RESETTLEMENT ACTION PLAN

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized RESETTLEMENT ACTION PLAN for the Corridor Highway project Component 1 - Corridor Xd, The M 1 Road from Nis to border with FYR of Macedonia (E 75) Section: Vladicin Han - Donji Neradovac Corridors of Serbia Limited Liability Company April 2012.

2 Executive Summary... 6 CHAPTER I INTRODUCTION... 9 Background... 9 Objectives of RAP... 9 Scope of the RAP... 9 Social Impact Assessment Nature of Impacts Impact Zone CHAPTER II Legal framework and resettlement policy provisions CHAPTER III Expropriation and compensation payment Introduction Expropriation Process Compensation cost for standing crops etc Compensation cost for structures Minimization of Impacts Compensation Rates CHAPTER IV SOCIAL IMPACT ASSESSMENT AND BASELINE SOCIO-ECONOMIC CHARACTERISTICS Methodology of the Social Impact Assessment Comparative analysis of development and social development indicators in the municipalities of Vladicin Han and Vranje and the average in the Republic of Serbia Household Survey Socio-economic Status of Project Affected People Demographic characteristics Employment status and income source Owner status of housing premises Loss of land, structures and businesses Income Agricultural activities Disabled members of household Households below the poverty line Expenditure pattern Household assets Self-perception of socio-economic position Impact on Women... 25

3 Households with expropriation of structures Interest in training and certification programs The decision makers that could improve living conditions of expropriated households Positive effects of constructing the Highway Public Consultation Summary of Social Impact Assessment and Baseline Socio-economic characteristics CHAPTER V: IMPLEMENTATION ARRANGEMENTS Institutional Arrangements Implementing Agency Public Enterprise Putevi Srbije Local Municipalities Ministry of Finance Tax administration office Ministry of agriculture Cadastre office Ministry of spatial planning,environmental protection and mining Monitoring Arrangements Impact monitoring Completion Audit Grievance Redress Committee, composition, functions, steps for grievance redresses and deposals Procedure of Grievance mechanism Principles to treat Complaints Record of complaint and appeal and Follow up Feedback Income restoration Measures Dealing with Temporary Impacts/additional impacts during construction Data base management Assistance to vulnerable Families Disclosure Coordination with Civil works and certification Budget and costs Implementation schedule Monitoring and Evaluation External monitoring

4 ANNEX I Tables from households survey ANNEX II Data from survey of households with expropriation of structures ANNEX III Information and training for local government activities on the development of Socio- Economic Studies ANNEX IV Some compensation rates and market prices of land in different municipalities and regions in Serbia ANNEX V Entitlement Matrix ANNEX VI - Inventory of Project affected Persons... 49

5 ABBREVIATIONS CLEIA CSW EIA GC KS D.O.O KS LCC MOE PAP PERS RPF RSD SIA CORRIDOR LEVEL ENVIRONMENTAL IMPACT ASSESMENT CENTER FOR SOCIAL WORK. ENVIRONMENTAL IMPACT ASSESMENT GRIEVANCE COMISSION KORIDORI SRBIJE DRUSTVO S OGRANICENOM ODGOVORNOSĆU KORIDORI SRBIJE LIMITED LIABILITY COMPANY MINISTRY OF ENVIRONMENTAL PROTECTION PROJECT AFFECTED PERSON PUBLIC ENTERPRISE ROADS OF SERBIA RESETTLEMENT POLICY FRAMEWORK REPUBLIC SERBIA DINARS SOCIAL IMPACT ANALYSIS

6 Executive Summary This RAP relates to 26.3 Kms of Vladicin Han-Donji Neradovac section of E-75, which is one of three sections to be financed by the World Bank. Because of the widening proposed in this section results the expropriation of 224 of hectares of land and impacts 1388 families. As a result of the construction of Highway 24 structure have been expropriated. Out of these 14 are being used for residential and business purpose and the rest are either vacant or used for summerhouses. The purpose of this RAP is to set out an action plan for expropriation and payment of compensation and assist the PAPs in their efforts to resettle and rehabilitate and improve their standards of living or at least be restored to the predisplacement levels. This RAP is based on the provisions imposed in the Resettlement Policy Frame Work (RPF) adopted for this project, which is in line with the Involuntary Resettlement Operational policy of the World Bank. At this section, 24 structures have been expropriated. For 13 structures compensation agreement were concluded and payment was made. Relocation will start in accordance with the schedule of work. Households, whose structures for permanent housing and business are being expropriated, bought new building parcel and start building their houses. Six owners of permanent housing have accepted participation in the survey. Expropriation takes place after a certain alignment is declared to be of public interest by the Government of Republic of Serbia. At every phase, PAPs have a possibility to protect their given rights by involving them at all and every step being taken either by the Beneficiary of expropriation or by the institutions who by authority take the leading role in the expropriation process. In addition, PAPs have the legal right to challenge all decision being made either through appeal according to the Serbian Law of expropriation, or through grievances consistent with lines of the RPF and this RAP. Finally, PAPs have the right to enter into judicial process. The Beneficiary of Expropriation PERS, on behalf of the implementation entity KSLCC will monitor the implementation of the resettlement processes, both through internal, official institutional arrangements, as well as by an independent, external consultant to be appointed by implementing entity. The external monitoring and evaluation consultant will be appointed prior to construction starting on this section. In line with similar projects implemented in Serbia, construction is expected to start after contract signing following international competitive tendering. Pre-construction activities associated with design work include soil investigations and detailed survey of the alignment. Prior to commencement of the civil work, the expropriation and payment of compensation and the key entitlements related to R&R assistance will be extended to the PAPs. Some of the additional benefits and assistance will continue to be implemented during the civil work period also. Social impact assessment (SIA) for the was carried out based on Resettlement Policy Framework. The analysis was accomplished households surveys results for those who participated in the survey as well as other information gathered from municipality and other relevant sources.. The key findings of Social Assessment revel that the land plots on this specific section are small with an average plot size between 2000 and 3000 m 2 and the ownership is rather complex. On one hand one small land parcel is owned by several owners and on the other

7 hand one PAP owns several agricultural land parcels (even those can be in co ownership) dispersed at the territory of this or neighboring municipalities. The Beneficiary accepted requirements for additional expropriation if the remaining land was not suitable for further use. The socio-economic and demographic markers of the surveyed owners and their households reflect the conditions in rural areas within these municipalities. More than half of the surveyed householders are more than 50 years old, the rate of the woman householders is very poor and this is one of the characteristic for owner structure in traditional societies. The percentage of single member households is low (13.6%) and around one sixth of householders are those with old members (one or two member households) and without members younger than 65. Favorable conditions for the older households are that their relatives (adult son or daughter and grandchildren) live in the same settlement or nearby. Economic situation can be described as poor, as it is in other rural areas of the country. The most prominent source of income is pension, and in one fourth of surveyed households, both partners have pension. Around 25% of surveyed are unemployed and for them occasional work in grey economy is the main source of income. It is estimated that 30% of adult population work in grey economy, although that number can be even higher if we take into account those who beside permanent job or pension have additional work, often unregistered. High percentage of unemployment population in Serbia generates the high rate of those who live below or around poverty line. Poverty line is on 8800 RSD for the first member of household and 5000 RSD for every other member. If we take surveyed statement as relevant as almost 60% of households are below poverty line or around poverty line. All surveyed households members (accept one) live in housing structure that they own. The average surface area is 80m 2, means that every member has over 20m 2 ; which is close to country s average. The fact of owning houses for purpose of living substantially decreases the household s monthly expenses. In accordance to available data, all households have agricultural land. Households mostly use agricultural products for their own purpose, however small numbers sell their agricultural products and make additional income for their households. Public consultation with PAPs is organized as continuous process containing two main forms. The first form is public meeting that have been organized in several occasions, during which citizens whose property was envisaged to be affected due to the construction of Highway commented on the process of expropriation and pointed out existing and potential issues. The second form of cooperation with PAPs has been everyday communication during expropriation process, either by phone or visits on the request of PAP or in the municipal office by making the appointment. Beneficiary has in each municipality the representative from local office who is responsible for the permanent cooperation with expropriated households. The task of this representative is to register all the complains of these households, to facilitate their cooperation with municipal authorities and to inform the KS team about all problems during the expropriation process. Institutions involved in the resettlement process are PERS, as the Beneficiary of expropriation, as the implementing agency, Municipality of Vladicin Han and Vranje as administrative institution through which the expropriation is being completed, Ministry of Finance, Ministry of Agriculture, Ministry for spatial planning and environmental protection, Land Cadastre Office, Tax Administration office, Government. Through the Business plan of Korridors of Serbia there are designated and allocated funds exclusively for expropriation /land acquisition on the E 75 Vladicin Han Donji Neradovac in the amount of RSD and covers compensation for all entitlements. This RAP will be

8 implemented over a period of next six months by October, 2012 and the impact assessment record the outcome of the implementation and propose any remedial measures required will be carried out after one year of its implementation.

9 CHAPTER I INTRODUCTION Background 1.1. The Government of the Republic of Serbia is currently developing the core road infrastructure on Corridor X with the assistance of International Financial Institutions. The objective of this infrastructure development is to facilitate sustainable economic development and ensure that the country capitalizes on its geographical position to continue its development on Trans-European Network. As part of this core road network improvement, the World Bank is assisting the construction of 35 Km of motorways consisting of three (3) sections along E75 and E80 motorways. These three sections include Grabovnica - Grdelica (5.6 Km) and Vladicin Han-Donji Neradovac (26.3 Km) on E75 Motorway to FYR of Macedonia and Dimitrovgrad bypass (8.67 Km) on E-80 Motorway. PERS, as the Beneficiary of Expropriation, in cooperation with the Department for Urbanism, Civil Engineering, Property and Legal Affairs within the municipal administration is conducting the expropriation process for all these three sections. This RAP relates to Vladicin Han-Donji Neradovac (26.3 Km) on E75 Motorway to FYR of Macedonia and involves expropriation of 224 hectares of land belonging to 1388 land owners including the impacts to 24 structures.. Objectives of RAP 1.2. Development projects that involve involuntary land acquisition and resettlement can cause long-term hardship, impoverishment, and environmental damage unless appropriate measures to mitigate these impacts RAP is prepared according to the Laws and regulations of Republic of Serbia and Resettlement Policy Framework adopted for this program by Government of Republic of Serbia, which is consistent with the World Bank s operational policy provisions for involuntary resettlement. The objective of this RAP is to set out an action plan for the resettlement and rehabilitation of Project affected people (PAP) to ensure that they will benefit from the project and their standards of living will improve or at least be restored after the displacement. Acquisition of land and other assets for the project will adversely affect the livelihood of persons who live, work or earn their living on the land that will be acquired for the project. One of the objectives of developing RAP is to find out whether and to what extent land acquisition will have a positive or negative effect on the project-affected households. PAPs are defined as those persons whose land is being expropriated, or those persons whose income or livelihoods will be adversely affected by land acquisition for the project. Scope of the RAP 1.4. Keeping the above objectives in view, the scope of this RAP includes but is not limited to: a) Provide the details on the policies governing land expropriation, the range of adverse impacts and entitlements; b) Present a strategy for achieving the objectives of the resettlement/land acquisition policy;

10 c) Provide a framework for implementation of the stated strategies to enquire timely acquisition of assets, payment of compensation and delivery of the benefits to project affected persons (PAP) d) Provide details on the public information, consultation and participation, and grievance redress mechanisms in project planning, design and implementation e) Provide identified sources and estimates of required resources for implementation of the RAP f) Provide a framework for supervision, monitoring and evaluation of resettlement implementation in the case of expropriation of residential and commercial buildings. Social Impact Assessment 1.5. In line with the provisions of RPF, a baseline socio-economic survey among the affected people has been carried out to record their key socio-economic and demographic characteristics, which will become the basis for measuring the changes in the living standards in the post impact period Collection of data on expropriated households was carried out by two types of questionnaires. The first is called short ( small questionnaire), and was used for households subject to expropriation of agricultural land only, as well as for households whose income from expropriated land is not crucial for their existence. The criterion that determines whether the expropriated land is required for existence of households is in relation to the total area of agricultural land owned by households. The second ( broad ) questionnaire is applied to households faced with expropriation of residential property or the active business objects used for a registered activity. The second type of questionnaires were also used for households whose income is based on agricultural activity, specifically those who earn more than half of total revenues through agricultural production. The survey covered the details of individual losses of land and other properties and collection of household information related to assets, income and expenditure, demographic characteristics, housing and access to basic amenities. The analysis also included statistical and spatial data as well as available information on services of public interest in the local community The Project Affected Persons are defined as those who because of the execution of the project had or would have their: a) Standard of living adversely affected if the compensation for expropriation is not sufficient for purchasing a new property of the same quality or if the construction of the highway would damage the environment and overall endangers the household b) Right, title or interest in any house, land or any other fixed or movable asset acquired or possessed, temporarily or permanently c) Business, occupation, work of place of residence or habitat will be adversely affected d) Project affected people means any of the displaced persons. e) PAP with formal title over animal husbandries and agricultural processors that are affected by the loss of all or part of the land on which they are based f) PAP with formal title of tenancy on private or public land g) PAP with formal title over land, which will be needed during construction on a temporary basis) h) PAP without formal title on affected land or business but their livelihoods are directly dependent on the affected land or businesses (e.g., those working on affected agricultural land or working in the affected businesses)

11 i) Project affected persons without formal title of ownership or use but who have established usage of public land by investing in immovable objects, crops, woods, trees, fruit bearing trees, vineyards, the age of crops, and the time needed to reproduce them. Nature of Impacts 1.8. The following impacts are identified in the project a) Permanently acquired land consisting of cultivated and non/cultivated land within the line of acquisition. The cultivated land includes paddy field, dry field, vegetable field, noncultivated land, forestry field and housing land. b) Building structures for residential and business use c) Affected land attachments; land attachments located within the line of expropriation, mainly including supporting wall, well, brick/tile kiln. Impact Zone 1.9. During the development of SIA two impact zones are defined. They are based on the assumption that construction of new road would affect life of local residents: a) Direct impact zone, the area in which the land and structures which are the subject of expropriation are located, b) Indirect impact zone, in which various effects can be expected due to the construction and use of the highway. During consultations with the local population, project adjustments were determined with an aim to prevent possible negative impacts. One such adjustment was made by decision to build an underpass so residents of village of Ribince could pass under the highway to another part of the settlement where public services (school, health institution etc.) are located as well as pastures and other goods. The most common planned measures relates to the installation of additional noise barriers if it is confirmed that some facilities are threatened by noise from the highway. Based on the results of the social impact assessment and consultations, the RAP was developed. The details of expropriation process and compensation payment, finding of Social impact assessment and proposed institutional arrangements including budget and timetable, grievance redress mechanism and monitoring and evaluation arrangements are provided in the subsequent chapters.

12 CHAPTER II Legal framework and resettlement policy provisions Resettlement Policy provisions 2.1 The RPF outlines the process of expropriation and additional support for various categories of affected people and the process of carrying out the social impact assessment and preparation of Resettlement Action Plan (RAP) prepared consistent with the Serbian Government s laws and the World Bank s operational policy provisions for involuntary resettlement. This document has been adopted by the Government of Republic of Serbia as part of Implementing of this project which is adjusted with the policy provisions applicable for the World Bank assisted projects. The key additional support in addition to compensation under Expropriation is described below. See Table 1 of RPF for details which are provided in Annexure V. a) Unviable or redundant parcel: An accredited expert, on behalf and at the PAP request will make an evaluation whether the remaining parcels are economically unviable. This assessment is done on site, in the presence of the PAP, the beneficiary of expropriation and representatives of the Municipality. In case of these, the affected people will be offered an option to surrender and receive compensation for the entire parcel of land; b) Land needed for project works on temporary basis: In case of any land parcels required during the construction period on temporary basis, the lands will be taken on lease basis and rental allowances will be paid for temporary duration; c) Loss of Houses: In addition to compensation under expropriation, the families loosing houses will receive additional support for moving expenses, transitional allowance and costs towards administrative and transfer taxes. Moving expenses are defined as costs to move households by truck, costs to move households by manual workers, according to the price list for similar moving in the area. Transitional allowances are defined to the maximum of 6 months minimum wages at the value given by the Republic Organization of Statistics for the month in which the payment of the allowance is being made. The transitional allowance according to the Law on Taxes and Tax administration, PAPs are exempted from all and any such obligation to pay administrative and transfer taxes.transitional allowences are shown separately in the compensation assesmenet for Loss of Houses and as such are subject to the compensation agreement. d) Non-title holders occupying the public lands: Compensation to replace lost assets to the project; e) Affected leased public properties: Assistance to provide alternative corresponding equivalent public properties; f) Tenants, employees or workers: Compensation for loss of income and replacement cost for any investments, three months livelihood assistance in the amount of maximum three minimum wages. The replacement cost is determined by an accredited expert; g) Impact on business: Relocation cost of affected business and replacement cost of business is determined as cash compensation at replacement cost for affected

13 structure calculated based on the market price determined by the Accredited experts office, one time allowance for costs of moving, calculated as moving expenses, and taxes; h) Assistance to Vulnerable people: Households with many dependants,1 unemployed heads, households with disabled and poor households, (households with incomes less than 8.800,00 RSD per household member are defined as the ones at the poverty line) will be provided additional support as monthly allowance in the amount of monthly minimum wage for a period of maximum 6 months. 1 Dependants are being defined as household members who cannot take care of themselves and require alternative care and help either by family members or by specialized persons or services. The level of dependency of the household is being defined through comparison between the number of dependants and number of household member capable of running and supporting and caring of the households and its members and if the number of dependants exceeds the number of nondependent in a level more than a rate 1:2 in favor of the dependants.

14 CHAPTER III Expropriation and compensation payment Introduction 3.1. Public interest for expropriation and administrative transfer of immobility`s, for construction of, was enforced by the Governments decision 05 No /2010 dated 29.December 2010 according to article 20 Law of expropriation (Official Herald of Republic of Serbia no.53/95, 23/01, 20/09). Expropriation Process 3.2 The expropriation is carried out during April 2011 to December 2011 for a length of 26.3 km and is administratively covered by the Municipality of Vladicin Han and Vranje, whereas the total expropriated area amounts to m2 (Approximately 24 ha). Upon the legal validity of the decision on expropriation, the owners of the expropriated properties received written offers on the compensation amount for the land, plants and structures. Upon the completion of the expert survey by agricultural expert, the offer for the expropriated land is made depending on the location, quality and purpose of the land. The value of plants is determined by the agricultural expert from the Institute for Expert Analyses of the City of Belgrade, and in accordance with Article of the Law on Expropriation (harvest, age, fertility, undercoated investments...). Compensation cost for standing crops etc 3.3 Compensation cost for standing crops is determined by an accredited expert and include the value of crops, including the time needed to reproduce them, Fruit bearing trees the value of the harvest, including the value of time needed to reproduce such a harvest, the replacement cost for any investment (input, labor, etc) made to raise new plants vineyards and orchards until they reach full yielding potential young vineyards or orchards not yet fruit bearing, the replacement cost for any investment made for raising a replacement vineyard or orchard, including the value of time needed to reproduce replacement vineyards or orchards and compensation for lost yields for each year from the year of expropriation. Nursery the replacement cost for any investment made on planting material not utilized. (See Annex V Entitlement matrix). Compensation cost for structures 3.4 Compensation for structures according to article 43. of Law of expropriation compensation for expropriated houses, flats or business is determined to the market value of such a structure. In line with article 42. The assessment of the market value lies with the Tax administration office. During the assessment the Tax administration obtains the necessary data from accredited court experts regarding every single structure. The assessment is determines on one hand the compensation for the structure and on the other hand all other allowences as guaranteed under this RAP such as moving allowance and transitional allowance.

15 Minimization of Impacts One of the main criteria which guided the designers whilst determening the alignemenmt of the Highway was to avoid in an extent as possible acquisition of agricultural land of the best quality thus minimizing the expropriation of such land. The small number of expropriated structures indicate that relevant rules have been followed in respect to the minimum distance between the inhabited areas and the proposed alignement. Almost 50% of the structures falling under the impact are abandoned or seldom used temporary facilities. Although, as explained in previous lines the mitigation measures were applied it could not have been avoided to have impact on structures at all. The fact that most of the PAPs opted to have their entire land parcel taken according to article 10 of the Law on expropriation shows that expropriation is often to be understood as source of earning money since the survey showed low transaction rates in this area. The impact appears to be minor regarding individual PAPs since only in a limited number of cases more than 20% of the entire land has been expropriated which indicates the minor impact in lines with the point of view on guidelines on involuntary resettlement This impact was the reason why there was a rather low response to the survey. The list of these people, loosing more then 20 % of their entire land. the Tax administration office will be addressed to verify the provided data on household property. The list of PAP loosing more then 20 % will be completed once the Cadastre and Tax Admionistration office supply the data on eligibility for this category of PAPs and this task will be completed by April, A process has been adopted for negotiations with the local population/households, whose land or structures are located within the boundaries of the impact area, which can have an effect on works and the forming of a new traffic way. After filming the terrain, the properties which will be the subject of expropriation and the owners of these properties were recorded. Owners have been offered two models of expropriation: (1) Providing ownership of new land in exchange for the expropriated land (agricultural), and (2) Payment of money for market value of the land or structures. Following the consultation carried out in Grdelica, the owners selected payment of money and their preferred mode of compensation. Accordingly, the compensation will be paid to all those affected under expropriation. Compensation Rates Compensation rates are determined by the Municipality Tax administration office. The methodology applied by the tax administration could be considered as in favor to the PAPs. Naimly, according to the Law of expropriation the market value/price is determined in comparison to the price obtained in the sale transaction of the nearest neighboring land parcel to the one subject to expropriation. Regarding to this specific section as well as sections along the Corridor X route, no significant transactions have been noted The transaction are often reserved to areas in the vicinity of large cites and within urban centers with intention to convert such land into building land. The price of such land acquired to be converted is higher than agricultural land without perspective of changing its purpose. As a result the compensation rate is determined in a higher amount than the average agricultural land. The best indicator for this lies within the fact that the number of PAPs who are not satisfied with the compensation offer and therefore entered into judicial proceedings is almost such to be not regarded at all.

16 3.8. Expropriation for purposes of construction of the Corridor X enabled some PAPs to receive monetary compensation enough to purchase a new land parcel within the boundaries of building land. Therefore giving them advantage over those citizens not under the impact of the Corridor X construction is not acceptable.

17 CHAPTER IV SOCIAL IMPACT ASSESSMENT AND BASELINE SOCIO- ECONOMIC CHARACTERISTICS 4.1. The provisions of RPF requires that the implementing agency carry out a Social Impact Assessment (SIA) for project area to identify the social impacts associated with the project and to collect the baseline socio-economic characteristics of the project for affected households which will become the basis for assessing whether the project has realized the resettlement objectives of improving or regaining the pre-project living standards among the project affected people. Methodology of the Social Impact Assessment 4.2. The preparation for the SIA for the section Vladicin Han - Donji Neradovac was made thorough analysis of alternative approaches, the establishment of the methodology, content and scope of the methods for data collection (questionnaire), and methods for monitoring implementation of the obligations set out in the RPF. Final versions of the small and broad questionnaires were established as well as other procedures necessary for data analysis. Also financial costs for conducting surveys on all the PAP were estimated as well as costs related to checking the reliability of the data obtained in the survey. Suggestions were also made in the context of methodological procedure modification to improve the use of two questionnaires, and conduct surveys on a sample of households with expropriated agricultural land. 4.3 As a part of preparation activities meetings were held in the municipalities of Vladicin Han and Vranje. Special meetings were held in the cadastral offices and departments of the municipal revenues in order to determine the availability and reliability of PAP property data, which would be used as corrective information during the analysis of data from surveys and would determine the level of household vulnerability. It should be pointed out that the data from the cadastral service is still incomplete and does not provide a basis for checking the reliability of data on household assets Since the data obtained as a result of the survey cannot be used as sufficient evidence on all the socio-economic markers of the households, data collected by the survey on disabled members of households and households below the poverty line will be checked in cooperation with the municipality CSW. This institution has updated information and uses national criteria for identifying eligible beneficiaries, and they are corrected in accordance to overall living conditions within local community. Households that can be identified as vulnerable categories will be known after collected data from survey are compared to those from CSW. In this way, the information on socio-economic conditions of households and its reliability will be compared. Based on such cross-reference verification suggestions on additional allowance will be proposed. This will also be done in consultation with CSW. Taking into account high rate of poverty, priority will be given to such kind of support to benefit a larger number of the most vulnerable among the vulnerable with an aim to improve their life conditions. It is planned that consultation in CSW be finalized by the end of April 2012.

18 Comparative analysis of development and social development indicators in the municipalities of Vladicin Han and Vranje and the average in the Republic of Serbia 4.5. The chapter covers the socio economic characteristics of municipalities Vladicin Han and Vranje; information is collected in accordance with available statistical data. Notable difference between these two areas exists on the level of population density, which in Vladicin Han (61 in/km2) is considerably under Serbian average while in Vranje it is around average (101 in/km2). There are some differences in the structure of the population. Municipality of Vranje has a higher proportion of youngest (up to 14 years), as well as those from 15 to 19 years old, and a much lower share of elderly population (12.8%) than the republic average (16.5%) and as it is the case of municipality Vladicin Han (17.1%). In addition, the municipality of Vranje has an above average number of pre-school and school age young people, compared with the national average and the data from municipality of Vladicin Han. The statistics on the educational structure of the population in both municipalities shows that they are under average compared to other parts of the country. Especially Vladicin Han has a high proportion of citizens who are aged 15 and older and who did not complete primary school (32.6%), this group refers to citizens without even a single grade finished (13.2%). In both municipalities, especially in Vladicin Han, it is evident that there is a low proportion of citizens with higher education, therefore it can be suggested that there are significant human resource constraints in these areas. The employment rate in municipality Vladicin Han is under the Republic average, while the municipality of Vranje rate is slightly above average. In terms of the number of pensioners, both municipalities are below the Republic average, the percentage of supported persons in both municipalities is higher than the Republic average, particularly in the municipality of Vladicin Han. In both municipalities there is low proportion of citizens who work abroad. In summary, education and age structure of the population indicates the need for additional education, vocational training and retraining in order to enable citizens (owners of expropriated land) to invest funds received from the expropriation in other economic or entrepreneurial activities with more expertise skills. Household Survey 4.6. The household survey was conducted during the process of expropriation where owners were interviewed. There were five interviewers, asking questions and filling answers into the questionnaire. All PAPs came to be informed about expropriation process were offered to take part in the survey but just a relatively small number agreed to participate. In addition they were offered to fill the questionnaires at home and submit it later to the municipality. The reason for such low response in participating in the survey is in the fact that very small numbers of owners were involved in expropriation with more than 20% of land in their property. The other reason is that owners are not interested to participate in any kind of survey lies within the satisfaction regarding the compensation received for their property. Socio-economic Status of Project Affected People 4.7. This section presents the findings of the baseline socio-economic survey carried among the affected households. The key baseline data is provided below which becomes the basis for measuring the changes in the living standards of the affected people during the post construction period.

19 N o Indicator Value Remarks Average monthly households income (in EUR) Average monthly income per member (in EUR) Proportion of households below poverty line 8.800,00 RSD / 88 EUR per household member RSD (250 EUR) RSD (65 EUR) 34,5% (households below poverty line) and 57,6% (poverty line in regard to the members of household) 4 Average Family Size 3.5 members 5 6 Proportion of households regarding primary source of income Proportion of families without any earning members Pensions 45.5% Permanent/temporary employment 31.8% Grey economy 21.2% Unknown % 7. Average number of earners 1,5 8. Average house surface area 80 m 2 9. Average landholding size 185,6 acres Proportion of families with indebtedness Proportion of households rating their economic status as poor and very poor 58% as poor and 22% as very poor The official poverty line is RSD for the first adult in a household, while the limit for a family with 3 member is RSD Average Family Size is somehow smaller as explained in Para 4.9. Data on families with no income will be verified at CSW. For example, in the survey respondent said that his family has no income, even though his household has one employed member, the property of 2 hectares of agricultural land and an apartment of 200 m 2. After reviewing the economic situation of the eight households in CSW, the objective situation will be determined as well as way of additional support. The pensioners are included. The members of households that deal in grey economy are not included as we do not have reliable information Only one household surveyed by broad questionnaires, has a monthly debt of 40 EUR

20 Demographic characteristics 4.8. Among the households owners surveyed, almost half of respondents are less than 60 years old (47%), while there is 22.7% who are older than 70 years, (Table 1: Age profile of respondents in ANNEX I Tables from households survey). Less than a fifth of respondents are female (Table 2: Respondents by gender in ANNEX I Tables from household s survey). This gender structure of respondents differs from the results obtained from section Grdelica - Grabovnica where the share of women among respondents was only 6.5%. In Serbia, the property owner gender structure is similar to data received in the zone Grdelica Grabovnica. It must be pointed out that this gender structure reflects the traditional pattern of inheritance that means the priority was given to male children while female children denied inheritance. The law on inheritance was adopted immediately after World War II. Although the law equalized the inheritance rights of male and female children, it is still notable that there is a gender dominance of men in rural areas, especially in underdeveloped regions. Above average participation of women in the ownership structure on this section is in the relation with old age of respondents. It should be noted that the respondents here are not necessarily the formal property owners, but representatives of the deceased owners The average household size in the municipalities of Vladicin Han (3.09 members) and Vranje (3.25 members) is higher than the Republic average (2.97 members). The average size of surveyed households is 3.5 members. Consequently, on this section (similar to survey for section Grdelica - Grabovnica) average size of households is higher than at the municipality s level. Toward this data it is necessary to proceed with some doubt. It can be assumed that the members of surveyed households provide incorrect information with an intention to show negative economic situation. Additional analysis of the questionnaires showed that in some of them it was stated that adult family member, sons and daughters living in the same village are included as household member although they are not and have households of their own. Such discrepancies were not able to be checked or avoided. This problem was also identified during residents survey on the section Grabovnica Grdelica (Table 3: Households size in ANNEX I Tables from households survey) About one-fifth of those surveyed live in 3-person households (21.2%), and the most represented families are married couples with one or more children (40.9%). There are 15.2% of couples without children and 13.6% of single households (Table 4). Also there is a high proportion of elderly households (22.7%), with 1 person (12.1%) and 2 persons (10.6%) (Table 5). Status of elderly households will be verified at the SCW, where they obtained data if the households have home care assistance or some other type of social support. However, a number of these elderly households have adult children (for example married sons and daughters) who live in the same village or in nearby towns. Among the households surveyed in this section, there is a relatively low share of multi-generational families. Extended threegeneration households have a prominent role in poor areas characterized by the absence of access to services of public interest (pre-schools, health services, care for the elderly and the sick, etc.). On the other hand, there is marked difference between the data on high average number of household members and information on family structure of households. One third of households (33.3%) are with children which go to school, whether primary or high school. (Table 4: Household structure and Table 5: Elderly households in ANNEX I Tables from households survey)

21 Employment status and income source Data on the employment status of respondents and his / her spouses (Tables 6 and 7) shows that pensioners are the most prominent (45.5%). The second most frequent category is permanent or temporary employees (31.8%), while Table 6 shows that just over one-fifth of surveyed citizens are unemployed and they are mostly engaged in informal/grey economy. Employment status of spouses is very poor. Half of the spouses are not in employment (housewives, unemployed...) which means without their own permanent income. Just over quarters of spouses, (26%) have a pension, and there are 18% who are employed. Not even one of the respondents mentioned agriculture as the main source of income, but 4% of those who are married stated that the spouse deals with agriculture as a primary occupation (Table 7). Besides married couples, it is very rarely that other members of households will have permanent or temporary employee status. (Table 6: Employment status of respondents and Table 7: Employment status of spouse in ANNEX I Tables from households survey) Owner status of housing premises One third (31.8%) of the total number of surveyed citizens live in Dekutince, over a quarter (28.8%), in Ranutovac and 12.5% of households are located in villages Mazarac and Pavlovac. There are 7.6% households in Vladicin Han and 1.5% of households are in Vranje, Goranje and Kalimance (Table 8). All residents have owner-occupied status of housing premises, except one with a tenant status (Table 9). Average house area is about 80m 2. About 10% of houses cover area of less than 50m 2, about one-fifth has surface area of objects from 51m 2 to 70m 2 or 71 to 100m 2, and over 40% of housing units has a surface area greater than 100m 2. (Table 8: Permanent residence and Table 9: Ownership status in ANNEX I Tables from households survey) Loss of land, structures and businesses The only available sources of data about the ownership of agricultural and other land are based on citizens statements. However, 15.6% of respondents said they do not know total area of agricultural land. Explanations for such responses may vary. One could be that people really do not know the actual surface of their property because there is a variety of unresolved property relations, out of which a great number is in judicial proceedings or because the inheritance of land is not properly registered after the death of the previous owner. Another reason is the intention to conceal the true ownership of land and to show financial situation worse than it actually is. According to data obtained in the survey, the smallest property is 16 acres and the largest 800 acres (8 hectares). 15.6% of households possess less than 50 acres of agricultural land, the same percentage of households hold between 50 and 99 acres. More than half of surveyed households (53.3%) own a hundred or more acres of agricultural land. Although at first sight the proportion of land in ownership and the rating of the economic status of households seem not to be in compliance, it is necessary to remind that land ownership in the undeveloped region of Serbia is not an indicator by which you can determine the economic status of any household. The use of agriculture land is of low intensity, and the most frequent reasons are: old age of owner and other members of household, low income of agriculture, unorganized market for selling the agriculture products. Therefore, the agricultural activities are dominantly limited to the production for the household s purposes.

22 Income The monthly household income ranges from those who declared zero income to those that have above average income. The average monthly income of surveyed households is about RSD. According to respondent statements, 12.1% of households declared zero income, 31% of households have less than RSD per month (100 Euros), and about 26% has income from to RSD per month in the last year. 30.3% of households have revenue over RSD per month. (Table10: Total household income and income per member in ANNEX I Tables from household s survey) Average household monthly income per member is about RSD, and it ranges from 675 RSD to RSD. Households that gave statements that do not have a regular income and those whose income is less than RSD per member (22.7%) will be additionally verified through CSW. According to survey result, there are 9.1% of households on the poverty line, which will also be reviewed in the CSW. Between RSD and RSD per member achieves a quarter of households, and over RSD one third of a households Third column of Table 10 in ANNEX I Tables from household s survey provides the number of members in each income categories. There are 233 members that live in surveyed households; 12.9% of them live in households with no income, 30% in households whose monthly income per capita is to RSD, and 28.3% in the households that monthly earn between and RSD per member. Between and RSD has 15.2% of persons and over RSD 4.6% persons. A small number of households (less than 10%) were able to estimate the annual income from agriculture (from to RSD on an annual basis). Agricultural income is usually earned by selling milk or vegetable products. Only one household receives child allowance (2.000 RSD per month). Regular child allowance is RSD per child. However, it should be noted that if someone owns more than 1 hectare of agricultural land he or she is not eligible to receive child allowance. Agricultural activities According to the responses, four fifths of households are engaged in agriculture. It is most common that the respondents (head of the household) rather than other members of households are engaged in agriculture. However more than half of those surveyed (58%) stated that other members are also involved in agricultural activities. Rationale for not taking activities in agriculture lies in older age, chronicle disease, lack of time due to other obligations. Very small numbers of households sell agricultural products, mostly milk and vegetable. The most households are engaged in agriculture for their own use. Estimated income from agriculture is very low. Agricultural machinery is possessed by almost half of households; usually they have one tractor, cultivator and other equipment. Households do not hire seasonal workers. More than two-thirds of respondents (68%) will continue with agriculture after expropriation, the main reasons for this lie in the fact that agricultural activities support the citizens existence and represent the source of income. Not even one household plans to be fully engaged in agriculture, in a sense it could became stable source of income or they perceive agriculture as a sector of activity that can provide a decent living. Not evene one of the PAPs has the intention of bying a new parcel of agricultural land although