Georgian Legislation on Involuntary Land Acquisition and Resettlement and WB OP 4.12 Tbilisi, May 2013 Klavdiya Maksymenko

Georgia’s Laws and Regulations on Land Acquisition and Resettlement The Constitution of Georgia, August 24, 1995 The Civil Code of Georgia, June 26, 1997 The Civil Procedural Code of Georgia, November 14, 1997 The Law of Georgia on Ownership Rights to Agricultural Land, March 22, 1996 The Law of Georgia on the Rules for Expropriation of Ownership for Necessary Public Need, July 23, 1999 The Law of Georgia on Privatization of State-owned Agricultural Land, July 8, 2005 The Law of Georgia on Recognition of the Property Ownership Rights Regarding the Land Plots Owned (Used) by Physical Persons or Legal entities; 2007 The Law of Georgia on Protection of Cultural Heritage, 2007 The Law of Georgia on Public Register; December 19 of 2008; The Law of Georgia on Notary Actions, December 4, 2009

National legislation envisages the following mechanisms for land acquisition: Obtaining the right of way without expropriation through the payment of due compensation (on the basis of a willing buyer-willing seller agreement or a court decision by which an amount of compensation is set) prior to commencement of the activities. Expropriation which allows obtaining permanent right to land and/or other real estate property on the basis of Eminent Domain Law* or a court decision through the payment of due compensation. * Attempts should first be made to acquire private land on the basis of negotiation with individual affected entities. Should the negotiation fail, the power of eminent domain will be sought, and expropriation process will start.

Main provisions of Georgia’s laws and regulations on LAR The national Laws provide that compensation for lost assets, including land, buildings, trees and standing crops, should be based on the current market price without tax and depreciation. Overall the national laws/regulations provide that the principle of replacement cost compensation at market value is reasonable and legally acceptable. The national laws categorize the damages eligible to compensation and indicate that both for loss of physical assets and loss of incomes are subject to compensation. National laws provide for income loss due to loss of harvest and business closure to be compensated to cover net loss. National laws contain provisions for consultation and prior notification to ensure that the affected persons participate in the process.

WB’s Policy on Involuntary Resettlement The three important elements Compensation to replace lost assets, livelihood and income regardless of the legality of land tenure. 2. Assistance for relocation, including provision of relocation sites with appropriate facilities and services. 3. Assistance for rehabilitation to achieve at least the same level of well-being with the project as without it.

Gaps between national legislation and WB policies Georgia Laws and Regulations WB OP 4.12 Land compensation only for titled landowners. Legalizable land owners are compensated only upon registration of the titles Lack of title is not a bar to compensation and/or rehabilitation. Non-titled landowners receive assistance in livelihoods restoration. Only registered houses/structures are compensated for damages/ demolition caused by a project All affected houses/structures are compensated for damages/ demolition caused by a project Only registered landowners are compensated for crop losses Landowners and sharecrop/lease tenants whether registered or not are compensated for crop losses No specific provisions for the process of resettlement planning and its specific tools including preparation of any plan related to land acquisition and resettlement Time bound implementable Resettlement Action Plan needs to be prepared, disclosed and duly implemented before the project works start

Gaps between national legislation and WB policies Georgia Laws and Regulations WB OP 4.12 No provisions for -income/livelihood rehabilitation, -allowances for severely affected or vulnerable APs, -resettlement expenses. WB policy requires rehabilitation for income/livelihood, severe losses, and for expenses incurred by the affected persons during the relocation process. Land Acquisition Committee in the respective state institution executing the project is the only pre-litigation and final authority to resolve disputes and address complaints regarding quantification and assessment of compensation for the affected assets. Only the regional court has authority to resolve disputes over land value and compensation. There must be an independent objective appeal Mechanism that is open to the public and reported openly. The Project owner to establish a grievance mechanism as early as possible in the process to receive/ address in a timely manner the concerns related to physical/ economic displacement.

Gaps between national legislation and WB policies Georgia Laws and Regulations WB OP 4.12 Decisions regarding land acquisition and resettlement are discussed only between the landowners and the Land Acquisition Authorities. No provisions for public consultations. Information on quantification of affected items, value of assets, entitlements, and compensation/ financial assistance amounts are to be disclosed to the APs prior to project appraisal. No requirement for monitoring and evaluation. Monitoring and evaluation to be clearly defined in the resettlement action plan, and monitored through the life of the project.