in areas where the Project will be implemented.

In addition notice was posted on websites and notice boards at Wrocław Municipality, Trzebnica and

Oborniki Ślaskie Town Halls as well as Długołęka and Wisznia Mała Communities seats.

In addition, notices were also posted directly in 25 locations on works implementation (on public boards).

The local community was informed of submitting by PIU relevant applications as well as of issue of

Environmental Decision and Project Implementation Permit. This provided the parties with the opportunity

to comment on all matters relating to the Project.

On issue of the decision the parties were also informed by the authorities about the possibility to appeal

those decisions. No appeals have been filed.

In addition, PAP who own properties on the Site of the Project implementation have been informed in writing by registered letter of the above. On 1-3.07.2014 information posters on the scope of the Project and about the Employer have been displayed on sites of the construction works and roads leading to these sites. In the month February - August 2014 several meetings with Residents Association took place and regarded presentation of the Project, technical solutions and measures to protect the environment. Discussions and answers to the questions took place after the presentation. A brochure has been provided for people affected by the development which included: - contact details to obtain detailed information, - information regarding acquisition of properties, - description of the procedures for payment of compensation for permanent and temporary occupation, - information on appeal procedure, - information on ways of lodging a complaint. The brochure has been posted (to land register address) to each individual affected by the Project, i.e. who’s property is subject to permanent or temporary occupation. An information point has been provided at the Project Office at Podwale Street for all interested people. The point is drawing a lot of interest. The Consultant answers number of calls every day. Some people come to the office in person to obtain the information.

27

7. Complaints

7.1. When to establish a mechanism for complaints related to the Project A complaint mechanism was established from the very beginning and is in place during construction, operations and to the end of the Project.

7.2. Managing complaints Managing complaints, including their avoidance and minimizing, is an integral part of a sound stakeholder engagement strategy. It should be remembered that this procedure is not just for dealing with complaints but also for a two-way dialog and a possibility of obtaining information on the Project by PAP and submitting proposals to DZMiUW.

Each grievance will be recorded in a grievance log with the following information:

name and contact information of the complainant,

description of grievance (category i.e. land acquisition, other),

date of grievance receipt, date of receipt acknowledgement, date of resolution and date of provision of feedback to the complainant,

description of actions taken (investigation, corrective measures). The following indicative timeframe is used:

- written acknowledgement of receipt of the complaint: within 7 days of receiving the complaint; - proposed solution:

1. If the examination of the complaint or conclusion will need examination and explanation of the case, all needed materials will be collected and all necessary analysis will be performed, etc. In such case, the response for the compliant or conclusion will be given within 21 days from its submission.

2. In case, when the explanatory proceeding will not be needed, the response for the complaint or conclusion will be given within 14 days from its submission.

3. In case of very complicated matters and in cases, when the examination of the complaint or conclusion will need to make any changes in the LA&RAP project, the term of the response for the complaint or conclusion will be extended up to 30 days. If such a term is too short, the interested party will be informed about the reason that the substantive response could not be given within this term and provided with the new term, during which such response will be given.

Proposed complaint mechanism is presented in Item 8.1. Proposed complaint form is presented in Item 8.2.

7.3. Organizational procedures Unit (Public Consultant) was established in the organizational structure of the Project responsible for contacts with the public and dealing with complaints. Two public consultants have been appointed to this process (Marta Rak, Jacek Jędrzejczyk), who are responsible for contacts with the public, solving disputes and providing information on complaints. At DZMiUW the following people are responsible for public contacts regarding acquisition of the properties: Anna Furgalska, Monika Krupińska, Jacek Chojnacki, and Karol Wójcik.

7.4. Ways of filing a complaint The following ways of filing a complaint are available to the public: - Directly at the Project Office which will be a consultation point:

Biuro Projektu, ul. Podwale 62 lok. 103 50-010 Wrocław, Polska

28

- By post sent to the above address.

- Directly at the site offices (address of site offices were posted on the Project’s website three month

prior to commencement of works). - Telephone info line – complaints can be filed by phone at the following number:

+48 71 360 18 90 fax: +48 71 360 18 93.

- By Internet: e-mail: sekretariat@odra-wroclaw.pl

7.5 Audits and independent appeal mechanism

It is assumed that the internal audits of complaints will be carried out in order to evaluate the efficiency of the system. On the other hand, the independent outside companies (auditors) will conduct periodic audits of complaint management system, which will reduce the risk associated with improper operation of the system. In case of the negative settlement of the case, the person submitting the complaint or conclusion will be comprehensively informed about the reasons for the negative settlement. In this case the party will be informed also about further options for appeal. Depending on the type of case the relevant authority will be the Governor of the Province, Minister of Infrastructure and Development, Provincial Court of Administration, the Supreme Administrative Court or Civil Court.

8. Monitoring and evaluation Main indicators to be monitored:

Table No. 8.1 Proposed monitoring indicators

Indicator Source of

information Monitoring frequency

Progress indicator

Assumed parameters Overall spending on compensation and buyouts (planned)

Records of DZMiUW / Consultant

Monthly/Quarterly PLN

Number, % of acquired properties

Records of DZMiUW / Consultant

Monthly/Quarterly Quantity (pcs.) /%

Number, % of signed agreement for temporary occupation

Records of DZMiUW / Consultant

Monthly/Quarterly Quantity (pcs.)

/%

Achieved parameters

Overall spending on compensation and buyouts (planned)

Records of DZMiUW / Consultant

Monthly/Quarterly PLN

Number, % of acquired properties

Records of DZMiUW / Consultant

Monthly/Quarterly Quantity (pcs.) /%

Number, % of signed agreement for temporary occupation

Records of DZMiUW / Consultant

Monthly/Quarterly Quantity (pcs.)

/%

Performance indicators

Number of public discussions and consultations on

Records of DZMiUW / Consultant

Monthly/Quarterly Quantity (pcs.)

29

Indicator Source of

information Monitoring frequency

Progress indicator

LA&RAP (% of women and vulnerable attending)

Number of grievances, including legal actions arising from expropriation (submitted cases, resolved cases, time needed for their resolution).

Records of DZMiUW / Consultant

Monthly/Quarterly

Quantity (pcs.)

Compensation paid, other

Records of DZMiUW Monthly/Quarterly PLN

% of Compensation paid

Records of DZMiUW Monthly/Quarterly %

30

8.1 Typical diagram for management of complaints (in accordance with WB requirements)

1 st

age

- in

tern

al

2 s

tag

e –

ME

DIA

TIO

N

or

AR

BIT

RA

TIO

N

Closure document signed –

complaint resolved

Satisfied complainant

Internal review

YES NO

Solutions proposed – accepted by DZMiUW

Each party calls on the Mediator/Arbitrator

Mediator/Arbitrator reviews complaint and finds a solution

Both parties satisfied

YES

NO

Complaint or Project brought before

court

Final closure agreement with the complainant and

agreement on design details

Mediator/Arbitrator proposes a solution

31

8.2 Form for filing a complaint to the Consultant (based on WB Guidelines)

Case No.:

Name Note: you can remain anonymous if you prefer or request not to disclose your identity to the third parties without your consent

Applicant’s first name_________________________________ Applicant’s surname_____________________________

I would like to lodge the complaint anonymously

I request not to disclose my identity without my consent

Form of contact Please mark how you wish to be contacted (mail, telephone, e-mail)

By post (please provide mailing address): ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ By telephone:___________________________________________________ By e-mail_________________________________________________________

Preferred language Polish German English Other (please specify) ……………………………………………………………………………..

Description of incident or complaint What happened? Where did it happen? Who did it happen to? What is the result of the problem?

Date of the incident / occurrence of the complaint

One-time incident / complaint (date__________________________________) Happened more than once (how many times_________________________) On-going (currently experiencing problem)

What would you like to see happen to resolve the problem?

Signature: __________________________________ Date: ____________________________________ Please return this form to:

[Name] Work Safety Inspector [Company]

Address_________________ Phone No.:______________ e-mail:___________

32

9. Plan of action Programme attached as a separate folder (Attachment No. 4).

10. Cost and funding source Cost was estimated taking into account record data gathered during implementation of Component B1 (Odra facilities), i.e. related to lease amounts or the compensation paid for temporary occupation or property.

Total amount resulting from the scope of this LA&RAP: 6,399,272.70 PLN

This amount is indicated in the cost estimate included in RAP.

Source of funding for compensation payment are funds from Component B5 of ORBFPP.

10.1. The amount of compensation related to lease agreements: Lease amount was estimated indirectly as a percent of the value of the value of the land. The annual lease amount was determined the following formula:

Dcr = Wdz. x r where: r – rate of capitalization, assumed at 10.5 % rate of capitalization was determined based on capital market, in accordance with § 12 and 13 of the Decree of the Council of Ministers of 21st September 2004on the valuation of properties and preparation of the appraisal Wcr = 13.79 x 0.105 = 1.45 PLN/m2 Total area of leased properties is 15.4003 ha, therefore

remuneration for the occupation of the property with an area of 154 003 m2 for 24 months period is: W = Wcr x P x t x k where: t – period of temporary occupation k – factor for the impediment in agrotechnical works; k=1.0 (there was no impediment in agrotechnical works) W = 1.45 PLN/m2 x 154,003 m2 x 24/12 x 1.0 = 446,608.70 PLN

10.2. Compensation for closing down ROD: Estimated value of the compensation is approx. 5 million PLN. This amount will be subject to update

as the properties are being appraised by a team of property appraisers.

10.3. Compensation for expropriation of the property at Fryzjerska Street: In case of the property which is subject to expropriation (property at Fryzjerska Street owned by

Family X) an appraisal was provided which indicated the amount of expected compensation.

According the final appraisal report this amount is XXXXX PLN.

33

11. List of applied documents

1. EVALUATION OF THE PROJECT OF PROPOSED LOAN IN THE AMUNT OF 140.1 MILLION

EURO (ECQUIVALENT OF 184.0 MILLION USD) TO THE REPUBLIC OF POLAND FOR ODRA

RIVER BASIN FLOOD PROTECTION PROJECT, 31ST January 2007 (official English document

and draft of Polish translation).

2. Component B3 Design documents prepared by the Consortium GRONTMIJ Polska Sp. z o.o. /

GRONTMIJ Nederland B.V./ Artelia Ville & Transport SAS/Artelia Sp. z o.o./EKOCENTRUM Sp. z

o.o.

3. Handbook for Preparing a Resettlement Action Plan, INTERNATIONAL FINANCE

CORPORATION A Member of the World Bank Group, 2001.

4. GUIDELINES FOR THE PREPARATION OF A Resettlement Action Plan, MINISTRY OF LANDS

June 2003.

5. THE WORLD BANK OPERATIONAL MANUAL June 1 1990 OD 4.30 Operational Directive,

Involuntary Resettlement.

6. WB Policy on Disclosure of Information, Section III, Paragraph 34; and Operational Policy 4.12:

Involuntary Resettlement (December 2001)

(http://WFS1.worldbank.org/operations/disclosure/policyIII.html;

http://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/OPolw/CA2D01A4D1BDF5808

5256B19008197F6?OpenDocument) July 2 2005.

Attachments

1. Detail schedule of leased properties.

2. Detail schedule of PZD (ROD) perpetuity properties.

3. Photographs of property on Fryzjerska Street which is subject to expropriation.

4. Programme.

5. Copy of the information brochure

6. Excel table with baseline data on allotment users.

7. A survey of basic data about the status of X family life.

8. Copy of the information brochure for Allotment users.