Following the local landscape and amount of project budget, it was impossible to build a great
number of new car parking areas adjacent to the project area. As for building 5 or 6 additional car
parking areas, this could not solve this problem.
On the other hand, the lack of car parking areas would gradually reduce the number of tourists
drastically with the severest impact on the APs incomes. Consequently, finding the solution to this
problem is in the best interests of the APs in the first instance.
wind. The APs wished modern benches to be installed within the scope of the project, if it were
The original project did not envisage the maintenance of such great number of trading spots in the
project zone and consequently, the project budget did not cover such items, as purchasing or
manufacturing of modern benches. The project will accomplish all necessary actions to help the
PAPs maintain their businesses.
was high toilet fee. During a day, particularly in cold days, they have to use the toilet for several
times and sometimes, the fee they pay for using the public toilet equals 10-15% of the profit they
make during the day.
Such a problem could not be considered or solved by the project implementing organization, as it
is unable to intervene in the dispute between two private entities.
4. The World Bank Policy, Safeguards and Georgian Legislation
The legal and political framework of the project is based on the Georgian legislation about the land
compensation/purchase and resettlement and World Bank (WB) OP 4.12 “Involuntary
Resettlement Policy”. By considering t
he requirements of these laws and WB Policy, as well as
the Resettlement Policy Franework of the Third Regional Development project, the principles of
is Abbreviated Resettlement Action Plan were established.
This section provides a brief summary of the normative and legislative acts In Georgia regulating
the issues of land acquisition and resettlement, obtaining State ownership rights to privately owned
land parcels based on the public needs, social issues caused due to project activities:
Constitution of Georgia, 1995;
Law of Georgia on Motor Roads, 1994;
Organic Law of Georgia, Local Self-Government Code, 2014;
Civil Code of Georgia, 1997;
Law of Georgia on Cultural Heritage, 2007;
Law of Georgia on Notary, 2009;
Law of Georgia on State Property, 2010;
Law of Georgia on Ownership Rights to Agricultural Land, 1996;
Law of Georgia on Legalization of Property, 2007;
Law of Georgia on Public Register, 2008;
Law of Georgia on Recognition of the Property Ownership Rights Regarding the
Civil Procedural Code of Georgia, 1997;
Law of Georgia on Social Assistance, 2006;
Law of Georgia on Social Protection of Disabled Persons, 1995;
Law of Georgia on Internally Displaced Persons from Occupied Territories –
A more expanded review of the Georgian legislation pertinent to the resettlement issues is provided
in the Annex 1 of this document.
Below we will present a brief summary:
Overall the above laws/regulations provide that the principle of replacement cost compensating at
market value is reasonable and legally acceptable. The laws also identify the types of damages
eligible to compensation and indicates that compensation is to be given for loss of physical assets.
The law makes no provision for income/livelihood rehabilitation, allowances for severely affected
or vulnerable APs, or resettlement expenses. Finally, these laws place strong emphasis on
process. As in practice, public opposition to expropriation is very strong; eminent domain is very
rarely used by public authorities, to be exercised only when negotiations between the agency
acquiring the land and the owners fail. The acquiring agency resorts to expropriation only with a
limited number of land owners with whom negotiation failed.
The World Bank Safeguards and Involuntary Resettlement Policy
All projects funded by WB must comply with the WB social and environmental safeguards. The
WB financed projects, in their turn, require compliance with the WB safeguards and guidelines.
WB BP/OP 4.12 Involuntary Resettlement is one of the most important safeguards guiding land
acquisition and related resettlement/compensation issues during project implementation. In line
with the principles of host-country responsibility, Georgia is committed to implement the WB
financed projects in compliance with the requirements of WB BP/OP 4.12.
Generally, the Georgian legislation is compatible with the major provisions of the WB
Resettlement Policy but a few important differences are to be noted. The WB resettlement policy
is directed at improving (or at least restoring) incomes and living standards, rather than merely
compensating people for their expropriated assets. This improvement of incomes and living
standards broadens the objective of the policy to include the restoration of income streams and
retraining of people unable to continue their old income-generating activities after displacement.
The emphasis on incomes and living standards, in contrast to the conventional emphasis on
expropriated property, expands the range and number of people recognized as adversely affected
and affects the kind of compensation and other assistance that must be provided. Recognition of
this broader range of adverse impacts leads to a greater appreciation of the issues to be considered
in resettlement and consequently requires careful delineation of responsibilities, elaborate risk
management and explicit and distinct resettlement planning.
The WB policy complements the Georgian legislation/regulation with certain additional
requirements, which are mandatory for the WB financed projects. In particular, appropriate
planning/management instruments must be developed prior to project appraisal, like Resettlement
Policy Framework (RPF) and Resettlement Action Pan (RAP), as appropriate.
Resettlement Policy Framework (RPF). A policy framework needs to be prepared if the extent
and location of resettlement cannot be known at appraisal because the project has multiple
components, as typically happens in projects with financial intermediaries or multiple subprojects.
The policy framework establishes resettlement objectives and principles, organizational
arrangements, and funding mechanisms for any resettlement operation that may be necessary
during project implementation. The framework also assesses the institutional capability to design,
implement, and oversee resettlement operations.
Resettlement Action Pan (RAP). All projects that entail involuntary resettlement require a RAP.
“The scope and level of detail of the resettlement plan vary with the magnitude and complexity of
resettlement” (OP 4.12, Annex A, para. 2).RAP is location-specific and comprehensive action plan
including preliminary studies (socio-economic assessment, sociological survey, census, valuation