Land Acquisition and Resettlement Framework - October 2020
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Land Acquisition and Resettlement Framework October 2020 Uzbekistan: Distribution Network Modernization Project Prepared by Joint Stock Company Regional Electric Power Networks for the Asian Development Bank.
This land acquisition and resettlement framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
CURRENCY EQUIVALENTS
(as of 14 October 2020)
Currency unit – sum (SUM)}
SUM1.00 = $0.0000965921
$1.00 = SUM10,352.81
ABBREVIATIONS
ADB – Asian Development Bank
AH – affected household
AP – affected person
DP – displaced person
DDR – due diligence report
DLARC – district land allocation and resettlement commission
DMC – developing member country
DMS – detailed measurement survey
EA – executing agency
GFP – grievance focal point
GOU – Government of Uzbekistan
GRM – grievance redress mechanism
IA – implementing agency
IFI – international financial institution
IoL – inventory of losses
IR – involuntary resettlement
LAAC – Land Allocation and Assessment Commission
LAR – land acquisition and resettlement
LARF – land acquisition and resettlement framework
LARP – land acquisition and resettlement plan
PMU – project management unit
REN – Regional Electrical Networks
SDDR – social due diligence report
SES – socioeconomic survey
SPS – Safeguard Policy StatementGLOSSARY Affected Family/Household: All members of a family living under one roof and operating as a single social unit, who are affected by the project or its component. Affected Person: An individual affected by a project through land acquisition, relocation, loss of income, loss of livelihood, loss of employment or any other type of loss. Affected persons (APs) include: (a) persons whose place of living is affected; (b) farmers and nomads whose main form of livelihood is affected due to loss of trees, crops, grazing areas, forests, etc.; (c) persons whose businesses are affected and who may experience loss of their business income due to project activities; (d) persons who lose their employment and income due to project activities; and (e) persons who lose their community activities, contacts, and resources due to project impacts. This definition of AP is, however, at variance with how ADB’s Safeguard Policy Statement (2009) (SPS) uses this term only in the context of consultations and participation, disclosure, and grievance redress mechanism. Otherwise, ADB’s SPS uses the term ‘displaced person’ (DP). Nevertheless, AP is retained because this is how the ADB’s developing member country (DMC) agencies understand and use this term. Compensation: Payment in cash or in kind as cost of replacement of their assets, resources, and income opportunities due to a project. All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market rates. Replacement cost calculation comprises these elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued (if any); (iv) transitional and restoration costs (if any); and (v) other applicable payments (if any). Cut-off date: The date after which APs will not be considered eligible for receiving compensation. Under normal circumstances, the cut-off date is the date on which a detailed measurement survey will be commenced. Detailed Measurement Survey: The detailed inventory of losses that is completed after detailed design and after marking of project boundaries on the ground. Entitlement: Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and any other resettlement assistance. Income Restoration: The process of re-establishing the APs' income to the level they enjoyed prior to relocation. Inventory of Losses: The pre-appraisal inventory of assets as a preliminary record of affected and/or lost assets. Land Acquisition: The process whereby a person is compelled by a government agency to alienate all or part of the land the person owns or possesses to the ownership and possession of the government agency requiring the land for public purpose in return for compensation at replacement cost. Lease holder: Juridical person (farm) running agricultural production with the use of land parcels granted to him on a long-term lease. Lease term is limited up to fifty years but not less than for ten years. Leaseholder cannot sell, mortgage, present, or exchange the land. A lease holder is the unit of entitlement for receiving compensation.
Livelihood: The total package of earnings either in cash or kind a person generates for his/her survival. Non-titled: Those who have no recognizable rights or claims to the land that they are occupying. In the context of Uzbekistan, this includes people using state land without a lease, permit, or grant, i.e., those people without legal titles to land and/or structures occupied or used by them. Poor: Those falling below the official national poverty line. According to the regulations the low- income families are classified by makhalla committees as families where the monthly per capita income is less than the equivalent of 52.7% of minimum wage. The new amount of the minimum wage since 1 February 2020 is SUM679,330. Accordingly, the poverty line is SUM358,007 (approximately $1.26 per capita per day). Rehabilitation: Compensatory measures provided under the policy framework on involuntary resettlement other than payment of the replacement cost of acquired assets. Relocation: Physical relocation of an AP from a pre-project location of his/her residence. Replacement Cost: means valuing assets to replace the loss at current market value and is the amount of cash or kind needed to replace an asset in its existing condition, without deduction of transaction costs or for any material salvaged. According to the SPS, the calculation of full replacement cost is based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued; (iv) transitional and restoration costs; and (v) other applicable payments, if any. Vulnerable people defined for this project are those who are (i) the poorest, living close to or below the poverty line; (ii) households headed by women; (iii) households headed by the disabled or those unable to work.
TABLE OF CONTENTS
I. INTRODUCTION 1
A. General ............................................................................................................................1
B. Project Components ........................................................................................................1
C. Project Concept, Objectives, and Geographic Coverage..................................................1
II. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS 4
A. Scope of the Land Acquisition and Resettlement Framework...........................................4
B. Screening of Project Activities ..........................................................................................6
C. Policy and Legal Framework ............................................................................................6
1. General .........................................................................................................................6
2. Uzbekistan Laws and Regulations Relevant to LAR for this Project ..............................6
3. Asian Development Bank Safeguard Policy Statement 2009 ......................................23
4. The Framework Principles ..........................................................................................25
5. Comparison of Requirements of ADB’s SPS 2009 with Relevant Uzbekistan
Legislations on Land Acquisition and Resettlement ...........................................................26
6. Affected/Displaced Persons, Cut-Off Date ..................................................................30
7. Compensation Eligibility and Entitlements...................................................................31
III. SOCIOECONOMIC INFORMATION 34
A. Methodology ..................................................................................................................34
B. Valuation Methods of Affected Assets and Livelihood ....................................................35
C. Methods for Determining Replacement Cost ..................................................................36
IV. CONSULTATION, PARTICIPATION, AND DISCLOSURE 36
A. Consultation and Participation........................................................................................36
B. Participation of Women and Vulnerable Groups .............................................................37
C. Disclosure ......................................................................................................................37
V. COMPENSATION, INCOME RESTORATION, AND RELOCATION 37
VI. GRIEVANCES REDRESS MECHANISM 38
A. Grievance Redress Process ..........................................................................................38
B. Existing Complaint Handling Mechanism in Uzbekistan .................................................39
C. Proposed Project Level GRM .........................................................................................40
D. Channels for Submitting and Receiving Grievances .......................................................41
VII. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION 42
A. Executing Agency – PMU of JSC Regional Electric Networks ........................................42
B. Implementation Consultants ...........................................................................................42
C. Office of Land and State Cadastre .................................................................................42
D. District Khokimiyats........................................................................................................43
E. Local Government Agencies ..........................................................................................43
F. Independent Valuation Companies ................................................................................43
G. LARP Implementation Process ......................................................................................43
H. Safeguards Capacity ......................................................................................................44
VIII. BUDGET AND FINANCING 44
IX. MONITORING AND REPORTING 44
APPENDIX 1: Involuntary Resettlement Screening ............................................................46
APPENDIX 2: Outline of an IR Due Diligence Report.........................................................48
APPENDIX 3: Sample LARP Outline .................................................................................49
APPENDIX 4: Outline of a Project Information Brochure ....................................................52I. INTRODUCTION
A. General
1. This land acquisition and resettlement framework (LARF) is prepared for the Uzbekistan:
Distribution Network Modernization Project. Although not a requirement under ADB’s Safeguard
Policy Statement (SPS) for a stand-alone project loan, this LARF is prepared as a heads-up early
action to help the Joint-Stock Company (JSC) Regional Electricity Power Network (REN) prepare
land acquisition and resettlement plans (LARPs) using a national resettlement consultant, should
the need arise for land acquisition. This follows the instructions in ADB’s Operations Manual (OM)
Section F1 (2013), paragraph 52 that says that for project loans where subprojects or components
are prepared after the ADB Board approval and have limited anticipated involuntary resettlement
impacts, a resettlement framework may be submitted in lieu of safeguard plans for such
subprojects or components. In such a case, the social assessments and safeguard planning
documents are required to be formulated and approved before any physical activities start.
B. Project Components
2. The works that will be carried out under this project are listed below, described in later
paragraphs. The focus of the LARF is on the installation of transformers and poles. As will be
observed, the project activities will result in no or minor resettlement impacts, as no land
acquisition is envisioned.
• Replacement / construction of transformers – pad-mounted and pole-mounted
• Replacement / construction of distribution line – poles and cable
• Rooftop solar pilot project
• Modernization of the distribution dispatch centers
• Introduction of supervisory control and data acquisition (SCADA) system
C. Project Concept, Objectives, and Geographic Coverage
3. In modern economies, reliable and affordable electricity is fundamental for driving
economic growth and socioeconomic development. The structure of the electricity supply industry
is an important factor determining the ability of these economies to meet such goals.
Uzbekenergo, as the monopolistic vertically integrated state-owned enterprise, was tasked to
provide electricity for Uzbekistan. However, inherent limitations and inefficiencies of this structure
resulted in uneven electricity supply seasonally and geographically, highly subsidized operational
costs, inadequate power generation capacity addition to meet the fast-growing demand. Of the
existing 12.5 gigawatts (GW) thermal power plant capacity in Uzbekistan, more than 40% is in
plants aged 40–50 years with low efficiency and poor reliability. The predominantly gas-based
power generation resulted in 80% of the total of 63 terawatt-hours electricity produced in 2018.
4. The distribution network comprises approximately 213,400 kilometers of distribution lines,
a significant part of which was built during the Soviet era from the 1950s to 1970s. More than 80%
distribution lines have been in use for over 30 years and about one-third of substation
transformers are in urgent need of replacement. The ageing and deteriorating network causes
serious problems, such as high system losses, overloads, excessive voltage drops, and
increasingly frequent blackouts, especially during peak demand period in winter (November to
March). In small towns and in rural areas, where half the country’s population lives, power outages
may last from six hours a day to weeks, disrupting the normal operation of local business entities.
The lack of reliable electricity is a major issue in stimulating rural economy and it exacerbates
1urban–rural disparities. The distribution system technical losses are about 13%, nearly double of
international standard resulting in excessive natural gas consumption and associated greenhouse
gas emissions.
5. The Asian Development Bank (ADB) is supporting the Uzbekistan Government’s
integrated rural economic development initiative that can revitalize the rural economy and help
build modern infrastructure and government services in the rural areas. ADB has included
targeted programs to provide modern and highly efficient rural infrastructure for power distribution.
Energy is one of ADB's priority sectors of engagement in Uzbekistan. The country partnership
strategy for Uzbekistan indicates that energy sector operations will focus on reform and market
development to meet energy demand with reliable, environmentally sustainable supply. The
government's request is also consistent with ADB's priorities under Strategy 2030 and, based on
the government's demonstrated commitment to reform.
6. The Distribution Network Modernization Project for the ADB financing comprises the
procurement and installation of a total number of 4,278 transformers, divided between new – 911
and replacement – 3,367. The total length of the network is 13,170 kilometers, divided between
new – 1,958 km and replacement – 11,212 km. Network replacement means the replacement of
existing network poles and cable. Old cables will be replaced with new modern SIP cables.
Approximately, 60,000 concrete reinforced poles are needed per year in all three regions.
Province-wise break-up of the project is the following:
1. Samarkand province
Transformers: new – 240, replacement – 1,360. Total = 1,600
Network: new – 750 km, replacement – 4,250 km. Total = 5,000 kilometers
Number of poles needed: 19,000 per year
2. Djizzak province
Transformers: new – 272, replacement – 1,139. Total = 1,411
Network: new – 509 km, replacement – 2,327, Total = 2,836 kilometers
Number of poles needed: 12,000 per year
3. Bukhara province
Transformers: new – 399, replacement – 868. Total = 1,267
Network: new – 699 km, replacement – 4,635 km. Total = 5,334 kilometers
Number of poles needed: 18,600 per year.
7. The project will cover priority districts of the three provinces of Bukhara, Jizzakh, and
Samarkand. At present, the number of transformers, poles, and the kilometers of network are
based on the selection criteria considering the ages, wear and tear, safety factors, etc. The scope
of works in the priority districts of the three provinces is under development. When this information
becomes available, it is proposed that a national social safeguards staff / consultant of REN will
carry out a social impact assessment of the locations for the new transformers for possible
involuntary resettlement (IR) impacts, and province-wise LARPs shall be prepared if resettlement
impacts are identified for the replacement or modernization of the transformers. For this purpose,
REN’s safeguards specialist will be supported and guided by a consultant safeguards specialist,
preferably international, who will be intermittently engaged by the project supervision consultant.
The spots for the 911 new transformers shall be finalized by the detailed design in consultation
with the local gas, road, water, architecture, cadastre, urban telecom, and irrigation authorities.
28. The transformers are of two types: (i) those on a pad, and (ii) those on poles. Whatever
their type, these are all installed on public land. And, all land in the country is public land; the
residents are given long-term lease for their housing land and typically, up to 50 years of lease
for agricultural land. Therefore, for replacement of transformers and/or installation of new
transformers, no land acquisition is envisioned. Similarly, the distribution line poles are always
installed on public land, typically on roadsides. The solar pilot project is proposed to be a rooftop
facility on state assets, as also the modernization of the distribution dispatch centers which are
existing facilities (details follow).
9. Based on the sites visit to the project priority initial makhallas, it is not anticipated that
there will be land acquisition because, as explained above the transformers and poles are always
installed on public land. The only case of IR impact may occur when a private individual encloses
a public asset like a transformer or a pole within his/her boundary wall, as shown in a photo in
para. 15. This is commonly found in Jizzakh area and, also found at a smaller scale in Bukhara
and Samarkand regions. In such a case, the private property may suffer damages when the public
assets are removed to another location. However, as the representative photo demonstrates,
causing any damage to private property is unlikely. If damages occur, as the representative photo
in para. 15 shows, only secondary structures like walls may be affected that is likely to trigger the
IR requirements leading to preparing a LARP although, the policy of the executing agency (EA)
is to disconnect and leave the assets where they are and install replacement assets in new public
locations. Besides, in the case of replacing the transformers, the operation is like a tooth extraction
by a dentist such that, a crane lifts the old transformer and replaces it with a new one and the old
one is trucked away; nobody is affected. Affecting a main structure or trees are very unlikely.
Similarly, replacing the poles requires very little space on the state land and does not affect any
person even temporarily. These are relatively small activities and impacts emerging from the
contractor’s activities too are not likely to happen. In any case, the project’s environmental
management plan that governs a contractor’s activities should be addressing issues related to
the contractor’s construction related activities, while the entitlement matrix in this LARF proposes
the damages to be repaired or compensated at replacement cost during the project construction.
10. The project includes the modernization of the distribution dispatch centers and introduction
of the SCADA system. The target dispatch centers are located in the administrative buildings of
the subsidiary territorial distribution companies. Therefore, no land acquisition and resettlement
(LAR) impact is anticipated. It is understood that under the project solar panels will be installed in
social institutions (schools, colleges, hospitals, etc.) of Bukhara city, Samarkand city and Djizzakh
city. The number of such institutions is not yet known. The solar panels will be installed on the
rooftops or yards of such institutions. Therefore, no LAR impact is anticipated. As the nature of
these secondary project components (the rooftop solar pilot project, the modernization of the
distribution dispatch centers, introduction of the SCADA system) are known, there should be no
requirement for reconfirming their resettlement impact status through a due diligence exercise
following the detailed engineering design.
11. Subprojects or components for ADB financing under the project will be selected after
subjecting these to an IR screening checklist exercise as in Appendix 1. If there are instances
where land acquisition will be required for a subproject following the detailed engineering design,
the provisions of the resettlement framework will be triggered and province-wise LARPs will be
prepared according to the provision of this LARF. Otherwise, an IR due diligence report should
suffice.
12. The Joint-Stock Company (JSC) Regional Electricity Power Network (REN) will be the EA
for the project and will implement the physical works in the regions through its subsidiary territorial
3distribution companies (JSC TDs). The JSC TDs, as implementing agencies (IA), have been
implementing similar activities over the years and are capable in managing the construction works
envisaged under the project. The Project Management Unit (PMU) under JSC REN will manage
the project implementation while overseeing the regional offices and centrally procuring
standardized goods and equipment. The selected subprojects will be screened by the JSC TDs
and REN using the IR screening checklist and will be accompanied with an IR due diligence
report. An outline of an IR due diligence report is included in Appendix 2. The ADB project team
will validate both the screening and due diligence exercise. The due diligence report will include
information on the status of the land ownership/tenure and attach supporting documents. If land
must be acquired and/or structures would be affected, a LARP shall be prepared.
13. The procurement of transformers, poles and cables and the installation works for this
project are proposed to be grouped into a village or Makhalla level or regional level for efficiency.
The installation activities will be a mix of EPC type contracts (procurement + construction), and
“goods + installation works”. In either case, the location of poles and final alignment with the
distribution networks will be done by the design institute and the distribution company. Depending
on the procurement approach, LARP/SDDR preparation will be a condition to contract award
(goods + installation) or detailed engineering (in case of EPC contract).
II. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS
A. Scope of the Land Acquisition and Resettlement Framework
14. The LARF provides guidelines for development of appropriate mitigation measures,
including compensation for resettlement impacts due to acquired land and assets and reparation
of the damages due to temporary impacts of land requisition, if possibly caused by future project
activities (installation of transformers and transmission line poles) whose exact locations are not
known yet. The LARF will be applicable to all ADB financed and/or administered components of
the project if land acquisition becomes necessary for the project implementation, leading to
possible impacts, such as:
(i) relocation or loss of shelter;
(ii) loss of land, trees, other assets or access to them; and
(iii) loss of income sources or means of subsistence.
15. The electricity distribution system involves modernizing the existing transformers and
utility poles and, in some cases, install new ones. The poles and the transformers were installed
between the 1950s and the 1970s during the Soviet times on the state land, when the population
was relatively small and the demand for energy was very limited. With the increase in the
population size, and especially after the country gained independence in 1991, the demand for
energy grew many times, as new businesses developed, and people started buying consumer
goods. It is understood that during the Soviet times, the poles and transformers were replaced
every 30 years. When the time for replacement came, the Soviet system collapsed, and the
country gained independence. As a result, the new country's priorities changed and replacing
these was not among the then new priorities in the 1990s.
416. It was observed during the sites visit that people apparently freely grabbed state land on
which the poles and transformers stood next to the land allotted to them (for both residential and
agricultural purposes) and,
in many cases, enclosed
poles and even transformers
within the walls or fencing of
their grabbed land. This has
created an accessibility
issue for REN for the
maintenance of these
assets. This issue is more
prominent in Jizzakh than in
other focus regions. The
REN, on its part, is moving
away these installations to
other public land as part of
the project (transformers
with more capacity to cater
A representative photo from the project sites visit, showing a transformer
to the modern energy needs)
and a pole illegally enclosed within the walls of a private house owner.
for accessibility and, safety
of the people which, it
considers as an opportunity.
17. In the case of replacing the transformers, the operation is like a tooth extraction by a
dentist such that, a crane lifts the old transformer and replaces it with a new one and the old one
is trucked away; nobody is affected. Similarly, replacing the poles requires very little space on the
state land and does not affect any person even temporarily. As such, there will be no need for
land acquisition. In case of land acquisition, it will be for a very small area of land for the poles.
18. Under the project, each installation works contract is a subproject. The detailed designs
and engineering of subprojects will be done using the ADB loan financing or REN’s own resources
under the scope of the project. At this time, while the scope of the project will cover all the activities
associated with the paragraph 6, it is not known how subprojects will be sequenced by REN
except the initial sample project sites. Therefore, the social impacts will be known in detail at the
stage of development of the design. This LARF considers the possibility of minor land acquisition,
if at all, and temporary restriction of access to the land during the construction period or permanent
loss of assets.
19. In case of any involuntary resettlement impact, a LARP will be developed. The LARP will
define: (i) the scale of impacts (temporary or permanent) on land use, access to the land, impact
on agricultural land, trees and buildings / structures and sources of income; (ii) description of the
legal framework applicable to the land acquisition; (iii) the mechanisms of compensation or/and
assistance, resettlement procedures, eligibility criteria for compensation to the program affected
persons, methods of valuation; (iv) a matrix of entitlements, processes of implementation,
dissemination of information and consultation procedures; (v) grievance redress mechanism,
(vi) compensation for affected land and assets including the LAR budget; and (vii) monitoring and
reporting arrangements. An outline of a LARP from the SPS is presented in Appendix 3.
20. The LARF contains measures to ensure that the project affected persons:
5(i) participate in consultations on possible options for compensation, have the right of
choice and are provided with technically and economically feasible alternatives of
resettlement; and
(ii) are provided with the prompt and effective compensation at full cost of replacement
for the loss of assets related to implementation of this program.
21. The LARF is based on the Uzbekistan laws and regulations on land acquisition and
resettlements and ADB’s Safeguard Policy Statement (SPS) 2009, Safeguard Requirements 2
(SR2) described in the following chapter.
B. Screening of Project Activities
22. As indicated in para. 8, the first step in the process of preparing individual LARPs is the
screening process to identify the land/ areas that may result in resettlement impacts. The PMU of
REN will carry out this screening in conjunction with the local government bodies (khokimiyat and
other relevant agencies) to identify the types and nature of potential impacts related to the
activities proposed under this Program, and to provide adequate measures to address them.
23. The screening process comprises the potential site verification and filling up the screening
form in accordance with established screening criteria and documented as a report on screening
of potential social impacts. If relevant, it will also involve direct consultation with the potentially
affected persons.
24. Should the screening process show that land acquisition will be required or impacts to
some private structures cannot be avoided, the next step will be a census of all affected persons
and an inventory of all losses based on the project design, described in a relevant chapter later.
25. If the screening process shows that there is no land acquisition, the PMU will prepare a
social due diligence report (SDDR) documenting that the subproject or component will not affect
private land or assets. The SDDR will be reviewed by and concurred with ADB.
C. Policy and Legal Framework
1. General
26. The legal and policy framework of the project is based on the national laws and legislation
related to land acquisition and compensation policy in Uzbekistan and ADB’s SPS. The project-
related LAR principles have been adopted by this LARF based on an analysis of applicable
national laws and policies and ADB’s IR Policy requirements. The following national laws and
legislations are applicable for addressing the possible LAR related impacts due to the project
implementation.
2. Uzbekistan Laws and Regulations Relevant to LAR for this Project
27. Starting with its Constitution in 1992, Uzbekistan has produced many laws and regulations
that are relevant in some way or other for the LAR activities. The following table shows the laws
and regulations that are particularly relevant for this project, followed by individual description.
6Table 1: Legal Instruments Applicable to the LAR Activities of this Project
# Legal Framework Functional Relationship to Resettlement
General laws applicable to land acquisition and resettlement
1 The Land Code (LC) dated 30 April 1998 Describes a condition for permanent land
(amended 15 November 2019) expropriation and temporary land acquisition.
2 Civil Code (CC) dated on 29 August 1996 Regulates general rules of property seizure,
(amended 11 December 2019) determination of property cost and rights for
compensation, terms of rights termination.
3 The Resolution of the Cabinet Ministers of the The resolution sets out procedures for compensation
Republic of Uzbekistan "About Additional Measures to individuals and legal entities in case of acquisition
to Guarantee Property Rights of Individual Persons of residential lands for public needs and investment
and legal Entities and to Improve Procedures of projects. The resolution defines that land
Land Acquisition and Compensations" dated 16 expropriation can be implemented only after
November 2019, # 911 replacing the older meaningful consultation with APs.
Resolution #97.
4 The resolution of CoM “On measures to improve the Regulates resettlement compensations for the
procedure for granting land plots for urban income loss, the value of agricultural loss belonging
development activities and other non-agricultural to landowners, users, tenants in case of land
purposes” dated on 25 May 2011, #146 acquisition. Also, it regulates the provision of land to
land compensation in case of agricultural and forest
relates losses.
5 The Law of the Republic of Uzbekistan “About Regulates general rules of privatization of non-
Privatization of Non-Agricultural Land Plots” dated agricultural lands, acquisition of privatized lands and
13 August 2019, #ZRU-552 procedure of compensation for acquisition of
privatized lands for public needs.
6 Presidential resolution “On measures to improve the Confirms that the resettlement costs are paid based
effectiveness of training and realizing projects with on assessment documents prepared by IFI by their
participation of international financial institutions and methodology.
foreign government financial organizations” dated
on 16 July 2018, #3857
7 The Law of Uzbekistan on Protection of Private The purpose of this Law is to regulate relations in the
property and Guarantees of Ownership rights dated field of protection of private property and guarantees
22 September 2012 # 336 of property rights. It regulated the entitlement of
property owners to full market value compensation in
case of acquisition for the State needs.
8 Decree of the President of the Republic of Purpose of this decree is to ensure that land
Uzbekistan “On measures on cardinal improvement acquisition is effected only after carrying out
of the investment climate in the Republic of meaningful consultations with the APs.
Uzbekistan" dated 1 August 2018 #5495.
9 Resolution of the Cabinet of Ministers “On the The resolution fixes procedure for establishment of
procedure for the formation and use of centralized national and local centralized compensation funds
funds for the compensation to affected individuals and use financial resources for compensation of
and legal entities due to land acquisition for the state losses of APs due to acquisition of land for public
or public needs” dated 26 December 2018 #1047. needs under development programs initiated by
central government and local Khokimiyats.
10 Law of the Republic of Uzbekistan “On valuation The law regulates relations related to the
activity” # 811-I dated 19 August 1999. implementation of valuation activities and cover
issues such as licensing of valuation activity, types
of valuation values, valuation standards, cases for
obligatory valuation, rights and obligations of
valuation organizations, requirements for valuation
report, responsibility for violation of valuation
legislation, settlement of disputes etc.
11 Law of the Republic of Uzbekistan “On Appeals of Main purpose of the law is to regulate issues related
7# Legal Framework Functional Relationship to Resettlement
Physical and Legal Persons” to appeals of individual persons and legal entities to
government bodies.
Entitlements for Vulnerable Groups
12 The Resolution of the Cabinet of Ministers “On The resolution regulates the mechanism of
approval of the order of the appointment and determination of vulnerable groups and their
payment of social allowances and material entitlements.
(financial) assistance to low-income families” dated
on 15 February 2013 #44.
13 Presidential Decree “About measures to implement The presidential decree fixes exact amounts of all
the law “On the state budget of the Republic of types of social allowances to be paid to low-income
Uzbekistan for the year 2020” dated 30.12.2019 # families in Uzbekistan.
PP-4555.
Establishment of restrictions and safety zones
14 The resolution of CoM “On the approval of the rules This resolution defines safety zones for power
of protection of power transmission facility objects transmission lines both horizontally and vertically.
dated 26.12.2018, # 1050 This resolution applies to all infrastructures and
facilities in relation to power up to 500 kV.
15 KMK 2.10.08-97 – Land allocation norms for power This set of norms regulates the land allocation for the
transmission lines 0.4 – 750 kV temporary and permanent period during the
construction of transmission lines.
i. The Land Code of the Republic of Uzbekistan
28. The Land Code of the Republic of Uzbekistan was adopted on 30.04.1998 with the latest
amendment of 15.11.2019. The code regulates the issues of withdrawal and provision of land
plots for non-agricultural needs, compensation for losses of agricultural production, defines
ownership and rights on land. It describes responsibilities of different state authorities of
Uzbekistan related to land management; rights and obligations of land possessor, user, tenant
and owner; land category types, land acquisition and compensation, resolution of land disputes
and land protection. The Land Code also defines the terms of rights termination on land plot,
seizure and land acquisition of land plot for state and public needs, and terms of seizure of land
plot in violation of land legislation.
29. According to the Land Code of the Republic of Uzbekistan, all land in Uzbekistan is state
property and permits for use of land are granted and monitored by the State through the district
and province administrations. National legislation envisages the following types of land transfers:
for use, lease, or ownership by legal entities (only with the objectives of trade and services
infrastructure), and for lifelong inheritable ownership (with housing), use, or lease by individuals.
While all land transactions are subject to state regulation, some transactions occur with special
permission of the state. The laws and procedures for expropriating agricultural and urban land
are treated differently under the Uzbek law. While agricultural land issues are covered and treated
under the Land Code, urban land issues are covered under the Civil Code, the Housing Code,
and the Urban Construction Code.
30. The Land Code identifies several categories of land users, who are eligible for
compensation for losses and damages in connection with land acquisition:
• land tenants – citizens who were allocated land plots for individual housing construction
and/or dehkan farming on the basis of life-long tenure;
• lessees (leaseholders) – farmers, who were allocated land plots for agricultural
production purposes, on the basis of a long-term lease;
8• land owners – users of land plots occupied by trade and services infrastructure, which
are used as private property. Land, occupied by trade and services infrastructure,
however, may not be sold separately from the latter
• land users – all other enterprises, organizations and institutions, which are entitled to
use non-agricultural lands. This is the largest category, which includes enterprises and
institutions of all types (private and public). Examples include hospitals, schools, private
enterprises, and factories.
31. The land legislation envisages compensation for damages to land users in full, including
lost profits in the following cases: (a) permanent or temporary acquisition of land; (b) limitation of
the rights of users; (c) deterioration of land quality due to implementation of construction works,
servicing, and other activities that lead to reductions in the quantity or quality of agricultural
products. According to the legislation, compensation for loss of agricultural production is not
provided if: (i) land is acquired for the construction and servicing of individual housing; (ii) land is
acquired for the construction of schools, boarding-schools, orphanages, preschool and healthcare
establishments; and (iii) land was allocated for water management purposes and for the
construction of irrigation and water related facilities.
ii. Civil Code of the Republic of Uzbekistan
32. The Civil Code of the Republic of Uzbekistan was adopted by the Laws of the Republic of
Uzbekistan No.163-I dated 21.12.1995 and No.256-I dated 29.08.1996 with the last amendments
of 11.12.2019. The Civil Code provides definition of property, main concepts to property objects,
basics of termination of property rights and right for compensation payments due to property right
loss, rights on intellectual property, it regulates the contractual and other obligations as well as
other property and related personal non-property relations. The Code sets general rules of
property acquisition, calculation of property cost and rights for compensation, terms of rights
termination.
33. The Code provides that a person whose rights are violated may claim full compensation
for damages, unless the law or the contract provides compensation for losses in a smaller size
(Article 14, Clause 1). The Civil Code (Article 14, Clause 2) also specifies that losses are
understood as:
• expenses that the person whose rights are violated, made or must make to restore the
violated rights;
• loss of or damage to property (real damage);
• revenues which this person would have received under normal conditions of civil
turnover if his rights had not been violated (lost profits).
34. According to Article 14, Clause 3 “If a person who violated a law and got revenues received
as a result of this, the person whose rights had been violated has the right to claim compensation
along with other losses, lost profits in the amount not less than such revenues”.
35. According to Article 7 “If an international treaty or agreement stipulates other rules than
those stipulated by civil legislation, rules of the international treaty or agreement shall be applied”.
This rule is a common rule for all Uzbekistan’s laws.
36. According to the Article 8, Clause 3, the rights to the property which are subject to state
registration shall arise upon the registration of the relevant rights to it, unless otherwise provided
by law. Article 84, Clause 1 says that the right for ownership and other real property rights,
creation, transfer, restriction and termination of these rights are subject to state registration. This
9means that without registration the right to real estate property does not enter into the force. This
statement is very important for the further understanding of LAR processes related to land
acquisition and building’s demolition.
iii. The Resolution of the Cabinet Ministers of the Republic of Uzbekistan "About
Additional Measures to Guarantee Property Rights of Individual Persons and
legal Entities and to Improve Procedures of Land Acquisition and
Compensations "
37. This resolution with the reference number 911 was adopted on 16.11.2019 that replaces
the older Resolution #97, dated 29 May 2006 and entered into force starting from 01.01.2020 sets
out procedures for compensation to individuals and legal entities in case of acquisition of
residential lands for public needs and investment projects. This regulation mainly deals with
residential land plots, houses, building and structures of individuals and legal entities. The
regulation does not apply to privatized land plots.
38. The following are the general principles and procedures of the resolution to be followed
during acquisition of land of individual persons or legal entities for public needs/investment
projects and providing compensation.
• Acquisition of a land plot for public needs shall be carried out with the landowner’s
consent or in agreement with the land user, by a resolution of Councils of People’s
Deputies as well as resolutions of the President and Cabinet of Ministers of Uzbekistan.
• Based on such resolutions local Hokimiyats issue their resolutions for demolition of real
estate on a land acquired. Resolutions of Hokimiyats shall be reviewed and approved
by local justice departments.
• Compensation agreement must be prepared and signed by initiator of land acquisition
and land user. The agreement shall be effective after official notary certification.
Structures existing on the acquired land can be demolished only after full payment of
compensation indicated in the compensation agreement.
• Previously issued land allocation resolutions cannot be modified or terminated for the
purpose of further acquisition of lands.
39. A special Land Acquisition and Compensation Coordination Unit shall be established in
each province Hokimiyat. The total staff strength of each Coordination Unit shall include two
persons. The following are the main functions of the Land Acquisition and Compensation
Coordination Unit:
• check availability of compensation resources (money, lands, other properties) to
provide for losses to be incurred;
• prepare presentation materials of planned construction works to review by Councils of
People’s Deputies;
• carry out meaningful consultations with affected persons;
• monitoring of timely implementation of compensation agreements to be signed by APs
and land acquisition initiators;
• prepare information for the Cabinet of Ministers regarding land acquisition,
compensation payments, demolishing of properties, as well as implementation of
construction works on the acquired lands.
40. Additionally, district and city level hokimiyats can also be staffed with one Land Acquisition
and Resettlement Specialist based on the needs to handle land acquisition and resettlement
10issues. Functions of the Land Acquisition and Resettlement Specialist will be the same as that of
the Compensations Coordination Unit mentioned above.
41. Land acquisition and demolition of residential, industrial, other constructions and plantings
are allowed only for the following purposes:
• defense and state security, needs of protected natural areas, creation and functioning
of free economic zones;
• implementation of obligations arising from international treaties;
• discovery and development of mineral deposits;
• construction (reconstruction) of roads and railways, airports, aerodromes, air navigation
facilities and aviation centers, railway transport facilities, bridges, subways, tunnels,
energy systems and power lines, communication lines, facilities of space activities,
trunk mains, engineering and communication networks;
• implementation of master plans of settlements in terms of construction of facilities at
the expense of the state budget of the Republic of Uzbekistan as well as in other cases
directly stipulated by the laws and decisions of the President of the Republic of
Uzbekistan.
42. Demolition of real estate facilities, both with formal title or without, due to land acquisition
is allowed only after full compensation of the facilities and losses at market value has been made.
43. In case lands are acquired for public needs by local Hokimiyats, compensation shall be
paid from the fund of the National Fund for Land Acquisition and Resettlement Compensation.
44. In case lands are acquired for an investments project, then the investor organization will
be responsible for payment of compensation, provision of houses or apartments, and temporary
housing, as well as the reimbursement of all relocation costs.
45. Local Hokimiyats shall disclose land acquisition and resettlement related resolutions,
dates and venue of consultations with APs, consultations minutes and other related information
on their web sites and/or on mass media.
46. Land users may appeal the resolution of the respective district/town Hokim on demolition
and approval of the value of residential, manufacturing, and other-purpose buildings, facilities,
and plantings subject to demolition in the Hokimiyats of the Provinces as well as in the court
system.
47. The following shall be compensated due to land acquisition and demolition of real estate
properties:
• market value of real estate facilities;
• market value of land use right;
• relocation costs;
• cost of temporary renting of other real estate facilities;
• loss of profit;
• other costs and damages incurred due to land acquisition.
48. The following types of compensation can be provided for land acquisition and demolition
of real estate properties:
• cash compensation;
• other equivalent real estate properties;
11• land plots;
• other types of compensation which can be agreed in compensation agreement.
49. Salvage materials from the demolished real estate facilities can be taken by the owner in
case these facilities are demolished at the expense of the owner. This issue shall be agreed
between the owner of the facilities and the initiator of land acquisition.
iv. Resolution of the Cabinet of Ministers “About the Measures of Improvement
the Order of Provision of Land Plots for Implementation of Urban
Development Activity and for Other Non-Agricultural Needs”
50. Being adopted on 25.05.2011 with the reference number 146 and with amendments on
20.12.2019, this resolution is aimed to improve the procedure of providing land plots, protect rights
of legal entities and individuals during land acquisition, improve the architecture of settlements
and the efficient use of their land for construction in accordance with the land code and the
national town planning code. The resolution mainly deals with agricultural lands. This resolution
regulates: (i) procedure for providing land plots for urban development and other non-agricultural
purposes, (ii) procedure of compensation for land possessors, users, tenants and owners, as well
as losses of agriculture and forestry.
51. The Regulation on the procedure of compensation for possessors, users, tenants and land
owners, as well as losses of agriculture and forestry includes the following:
• compensation for losses of users, tenants and land owners;
• compensation for losses of agriculture and forestry;
• cost of irrigation and developing equal new land plot in return for seized irrigated
agricultural land;
• cost of fundamental improvement of grassland and pasture;
• scheme for determination of losses of land possessors, users, tenants and owners, as
well as losses of agriculture and forestry;
• coefficients on location of seized land plots.
52. Losses of land owners, users, tenants, as well as losses of agriculture and forestry should
be compensated before granting of documents certifying rights on land plot. The regulation also
orders that demolition of house or building shall be done only after agreeing on compensation
and providing replacement premises. The regulation orders that compensation shall be paid
before starting any construction work on the land acquired. In case land owners, users, and
tenants whose land plots are acquired disagree with compensation amounts they can appeal to
a court. In case of acquisition and temporary occupation of land plot or part thereof, the following
shall be compensated:
• cost of land plot, owned by individuals and legal entities;
• cost of residential houses, constructions and installations, including incomplete
constructions, and also located outside of allocated plot, if its further utilization is
impossible due to seize of land plot;
• cost of fruits and berries, other perennial plants;
• cost of incomplete agricultural production;
• loss of profit.
53. The amount of losses of agricultural land owners, users, tenants shall be determined by
the State Research and Design Institute "Uzdaverloyikha" and its regional divisions; regional
12branches of state enterprises for land management and real estate cadastre, and departments
for architecture and construction with help of evaluation company.
54. The amount of losses due to land acquisition are considered by land commissions under
the Cabinet of Ministers, Council of Ministers of the Republic of Karakalpakstan, Hokimiyats of
provinces, districts and cities and approved by local authorities.
55. The losses of owners, users, and tenants of land plots as well as the losses of agricultural
and forestry production shall be compensated before issuing to a new owner, user and lessee
documents certifying the right to the land plot.
56. The following shall be compensated in case of permanent land acquisition or temporary
use of land:
• cost of land plot which is privately owned by legal entities and individuals;
• cost of residential houses, buildings and structures, including facilities whose
construction was not completed;
• cost of fruit, protective and other perennial plants;
• cost of not-completed agricultural production;
• loss of profit.
57. The cost of unfinished agricultural production, including cost of used materials (seeds,
mineral and organic fertilizers, pesticides, herbicides, etc.) and actually performed works
(preparation of soil for sowing, cleaning of irrigation and drainage network, sowing seeds,
watering, processing of crops, etc.) shall be evaluated based on the primary accounting
documents.
58. The cost of the lost profit of legal entities due to land acquisition shall be calculated on the
basis of the average annual net income for the last three years based on financial reports on for
the relevant years, and the period which is necessary for the restoration of activity on new location.
The period necessary for restoration of activity on a new location is time for obtaining land plot,
standard time for design and construction of facilities similar to those to be demolished.
59. Loss of profit shall not be compensated in cases when legal entities and individuals are
provided with new land plots of equivalent value:
• losses of lands are paid compensated to the government in the following cases:
• permanent or temporary acquisition, purchase of agricultural land which had been given
to people for agricultural activities for non-agricultural purposes;
• restriction of rights of owners, users, tenants to land plots due to creation of protective
and sanitary zones around new water reservoirs under construction, water supply
sources, resorts, main canals and collectors, roads, pipelines, power lines and
communications as well as other facilities;
• deterioration of land quality as a result of activities of legal entities and individuals.
60. Losses for agricultural lands are not compensated to the relevant government
departments in the following cases:
• housing construction and maintenance of residential buildings;
• construction of kindergartens, schools and medical institutions;
• construction of water facilities, reclamation facilities and hydro-technical structures;
• establishment of protected natural areas.
1361. Funds (tenfold or twentyfold amount, depending on the type of land) for compensation of
agricultural lands losses shall be transferred to special accounts of regional "departments on land
resources and state cadaster" within 1 month after adoption of local government’s decision on
land acquisition and approval of scope of losses.
62. The funds received into the special accounts of the regional departments shall be used
for the following purposes:
• development of new lands and reconstruction of irrigated lands;
• improvement of soil fertility;
• construction and reconstruction of drainage network, capital planning and improve
water supply of irrigated lands;
• improvement of hayfields and pastures;
• creation, restoration forests and nut-tree plantations;
• afforestation of sands, coastal strips of reservoirs and rivers;
• terracing of mountain slopes and implementation of other anti-erosion measures;
• land management, cadastral and forest management works;
• construction and equipping of wells and water pipelines on pastures;
• preparation of land management documentation for optimization of land plots of farms;
• reclamation of disturbed lands;
• creation of automated land information systems.
63. The cost of new lands development to be paid to the relevant government department in
lieu of the lands acquired shall be calculated based on the following table.
Table 2: Land Compensation Fee for Permanent Acquisition of Land
for Non-Agricultural Purposes
Land compensation fee, Thnd.SUM x
# Provinces
1 bonitet score (soil quality indicator)
1 Republic of Karakalpakstan 444.2
2 Andijan 761.6
3 Bukhara 634.8
4 Djizak 507.8
5 Kashkadarya 507.8
6 Navoi 507.8
7 Namangan 698.2
8 Samarkand 761.6
9 Surkhandarya 825.0
10 Sirdarya 507.8
11 Tashkent 761.6
12 Fergana 698.2
13 Khorezm 634.8
14 Tashkent city 761.6
64. Also, when calculating the cost of agricultural land loss, the location of the acquired land
plot (distance factor) shall be taken into account relatively to administrative and industrial centers.
Distance factors to be applied during calculation of compensation cost for permanent land
acquisition are given in the following table:
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