Actors: MDFG, PSC, independent consultants, NGOs, PAPs.
representatives of PAPs after completion of the expropriation/compensation operations but prior
to the closure of the mitigation measures. The aim of that exercise is to assess progress in the
operations executed, suggest corrective measures where needed and solve pending issues. After
completion of all expropriation/compensation operations, PAPs will be consulted in a household
survey. The aim of that survey is to assess the impacts of the social mitigation measures
implemented. Likewise, rural communities with PAPs will be consulted to provide their
assessments of the impacts of the social mitigation measures applied.
The findings of the survey and the workshops will be presented in the project completion report,
which will be established by the MDFG.
This RAP in Georgian will be disclosed on the MDFG website and at MDFG office before Project
appraisal. The RAP in Georgian will also be disclosed to the APs at the relevant Municipality
office (Gamgebeli) and at village administration (Sacrebulo) once subprojects are identified. Its
English version will be disclosed on the WB website prior to Project appraisal and after the RAP
is endorsed by the Executing Agency (EA) which will be MDFG in this case. Once a RAP for a
subproject has been prepared and approved by MDFG and WB it will be disclosed at relevant
Sacrebulo office (Gamgeoba and at village administration (Sacrebulo). A pamphlet in Georgian,
summarizing compensation eligibility and entitlement provisions, will be sent to all AP/AFs before
the initiation of the compensation/rehabilitation process and before signing contract awards. The
consultation process will be continued throughout the project cycle.
9. Costs and Financing
The presumable costs of resettlement within the scope of the subproject to build a tourist
infrastructure on the territory adjacent to the Ananuri Complex cover the compensation amounts
for temporal and/or permanent suspension of business.
MDF, as the project owner, is responsible for timely allotting the finances to realize the
Resettlement Policy. The correctness of distribution of the finances must be checked twice a year
based on the budget requirements fixed with the Resettlement Action Plan (RAP). The
compensation and rehabilitation budget must be immediately paid by the Municipal Development
Fund of Georgia.
9.2 Detailed Budget
In the following section, you will find the calculations of various types of compensation and aids
based on the Entitlement Matrix. The RAP gives the minimum amounts of compensations.
However, the amendments can be made during the meetings to be held before signing the contract.
Following the above- mentioned, we can consider the following groups in the project zone:
As already mentioned, the representatives of Dusheti Municipality reviewed the wishes of APs
and decided to maintain business for all APs both, in the construction and operation phases.
Consequently, none of the APs will lose his business within the scope of the project.
An expected impact implies the reduction of income because the accomplishment of the works
may hamper the movement of tourists across the project zone. The total suspension of business is
not planned at the stage of the project implementation; however, following the experience with the
previous similar projects, the compensation for total suspension of business was envisaged as a
part of the compensation amounts.
Within the scope of the present subproject, no purchase of land, buildings and premises, annual
perennial plantings or harvest compensation is envisaged.
Within the scope of the project, only the compensations for hampering and/or suspending the
business and inventory transportation, as well as vulnerability compensation will be given out.
9.2. Methods to Calculate Compensations
For the projects of a similar type financed by the World Bank, the methods to calculate the income
reduction have been developed. The methods given below were used for the subprojects realized
within the scope of RDP I (Telavi, Kvareli). The methods used in this period were agreed both,
with the World Bank and the Government of Georgia.
As per the developed methods, a legal or private entity, being a business owner, was to be given
20% of the profit gained in the previous years. In addition, the said entity was allowed to run his
business non-stop in the project zone. The profit of the previous years was calculated based on the
official document submitted by the business owner – a Tax Declaration. If the entity had informal
business or was not a tax-payer (mini-entrepreneur), 20% of profit was calculated by considering
the subsistence minimum fixed for a 5-member family. At present, the subsistence minimum for a
family of 5 is fixed at 338.3 GEL. In case the official profit of a legal entity is less than 338.3 GEL,
the same amount will be considered as his profit and his due compensation will be calculated based
on 338.3 GEL.
In addition, the principle of seasonality was taken into account in calculating the compensation
provided by the local people, the number of tourists to the Ananuri Complex is 2.5-3 times more
in summer than in winter. Nearly the same information was received from Dusheti Municipality.
Consequently, the annual profit presented by a legal entity, was distributed among the seasons as
follows: if considering that business receives X part of the annual income, then its income in
summer and autumn will be 2X and 3X in spring. Consequently, if the profit of a legal entity was
7000 GEL a year, the profit of this entity will be calculated as follows: 7000:7X3, equaling to 3000
GEL in the given case.
The unit compensation rates will be assessed by Project consultant or by the MDF authorized
independent evaluator on clear and transparent methodologies acceptable to WB. The assessed
compensation rates will then be verified and certified by the Environmental and Resettlement Unit
Table 16: Compensation Entitlement Matrix
Type of Loss
Number of Aps
Loss of Income and Livelihood
PAP’s in project area
PAP’s will be given
profit will be
fixed for a 5-member