33
are considered inform
al occupants. characteristics, access and productivity to the plot lost. A clear
valuation methodology for these cases will be detailed in RAPs.
If damages to residences or commercial structures occur, houses/buildings will be valued at
replacement value based on the cost of materials, types of construction, labor, transport and other
construction costs. No deductions will be applied for depreciation, salvaged materials and
transaction costs. Compensation will be for the value of the loss of the entire structure.
Annual crops will be valued at net market rates at the farm gate for the first year crop. In the event
that more than one-year compensation is due to PAPs, the crops after the first year will be
compensated at market value (total farm gate sales value minus input costs).PAPs will not have to
pay taxes on this amount.
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
of MDFG.
Table 11: Compensation Entitlement Matrix
Type of Loss
Application
Number of Aps
Compensation
Entitlements
Loss of Income and Livelihood
Temporary reduction
of incomes
Formal and
informal PAP’s in
project area
26 PAP
PAPs will be given
20% of profit. The
profit will be
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 for
three month.
PAP’s will receive
20% of:
338.3X 3 month =
203GEL
Informal PAP’s
outside of the
project area
8 PAPs
PAP’s will be given
20% of profit. The
profit will be
calculated by
considering the
subsistence minimum
fixed for a 5-member
family. At present, the
35
PAP’s will be given
20% of profit for three
month.
If Suspension:
The
profit calculated based
on the official
document submitted
by the business owner
– a Tax Declar.
Will
be given profit for
three month.
Allowances
Relocation
Relocation costs
Only one PAP using
the carriage for
selling products.
7
As relocation cost PAP
will get 50 GEL.
Vulnerable People
Allowances
APs below the
poverty line,
families
lead by single
women,
refuges,
disabled
belongs I and II
groups and elderly
7 A
Ps below poverty
line, headed by
Women, disabled or
elderly
Allowance equivalent
to 3 months of
minimum subsistence
income for a family of
five* and employment
priority in project-
related jobs. This is
additional allowance
for vulnerability status
on top of that of other
entitlements in this
matrix.
Unconsidered Damage
Temporary impact
during construction
Due compensation will
be assessed and paid
based on this RPF
during construction.
Unforeseen impact
MDFG and the
construction
contractor will
address and
mitigate/compensate
unforeseen
Resettlement impact
during project.
4.6.4 Allowances for Vulnerable Groups
7
The remaining PAPs use tables/counters that are easily moved.