Azerbaijan Khizi 3 Azer LRP (Livelihood Restoration Plan) - English - DRAFT - V4 - FINAL PDF

Khizi 3 Wind Farm Project
Khizi Region
Azerbaijan
Livelihood Restoration Plan

- DRAFT (LRP)
Prepared for:
May 2022, V4
DOCUMENT INFORMATION
PROJECT NAME Khizi-3 Wind Farm Project, Khizi Region, Azerbaijan
5CS PROJECT NUMBER 1305/001/088
DOCUMENT TITLE Livelihood Restoration Plan - DARFT
CLIENT ACWA Power
5CS PROJECT MANAGER Reem Jabr
5CS PROJECT DIRECTOR Ken Wade
DOCUMENT CONTROL
VERSION DATE DESCRIPTION AUTHOR REVIEWER APPROVER
1 05/02/2022 LRP EFO RMJ KRW
1.1 16/02/2022 Revised LRP EFO RMJ KRW
2.0 12/04/2022 Updated LRP EFO RMJ KRW
3.0 26/04/2022 Draft LRP for Public Disclosure EFO RMJ KRW
4.0 13/05/2022 Draft LRP for Public Disclosure EFO RMJ KRW
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CONTENTS
1 INTRODUCTION_____________________________________________ 1
1.1 The Project ________________________________________________________ 1
1.2 Objectives of the LRP ______________________________________________ 2
2 PROJECT OVERVIEW ________________________________________ 3

2.1 Project Location ___________________________________________________ 3
2.2 Project Description ________________________________________________ 4
2.2.1 Associated Facilities ______________________________________________________4
2.3 Project Construction & Commissioning Requirements ________________ 7

2.4 Project Operational Requirements __________________________________ 8
3 LEGAL FRAMEWORK AND STANDARDS ___________________________ 9

3.1 National Regulations_______________________________________________ 9
3.1.1 The Constitution of the Republic of Azerbaijan ___________________________ 10
3.1.2 Land Code ____________________________________________________________ 10
3.1.3 Land Acquisition Law ___________________________________________________ 11
3.2 Lender Requirements _____________________________________________ 13

3.2.1 EBRD __________________________________________________________________ 13
3.2.2 ADB ___________________________________________________________________ 14
3.2.3 OFID ___________________________________________________________________ 16
3.2.4 Equator Principles ______________________________________________________ 16
3.3 Gap Analysis between National and Lenders Requirements_________ 17
4 BACKGROUND AND CONTEXT ________________________________ 23

4.1 Land Ownership __________________________________________________ 23
4.2 Land Acquisition Process __________________________________________ 23
4.3 Land Use _________________________________________________________ 24
4.3.1 Consultations __________________________________________________________ 24
4.3.2 Interviews with Seasonal Farmers ________________________________________ 24
4.3.3 Farmers Survey _________________________________________________________ 25
4.3.4 Identified Land Users ___________________________________________________ 25
4.3.5 Seasonal Farmers Without Land Lease Agreement _______________________ 27
4.3.6 Herb Collectors ________________________________________________________ 33
4.3.7 Hunters ________________________________________________________________ 36
4.4 Project Land Needs_______________________________________________ 37

4.5 Availability of Alternative Land for Land Users ______________________ 37
Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan i

Draft Livelihood Restoration Plan (LRP), V4
4.5.1 Ongoing Alternative Land Assessment Process ___________________________ 39
5 SCOPE OF ECONOMIC DISPLACEMENT _________________________ 41

5.1 Impacts on Farmers _______________________________________________ 41
5.2 Impacts on Herb Collectors _______________________________________ 42
5.3 Impacts on a Single Hunter________________________________________ 43
5.4 Loss of Wages ____________________________________________________ 43
5.5 Impacts on Vulnerable Groups ____________________________________ 44
6 STAKEHOLDER CONSULTATIONS _______________________________ 46

6.1 General Overview ________________________________________________ 46
6.2 Public Information Centre (PIC) ___________________________________ 47
6.3 Consultations as Part of the LRP ___________________________________ 48
6.4 Grievance Mechanism ___________________________________________ 49
7 FRAMEWORK AND METHODOLOGY FOR ECONOMIC DISPLACEMENT___ 52

7.1 Eligibility__________________________________________________________ 52
7.2 Cut-off-Date _____________________________________________________ 53
7.3 Entitlement Matrix ________________________________________________ 54
7.4 Valuation and Compensation _____________________________________ 57
7.4.1 Valuation Methodology ________________________________________________ 58
7.4.2 Compensation Method_________________________________________________ 59
8 INSTITUTIONAL RESPONSIBILITY _________________________________ 60

8.1 Government Agency _____________________________________________ 60
8.1.1 Sitalchay Municipality __________________________________________________ 60
8.1.2 Khizi District Executive Power ____________________________________________ 60
8.2 ACWA Power ____________________________________________________ 61

8.2.1 Deputy CEO (Project Company) ________________________________________ 61
8.2.2 Business Development Team (Azerbaijan Team)__________________________ 61
8.2.3 Financial Department __________________________________________________ 61
8.2.4 E&S Implementation Manager __________________________________________ 61
8.2.5 HR Manager ___________________________________________________________ 62
8.3 Independent E&S Consultant______________________________________ 62

8.4 Valuation Consultant _____________________________________________ 62
9 IMPLEMENTATION SCHEDULE__________________________________ 63
9.1 Livelihood Restoration Plan - Schedule _____________________________ 63
Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan ii

10 MONITORING AND REPORTING _______________________________ 67
10.1 Auditing _________________________________________________________ 68
10.1.1 Internal Audit __________________________________________________________ 68
10.1.2 Third Party Audit ________________________________________________________ 68
10.2 Budget for Implementation _______________________________________ 69
Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan iii

LIST OF ABBREVIATIONS
ABBREVIATION MEANING
ADB Asian Development Bank
BOO Build Own Operate
E&S Environmental & Social
EBRD European Bank for Reconstruction and Development
ESIA Environmental & Social Impact Assessment
ESMS Environmental & Social Management Systems
GIP Good International Practice
GR Grievance Mechanism
IEA International Energy Agency
IFC International Finance Corporation
LLA Land Lease Agreement
LRP Livelihood Restoration Plan
MoE Ministry of Energy
NOMAC National Operations and Maintenance Company Ltd.
OFID OPEC Fund for International Development
PAPs Project Affected Persons
PPA Power Purchase Agreement
SEP Stakeholder Engagement Plan
WTG Wind Turbine Generators
5 Capitals 5 Capitals Environmental and Management Consultancy
Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan iv

1 INTRODUCTION
1.1 The Project
Azerbaijan’s National State Programme on the Use of Alternative and Renewable Energy
Sources, 2016-2020, aims to increase the share of alternative and renewable energy sources
to 20%. The Programme has identified wind as the preferred source of alternative energy with
an estimated annual wind power capacity of 800 MW, based on International Energy Agency
(IEA). This is due to the unlimited wind availability in Azerbaijan and the lower costs of the
technology (IEA, 2020). ACWA Power signed an implementation agreement with the Ministry
of Energy (MoE) in Azerbaijan for developing, building and operating a 240 MW wind power
project. The wind project is expected to operate for 25 years on a Build Own Operate (BOO)
basis according to the Power Purchase Agreement (PPA). The 240 MW wind project will be split
and built on two (2) locations as follows:
• Khizi 3: Capacity up to 162.5 MW and will be generated using 25 x 6.5 MW

Wind Turbine Generators (WTG), located in Khizi region; and
• Area 1: Capacity up to 78 MW and will be generated using 12 x 6.5 MW WTGs,

located at Absheron region.
ACWA Power is seeking project finance from international lenders such as the European Bank
for Reconstruction and Development (EBRD), the Asian Development Bank (ADB) and the
OPEC Fund for International Development (OFID) who have their own defined Environmental
and Social Policies and standards/requirements).
5 Capitals Environmental and Management Consulting (5 Capitals) has been engaged by

ACWA Power to undertake the Environmental and Social Impact Assessment (ESIA), as well as
other environmental and social related scope which includes the Livelihood Restoration Plan
(LRP). 5 Capitals has appointed locally based consultant, Ecoenergy Ltd. (Ecoenergy), to
undertake certain elements of the scope, which include provision of support in addressing
issues relating identification of affected land users, impact on livelihood, etc.
This document is the Draft LRP prepared for the Khizi 3 Project in parallel to the ESIA. The Draft
LRP describes the objectives, principles and planned approach to livelihood restoration and
compensation for economic displacement within the project site.
It should be highlighted that the Project development will not result in any physical
displacement or resettlement of people. In addition, the WF project area is not leased or used
under any formal agreement by the municipality or the government.
Access to the project areas will be temporarily restricted during the construction phase only
for health and safety reasons. Such restriction will be limited to the project footprint (i.e. the
turbine pad areas, access road, laydown areas, etc.) and for the duration of the construction
Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 1

Livelihood Restoration Plan - DRAFT (LRP), V4
period which is 18 months. However, during operation the site will not be fenced and farmers,
herders and herb collectors can access the areas. Therefore, the impact on livelihood is
expected to be very minimal and limited to the construction phase only.
1.2 Objectives of the LRP

• Provide the guidelines that sets out how the Project will address economic
displacement resulting from its development through livelihood restoration
and ensuring that the standards of living of the Project Affected Persons
(PAPs) is not worse off following Project implementation;
• Ensure the PAPs without legal lease agreements or any recognisable legal
rights to land are eligible for compensation for livelihood restoration;
• Determine the existence of vulnerable groups among the PAPs in order to

ensure they are provided with additional support;
• Outline the Grievance Mechanism that will be followed in order to address

any concerns/complaints, request for additional information etc of the PAPs;
• Set out the monitoring requirements of the livelihood restoration outcomes,

their impacts on the standard of living of the PAPs, and whether the objectives
of the LRP have been met; and
• Establish organisational arrangements and procedures to monitor the

implementation of the LRP and take corrective actions as necessary.

2 PROJECT OVERVIEW
2.1 Project Location
The Project is located on the hilltops of the Khizi region, approximately 55km north west of Baku
and 9.9 km south west of Sitalchay village. The proposed Project location is provided in the
Figure below.
Figure 2-1 Project Location
The Project footprint will include the following:
• WTG platforms (this includes foundation and crane pad area);
• Substation and any storage facilities;
• Trenches for underground cables; and
• Access roads.

Figure 2-2 Project Layout
2.2 Project Description

The proposed Project will consist of 25 WTGs arranged in a specific arrangement across the
proposed site to ensure the most efficient capture of the prevailing wind.
The WTG is the Envision Energy EN-171/6.5 Wind Turbine. This turbine has a rated power of 6.5
MW, 171m rotor diameter, and three (3) blades, horizontal axis, upwind direction, variable
speed and pitch control. The Project will also include the following:
• Internal access roads;
• Access road connecting the Project to the existing road network;
• Substation; and
• Underground electrical connections between the Wind Farm and Substation.
2.2.1 Associated Facilities
Overhead transmission lines (OHTL) will connect both Wind Farms (Khizi 3 and Area 1 WFs) and
to the national grid. The responsibility for developing, constructing, commissioning and
operating the OHTL lies with the Project off-taker. Azerenergi Open Joint Stock Company
(Azerenergi), and as such, the OHTL is considered an ‘Associated Facility’ to the Project; as it

is not being directly funded under the loan agreement with lenders. Therefore, the scope of
the LRP does not include the OHTL and is limited to Khizi 3 WF.
The OHTL is split into three (3) lines as follows:
• 220 kv Khizi 3 - Yashma OHTL: This OHTL will connect the Khizi 3 WF substation (SS) to
the existing Yashma SS and is approximately 20 km long (red line in Figure below) –
assessed as part of Khizi 3 ESIA report;
• 220 kv Khizi – Pirakashkul OHTL: The OHTL line that will connect Khizi 3 and Area 1
WFs SS and is approximately 30 km long (yellow line in Figure below) - assessed as
part of Khizi 3 and Area 1 ESIA report; and
• 220 kv Pirakashkul – Gobu OHTL: The OHTL line that will connect the Area 1 WF SS to
the existing Gobu Power Station and is approximately 30 km long (Green line in
Figure below)- assessed as part of Area 1 ESIA report.
Figure 2-3 OHTL Location Map
A preliminary assessment of potential impacts associated with the development of the OHTL
has been undertaken as part of the ESIA study. The assessment included the necessary
environmental and social baseline surveys required to establish any risks associated with the
OHTL. This included an initial review and site reconnaissance survey undertaken in April and
May 2021, which key environmental and social receptors were identified along the route. The
outcome of the survey was shared with the off-taker, which resulted in Azerenergi revising the
initial OHTL route to avoid the identified human and ecological receptors.

Based on the data collected during the socioeconomic survey carried out in May 2021, the
land along the OHTL is mainly state and municipality owned. None of the land is privately
owned. Azerenergi will follow the national requirements during the development of the OHTL.
Based on "Rules for the protection of electrical networks with a voltage of more than 1000 volts"
approved by the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan dated
10.06.2005, No 103, "Land plots included in the protection zones of electricity networks remain
in the use of the land owner or user and can be used by them for agricultural and other
purposes in compliance with the requirements of these Rules”. Therefore, the development of
the OHTL will not involve any land expropriation in line with local regulations.
Land users identified along the OHTL are provided in the Table below and include farms,
agriculture areas, dog shelter and military areas. Please refer to ESIA Section 16 of the ESIA for
the outcome of the socio-economic survey carried out for the OHTL.
Table 2-1: Land Users Identified along the OHTL Route

ID LAND USE TYPE APPROXIMATE DISTANCE TO THE OHTL
F01 Farm 110m from the Perekeshkul -Gobu OHTL route
M01 Military Base 180m from the Perekeshkul -Gobu OHTL route
The Perekeshkul -Gobu OHTL route crosses this almond orchard for
Almond
B01 about 0.5km and runs at a distance of approximately 50m from
orchard
closest boundary of the orchard with productive almond trees.
Dog shelter
D01 80m from the Perekeshkul -Gobu OHTL route
(State owned)
Greenhouse
B02 80m from the Perekeshkul -Gobu OHTL route
farm
F02 Farmstead 110m from the Khizi – Perekeshkul OHTL
Abandoned
B03 70m from the Khizi – Perekeshkul OHTL
workshop
F03 Farmstead 50m from the Khizi – Perekeshkul l OHTL
Baku-Mozdok The Khizi – Perekeshkul OHTL crosses operational gas pipeline owned
D02
Gas Pipeline by State Oil Company of Republic of Azerbaijan (SOCAR)
F04 Farm 110m from the Khizi – Perekeshkul OHTL
The Khizi – Yashma OHTL route crosses the eastern plot of the military
M02 Military Base
base
F05 Farm 15-20m from the Khizi – Yashma OHTL
F06 Farm 80m from the Khizi – Yashma OHTL
The Perekeshkul-Gobu OHTL crosses an almond orchard, and the Khizi – Yashma OHTL crosses
a military base. These receptors along with other activities identified along the route (herding
and farming) may experience short term disruption during tower/pylon installation at these
receptors. At this stage, the exact location of the pylons is not known as the design of the OHTL
has not been finalised. If pylons are located within the Almond, Military and any grazing areas,
it is anticipated that any disruption in their activities will be temporary and will be for a short
period.

It should be noted that the design and route provided for the OHTL has not been finalised,
therefore, the outcome of the ESIA and socio-economic survey will influence the final layout
and route of OHTL by Azerenergi to minimise temporary restrictions on land use and livelihood
impacts. Where this cannot be avoided, Azerenergi to provide compensation based on
national laws and requirements with appropriate consultation. ACWA Power will encourage
Azerenergi to adopt EBRD requirements on Land Acquisition, Involuntary Resettlement and
Economic Displacement. The potential impacts on land use along the OHTL have been
assessed in the ESIA study.
As the owner/developer of the OHTL associated facility, Azerenergi will comply with national
and applicable lenders requirements in order to ensure all E&S risks and impacts associated
with the development of the OHTL are adequately assessed. Where impacts cannot be
avoided, Azerenergi will implement applicable mitigation and management measures in
order to minimise impacts.
ACWA will make all reasonable effort to liaise with Azerenergi to achieve a successful outcome
in terms of identifying PAPs and advising Azerenergi of equivalent compensation that similar
to PAPs on the Wind Farms. A letter has been issued by ACWA Power to Azerenergi to request
commitment on the following:
• The final design/route of OHTL will take into consideration the outcome of the
socio-economic survey and ESIA study. Where possible Azerenergi will avoid or
minimise impact on land users and receptors as identified in ESIA;
• Azerenergi will minimise any temporary restrictions on land use and livelihood
impacts. Where this cannot be avoided, Azerenergi will provide compensation
based on national laws and requirements with appropriate consultation including
informal users;
• Azerenergi will implement a grievance mechanism throughout the development

of the OHTL; and
• The outcome of the ESIA will be implemented and incorporated into the design,
construction and operation of the OHTL this includes the mitigation and
management measures included in the ESIA.
2.3 Project Construction & Commissioning Requirements

Construction and commissioning will be the contractual responsibility of the EPC Contractor.
One (1) area within the Project boundary is being considered as a temporary laydown area.
This area will be required during the construction phase of the Project for the storage of
materials by the Engineering Procurement and Construction (EPC contractor) as well as sub-
contractors. This is currently planned on land adjacent to the sub-station plot.
At this stage it is understood that approximately 220 personnel will be present at the Wind Farm
during peak construction periods. This will comprise a combination of Project Company, EPC

Contractor and Sub-Contractor staff. The exact location of the workers accommodation for
either the EPC contractor and sub-contractor are not confirmed.
However, as much of the workforce is planned to be recruited from the local community, these
workers will not require dedicated accommodation. However, for migrant and/ or foreign
workers, accommodation areas will be established either in Sumgait (not far from the project
area) or Baku since both cities will have appropriate facilities and infrastructure.
2.4 Project Operational Requirements

The duration of the PPA is 25 years from the Project Commercial Operation Date and
operations and maintenance activities of the Wind Farm will be undertaken by The First
National Operations and Maintenance Company Ltd. (NOMAC), a wholly owned subsidiary
of ACWA Power. At this stage, it is understood that a workforce of about 10 staff will be
engaged to carry out operation and maintenance activities of the wind farm. The workers will
be required to make arrangements for their accommodation. It should be noted that during
operation the sites will not be fenced or restricted and farmers and herders can access the
areas.

3 LEGAL FRAMEWORK AND STANDARDS
3.1 National Regulations
The key legislation and regulations addressing land acquisition and resettlement in the
Republic of Azerbaijan include the following: (ref; Asian Development Bank):
• The Constitution of the Republic of Azerbaijan (Adopted on 12 November 1995,

revisions made on 18 March 2009);
• The Land Code (Adopted on 25 June 1999, last revisions made on 20 April 2012);
• The Civil Code (Adopted on 28 December 1999, revisions made on 20 April 2012
and amended on 09/07/2021);
• The Flat Code (Adopted on 15 November 2011, last revisions made on 20 April
2012);
• The Land Acquisition Law (April 2010);
• Law on valuation activity (25 June 1998, last revisions made on 20 April 2012);
• Law on "Land Lease" (11 December 1998, № 587-IQ);
• Decree of the President on additional activities regarding to implementation of

the Law on "Acquisition of Lands for State Needs" (15 February 2011);
• Decree of the President on ensuring the execution of the law No. 506-3 QD dated
7 December 2007 on ―Amendments and Additions to the Civil Code of the
Azerbaijan Republic‖ (26 December 2007);
• Resolution of the Cabinet of Ministers on approving of guidelines for preparation

of Resettlement Plan and Resettlement Guideline No. 45 dated 24 February 2012;
• Resolution of the Cabinet of Ministers on approving the guidelines for selection of

a person or entity to prepare Resettlement Plan or Resettlement Guideline No. 55
(21 April 2011);
• Resolution of the Cabinet of Ministers No. 110 (28 June 1999);
• Resolution of the Cabinet of Ministers No. 42 On Some Normative and Legal Acts
Relating to the Land Code (15 March 2000);
• Law of Azerbaijan Republic on Municipality Area and Lands (07 December 1999,
No: 771-IQ); and
• Law on Management of Municipality Lands (29 June 2001, No: 160-IIQ).
The applicable laws to this Project are summarised below.

3.1.1 The Constitution of the Republic of Azerbaijan
Article 13 of the Constitution states that there are three (3) types of property ownership in
Azerbaijan; State, Municipality and Private ownership. The Constitution also gives the citizens
the right to own, use and dispose of property. The Law ensures the no one is dispossessed of
their property without their consent or decision by the court of law and that expropriation of
private property for state needs will only be allowed after payment of fair compensation to
the owner (Article 29). Article 19 of the Constitution regarding the right of property states the
land ownership may be restricted by law for social and justice and purposes of efficient use of
land.
3.1.2 Land Code
The Land Code of the Republic of Azerbaijan includes the land legislation and defines the
status of participants in land relations such as State bodies, Municipalities, Citizens and Legal
entities. Participants also includes foreigners and stateless persons, foreign legal entities,
international associations and organizations, foreign states. The Land Code also states that
there are three (3) types of land owners in the Republic and these are State, Municipal and
Private types of land ownership. All types of property are equal and protected by the state.
The following applicable statements are provided in the Land Code:
• Sub-Sections 12.3 and 13.3 of the Land Code states that agricultural lands can
be used for non-agricultural purposes only upon redesignation of those lands
by the Cabinet of Ministers into another category in exceptional circumstances;
• Article 22, Clause 3: Landowners, users and lessees in whose territory the
protection zone is established shall not be deprived of their rights on the land
plot, except in cases when the regime established for the zone provides for the
complete withdrawal of lands from economic use. Within the protection zone,
landowners, users and lessees are obliged to follow the rules approved for
these zones;
• Sub-Section 48.4 of the Land Code stipulates that lands can be provided for
ownership, use or lease only in accordance with the designation of such lands;
• Articles 73, Clause 1: The right of ownership use or lease of a land plot or a part
thereof shall be terminated in the following cases:
- In case of voluntary renunciation of the land plot or expropriation of the land

owner;
- Upon expiration of the period of use or lease of the land plot;
- In case of termination of the activity of legal entities;
- If the land is not used for its intended purpose:
- In case of termination of individual employment contracts of employees in
connection with land plots temporarily used on the basis of labor relations;
- In case of non-compliance with the terms of the use or lease agreement;
- In case of non-payment of land tax and rent for 1 year without good reason

- If the land plot allocated for agricultural production has not been used for 2
consecutive years and the land plot allocated for non-agricultural needs has
not been used for 1 year without a valid reason;
- Deterioration and erosion of soil quality, chemical and radioactive
contamination, swamping, re-salinization, violation of the rules of operation
of land reclamation and irrigation systems, pollution of the environment
during use;
- When it is necessary to acquire lands for state needs;
- In case of transfer of the right of ownership to the building and facility
belonging to the owner of the land plot and located on that plot;
- In case of death of land owner, user (lessee) and absence of heirs; and
- In case of non-performance of the obligation secured by the mortgage
during the mortgage of the land plot.
• Article 86, Clause 2: State lands provided for in this Code, agricultural lands of
municipalities in general use as well as in the use and lease of legal entities and
individuals may not be the object of purchase and sale;
• Article 86, Clause 3: Lands in the Azerbaijan Republic may be sold to state
property, municipal property as well as property of citizens and legal entities of
the Azerbaijan Republic;
• Article 86, Clause 5: Ownership, use and lease rights over land plots may be
purchased and sold directly through land auctions or competitions by the
decision (consent) of the owners or their proxies or bodies;
• Articles 86, Clause 6: Purchase and sale of lands owned by the municipality shall
be planned on the basis of the development plans of the territory, land
management, general plan of settlements and shall be carried out by the
municipalities in accordance with the legislation. Purchase and sale
of municipal lands , as well as lease rights on them are carried out through land
auctions and competitions;
• Article 86, Clause 7: In case of direct sale of lands owned by citizens and legal
entities, as well as the right of use and lease on them, the sale shall be carried
out on the basis of purchase and sale agreements concluded between the
parties and notarized; and
• Article 86, Clause 8: Rules of purchase and sale of land shall be regulated by
the relevant legislation of the Azerbaijan Republic.
3.1.3 Land Acquisition Law
The Land Acquisition Law is another land legislation in Azerbaijan and It regulates the rules of
acquisition of lands for state needs in the Republic of Azerbaijan, calculation and payment of
the amount of compensation in this regard, as well as other relations between the parties
involved in land acquisition. The Land Acquisition Law states the following:
• Article 4, Clause 4.1: Any land required for state needs or land in shared
ownership shall be compulsorily transferred to the state on the basis of an
agreement with the owner (owners);

• Article 4, Clause 4.2: The state is obliged to make every effort to reach an
agreement with the affected persons and to pay the market price or
replacement price for the land and may not exercise the relevant powers
provided for in this Law until the fulfilment of this obligation;
• Article 5, Clause 5.1: The following land may be acquired for state needs in
accordance with the law regardless of the restrictions imposed on the lease
and use of the land plot;
- Privately owned lands; and

- Municipal Land.
• Article 7, Clause 7.2: The person affected by the acquisition shall have the right
to receive compensation in accordance with the procedure established by this
Law;
• Article 7, Clause 7.3: the following persons shall be considered affected by the
acquisition:
- Persons who have state-registered property, use or lease rights to land, as

well as legal use or lease rights that do not require state registration by law;
- Persons who have legal but not state-registered ownership, use or lease rights
to land, confirmed by written documents at the time of registration (the
adoption or conclusion of a contract without complying with the
requirements of the legislation cannot be a ground for declaring a person's
land rights illegal);
- The lessee as a sublease, the user as a lease to third parties, or persons who
use the land for a short period of time on the basis of an agreement with the
user, confirmed by oral or written evidence – This is applicable to the land
users at the project site;
- Persons living on land on the basis of long-term use recognized by law, which
gave rise to the right to land; and
- Persons who do not have legal rights to the land where they live.
• Article 7, Clause 7.4: Persons listed above with the exception of those who do
not have legal rights to the land where they live shall be provided with
compensation and other assistance related to the lost land in accordance with
the provisions of this Law;
• Article 7, Clause 7.5. Persons who do not have legal rights to the land where
they live except for real estate, shall be provided only with assistance related
to their relocation and assistance aimed at compensating the damage caused
to the personal property of those persons during relocation;
• Article 8, Clause 8.2.5. Ensure compensation is paid or resettlement has taken

place in accordance with the Law before taking possession of the land of an
affected person;
• Article 10, Clause 1: The receiving authority (i.e. the party acquiring land) shall
collect all the information necessary to comply with the requirements of this Law
during the preparation of the land acquisition proposal;

• Article 54, Clause 1: All persons affected by the acquisition shall be entitled to
fair compensation in accordance with this Law in exchange for the acquisition
of their land or other rights to land;
• Article 54, Clause 2: Compensation is paid to those affected by the acquisition

through a project that necessitates the acquisition of land; and
• Article 56, Clause 1: The compensation to be paid to the plaintiffs should be

based on:
- The principle that the property, livelihood, income, standard of living of all
persons affected by the loss and violation of their land and resettlement
should be reimbursed within a reasonable time after their loss or resettlement.
To be restored from the conditions in which they were before the transfer, so
as not to get into unfavorable conditions;
- Current inflation in assessing compensation payable; and
- All costs and losses arising from such a move, if the person was forced to
change their place of residence, business or place of work as a result of the
acquisition.
3.2 Lender Requirements

The project will be required to adhere to the following lender requirements:
• EBRD’s Land Acquisition and Livelihood Restoration requirements as laid out in

the Performance Requirement 5 (EBRD PR5 Guidance Note: Land Acquisition,
Restrictions on Land Use and Involuntary Resettlement);
• ADB’s Involuntary Resettlement Safeguard;
• OPEC Fund for International Development (OFID);
• Equator Principles IV (2020) requires projects to evaluate the specific risks of

the project to determine the applicability of the IFC Performance Standards
under Principle 3; and
- IFC Performance Standard 5: Land Acquisition and Involuntary Resettlement
3.2.1 EBRD
EBRD has an internal Environmental and Social Policy (2019) and a set of specific Performance
Requirement (PRs) covering key environmental and social components for consideration,
assessment and management in their investments. The requirements specific to economic
displacement and applicable to this project include
• PR 5-Land Acquisition, Involuntary Resettlement and Economic Displacement;

and
• PR 10- Information Disclosure and Stakeholder Engagement.
EBRD PR 5: LAND ACQUISITION, INVOLUNTARY RESETTLEMENT AND ECONOMIC DISPLACEMENT

According to EBRD PR 5, Involuntary Resettlement refers to “both physical displacement
(relocation or loss of shelter) and economic displacement (loss of assets or resources and/or
loss of access to assets or resources that leads to loss of income sources or means of livelihood)
as a result of project-related land acquisition and /or restrictions on land use”.
The objectives of PR 5 include:
• Avoid or when unavoidable, minimise, involuntary resettlement by exploring

alternative project designs.
• Mitigate adverse social and economic restrictions on affected persons and

land by providing compensation for loss of assets at replacement cost and
ensuring that resettlement activities are implemented with appropriate
disclosure of information, consultation and the informed participation of those
affected.
• Restore or, where possible, improve the livelihoods and standards of living of
displaced persons to pre-displacement levels.
• Improve living conditions among physically displaced persons through the

provision of adequate housing, including security of tenure at resettlement
sites.
Note: The proposed Project will only result into economic displacement and no physical
displacement is expected as there are no residents living on the site.
EBRD PR 10: INFORMATION DISCLOSURE AND STAKEHOLDER ENGAGEMENT
All EBRD Performance Requirements include the need for an amount of stakeholder
engagement particularly the EBRD Performance Requirement 10 on “Information Disclosure
and Stakeholder Engagement“ which “recognises the importance of an open and
transparent engagement between the client, its workers, local communities directly affected
by the project and where appropriate, other stakeholders as an essential element of Good
International Practice (GIP) and corporate citizenship”. Such engagement will involve the
following key elements:
• Stakeholder Identification and analysis;
• Stakeholder engagement planning;
• Disclosure of information;
• Consultation and Participation;
• Grievance Mechanism; and
• Ongoing reporting to relevant stakeholders.
3.2.2 ADB
ADB’s involuntary resettlement safeguards aim to:
• Avoid involuntary resettlement wherever possible;

• To minimise resettlement by exploring project and design alternatives;
• To enhance, or at least restore, the livelihoods of all displaced persons in real

terms relative to pre-project levels; and
• To improve the standards of living of the displaced poor and other vulnerable
groups.
The safeguard also applies to full or partial, permanent or temporary physical and economic
displacement resulting from (i) involuntary acquisition of land, or (ii) involuntary restrictions on
land use or on access to legally designated parks and protected areas.
Where involuntary resettlement is unavoidable, the ADB Safeguard requires that the project
meet all applicable specific requirements on compensation, assistance, benefit sharing,
assessment of social impacts, resettlement planning, information disclosure, consultation,
grievance redress mechanism, monitoring and reporting.
According to ADB, a project’s involuntary resettlement category is determined by the

category of its most sensitive component in terms of involuntary resettlement impacts. The
proposed ACWA Power Project falls under Category B because its involuntary settlement
impacts are not deemed significant. ADB requires Category B projects to have a resettlement
plan and assess social impacts.
Note: Given that the proposed Project will only result in economic displacement and no
physical displacement of people is expected, the report is titled a Livelihood Restoration
Plan to accommodate all lenders requires for economic displacement.

3.2.3 OFID
OFID do not publicly disclose specific environmental & social policy, or other standard (or
guideline) requirements.
3.2.4 Equator Principles
Equator Principles IV (2020) requires Projects to evaluate the specific risks of the project to
determine the applicability of the IFC Performance Standards under Principle 3. Due to the
economic displacement of the impacted farmers 1 and herb collectors as a result of the Project
development, IFC Performance Standard 5: Land Acquisition and Involuntary Resettlement
requirements are applicable to the Project.
PS 5 recognizes that Project-related land acquisition and restrictions on land use can have
adverse impacts on communities and persons that use this land. Involuntary resettlement refers
both to physical displacement (relocation or loss of shelter) and to economic displacement
(loss of assets or access to assets that leads to loss of income sources or other means of
livelihood) as a result of Project-related land acquisition and/or restrictions on land use. Where
involuntary resettlement is unavoidable, it should be minimized and appropriate measures to
mitigate adverse impacts on displaced persons and host communities should be carefully
planned and implemented.
All of the IFC Performance Standards include requirements for an amount of stakeholder
engagement (either in the EIA, or as part of the future ESMS) and therefore the project will
require a level of engagement. In particular, IFC Performance Standard 1 on “Social and
Environmental Assessment and Management Systems” states “Stakeholder engagement is the
basis for building strong, constructive, and responsive relationships that are essential for the
successful management of a project’s environmental and social impacts.
The Project has also utilised The Guidance Note 5: Land Acquisition and Involuntary
Resettlement and IFC’s Handbook on Preparing a Resettlement Action Plan in preparing this
LRP.
1The term ‘Farmer’ in this report refers to a person that grazes livestock (cattle, sheep, goat).
They are not involved in crop cultivation of any kind.

3.3 Gap Analysis between National and Lenders Requirements
Table 3-1: Gaps between Azerbaijan Legislation, EBRD Policies, ADB, and IFC PS on Livelihood Restoration and Compensation
ADB’S SAFEGUARD
ELEMENT EBRD PR5 INVOLUNTARY IFC PS 5 AZERBAIJAN LEGISLATION MEASURES TO BRIDGE THE GAP
RESETTLEMENT
The Project will avoid The project site has been allocated
The client will avoid,
The client will involuntary Any land required for for the Project development
and when avoidance
avoid or at least resettlement state needs can be through a Presidential Order in 2020
Avoid or is not possible,
minimise whenever possible to transferred to the state and an Order from the Cabinet of
minimise minimise
physical and/or minimise involuntary upon reaching an Ministers and as such the lenders
displacement displacement by
economic resettlement by agreement with the requirements have been
exploring alternative
displacement exploring project owner implemented in order to mitigate
project designs.
design alternatives. the expected impacts on the PAPs.
The client must
prepare a Requires that a Client A draft LRP (Livelihood Restoration
The client will prepare There is no requirement
Livelihood prepares a LRP in Plan) has been developed for the
a resettlement plan if for preparing a
Restoration Plan case of Projects Project
the proposed project livelihood restoration
including a involving economic
Planning will have involuntary plan. However, there is a
socio-economic displacement
process resettlement impacts requirement for socio- A final LRP is currently under
baseline including collection of
including collection of economic data preparation and this will include a
assessment appropriate socio-
census data of the collection during land socio-economic survey for the
within the economic baseline
affected persons. acquisition process Project Affected Persons (PAPs
defined Project data of the PAPs
area.
PR5 identifies 3 ADB identifies 3 The Azerbaijan Land
main categories PS 5 identifies 3 main Acquisition Law
categories of PAPs:
of PAPs: categories of PAPs: recognises four (4) The eligibility for compensation and
• Persons with formal groups of persons scope of the LRP includes all PAPs
Eligibility for • Those who • Those who have
legal rights to land eligible for including those without any
compensation have formal formal legal rights
lost in its entirety or
legal rights to to the land or compensation as a recognisable legal rights to the
in part.
the land assets they result of land loss and land.
(including • Persons who lost occupy or use. one (1) group entitled to
customary & the land they only receive assistance.

ADB’S SAFEGUARD
RESETTLEMENT
traditional occupy in its • Those who do not
rights entirety or in part have formal legal
recognised who have no rights to land or
under formal legal rights assets, but have a
national to such land, but claim to land that
laws). who have claim of is recognised or
• Those who such lands that are recognisable
do not have recognizable under national
formal legal under national law.
rights to land laws • Those who have
at the time of • Persons who no recognizable
the census, lost the land legal right or
but who they occupy in claim to the land
have a claim its entirety or in or assets that they
to land that part who have occupy or use.
is recognised neither formal
or legal rights nor
recognisable recognised or
under the recognizable
national claims to such
laws. land.
• Those who
have no
recognisable
legal right to
claim the
land that
they
occupy.
The client is The client is required to The client is required Following land A grievance mechanism has been
Grievance required to establish a mechanism to establish a acquisition, the set up as part of the SEP and LRP for
mechanism establish a to receive and grievance receiving authority is the Project in order to allow the
grievance facilitate the resolution mechanism in required to establish a PAPs to submit their grievances.

ADB’S SAFEGUARD
RESETTLEMENT
mechanism of affected persons’ accordance with the land acquisition group
consistent with concerns and requirements set out that will accept,
PR5 and PR10 in grievances about in PS1 in order to be respond to and attempt
order to receive physical and able to address any to resolve any
and address economic specific project complaints made by
concerns displacement and concerns about the PAPs.
regarding the other project impacts, compensation
Project in a paying particular process. The GM will There is no requirement
timely manner. attention to the include a recourse to establish a land
The GM will impacts on vulnerable mechanism designed acquisition group for
include a groups to resolve disputes compensation
recourse and complaints in an purposes.
mechanism impartial manner.
designed to
resolve disputes
and complaints
in an impartial
manner.
The client should The Client will consult Disclosure of relevant
summarise the with the affected information and Public meetings are
information for persons on participation of required to be held to
public disclosure resettlement and Affected disclose information to
to ensure that compensation options Communities and land users & owners on
the affected and provide them with PAPs will be provided with relevant
persons will continue the land acquisition
people project-related information throughout the
during planning, process.
Information understand the information during implementation, implementation of the LRP as per
disclosure compensation resettlement planning monitoring, and the EBRD PR5, ADB and IFC PS 5
procedures and and implementation. However, no requirements.
evaluation of
know what to requirement for
compensation
expect at the information disclosure
All relevant information payments, livelihood
various stages of exists in regards to
must be disclosed in a restoration activities,
the project (for livelihood restoration.
timely manner, in an and resettlement to
example, when
accessible place and achieve outcomes
an offer will be

ADB’S SAFEGUARD
RESETTLEMENT
made to them, in a form and that are consistent
how long they language(s) with objectives of PS5.
will have to understandable to
respond, affected persons and
grievance other stakeholders. For
procedures, illiterate people, other
legal procedures suitable
to be followed if communication
negotiations methods will be used
fall). including pictorial
messages and
announcement in
public places.
Following
disclosure of all
relevant
The client will conduct
information, the
meaningful
client is required
consultation with Consultations shall be Public meetings are
to consult with To be reconciled through the
affected persons, their conducted to allow required to be held to
affected consultations with the PAPs and
Public host communities, and informed disclose information to
persons and other relevant stakeholders and
consultation civil society for every participation of those land users and owners
communities agencies throughout the
project and subproject affected by the on the land acquisition
and facilitate implementation of the LRP.
identified as having project. process.
their early
involuntary
informed
resettlement impacts.
participation in
decision making
process.
PR 5 requires The client will identify PS 5 requires that There is no requirement All vulnerable groups identified will
special attention individuals and groups special attention is
Vulnerable for vulnerable groups in be provided assistance in
to be paid to who may be provided to the
groups relation to livelihood accordance with EBRD, ADB and
vulnerable differentially or needs of the poor restoration IFC PS requirements.
groups and disproportionately and vulnerable to

ADB’S SAFEGUARD
RESETTLEMENT
ensure that they affected by the assist in
are not project because of restoring/improving
disadvantaged their disadvantaged or their pre-project
in the vulnerable status. The livelihoods.
compensation client will ensure that
process and are the standards of living
fully aware of of the displaced poor
their and other vulnerable
entitlements and groups are improved
rights. and not merely
restored.
When displacement
cannot be avoided, All PAPs will be compensated for
the client will offer All persons affected by the losses incurred at full
The client will
displaced acquisition are entitled replacement cost.
offer PAPs
communities and to fair compensation in
compensation
Compensation and persons accordance with the
for loss of assets Compensation to all PAPs will be
other entitlements compensation for loss Land Acquisition Law
at full paid before land possession and
Compensation should be paid before of assets at full
replacement the commencement of any site
economic replacement cost
cost and any Compensation is to be work.
displacement and other
other required paid or resettlement
assistance/transitional
transitional undertaken before land Livelihood restoration measures
support to help them
support. possession and transitional support will be
improve or restore
their standards of provided.
living.
PR 5 requires ADB requires
The client will
consultations to monitoring & No provision for
establish procedures
Monitoring of continue during assessment of monitoring in provided The client will establish procedures
LRP to monitor and in the Azerbaijan Land to monitor and evaluate the
the outcomes, their
implementation evaluate the Code or Land implementation of the LRP.
implementation, impacts on the
implementation of a
monitoring, and standards of living of Acquisition Law
LRP and take
evaluation of displaced persons,

ADB’S SAFEGUARD
RESETTLEMENT
compensation and whether the corrective actions as
payment and objectives of the necessary.
resettlement so resettlement plan have
as to achieve been achieved by
outcomes taking into account
consistent with the baseline conditions
the objectives of & the results of
the PR. resettlement
monitoring.

4 BACKGROUND AND CONTEXT
4.1 Land Ownership
The land is municipality (Sitalchay Municipality) and state owned (Khizi District Executive
Power) and has been assigned to the Ministry of Energy for leasing by a Presidential Order No.
2366 of 2020 and Cabinet of Ministers Order No. 720 of 2020. The Presidential and cabinet of
Ministers Orders instruct the government to lease the state/municipality lands to the 240.5 MW
Wind Projects, which Khizi 3 WF Project is part of.
According to the Land Lease Agreement (LLA) signed with the Sitalchay Municipality and the
Ministry of Energy of the Republic of Azerbaijan on 19 th March 2022, the total area of land that
will be leased by the project is 22.59ha and this covers the WTG footprints, substation and
laydown area. The lease agreement is for 30 years.
4.2 Land Acquisition Process

Consultations through email were undertaken in September 2020 with the Government of
Azerbaijan in order to establish the land acquisition process undertaken by the Government.
The following information was requested:
• Communication/documentation and consultations (disclosure of information)

between land users and government regarding status of land use and
ownership, duration of lease per individual user, etc;
• Any valuation data of assets on land;
• Proof of land lease termination from government;
• Any communication/letters sent to users with specific cut-off date to use the
land (with specific dates);
• Any plans to compensate land users (any form of compensation); and
• Any alternative land provided to users.
The land ownership and allocation process undertaken by the Government of Azerbaijan for
the Project as summarised below.
• Land allocated for the Project is mainly owned by the Sitalchay Municipality;
• The Ministry of Energy first clarified the encumbrance of project boundary

required for the Project with relevant government entities (municipalities, etc.)
as follows;
- Project boundary was changed to avoid impact on any long-term lease

holders.
- Short-term lease agreements within project boundary were not
renewed;

- Ministry informed municipalities and Local Executive Power authorities to
not lease these areas until Land Lease Agreement (LLA) is signed with
ACWA Power; and
- After finalising project boundary and LLA, the areas outside project
boundary will be available for leasing by any third party.
• The land use status for the project boundary has been changed from
Agricultural to Industrial and any short-term lease contractors were not
renewed by the state or municipality.
Based on consultations undertaken with Government of Azerbaijan, Municipality, local

community and affected PAPs, it has been confirmed that the land acquisition process did
not involve any physical resettlement, land expropriation or forced evictions for this project.
4.3 Land Use

In order to confirm land use at the project site, consultation meetings and key informant
interviews were held with the Municipality of Sitalchay and the seasonal farmers from
surrounding farms. In addition, consultations letter was issued to The Executive Power of Khizi
region to confirm the land use of project area.
4.3.1 Consultations
A meeting was carried out with the Municipality of Sitalchay on 4th February 2021 with the
Chairman of the Municipal Council of Sitalchay Village to confirm the land use status of the
project area. The meeting was attended by the local consultant and ACWA Power’s
representative. The municipality confirmed that the project is not leased or used under any
form of an official agreement.
In addition, a consultation letter was sent on 29th June 2021 to The Executive Power of Khizi
Region to receive any feedback or comments in regard to the Project land use. Response
received on 27th August 2021 confirmed that the Khizi 3 WF is not under any LLA. The State
agency does not have any data regarding herb collection, hunting, or herding activities within
the project area.
Outcome of consultation: The WF project area (WTG, roads, substations sites) is not leased or
used under any formal agreement by the municipality or the government.
4.3.2 Interviews with Seasonal Farmers
Interviews were held February & August 2021 and March 2022 with the nearby farmers to
identify and confirm status of land use. The outcome of the surveys revealed that the farmers
use the project area informally during the grazing season. Details of these seasonal farmers
and the period they graze at the site is presented in section 4.3.4 and section 4.3.5 below.

4.3.3 Farmers Survey
Based on the information collected during the interviews undertaken with the Municipality and
the surrounding farmers, a farmer’s survey was undertaken in November 2021 and March 2022.
There are nine (9) farms identified surrounding the project area as shown in Figure below.
Farmer’s survey was undertaken for eight (8) farms (Farm 1,2, 3,4, 5, 6, 7 and 10). Farm 2 did
not take part in the November 2021 survey as he was not available .
Figure 4-1 Farms Adjoining the Project Area
Outcome of Farmers survey showed that four (4) farmers out of the eight (8) claimed that they
have land lease documents to graze within the project area (Farm 1,3,4 and 6).
4.3.4 Identified Land Users
Based on the above the following land users were identified to be using the project site.
• Four (4) Seasonal Farmers without valid lease agreement – Surrounding

farmers have expired land lease agreement with the municipality but are
allowed to graze within the project boundary; and
• Other informal land users such as hunters (undertaken by one of the farmers
identified above) and herb collectors who use the project site for hunting and
herb collection respectively. Herbs are collected from March to October while
hunting is undertaken during grazing season by one of the farmer.
The table below provides a summary of the land users within the Project site.

Table 4-1 Summary of Potential Land Users within the Project Site
TYPE OF LAND NATURE OF TYPE OF GRAZING FARM
NAMES GENDER ASSETS
USERS LAND USE LAND USE SEASON ID
Farmer 1
(from khizi
district) - 800 sheep, 130
October to
Lease Male goats and 50 Farm
May
agreement cows 1
expired in
2019
Farmer 2
(from Khizi
District) - 600 sheep, 50
October to Farm
Lease Male goats and 55
Seasonal May 3
agreement cows
Farmers Grazing expired in
with within 2019
Informal
expired project
lease area Farmer 3
agreement (Baku City) 700 sheep, 70
– Lease goats, 40 September Farm
Male
agreement cows and 3 to May 4
expired in donkeys
2019
Farmer 4
(Guba
District)- 800 sheep October to Farm
Lease Male
and 400 goats May 6
agreement
expired in
2019
Herb Thyme
Male NA NA
Collector 1 (Thymus
hadzhievii),
Herb
Male spinacia NA NA
Collector 2
(Spinacia
Herb oleracea)
Male NA NA
Collector 3 and Adonis
Herb
Herb (Adonis
collection Male NA NA
Collector 4 vernalis),
“Dombalan”
Hunters Herb a local type
Male NA NA
and herb Informal Collector 5 of truffle in
collectors Khizi are
Herb
Male collected NA NA
Collector 6
from the site.
In addition to
grazing
Farmer 3
livestock this
(Also a Farm
Hunting Male farmer also NA
seasonal 4
hunts for
farmer)
rabbits and
ducks.

4.3.5 Seasonal Farmers Without Land Lease Agreement
Four (4) seasonal farmers were identified to graze at the project site without valid official lease
agreement from the Sitalchay Municipality as their lease agreement expired in 2019. These
seasonal farmers –Farmer 1, Farmer 2, Farmer 3, and Farmer 4 are from surrounding farms and
their grazing areas extend to the Project site. Farmer 1 agreement was with Khizi Executive
District while the other three farmer’s agreement was with Sitalchay Municipality.
The table below provides information obtained during the meetings and surveys undertaken
with the farmers in February, November, December 2021 and March 2022.

Table 4-2 Details on Seasonal Farmer Without Official Land Lease Agreement
FARMER NUMBER OF
SUMMARY
DETAILS LIVESTOCK OWNED
This farmer is a 65-year older farmer that grazes his livestock occasionally at the south eastern extent of the project site
from October to May each year. The farmer stated he has a land lease agreement with Khizi Executive District to graze
on 300ha of land and has been grazing in this area for 15 years. However, this land lease agreement expired in 2019
and he is waiting for lease agreement to be renewed by the Executive District. In the meantime, This farmer is still
allowed to graze livestock at the project site pending renewal of the lease agreement.
Farmer 1
Of the 300ha, approximately 109.7ha of the land falls within the Project site. This farmer grazes his own livestock with
Farm: Farm his two (2) sons who also graze their livestock at the project site. He employs three (3) workers/herders 2 and indicated
1 that none of these workers have written contracts as only verbal agreements were made. The workers graze livestock
800 sheep, 130
Residency: goats and 50 at the project site during the winter months (October to May) and move the livestock to the highlands in the summer
Shurabad cows hence they work all year round and are therefore considered permanent workers..
village of
Khizi During grazing period, the farmer lives at his farm (Farm 1) with his family comprising of 10 persons including two (2)
district women and three (3) children. Besides his father who is a retiree, no member of his household is considered a
vulnerable person
Livestock breeding by the farmer and his sons is the only source of income for this farmer’s household and he earns
approximately 1000AZN (588.24USD) monthly and 30000AZN (17647.06 USD) annually..
2 Workers are also referred to as herders as they are employed by the Farmers to graze the farmers livestock. In some cases, herders also graze their livestock alongside farmer’s
livestock

FARMER NUMBER OF
SUMMARY
The farmer heard about the project from other farmers and in March 2022 he indicated that he is concerned about
the renewal of his lease agreement by the municipality. He also mentioned that if the Project will affect his grazing
land, he does not have alternative grazing land.
This is a 46-year older farmer from Garabulag village that grazes his livestock occasionally at the north eastern extent
of the project site from October to May each year. The farmer has been grazing at the allocated area for 18 years.
According to the farmer, the land is leased from Sitalchay Municipality and Khizi Executive Power to graze on 80ha
and 17ha of land respectively. The farmer presented a land lease document which he claims it’s an agreement with
Farmer 2
the municipality to graze on the land. However, this agreement with Sitalchay municipality expired in 2019 .
Farm: Farm
3
600 sheep, 50 Of the 97ha, approximately 54.8ha of the land falls within the Project site..
Residency: goats and 55 This farmer only grazes his own livestock and employs four (4) workers. He indicated that none of these workers have
Garabulag cows written contracts as only verbal agreements were made. The workers graze livestock at the project site during the
village of
winter months (October to May) and move the livestock to the highlands in the summer hence they work all year
Khizi
round and are therefore considered permanent workers.
district
During grazing period, the farmer lives at his farm with his family comprising of seven (7) persons including children. In
March 2022, the farmer reported that he had a heart attack and has a cardiac stent (tube-shaped device placed in
the coronary arteries) and he needs to visit the Doctor once in 2 months. No member of his household is considered
a vulnerable person.

FARMER NUMBER OF
SUMMARY
Livestock breeding is the only source of income for this farmer’s household and he earns approximately 1000AZN
(588.2USD) monthly and 15000AZN (8823.5 USD) annually. He does not pay income tax.
The farmer heard about the project from other farmers and indicated that he does not have alternative grazing land
if the Project affects his current grazing land.
This farmer is concerned about compensation that will be provided for not accessing grazing land, the period of
access restriction, noise from WTGs and emergency situation during project operation.
In a face-to- face meeting undertaken with farmers in August 2021, this farmer also raised concerns about fencing of
the project site and loss of grazing land. During this meeting and the survey undertaken in March 2022, the farmer
requested that a small-scale renewable power source/solar battery or any other type of electricity source be installed
at his farm (Farm 3) as a form of support from the Project.
This is a 53-year-old farmer that grazes his livestock occasionally at the project site from September to May each year.
This farmer signed a land lease agreement with Sitalchay Municipality 15 years ago to graze on 350ha of land however
the lease agreement expired in 2019 and has not yet been renewed by the municipality.
Approximately 80ha of the 350ha of land provided to the farmer by the Municipality falls within the Project site. The
Farmer 3
farmer pays 140AZN (82.4USD) monthly for rent and 160AZN (94USD) monthly on land tax.
Farm: Farm 700 sheep, 70
4 goats, 40 cows
and 3 donkeys The farmer does not employ any workers/herders as the farm is family owned, therefore family members assist with
Residency:
livestock grazing and other animal husbandry related works. They are not paid for the work they undertake. In addition,
Baku City
no member of this farmer’s household is considered a vulnerable person
Livestock breeding is the only source of income for this farmer’s household and he earns approximately 700AZN
(411.8USD) monthly and 9000AZN (5294USD) annually. He does not pay income tax. In addition to grazing livestock at
the Project site, this farmer also occasionally hunts rabbits and ducks.

FARMER NUMBER OF
SUMMARY
The farmer was aware of the project from other villagers and indicated that he does not have any concern about the
Project. He also mentioned that if the Project will affect his grazing land, he does not have alternative grazing land.
This farmer informed the survey team that he grazes livestock at the north western extent of the project site from
October to May each year. This farmer claims he has a land lease document with the Sitalchay Municipality. However,
the LLA is yet to be registered at the State Land Agency. This farmer has been grazing at the allocated area for 18
years.
Farmer 4 In March 2022 it was revealed that the lease agreement expired in 2019 however he is allowed to continue grazing at
Farm: Farm the site pending renewal of the lease agreement by the municipality
6 800 sheep and
Residency: 400 goats The farmer only grazes his own livestock and employs eight (8) workers. He indicated that none of these
Guba workers/herders have written contracts as only verbal agreements were made. The workers are all permanent
district employees as they graze livestock at the project site during the winter months (October to May) and move the
livestock to the highlands in the summer..
Livestock breeding is not the only source of income for this farmer’s household as he works in position of Inspector at
State Customs Service.
The farmer indicated that his only concern about the Project is availability of alternative grazing land.
Note:
• All farmers and herders identified to use the project site for grazing are males. There are no females or women grazing at the project site
• All farmers that use the project site are considered informal land users as their land lease agreement has expired and according to Azerbaijan
Law, the land users must go through the land auction process again to lease the land. At this stage, none of the farmers have gone through the
land auction process.
• At this stage, additional socio-economic survey has been undertaken as part of the Final LRP to provide further information on socio-economic
background of PAPs. The result of the socio-economic survey will be provided in the Final LRP

The Figure below shows the location of the grazing area of these seasonal farmers within the
Project site.
Figure 4-2 All Farmers Grazing Area within the Project Site
NOMADIC HERDERS
During the preparation of the ESIA, two (2) nomadic herders were identified outside the project
boundary in November 2021. These herders move from the highlands to lowlands in winter and
from lowlands to highlands during summer. The herders indicated that they use designated
route provided by the government as shown in the map below.

Figure 4-3 Designated Route Nomadic Herders Use Between Highlands and Lowlands
Further consultations were undertaken with the nomadic herders in December 2021 by the
local subconsultant (Ecoenergy) to verify if they use the project site and it was revealed that
these herders do not use the Project site for livestock grazing neither do they pass through the
project site when moving to and from the highlands.
Table 4-3 Details of the Nomadic Herders

NAMES NO OF LIVESTOCK
300 sheep, 100 goats and 50 cows owned by a

Nomadic Herder 1
private entrepreneur in Absheron district
460 sheep, 40 goat and 35 cow owned by a

Nomadic Herder 2
private entrepreneur in Absheron district
During a meeting between 5 Capitals and the local subconsultant on 6th January 2022, it was
confirmed again by the local subconsultant that the nomadic herders do not use or pass
through the project site.
4.3.6 Herb Collectors
In December 2021, The Head of the Municipality of Sitalchay Village informed the local
consultant that herb collectors partially use the land near the salt lake area up to 1000m above
sea towards the north western extent of the site from mid-May to mid-June each year. These
herb collectors mainly comprise of five (5) people from Sitalchay village and they mainly
collect thyme (Thymus hadzhievii), spinacia (Spinacia oleracea) and adonis (Adonis vernalis).

and “Dombalan” a local type of truffle in Khizi whose availability each year is dependent on
level of rain.
Of the five (5) persons that collect herb from Siltachay village, three (3) were available for
interview conducted on 27th and 28th December 2021 and the remaining two (2) were
interviewed in March 2022. The table below provides information on the interviewed herb
collectors.
Table 4-4 Information on Herb Collectors at the Project Site

METHOD OF
NAME GENDER SUMMARY
CONSULTATION
This herb collector collects thyme and
spinacia from the Project site from May to
August each year. He visits the site and
nearby areas from early hours of each day
between 5:00am – 6:00am and collects herbs
until 4pm with the aid of a scissors. He does not
Herb Collector have workers.
Male
1
A total of 50-60kg of herbs is collected
annually and sold at the Sumgayit market for
15AZN per kg (8.82USD).
Sale of herbs is not the only source of income
of this herb collector as it makes up only 30%
This herb collector collects herbs from the
Face-to-face Project site from May to mid-July each year. A
total of 40-50kg of herbs is collected annually
and sold at the Sumgayit market for 15AZN per
kg (8.82USD).
Sale of herbs is not the only source of income

Herb Collector of this herb collector as it makes up only 40%
Male
2 of his annual income.
This herb collector also visits the site and

have workers and collects the herbs by
himself.
This herb collector collects herbs from the
Project site from May to June each year. A
total of 50-60kg of herbs is collected annually
and sold at the Sumgayit market for 15AZN per
kg (8.82USD).
Herb Collector
Male Phone Sale of herbs is not the only source of income
3
of this herb collector as it makes up only 30%
of his annual income.
This herb collector also visits the site and


METHOD OF
NAME GENDER SUMMARY
CONSULTATION
have workers and collects the herbs by
himself.
This herb collector collects spinacia, thyme
and adonis from the Project site from March to
September each year. A total of 10-20kg of
herbs is collected per visit and sold at the
Herb Collector Sumgayit market
Male
4
This Herb collector collects herbs at least 2
times each month mainly during the weekend
with the aid of a scissors. He does not have
workers and collects the herbs by himself.
This herb collector collects spinacia, thyme
and adonis from the Project site from March to
Face-to-face
September each year. A total of 10-20kg of
herbs is collected per visit and sold at the
Sumgayit market.
Herb Collector Sale of herbs is the only source of income of

Male
5 this herb collector as he is currently
unemployed.
This Herb collector collects herbs at least 2

times each month mainly during the weekend
with the aid of a scissors. He does not have
workers and collects the herbs by himself.
All five (5) herb collectors do not have permits, license or any form of agreement with
Municipality to collect herbs from the site as this is not required because municipality lands is
generally available for local community needs. They also indicated that their main concern is
in relation to restriction of access to the herb collecting area during project development and
the quantity of herbs available on alternative lands.
One (1) seasonal farmer from the surrounding farms also stated he collects herbs from the
project site for household needs. It should be noted that this seasonal farmer does not graze
at the project site. The table provides a summary of the herb collecting activities for this farmer.
Table 4-5 Information on Other Herb Collector at the Project Site

METHOD OF
NAME SUMMARY
CONSULTATION
This herb collector is a seasonal farmer and his farm is
located directly adjacent to the eastern boundary of the
project site. He also collects herbs from the Project site
Herb Collector
Phone from May to June each year. He collects the herbs by
6 hand for daily use to add to tea.
Herb collection by this herb collector is undertaken 3 to 4
times a week
The figure below shows the herb collecting area within the Project site.

Figure 4-4 Herb Collecting Area within the Project Site
Note: All herb collectors identified to collect herbs at the project site are males. There are no female herb
collectors.
4.3.7 Hunters
During the farmers survey in November 2021, Farmer 3 of Farm 4 indicated that in addition to
grazing livestock at the site, he also hunts for rabbits and ducks within the Project site. The table
below provides information on this seasonal farmer’s hunting activities at the site.
Table 4-6 Information on Hunter at the Project Site

METHOD OF
NAME GENDER SUMMARY
CONSULTATION
Farmer 3 is a seasonal herder that grazes at
the project site and also hunts. The farmer
does not have a formal agreement to hunt
and his hunting activity is a hobby that is
undertaken occasionally.
Farmer 3 Male Face-to-face
Hunting is solely for household consumption
and not for sale and he does not have a
specific area for hunting as he hunts both at
the project site and in areas outside the
project site.

4.4 Project Land Needs
The table below presents the total area of land allocated to the Project and the estimated
land needs for the project.
Table 4-7 Project Land Needs

AREA (KM2) AREA (HA)
Land Allocated (Project
17.594 1759.4
Boundary)
Project Footprint (WTG pad
area, substation, BoP and 163720.12 16.37
laydown)
Project footprint + Access
0.886 88.6
Road + Buffer
Note: Buffer for BOP and access road = 5m, Buffer for WTG = 30m and Buffer for Substation = 30m.
Based on the above the total area of land need for the construction phase of the project is
88.6ha and this includes buffers. As such a total of 1670.8ha of land will be available within the
allocated project land and free of project facilities.
It should be noted that of the 88.6ha required for the construction phase of the project, the
LLA for the Project will only be for the project footprint area of 16.37ha (this is well within the
22.59ha that will be leased to the Project) while a land easement will be issued for remaining
areas (i.e., access roads, buffer, etc.).
4.5 Availability of Alternative Land for Land Users

The land in the Project area is owned by Sitalchay Municipality and Executive Power of Khizi
Region. At this stage all the land users surveyed indicated that they either do not have
alternative land for grazing or were concerned the project will restrict access to the grazing
and herb collection areas within the project site.
Sitalchay Municipality informed the local consultant that the area shown below might be
considered as an alternative land for grazing. This will be further assessed and the results will
be included within the Final LRP.

Figure 4-5 Proposed Location of Alternative Grazing Area
Figure 4-6 Proposed Location of Alternative Grazing Area in Relation to the Project
Facilities

Given that the land use status of the Project site has been changed from agricultural to
industry, transportation, communication, defence and other uses, consultations will be
undertaken as part of the Final LRP with the relevant government authorities and ACWA Power
to confirm the alternative grazing land for the identified PAPs during the construction phase is
suitable and not affected by the change of land use status.
4.5.1 Ongoing Alternative Land Assessment Process
Consultation letters were sent to Sitalchay Municipality and the Khizi Executive District on 11th
May 2022 and 12th May 2022 respectively requesting for the following:
• Confirmation on the availability of alternative land and its suitability for grazing
following change in land use status;
• Provision of another alternative land if the alternative land is not available due
to change in land use status;
• Confirmation that any alternative land proposed is not leased to legal or

physical entities and it is free and available for use by the project affected
persons;
• Provision of the location/coordinates and cadastral map of alternative land if

different from the above proposed land;
• Confirmation that any alternative land proposed is accessible and suitable for
grazing & herb collection; and
• Confirmation on the presence or absence of natural/artificial sources of

surface water at proposed alternative land and if farmers/herders are able to
dig pits for watering livestock purposes.
Following receipt of response from the Municipality and Khizi Executive District, 5 Capitals in
coordination with the local consultant, Municipality and Khizi Executive District will schedule
and undertake a visit to the proposed location with the farmers, herb collectors and herders
to determine suitability of the proposed alternative grazing land, distance from farmers &
herders homes, presence of any existing infrastructure, presence of any existing land users,
presence of pests/diseases at the alternative grazing land, etc.
Note: The above site visit will only be undertaken if the Municipality and Khizi Executive District
proposes an alternative land that is not within the project boundary (as per Figure 4-5 & Figure
4-6 above)
If the land meets all requirements for suitability, accessibility, equal value, productivity and size
as the present grazing land and the farmers, herders and herb collectors accept the
alternative land, a letter will be sent to the Municipality and Khizi Executive District informing
them that the alternative land has been accepted. Where the alternative land is not
accepted and does not meet the requirements for suitability, accessibility, equal value,
productivity and size, the Municipality and Khizi Executive District will also be informed about
this and a request will be made for another alternative land to be proposed.

The process of alternative land assessment will be detailed in the Final LRP.

5 SCOPE OF ECONOMIC DISPLACEMENT
5.1 Impacts on Farmers
During the construction phase of the project, grazing of livestock by the seasonal farmers of
Farm 1, Farm 3, Farm 4 and Farm 6 will be restricted as the grazing area of these farms
encroach into the Project site.
However, such restriction will be limited to the active construction areas i.e. the turbine pad
area, substation, and laydown areas. The figure below shows the project facilities in relation to
the areas used by farmers for grazing.
Figure 5-1 Project Facilities in Relation to the Grazing Areas
As can be seen from the figure above and as described in section 4.3 only a small section of
the Project site particularly the southern section will be active during construction. Based on
this, it is expected that the area of land that will be restricted to livestock grazing will be less
than 20% of the present grazing area within the Project site used by farmer of Farm 1 & Farm 3
and less than 5% of the present grazing area within the Project site used by farmer of Farm 4 &
Farm 6 . Kindly see table below.

Table 5-1 Anticipated Loss of Grazing Land Within the Project Site
TOTAL GRAZING AREA IN
TOTAL GRAZING AREA GRAZING AREA
FARMS ACTIVE CONSTRUCTION
WITHIN PROJECT SITE (HA) AFFECTED (%)
AREAS + BUFFER (HA)
Farm 1 109.7 10.9 9.9%
Farm 3 54.8 9.7 17.7%
Farm 4 567.4 21.7 3.8%
Farm 6 658.4 6.2 0.9%
Further consultations/survey with farmers are still ongoing to fully understand the impact loss of
less than 20% grazing land will have on their livestock grazing activities and their livelihoods.
The extent of this impact will be assessed as part of the Final LRP.
5.2 Impacts on Herb Collectors

As earlier stated, the herb collectors use the area near the salt lake going up to 1000m above
the sea towards the north west extent of the Project site to collect herbs from March to
September. It is anticipated that their activities at the site will be impacted during the
construction phase of the Project. The Figure below shows the project facilities in relation to
the areas used by herb collectors.
Figure 5-2 Project Facilities in Relation to the Herb Collection Area
As can be seen from the figure above only a small section of the Project site particularly the
southern section will be active during construction. Based on this, it is expected that the area

of land that will be restricted to herb collection will be less than 5% of the present herb
collection area. Kindly see table below.
Table 5-2 Anticipated Loss of Herb Collection Area Within the Project Site
TOTAL HERB COLLECTION
TOTAL HERB COLLECTION
AREA IN ACTIVE HERB COLLECTION AREA
AREA WITHIN PROJECT
CONSTRUCTION AREAS + AFFECTED (%)
SITE (HA)
BUFFER (HA)
1025.74 32.3 3.1%
Given that the anticipated loss of herb collection area is less than 5%, it is expected that herb
collectors will be able to obtain herbs from areas outside the project footprint during the
construction phase.
5.3 Impacts on a Single Hunter

There is only one farmer that hunts at the project site. Based on consultation with this farmer,
hunting at the project site is only undertaken occasionally and solely for household
consumption. Although the hunting activities of this farmer does not contribute to his
household income the project site provides provisioning ecosystem service to this farmer and
his household.
Based on the above it is anticipated that he will be impacted during the construction phase
of the Project as there would be restriction on hunting of rabbits and ducks at the project site
during this period.
Given that the farmer also hunts outside the project site any impact on his hunting activities
will be negligible and limited to project site as these animals will be present in areas outside
the site and as such his hunting activities can still be undertaken.
During the operational phase, it is expected that wildlife (including rabbits and ducks) will
return to the Project site and as such his hunting activities can commence at the Project site.
5.4 Loss of Wages

The wages of the following Project Affected Persons will be impacted by the construction of
the wind farm:
• Workers employed by farmers
As part of the Final LRP, consultations will be undertaken with all farmers to find out details of
the workers they employ. Further consultations will also be undertaken with the workers in order
to assess the impacts of the Project on their livelihoods.

5.5 Impacts on Vulnerable Groups
According to EBRD requirements “vulnerable groups include people who, by virtue of gender
identity, religion, ethnicity, indigenous status, age, disability, economic disadvantage or social
status may be more adversely affected by the project impacts than others who may be limited
in their ability to claim or take advantage of the project benefits’.
ADB Involuntary Resettlement Safeguard requires particular attention to be paid to the “need
of vulnerable groups, especially those below the poverty line, the landless, the elderly, women
and children, indigenous peoples and those without legal title to land and ensure their
participation in consultations”
IFC PS5 also requires particular attention to be paid to the needs of the poor and the
vulnerable.
Based on the socio-economic survey conducted between 12th March to 10th April 2022, the
following vulnerable groups have been identified in relation to the Project:
• All farmers without official lease agreement with the government or municipality.
This includes farmers of all farms;
• Farmers & herders whose household income is reliant on natural resources. Farmers
using the project site indicated that livestock keeping is their only source of income
and as such any impact on their herding activities through loss of grazing land will
negatively impact their livelihood and income.
• Elderly Farmers, herders or herb collectors i.e., 60 years and over. In the event that
the livelihood of such farmer is slightly impacted due to loss of grazing land, it may
be potentially difficult to transition to other income generating livelihoods;
• Farmers, herders or herb collectors with chronic illness or who provide financial
support to family members with chronic illness. The disruption of PAPs activities
could potentially affect the income of herb collectors, farmer and wages of
herders that have chronic illness and/or support family members with medical
expenses thereby affecting their ability to pay for their own medical treatment or
support family members medical treatment;
• Farmers, herders or herb collectors with disabilities or who provide financial support
to family members with disabilities. In case the livelihood of the PAPs supporting
their family members with disability is impacted due to loss of grazing land, their
ability to meet medical expenses may be slightly impacted;
• Farmers, herders and herb collectors on social assistance or that have family
member that require social assistance. i.e., that receive financial assistance from
government e.g., pensions.
• Farmers, herders and herb collectors that have obtained loan from the bank. The
PAPs with loan from the bank may find the disruption of their work during the
construction phase affecting their income and consequently affecting their ability
to pay back the loan as per the loan contract.

Potential impacts to the above identified vulnerable groups will be assessed in the final LRP
and mitigated through the legal framework herein and through the subsequent
implementation of the LRP.
Note: The outcome of the socio-economic survey undertaken with PAPs between 12th March
to 10th April 2022 will be presented in the Final LRP which is currently under preparation.

6 STAKEHOLDER CONSULTATIONS
6.1 General Overview
Stakeholder identification and public consultations were conducted during the scoping stage
as a part of the national EIA and as part of the ESIA. The methods used for the on-going
stakeholder engagement process include letter correspondence with national, regional, local
authorities, face-to-face meetings, virtual meetings, emails and telephone calls. Public
consultations and meetings were also held with local communities between 15th April and
24th June 2021 for the Project site.
Summary of Consultations:
• Sitalchay Village:
- Public consultation meeting held on 25th June 2020 with members of the
community of Sitalchay village. A total of 10 participants attended (maximum
number of people allowed due to COVID restrictions at that time); and
- Letters introducing the Project including contact details of the local consultant
to receive any feedback and questions from the local community were
distributed in May 2020 in Sitalchay Village (houses and supermarkets) and the
announcement office of the Municipality as part of the Consultation during the
Scoping phase.
- Women from Sitalchay Village: The meeting was held on 24 September 2021
and was attended by five (5) participants and targeted women.
- Elderly from Sitalchay Village: The meeting was held on 24 September 2021 and
was attended by 13 participants and targeted elderly people.
- Public disclosure meetings: Two (2) public disclosure meetings were undertaken
on 8 and 10 January 2022 at Sitalchay village. The objective of the meetings
was to present the outcomes of the ESIA process and to present the key
impacts, mitigation and management measures, including key elements of the
SEP such as the PIC and the grievance mechanism and how it can be
accessed. The meetings were attended by 89 participants.
• Consultation with farmers using project area for seasonal grazing:
- Surrounding farms/ farmers: Interviews/ consultations were held in February and

March 2021 with the nearby farmers who occasionally use the project area for
grazing;
- Informal interviews held with nomadic herders during site survey work in
October 2020 and November 2021; and
- Farmer Survey undertaken in May and November 2021 during the grazing
season and return of seasonal farmers.
- Additional survey undertaken in March 2022
- Meeting with one of the Farmers who presented a land lease document (Farm
3): A meeting was held on 17 August 2021 and was attended by the Ministry of
Energy and ACWA Power representatives and local consultant’s Community

Liaison Officer. The purpose of the meeting was to clarity and confirm land use
status of Farmers. The meeting was held in the PIC in Sitalchay Village
• Consultations with herb Collectors using the project area: Interviews were undertaken
with three (3) herb collectors from Sitalchay village from 27 to 28 December 2021. Two
(2) meeting were held face to face and one was carried out over the phone.
Additional meeting held March 2022;
• Consultations with the Municipality on Land Use: Consultation meetings held on 17

August 2021, 12 May 2020, 4 February 2021, November 2021 and March 2022.
• Consultations with Local representative of The Executive power of Khizi region: Letter
sent 29th June 2021 to receive feedback or comments in regard to the Project
including land use. Response was received 27 August 2021.
Detailed consultations have also been conducted with different government

ministries/agencies and institutional stakeholders as part of the ESIA and the LRP.
The Project ESIA consultation letters, full minutes of meetings and the attendance lists can be
found in Appendix I of Volume 4 of the ESIA.
6.2 Public Information Centre (PIC)

A PIC was established by ACWA Power on 15th June 2021 at Sitalchay Village to provide
information on the Project to the members of the community, receive grievances and
facilitate local recruitment for the Project. The main functions of the PIC can be summarised
as follows:
• Inform local community of the project status and any new developments;
• Disseminate project related announcements by placing posters within the

community;
• Receive and process public grievances;
- Register grievances and send it to project management

- Track the grievances until it is closed
- Keep the log of grievances
• Facilitate the local recruitment for the project;
- Place Job Announcements;

- Organise job interviews by engaging project company/contractors’
representatives
- Document and keep record of interview results;
• Organise public meetings by engaging local authorities and project

management;

• Generate project proposals from communities for financing by the Project
Developer; and
• Document and keep the records of all communication with community.
No grievances were received by the PIC as of 2nd November 2021.
Plate 6-1 Public Information Centre at Sitalchay Village

PHOTOGRAPHS
6.3 Consultations as Part of the LRP

As mentioned above, consultations were undertaken during the ESIA stage. Project Affected
Persons including interest-based stakeholders are currently being consulted at individual level
to obtain more information on land use, land ownership and to obtain socioeconomic details.
The below provides a list of stakeholders that are being engaged as part of the LRP.
Table 6-1 Stakeholders Being Engaged During the LRP

RELEVANCE TO PROJECT:
STAKEHOLDER IMPACT-BASED (A), INTEREST- AGENDA FOR CONSULTATIONS AND
STAKEHOLDER BODIES
GROUP BASED (I), OR DECISION METHODS
MAKER (D)
Farmers using the Issues regarding the land use

site and ownership, issues
A: Direct impact due regarding economic
to loss of grazing land displacement and loss of
Land Users (economic grazing land.
Herb Collectors displacement) and
land use restriction.
Formal Meetings & Bi-Lateral/
Phone Calls/ Letters
Issues regarding disruption of
A: Herding activities herding activities and any
Permanent and impacts relating to their
will potentially be
Temporary workers income.
Workers disrupted during
employed by
construction phase of
farmers
the project Formal Meetings & Bi-Lateral/
Phone Calls

RELEVANCE TO PROJECT:
STAKEHOLDER IMPACT-BASED (A), INTEREST- AGENDA FOR CONSULTATIONS AND
STAKEHOLDER BODIES
GROUP BASED (I), OR DECISION METHODS
MAKER (D)
Issues regarding land use,

land lease agreement and
D: The Project is alternative grazing area.
Local
Sitalchay located within the
governmental
Municipality jurisdiction of the
authorities Formal Meetings / Letter
municipality
Correspondence / Phone
Calls
Requesting information and

discussion of the issues
Local D: Part of the regarding the land use and
representative of Regulatory body land ownership.
Government
the Executive overseeing land
Body
power of Khizi ownership and land
region use Formal Meetings / Letter
Calls (If necessary)
Requesting information and

discussion of the issues
regarding registration of land
State Land Khizi Region State D: Research on land lease.
Agency Land Agency ownership and users
Formal Meetings / Letter
Calls (If necessary)
On-going dialogue
throughout the process to
Financial D: Providing finance for ensure EBRD Performance
EBRD/ADB
institutions the Project Requirements and ADB
Safeguards requirements are
met
6.4 Grievance Mechanism

EBRD, ADB and IFC PS require the client to establish a Project specific grievance mechanism
with suitable procedure to receive and facilitate resolutions of affected people’s concerns,
complaints and grievances.
The Project specific grievance mechanism will use an understandable and transparent
process that is culturally appropriate and readily accessible at no cost; so, all affected parties
will have the opportunity to raise a complaint. Under the Project specific grievance
mechanism, the PAPs are allowed to seek redress/resolution mechanisms outside of the
established Project grievance mechanism such as the courts.

Provisions for confidentiality, protecting personal data, conflicts of interest, anonymous
complaints and zero tolerance policy against any form of retaliation should be included.
All PAPs must be able to provide their feedback, opinions and raise concerns without fear of
retaliation (e.g., threats, intimidation, harassment or violence). To achieve this, the project will
adopt a zero-tolerance policy to reprisals which will be reflected in the Code of Conduct and
company policies. Any allegations of reprisals will be addressed and responded to
immediately and responses will be taken in consultation with those at risk and measures on
responding to reprisal and implementation will be agreed with victims.
The process flow and timeline below shall be followed as part of the grievance mechanism.
Where complex grievances, or other factors are extending the investigation time, the Grievant
will be informed of this delay and advised of an updated expected timeline for response.
Table 6-2 Grievance Process and Timeline

STAGE TIMELINE
Grievance Received/Submitted -
Grievance logged and acknowledged Within 1 week of grievance being submitted
Grievance investigated Within 30 days of grievance being submitted

Proposed resolution conveyed to
Within 2 weeks of grievance being submitted
grievant
IF APPLICABLE FOLLOWING DISSATISFACTION OF RESOLUTION BY GRIEVANT
Actions to re-assess grievance/propose
Within 2 weeks of notification of dissatisfaction by
new solution/inform Grievant of final
Grievant
decision
In the event that a grievance cannot be
resolved between the two parties a
Within 2 weeks of notification of dissatisfaction by
mediator will be involved i.e., local
the Grievant.
leaders who understand the culture and
practices within the Project site.
Grievances that are not resolved at the Within 30 days of notification of dissatisfaction by
project level - a grievance committee the Grievant.
involving senior management from
ACWA Power, municipality and any
other relevant authorities (if required).
The above grievance mechanism will be transitioned to the process defined by the Project
specific Stakeholder Engagement Plan (SEP) and implemented by the Project parties once
confirmed.
Table 6-3 Grievance Mechanism Contact Details

COMPANY CONTACT DETAILS
ACVA POVER AZERBAYCAN RENEVABLE
Project Company
ENERGY
Javid Alifli
Grievance Manager/In-Charge
Phone: M + 994 50 241 80 30

COMPANY CONTACT DETAILS
Email: JAlifli@acwapower.com
Vusal Safarov
PIC Phone: +99455 260 08 09
Email: vusal.safarovv@gmail.com

7 FRAMEWORK AND METHODOLOGY FOR
ECONOMIC DISPLACEMENT
Livelihood restoration will be undertaken in accordance with the Azerbaijan national
legislation and EBRD, ADB & IFC requirements. The process will include the following key steps:
• Census of affected land owners and users (i.e. formal and informal land
users/owners and vulnerable groups) in order to identify the PAPs and their land
rights and livelihoods and identify those who are eligible for compensation and/or
assistance. e.g. vulnerable households, etc.
This has been undertaken as part of the socio-economic survey and data obtained will be
provided in the Final LRP currently under preparation.
• Socio-economic survey to complement the census data to establish the socio-

economic background of the PAPs for the Project site. The socio-economic survey
will include.
- Household composition;
- Personal information of the respondents i.e., age, place of residence, gender,
education level, health status, etc;
- Sources of income and expenditure;
- Identification of vulnerable household members;
- Uses of impacted land including type of land use/lease;
- Sources of labour for the farmers
- Type of assistance they need from the project, etc.
This socio-economic survey has been undertaken and information gathered will be presented
in the Final LRP which is currently under preparation.
• Consultation meetings with relevant government authorities/agencies and the

PAPs in the process of compensation and livelihood restoration measures etc. The
PAPs will also have access to a grievance mechanism in order to submit any
questions, complaints or request for clarifications etc. regarding the process.
Consultation with relevant government authorities/agencies is currently ongoing and the

outcome of these consultation will be provided in the Final LRP
7.1 Eligibility
The PAPs eligible for compensation or support under the Project are:
• All farmers using the project site.
- Farmer without official lease agreement for land use i.e., Farmer of Farms 1, 3, 4
and 6.
• All herb collectors that use the project site
• Herders/Workers working under the affected farmers.

7.2 Cut-off-Date
A cut-off date will be set to ensure that there is a specific time period for identifying and
registering the eligible land users. This date will be the last day of the census and surveys and
will be communicated to the PAPs through the consultation methods identified in the
stakeholder matrix. The on-going LRP process will be completed prior to the start of the
construction phase of the Project.

7.3 Entitlement Matrix
During the development of the LRP, a series of compensation measures and livelihood assistance and restoration option will be made available
to the PAPs. A preliminary entitlement matrix is presented in the table below.
Table 7-1 Preliminary Entitlement Matrix
ASSET SPECIFICATIONS AFFECTED PERSONS COMPENSATION ENTITLEMENT
In the event that the Municipality confirms that grazing can still be undertaken in the now
classified industrial land, the following compensation entitlement will be made available to
these farmers:
• Demarcate areas that are not accessible during construction phase so farmers can
graze livestock in other areas of the project site
• Allocation of temporary access routes for livestock and farmers to areas within the site
where grazing can still occur during the construction phase.
• Support farmers in updating their current land lease agreement with Sitalchay & Khizi
Executive District as applicable by ensuring the lease agreement is updated based on
the new grazing land size (based on land lost to the project) and by providing them with
Grazing land Informal farmers of application fee and other costs related to the update of the lease agreement.
within the Farm 1, 3, 4 & 6 who
Land • Support farmers in registering the updated land lease agreement with the State Land
Project use the project site Agency by providing them with official registration fee and ensuring their agreement is
footprint for grazing validated.
In the event that the Municipality confirms that grazing cannot be undertaken at the site
due to change in land use status, the following compensation entitlement will be made
available to these farmers:
• Assist in the identification of alternative land the farmers can graze their livestock. This
land shall be of equal productivity and size as the land currently used at the Project site.
• Support farmers in obtaining a new land lease agreement by ensuring they go through
the land auction process with the Sitalchay Municipality.
• Providing farmers with application fee and other costs related to the securing a new
lease agreement.

Livelihood Restoration Plan - DRAFT (LRP), V1.1
• Support farmers in registering the newly obtained land lease agreement with the State
Land Agency by providing them with official registration fee and ensuring their
agreement is validated.
• All farmers will be provided with a month’s notice before the commencement of the
construction phase of the Project and information on location of alternative grazing land
provided.
• Access to alternative grazing land will be granted one month before the start of the
construction phase.
• Transitional support to be provided during period farmers and livestock are settling in the
new grazing area. This may include cost related to transportation services to alternative
land, providing veterinary services and animal feed for a certain period, provision of
cash compensation until the re-establishment of herding activities at the alternative
grazing area and/or farmer is able to restore income -earning capacity etc.
Loss of herbs • Notify the herb collectors on the construction schedule and how it overlaps with their
(as a result of seasonal herb collection.
permanent
• Right to collect herbs from the project footprint area before the commencement of
land take
construction works. In the event that construction begins before the herbs are harvested,
Herbs within turbine All herb collectors
compensation for lost harvest from the project footprint will be provided at full
pad,
replacement value3.
substation,
laydown • Demarcate areas that are not accessible during construction phase so herb collectors
areas) can collect herbs in other areas of the project site.
3 According to IFC PS 5 Replacement cost is defined as the market value of the assets plus transaction costs. In applying this method of valuation, depreciation of assets should not be taken into
account. Market value is defined as the value required to allow Affected Communities and persons to replace lost assets with assets of similar value.

• Allocation of temporary access routes for herb collectors to areas within the site where
herbs can still be obtained during the construction phase.
• Provision of additional assistance to find alternative employment opportunities i.e.,
priority employment at the project site etc. ensuring that this does not impact herb
collection activities.
Rabbits and • No compensation required as the animals the farmer hunts is available outside the project
- Farmer of farm 4
ducks site and impact is negligible
The following are only applicable during period of transition to alternative grazing area
Loss of Workers employed • Cash compensation for lost net income during the period of transition at full replacement
Employment
employment by farmers cost (until the re-establishment of herding activities). This will be based on the income
from the previous fiscal year.
PAPs without official
lease agreement, • Vulnerable groups/farmers will be entitled to additional support which will be intended
PAPs with chronic to improve their standard of living. Such additional support will be based on the needs
illness, disabilities, of each farmer, herb collector and herder.
Vulnerable
- loans, PAPs receiving • Priority for employment in Project related jobs, training opportunities and wage
groups/farmers
government support assistance etc. ensuring that this does not impact livestock breeding activities.
and the farmers with • Provision of cash allowance. A minimum of three (3) months official salary or the national
herding as main/only minimum wage (whichever is higher).
source of income.
Note:
• Livelihood support programs will be identified and developed in the Final LRP in consultation with the PAPs and relevant stakeholders in accordance with
EBRD PR 5: Land Acquisition, Involuntary Resettlement and Economic Displacement and IFC Module 5: Livelihood Restoration and Improvement.
• Any unanticipated impacts identified during construction and operational phase will be compensated in full replacement cost.

7.4 Valuation and Compensation
Valuation for compensation will be conducted by a registered independent valuator who
works at a legally licensed valuation firm. The Land Acquisition Law (2010) is the legal
requirement that regulates the procedures of acquisition of lands for state needs and the
procedures for calculation and payment of compensation. Articles in the law that will be used
to guide the process are:
• Article 7 on Affected Person by an Acquisition. Clause 7.3 of this article provides 5 groups of
persons that will be considered to be persons affected by acquisition. These groups of
persons are described in section 3.1.3 of this draft LRP
• Article 8, clause 8.2.5 states the need for compensation to be paid or resettlement
undertaken before land possession
• Article 23 on Valuation of Acquired Land, clause 23.1.1 & 23.1.2 states the need to collect
data and evidence on market value of land to be acquired, replacement cost of land,
buildings and moveable property. It should be noted that there are no buildings/structures
or moveable property on the project site.
• Article 23, clause 23.1.4 states the need to involve an independent valuator for the purpose
of valuation of acquisition land and other properties. In the case of this project, there are
no properties or existing structures on site as such only valuation of acquisition land will be
undertaken.
• Article 55 on Modes for Valuing Land for Compensation. Clause 55.1.1 states that the
amount of compensation for acquired land shall be calculated by determination of market
price of acquired land.
• According to Article 58, market price of the land shall be determined based on the average
value of top 3 (three) prices specified in land transactions which were registered in notary
within three months prior to census date. For determination of land price on the basis of its
market price, then market price for acquired land shall be based on price of acquired land
with the territory with the coverage of 100 meters from acquired land, in case of absence
of land market in this territory - the territory with coverage of 250 meters from acquired land,
in case of absence in this territory of land market - in the territory with coverage of 500
meters from acquired land.
In the absence of land market in the territory with the coverage of 500 meters from the
acquired land, then the market price for acquired land shall be based on price of acquired
land located in the area, the city or the district of the city in accordance with the respective
administrative unit.
• Article 63 on Compensation of disturbance states the items to be considered when

assessing compensation for disturbance. This includes the:
- Cost of transporting any livestock of affected persons in a safe and secure

manner;
- Any loss of income due to land acquisition and/or during transition period;
- The costs of any training needed to enable the PAPs to undertake work in their
new location which is suited to their circumstances;
- The cost of providing food support to the affected persons and household in
the event that the affected person obtains food from the acquired land, etc.

• Article 68 on Acceptance of Compensation Offer states that within 40 days after receipt of
compensation offer, the person to whom the offer is given shall decide to:
- Accept the award of compensation in whole or in part;

- Accept the award of compensation in whole or in part under protest;
- Reject the award of compensation in whole or in part
In case of whole or part rejection of provided compensation, the person to whom the offer
is given shall transfer dispute to a Grievance Redress Committee according to Article 75
below.
• Article 75 on Grievance Redress Commission states that the relevant executive authority
under the respective administrative unit where the acquired land is located shall set up a
grievance redress commission comprised of the corresponding persons capable of
reviewing, exploring and using all efforts for solution of complaints lodged by persons
affected by acquisition.
In the event that the person affected do not agree with the decision of the Grievance
Redress Commission, the person can submit a claim or complaint to land acquisition
inspectorate.
Based on the above and current information about project affected persons, the following will
be compensated for:
• Loss of grazing land – primary compensation to be paid in form of provision of alternative

grazing land with equal quality, size, potential production compared to lost land.
• Loss of herbs – primary compensation to be paid in form of provision of alternative herb

collecting land
• Loss of income by farmers and herb collectors - Cash compensation at full replacement
cost for lost income earning capacity during the period of transition to new alternative land
• Loss of wages by workers - Cash compensation at full replacement cost for lost wages
during the period of transition to new alternative land
Please see the entitlement matrix table above (table 7-1) for all compensation entitlement
associated with loss of grazing land, loss of herbs, loss of income and loss of wages.
7.4.1 Valuation Methodology
The valuation method for determining replacement cost will be provided by the registered
independent valuator who will be engaged during the Final LRP stage. This methodology will
be documented and included in Final LRP.
At this stage it is anticipated that the valuator will calculate the lost income earning capacity
of the farmers and herb collectors based on the income from the previous fiscal year and the
total transition period. The same approach will be undertaken for workers/herders.
Where alternative land of equal quality, size and potential productivity is or cannot be
provided, the valuator will calculate the loss of grazing land based on the market price of the
acquired land (that is the area of land assigned to the project in the LLA) according to Article
58 of the Land Acquisition Law.

7.4.2 Compensation Method
The Land Acquisition Law of Azerbaijan does not specify compensation calculation
methodology. However, all compensation to be paid will be based on principle that all
affected persons shall have their livelihoods, income, living standards and conditions restored
so that they are not worse off than they were before were relocated. All the reasonable
expenses, incurred in the relocation to alternative land (if any) and current inflation will be
considered in compensation.
Compensation for lost income earning capacity will not be less than the established
Azerbaijan monthly minimum wage. Compensation to all PAPs will be paid before the
commencement of any site work.
Note: Detailed/specific valuation and compensation methodologies will be provided as

part of the final LRP.

8 INSTITUTIONAL RESPONSIBILITY
The planning, preparation and implementation of the LRP involves distinct processes and
different parties/stakeholders with different roles and responsibilities. Various Agencies and
Institutions are responsible for the different functions in the land acquisition and resettlement
process and implementation. Azerbaijan law stipulates that the decision on acquisition of land
for state needs is made by State.
8.1 Government Agency

8.1.1 Sitalchay Municipality
The Sitalchay Municipality has been closely involved in the LRP processes. Their roles include:
• Allocation of land in Sitalchay municipality of Khizi district to the Project;
• Identification and allocation of alternative land at Sitalchay municipality of Khizi

district to PAPs;
• Support farmers in the land auction process by registering the proposed alternative
land with the State Registry and ensuring auction/bidding is undertaken by the
Auction Centre;
• Provision of new land lease agreement and signing the lease agreement with the
farmers;
• Overseeing the relocation of PAPs to the alternative land; and
• Providing assistance in conducting communication between PAPs and Project

Developer.
8.1.2 Khizi District Executive Power
The Khizi District Executive Power has been involved in the LRP processes. Their roles include:
• Allocation of land to the Project;
• Identification and allocation of alternative land at Khizi district to the farmer;
• Support farmer in the land auction process with the Auction Centre so as to
register the proposed alternative land with the State Registry;
• Provision of new land lease agreement and signing the lease agreement with the
farmer;
• Overseeing the relocation of PAP to the alternative land; and
• Providing assistance in conducting communication between PAP and Project

Developer.

8.2 ACWA Power
ACWA Power as the Project Developer will play a vital role in the development and
implementation of the LRP. Some of its roles and responsibilities will include:
8.2.1 Deputy CEO (Project Company)
• Understand the need and implementation requirements of the LRP;
• Support the implementation of the LRP;
• Ensure that the human and financial resources are provided to allow for the
implementation of the LRP; and
• Ensure that an independent E&S consultant is appointed for the monitoring and
auditing of the implementation of the LRP.
8.2.2 Business Development Team (Azerbaijan Team)
• Disclosure of the final entitlements and livelihood restoration packages to the PAPs
once the LRP has been prepared and finalised;
• Setting up the Livelihood Restoration implementation team including the

committee that will be in charge of the cash compensation;
• Appointment of the personnel required to provide support to the farmers in

securing new LLA with the municipality, registering the LLA with the State Land
Agency, etc;
• Appointment of the experts required to provide livelihood support programs e.g.

livestock breeding technician to provide livestock breeding training to farmers &
herders (if applicable); and
• Ensure that the EPC Contractor and O&M Company (if applicable) is aware of the
compensation policies and are monitored to avoid any violations of such policies.
8.2.3 Financial Department
• Disbursement of the cash compensation package into the PAPs personal bank
accounts and any other additional transitional support in accordance with the LRP
timeline; and
• Ensure timely payment of income tax on top of all the PAPs compensation
packages.
8.2.4 E&S Implementation Manager
• Addressing any grievances received through the established LRP GRM and PIC in
coordination with the LRP implementation team including allocation of necessary
resources;

• Coordinate with the construction and operational phase Community Liaison
Officer to track and resolve any grievances received relating to LRP including
distribution of information to the PAPs within the specified timelines;
• Monitoring and reporting on the status of implementing the LRP; and
• Submit monitoring and audit reports to the lenders in coordination with the Business
Development Team.
8.2.5 HR Manager
• Prepare the individual PAPs compensation package agreements in coordination

with the Business Development Team & Financial Department;
• Prepare contracts for the appointment of the experts required to provide support
to the farmers and herders i.e., financial advisor, livestock breeding technician etc;
and
• Keep a record of all agreements between the Project Company and the PAPs
including those signed with the various experts supporting the PAPs.
8.3 Independent E&S Consultant

In order to meet the monitoring requirements provided herein, ACWA Power will appoint an
Independent E&S Consultant to:
• Monitor the implementation process of the LRP and prepare monitoring reports on
LRP implementation to be submitted to the lenders;
• Inform ACWA Power of any arising issues during the valuation process and the
implementation and monitoring of the LRP;
• Provide feedback on any non-compliance with the implementation of the LRP

and corrective action in the monitoring reports submitted to the lenders; and
• Provide recommendations on issues that require corrective actions in accordance

with the lender’s requirements.
8.4 Valuation Consultant

The inventory and valuation process will be conducted by a registered independent valuator
who works at a legally licensed valuation firm. The valuator will be involved in the valuation of
grazing land and calculation of compensation.

9 IMPLEMENTATION SCHEDULE
Implementation of the LRP will include the compensation to be paid to all the PAPs as well as
the monitoring of this process. According to this LRP and Azerbaijan Land Acquisition Law, all
PAPs will be compensated before the commencement of any construction works. In addition,
construction works will not commence until disclosure and consultation with PAPs have been
completed.
The preparation and implementation of the LRP will be scheduled as per the overall Project
implementation schedule.
9.1 Livelihood Restoration Plan - Schedule

The intended preparation and implementation schedule for the livelihood restoration plan is
presented below. It is noted that the sequence may change or delays may occur due to
unforeseen circumstances leading to adjustment in the implementation period.
Table 9-1 LRP Preparation & Implementation Schedule
ACTIVITY RESPONSIBILITY TENTATIVE TIMELINE
Sitalchay February, August, November 2021 and

Municipality, ACWA March 2022
Identification of PAPs
Power, 5 Capitals &
Juru Energy (Confirmation of current PAPs ongoing).
Consultations with PAPs and relevant

ACWA Power, 5
stakeholders started in February 2021 and
Stakeholder Engagement Capitals & Juru
will continue throughout the Project
Energy
implementation.
1st submission – 16th February 2022
Preparation of the Draft 2nd & 3rd Submission following updates –
5 Capitals and Juru
Livelihood Restoration April 2022
Energy
Plan 4 submission following updates – May
th
2022
Social economic surveys 5 Capitals and Juru

12th March to 30th April 2022
of the PAPs Energy
5 Capitals and Juru

Issuance of cut-off date 12th March to 10th April 2022
Energy
Preparation of the Final

LRP (including site visits & 5 Capitals, Juru
April -May 2022
meetings on alternative Energy
grazing lands)
To be confirmed (will most likely happen
Valuation of grazing land Valuation Officer
between mid-May & early June 2022)
Preparation of the
Valuation Officer, 5
compensation package May 2022
Capitals, Juru Energy
(excludes transitional

ACTIVITY RESPONSIBILITY TENTATIVE TIMELINE
support & livelihood

restoration programs)
Presentation of the initial
compensation package EBRD & ADB May 2022
to the lenders
Disclosure of the
compensation package
ACWA Power, 5
to the PAPs
Capitals & Juru June 2022
(excludes transitional
Energy
support & livelihood
restoration programs)
Lenders engagement on
review of the LRP and the EBRD & ADB June 2022
implementation schedule
Disclosure of the ACWA Power, 5
compensation package Capitals & Juru July 2022
to PAPs Energy
Online public disclosure of EBRD, ADB & ACWA
July 2022
the LRP Power’s websites
LRP Implementation
Signing of individual
compensation
ACWA Power, PAPs July 2022
agreements between
ACWA Power & the PAPs
Payment of compensation
ACWA Power July 2022
to PAPs
ACWA Power, 5
Grievance redress Capitals & Juru Ongoing
Energy
Monitoring
1st monitoring report to be submitted to
Submission of quarterly ACWA Power,
the lenders in December 2022 for
and annual monitoring Independent E&S
quarterly report and August 2023 for
reports to the lenders consultant
annual report
To be determined based on the
External 3rd party close-out Independent E&S
agreement between ACWA Power &
audit consultant
lenders on the required monitoring period
Note: The detailed Livelihood restoration measures or programmes will be included in the Final LRP. This
will be developed in consultation with the PAPs and relevant stakeholders in accordance with EBRD PR
5: Land Acquisition, Involuntary Resettlement and Economic Displacement and IFC Module 5: Livelihood
Restoration and Improvement.

Table 9-2 LRP Implementation Schedule
FEB AUG NOV FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC
TASK
2021 2022 2023
Identification of PAPs
Stakeholder
Engagement
Preparation of the
Draft Livelihood
Restoration Plan
Social-economic
survey of the PAPs
Issuance of cut-off
date
Preparation of the Final
LRP (including site visits
& meetings on
alternative grazing
lands)
Valuation of grazing
land
Preparation of the
compensation
package (excludes
transitional support &
livelihood restoration
programs)
Presentation of the
initial compensation
package to the
lenders
Lenders engagement
on review of the LRP
and the
implementation
schedule
Disclosure of the
compensation
package to PAPs
Online public
disclosure of the LRP
Payment of
compensation to PAPs
Grievance Redress
(during the project To be available to the PAPs during the lifecycle of the Project including during the phased payment period.
lifecycle)
Submission of quarterly
monitoring reports to
the lenders
Submission of annual
monitoring reports to
the lenders

FEB AUG NOV FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC
TASK
2021 2022 2023
External 3rd
party close-
out audit for the first
phase of the To Be Determined
compensation
payments.

10 MONITORING AND REPORTING
Monitoring and reporting will form an integral component in the implementations of actions
discussed herein and subsequently in the implementation of the LRP. The main objective for
monitoring will be to assess the progress of implementing the LRP in regards to livelihood
restoration outcomes, their impacts on the standards of living of the PAPs and whether the
objectives of the LRP have been achieved and/or if any corrective actions are required. Key
monitoring indicators will include the following as a minimum:
• Implementation of the LRP objectives and whether all the inputs committed in the
LRP have been delivered;
• Assessment of the implementation of mitigation measures and their effectiveness

and whether it is in accordance with Azerbaijan and lenders requirements;
• Number of compensation agreements;
• Number of PAPs who have received cash compensation and how the funds have
been disbursed;
• Number of PAPs who have received transitional support;
• The socio-economic status of PAPs measures against the baseline conditions

before the economic displacement;
• Total area of grazing land reinstated at the Project site following construction
phase i.e. for laydown areas, storage yards, etc.;
• Effectiveness of the Public Information Centre (PIC) and/ grievance mechanism
- All PAPs are aware of the PIC/grievance mechanism and have received notice
on its availability and how to access it.
- Total number of grievances received and logged, cases resolved at Project
level, how long it took to resolve them through the defined process as
accepted by lenders.
- Number of grievances received and why.
- Number of grievances taken to court and the timeline taken to resolve the
matter in court etc.
• Agenda and outcomes of continued consultations with the stakeholders involved

in the implementation of the LRP.
- This must include detailed minutes of meetings and signed attendance sheets
• Assessment whether the livelihood of the PAPs have been restored.
Additionally, the outcome of measures implemented to demonstrate effective restoration of

livelihoods will be tracked against the data collected during the socio-economic surveys. In
particular, effort will be made to determine whether vulnerable PAPs have been able to
effectively restore their livelihoods. The outcome indicators to monitor livelihood restoration will
include:

• Number and % of PAPs with improved household income;
• Number and % of PAPs with improved housing conditions;
• Number and % of PAPs with improved asset ownership;
• Number and % of PAPs with increased monthly expenditure level;
• Number of received open and closed grievances within the LRP

implementation period; and
• PAPs perception towards the project during LRP implementation.
10.1 Auditing
10.1.1 Internal Audit
The Project Company will conduct audits during LRP implementation. The objectives of the
audits will include as a minimum:
• Review of the totality of mitigation measures implemented;
• A comparison of the implementation outcomes against the LRP objectives;
• Review of information disclosure and ongoing consultations with the PAPs;
• Review of the grievance mechanism;
• Status of compensation payments including implementation of livelihood

restoration programs; and
• Corrective Action Plan listing outstanding actions necessary to meet the objectives
(if required) including the budget and timeline.
10.1.2 Third Party Audit
The Project Company will engage an independent organisation with expertise in livelihood
restoration and compensation to undertake a completion/close out audit to verify that the
implementation of the LRP has been effective in restoring the PAPs livelihood, standards of
living and whether the objectives of the LRP has been achieved throughout implementation.
This close out audit will be undertaken 24 months after the implementation of LRP measures.
Prior to conducting the independent consultant and the lenders will agree on the terms of
reference. The external auditing will establish the robustness of the internal monitoring and
auditing and will include the following as a minimum:
• Reviewing and verifying of internal monitoring reports;
• Comparison of the implementation outcomes against the LRP objectives;
• Review the effectiveness of the grievance mechanism and verify that all
grievances have been addressed;

• Verifying that all compensation and entitlements in the LRP have been delivered
to the PAPs
• Verifying whether PAPs livelihoods have been restored to pre-Project levels or have
been enhanced; and
• Corrective Action Plan listing outstanding actions necessary to meet the objectives
(if required) and the timeline.
10.2 Budget for Implementation

A detailed budget will be prepared as part of the Final LRP. This will include the compensation
to the PAPs, transitional support including additional support to vulnerable households, budget
for implementation and monitoring of livelihood restoration measures. The Project Company
will also set aside a contingency sum as well as a budget for the compensation of unexpected
damages/losses due to Project construction activities.


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Khizi 3 Wind Farm Project

Livelihood Restoration Plan

1 Financial Capital Regardless of location, mode of delivery or

5 Capitals Environmental and Management Consulting

2 PROJECT OVERVIEW ________________________________________ 3

2.3 Project Construction & Commissioning Requirements ________________ 7

3 LEGAL FRAMEWORK AND STANDARDS ___________________________ 9

3.2 Lender Requirements _____________________________________________ 13

3.3 Gap Analysis between National and Lenders Requirements_________ 17

4 BACKGROUND AND CONTEXT ________________________________ 23

4.4 Project Land Needs_______________________________________________ 37

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan i

5 SCOPE OF ECONOMIC DISPLACEMENT _________________________ 41

6 STAKEHOLDER CONSULTATIONS _______________________________ 46

7 FRAMEWORK AND METHODOLOGY FOR ECONOMIC DISPLACEMENT___ 52

8 INSTITUTIONAL RESPONSIBILITY _________________________________ 60

8.2 ACWA Power ____________________________________________________ 61

8.3 Independent E&S Consultant______________________________________ 62

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan ii

10.2 Budget for Implementation _______________________________________ 69

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan iii

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan iv

• Khizi 3: Capacity up to 162.5 MW and will be generated using 25 x 6.5 MW

• Area 1: Capacity up to 78 MW and will be generated using 12 x 6.5 MW WTGs,

5 Capitals Environmental and Management Consulting (5 Capitals) has been engaged by

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 1

1.2 Objectives of the LRP

• Determine the existence of vulnerable groups among the PAPs in order to

• Outline the Grievance Mechanism that will be followed in order to address

• Set out the monitoring requirements of the livelihood restoration outcomes,

• Establish organisational arrangements and procedures to monitor the

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 2

Figure 2-1 Project Location

The Project footprint will include the following:

• WTG platforms (this includes foundation and crane pad area);

• Substation and any storage facilities;

• Trenches for underground cables; and

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 3

2.2 Project Description

• Internal access roads;

• Access road connecting the Project to the existing road network;

• Underground electrical connections between the Wind Farm and Substation.

2.2.1 Associated Facilities

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 4

The OHTL is split into three (3) lines as follows:

Figure 2-3 OHTL Location Map

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 5

Table 2-1: Land Users Identified along the OHTL Route

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 6

• Azerenergi will implement a grievance mechanism throughout the development

2.3 Project Construction & Commissioning Requirements

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 7

2.4 Project Operational Requirements

Khizi 3 Wind Farm Project, Khizi Region - Azerbaijan 8

• The Constitution of the Republic of Azerbaijan (Adopted on 12 November 1995,

• The Land Acquisition Law (April 2010);

• Law on "Land Lease" (11 December 1998, № 587-IQ);

• Decree of the President on additional activities regarding to implementation of

• Resolution of the Cabinet of Ministers on approving of guidelines for preparation

• Resolution of the Cabinet of Ministers on approving the guidelines for selection of

• Resolution of the Cabinet of Ministers No. 110 (28 June 1999);

• Law on Management of Municipality Lands (29 June 2001, No: 160-IIQ).

The applicable laws to this Project are summarised below.