Albania Coastal Zone Development and Clean-Up Program

REPUBLIC OF ALBANIA

MINISTRY

OF

TERRITORIAL ADJUSTMENT

AND

TOURISM

Albania Coastal Zone Development

and

Clean-up Program

Resettlement Plan

for

Porto Romano Hot Spot

Section 5.3

Environment and Social Safeguards Framework (Phase I)

(Draft Final)

April 20, 2005

Integrated Coastal Zone Management and Clean-up Project

Resettlement Plan, Porto Romano Hot Spot

1.1.Resettlement Plan, Porto Romano Hot Spot

(i)Objectives

4 families (17 persons) living in the most contaminated part of the hot spot will be resettled in suitable accommodation in DurresMunicipality. The new homes will provide adequate conditions to assure social integration, economic viability, and to facilitate socio-economic, gender-oriented development of the family members.

(ii)Socio-economic Profile of the affected People and Valuation of Assets

The four families concerned have strong bonds with each other. Three families are relatives. One family belongs to a different ethnic group but the families are all ready to be resettled in common if the housing offered by the Municipality will conform to their standards, future expectations and perceptions.

The families have limited income, due to the fact that one woman only has a permanent job, at the post office. All the men are daily casual workers, and expect to earn 1,000 Leke/day, at least 5-10 days per month. The living costs are quite high. Electricity costs around 4,000 Leke/month. The estimated living costs per family are around 20,000 Leke/month. One member of one family has a pension of about 3,500leke/month, due to the recognition of a professional disease (mining).

The casual work places are all over Durres area. Each morning the men travel 7 km to Durres by public bus, at a cost of 20 Leke each way. There they wait to be selected by interested employers for different types of daily casual work.

In total 8 persons in the age between 24-50 years old are ready to work. Their practical experiences ranges from agricultural worker, mining worker to post office employee. Their educational standard is elementary school (8 classes).

In cases of difficult financial situations the Albanian tradition is of extended-family support mechanisms. Most commonly families borrow money from other relatives. Relatives of the four families have been settled in Durres for a long time. Social help in Porto Romano is only available from a religious NGO to the Christian population. No Muslim oriented association and no independent NGO is operating in Porto Romano.

Elementary schooling is available at the present site, at a distance of 500 meters. Due to no heating system being available and a lack of teaching staff the school hours are only from 12.30 to 4.00 pm. No fee has to be paid and schoolbooks are free since 2003.

Health care is available in the Porto Romano health center (500 m, fully staffed). The health card allows free treatment and free medicaments according to the governmental list of medicaments. For some other medicaments 50% of the cost has to be paid, others, on prescription, must be purchased in a pharmacy.

Table 1: Family data

Families to be resettled / Ages of family members
Owner of the house / Year of building / Number of people living inthe house / 1 / 2 / 3 / 4 / Corrected familysize / 6
Isuf Tufa / 1993 / 4 / 50 / 41 / 9 / 8
Xhevair Smeli / 1998 / 6 / 30 / 30 / 24 / 24 / 3 / 1
Rustem Dalipi / 1998 / 4 / 34 / 30 / 8 / 6
Sakip Jana / 1996 / 3 / 60 / 57 / 22
Total / 17

The ownership of the properties is difficult to prove. Most of the inhabitants of Porto Romano are illegal settlers. However, one of the families to be resettled can show some documents relating to the purchase of the property from a Ramiz Tollja, with papers showing his purchase of the property from the Privatization Authority. The Municipality considers these are sufficient to demonstrate legal ownership. Based on this evidence the Municipality will assist the families to obtain this missing documents required.

In accordance with World Bank policy the local office of the Registration of Immovable Property Service, Durres, will prepare a formal valuation for the existing property and land.

In the absence of this valuation using the land and building values near to the factory[1], but outside the contaminated area the maximum value of the properties (houses and land) is estimated to be US$95,500, as shown in the table below. However, as the land and the buildings are contaminated their true value is very low, if not zero. Therefore, if the land has no value, using the using the lower values for the buildings only, the total value of the property is in the region of US$ 58,700.

Table2: Value of houses and land

Owner of
house / Size of
house / Size of garden (m²) / Land - unit value
($/m²) / Land value
($) / Building – unit value
($/m2) / Building Value
($) / Total Value
($)
L
(m) / W
(m) / Area (m2)
Isuf Tufa / 8 / 10 / 80 / 80 / 7.50 / 640 / 150 / 12,000 / 12,640
Xhevair Snela / 13 / 13 / 169 / 300 / 7.50 / 2,250 / 150 / 25,350 / 27,600
Rustem Dalipi / 13 / 13 / 169 / 300 / 7.50 / 2,250 / 150 / 25,350 / 27,600
Sakip Jana / 13 / 13 / 169 / 300 / 7.50 / 2,250 / 150 / 25,350 / 27,600
Totals / 587 / 980 / 7,390 / 88,050 / 95,440

(iii)Site Selection, Preparation and Relocation

On Friday 28.10.2003 the Mayor of Durres confirmed that the Municipality will take the responsibility for the resettlement of the four families. Subsequently Decision No 84 of the Municipal Council On the housing of 4 families in the former facilities of the NPA dated 12/02/2004 has allocated a former factory unit in Shkozet. The Municipality has entitlement to the property (attached).

Shkozet is a suburb of Durres city, approximately 2 km east of the town center and port on the former main road to Tirana. It is a former industrial area, but more and more it is becoming a housing area.

The property available has a surface area of approximately 400m2 and has to be refurbished to make it habitable. The plans and contract documents for the refurbishment have been prepared by the Municipality, which will also supervise the works. The Municipality has formed a working group composed of different members of the political-administrative system and the technical services to oversee the whole process. The MoE has allocated a sum of Leke 6,000,000 (US$ 60,000) for the work. The MoE has no arrangements to allocate any further amount to the resettlement, at least during this financial year.

The list of works to be executed includes provision of electricity, water supply and sewerage. The Municipality has advised that the quality of these and other services – health, schools, public transport, etc., is better in Shkozet than in Porto Romano. Also, there have been no known problems for children of other families moving school in the past so no problems are expected for the school-age children in these families.

The allocation of the properties, as indicated in the plan of the works, is as follows

Table 3: Sizes of New Apartments

Owner of the house / Area of living room ad bedrooms (m2) / Living room / bedrooms
Isuf Tufa / 81.7 / 1 / 2
Xhevair Snela / 80.6 / 1 / 2
Rustem Dalipi / 50.6 / 1 / 1
Sakip Jana / 50.6 / 1 / 1
263.5

The size of the properties allocated is according to the norms laid down for the habitable area per person as defined in the Law on Housing, and excludes the nonhabitable areas such as bathrooms, corridors, stairs, balconies, etc. The overall floor area of the building, including the stairs and landing is 400 m2. In addition the families will have access to the paved area in front of the property (approximately a further 400 m2).

(iv)Compensation and Other Assistance to be Provided

Based on mid-range values of approximately US$ 25 per m2 for land and US$ 300 per m2 for property in Shkozet[2], the overall value of the site and the property is estimated to be US$ 130,000, based only on the land on which the building stands. Considering the $60,000 that is allocated by the MoE for spending on the refurbishment the value of the property and land is more than twice that of Porto Romano.

The Municipality will provide transport to help the families move. As the move is to another place within DurresMunicipality, and closer to the city, it is expected that the families will be able to restore their livelihoods almost immediately.

The above decision offered the families property for rent. However, following the decision about ownership, as described above, the Municipality is now able to offer:

a)Compensation for a sum to be determined by the Valuation Committee (estimated to be about $90,000), and to be approved by the Council of Ministers, with the families to be responsible for their own resettlement.

b)Refurbished properties in Shkozet, as per Municipal Council Decision No 84, dated 12/02/2004 (2 Dec 2004), with immediate ownership of the apartments, following a decision of the Council of Ministers.

The municipality is prepared to offer both, as well as the Ministry of Environment.

(v)Consultations with the Families to be Resettled

The Municipality reports that it held discussions with the families in the Municipality office following its decision to provide the refurbished property in Shkozet, and that they were willing to move to the proposed location when the works were complete. However, discussions with a representative of the families following the decision about ownership of their existing properties (see attached minutes (Annex 1)) have indicated their preference for (a) above. This is to be confirmed formally as indicated in the program in the Timetable and Budget section.

Subject to formal conformation of this preferenceMunicipality will request a formal valuation of the property by the Valuation Commission, to determine the actual amount of compensation due. Based on the Valuation Commission’s recommendation the MoE will prepare a report for the Council of Ministers recommending payment of compensation.

Should the families finally decide to choose (b) the Municipality will start execution of the works to refurbish the buildings in Shkozet, paid for by the MoE, and the MoE will apply to the Council of Ministers for a decision to grant title to the families for their respective apartments.

(vi)Institutional Responsibilities for Implementation and Redress

In the case of (a) the MoE will arrange payment of the compensation to the families, in conjunction with the Treasury Department, Ministry of Finance, according to the Law On Expropriation. In the case of (b) the Municipality will take the full responsibility for execution of the works and moving the families, to be reimbursed by the MoE.

The person immediately responsible for overseeing the whole process is the Chief of the Cabinet of the Mayor, DurresMunicipality, (069 207 7969). The Housing Director is responsible for resettlement elements like grant of title (if required), transport of house furniture, etc. The Mayor is taking overall responsibility for the whole process. The families are expected to address any grievances to the persons directly responsible.

The person in the MoE responsible for ensuring the financing of the compensation package/rehabilitation works is the Secretary General (+355(0)4270623).

(vii)Monitoring and Evaluation (M&E)

The working group established by DurresMunicipality will be responsible for M&E of its part of the process, while the Secretary General of the MoE will be responsible for overall monitoring of the process. The Municipality has stated that its services will assure social impact monitoring, with the goal that the social conditions of the families will be improved from their existing conditions.

Progress will reported monthly to the PPU, MoTAT and the World Bank, and will refer specifically to progress with respect to the target dates in (8) below.

(viii)Timetable and Budget

Table 4: Timetable for Resettlement

Task / Responsibility / Date
Resettlement
Allocation of warehouses / DurresMunicipality / 2 Dec 2004
Agreement by families that they will
a)receive compensation for a sum to be determined by the Valuation Committee
or
b)settle in the refurbished building in Shkozet / DurresMunicipality/ families / by 20 April 2005
Obtain missing ownership documents for existing property / DurresMunicipality/ families / 15 May 2005
(a)Compensation
Submit report to Council of Ministers / MoE / 15 May 2005
Receive Council approval / Council of Ministers / 15 June 2005
Receive finance / Ministry of Finance / 7 July 2005
Payment to families / MoE / 14 July 2005
Vacate property, after taking belongings / families / 21 July 2005
(b)Resettlement
Commencement of refurbishing, Shkozet / DurresMunicipality / 14 May 2005*
Payment of Contractor
(budget: US$ 60,000) / DurresMunicipality/ Ministry of Environment / as per program for Works
Submit report to Council of Ministers for Ownership title to new apartments / MoE / 15 May 2005
Approve Grant of Title / Council of Ministers / 15 June 2005
Award and Registration of Title / DurresMunicipality/ Immovable Property Registration Office / 15 July 2005
Completion of warehouse refurbishing / DurresMunicipality / 1 Aug 2005*
Relocation of affected families
(free of charge – estimated cost US$2050 per family, according amount of furniture and other personal effects) / DurresMunicipality / Aug 2005*
Civil Works (site remediation)
Start of Civil works - Phase 2 / Ministry of Environment / 21 Apr 2005*
Demolition of existing properties – to prevent reoccupation by others, also the properties have to be demolished to allow completion of the civil works as designed. / Civil works contractor / immediately on vacation by present occupants

* planned date, based on the latest information available

Annex 1 Minutes of Meeting with Families to be Resettled

Minutes of Meeting - April 4, 2005 in the Municipality of Durres with regard to the meeting of the Mayor of Durres, Mr. Lefter Koka with the representative of 4 (four) families living in Porto Romano in the area called ‘zona kimike 8’ (chemical area no. 8) and the possibility of finding housing for the above families. The representative of the 4 families presented to the Mayor an immovable property sale contract dated October 31, 1996, on the selling of the immovable property in discussion, which certifies that this property was privatized by Mr. Ramiz Tollja through AKP*. The above-mentioned person sold to the four families the property but having blood relation with them has not carried out the necessary notary procedures. After being asked by the Mayor on their housing preferences, Mrs. Thelleza Daipi expressed the wish of the 4 families for housing in places that will remain their property or the equivalent in cash, so they can afford accommodation in the market.

She (the representative of the families) did not agree on rent-based accommodation despite the fact that the rent, established by the Municipality, would be minimal.

The keeper of the protocol

Eda CAUSHI

Durres on 17 April 2005

AKP – Albanian acronym for the National Privatization Agency.

Annex 2 Photographs of proposed property & surrounding area, Shkozet,Durres

Street from main road, Shkozet.

(note residential properties on each side of street)

View of proposed property

(upper floor to be refurbished, note damp on wall above adjacent flat roof)

view of interior of upper floor

(note good condition of interior, compared to existing properties at Porto Romano)

view of ground floor (similar to upper floor)

(note damp patch upper right corner, attributable to poor hydro-isolation onadjacent flat roof, butnotseen in corresponding corner of upper floor)

local houses immediately adjacent to entrance to factory unit

Porto Romano Resettlement Plan (Final)120 April 2005

[1]The verbal advice is that these values are in the range US$77.5per m2 for land andUS$100150per m2 for buildings

[2]The verbal advice is that these values are in the range US$1530per m2 for land and US$250– 350 per m2 for buildings