Ukraine’s leading fuel retailer, Galnaftogaz, has expanded into renewable energy by investing in the construction of a wind farm with a projected capacity of approximately 150 MW. During the project’s Environmental and Social Impact Assessment in accordance with international standards (ESIA), a need emerged to carry out a supplementary assessment of the land acquisition process and its outcomes. This assessment serves as the basis for identifying any gaps between the project’s practices and international standards on land acquisition and involuntary resettlement.
The primary objective of this assignment was to evaluate both historical and ongoing land acquisition processes and their outcomes, particularly where they have caused economic displacement. The assessment aimed to determine compliance with:
Ukrainian national regulations
IFC Performance Standard 5 (PS5)
EBRD Performance Requirement 5 (PR5)
As part of the assignment, AVG conducted evaluation of the land acquisition process, covering both past and current activities. This included an audit aligned with EBRD PR5, paragraph 7, to identify any gaps and define necessary corrective actions.
To ensure a thorough and evidence-based assessment, AVG applied a triangulated methodology that included:
Based on this evaluation, a Supplementary Assessment Report was prepared and submitted to the EBRD and IFC. The findings informed an update to the existing Land Acquisition, Involuntary Resettlement, and Livelihood Restoration Plan (LARLRP).
In addition, a time-bound Corrective Action Plan was developed, outlining:
The updated LARLRP now reflects the assessment findings and ensures alignment with both Ukrainian legal requirements and the lenders’ standards.