Kunming-Haiphong Transport Corridor Project GMS Hanoi-Lao ......Package CP3 Yen Vien - Lao Cai...

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Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3 Updated Resettlement Plan November 2013 VIE: Kunming-Haiphong Transport Corridor Project GMS Hanoi-Lao Cai Railway Upgrading (Lot 3 Lao Cai Province) Prepared by the Vietnam Railways Corporation for the Asian Development Bank. This is an updated version of the draft originally posted in November 2006 available on {http://www.adb.org/projects/documents/greater-mekong-subregion-kunming-hai-phong- transport-corridor-yen-vien-lao-cai0}.

Transcript of Kunming-Haiphong Transport Corridor Project GMS Hanoi-Lao ......Package CP3 Yen Vien - Lao Cai...

Page 1: Kunming-Haiphong Transport Corridor Project GMS Hanoi-Lao ......Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan

Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

Updated Resettlement Plan

November 2013

VIE: Kunming-Haiphong Transport Corridor Project GMS Hanoi-Lao Cai Railway Upgrading

(Lot 3 – Lao Cai Province) Prepared by the Vietnam Railways Corporation for the Asian Development Bank. This is an updated version of the draft originally posted in November 2006 available on {http://www.adb.org/projects/documents/greater-mekong-subregion-kunming-hai-phong-transport-corridor-yen-vien-lao-cai—0}.

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Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

NOTE

In this report, "$" refers to US dollars This updated resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

TABLE OF CONTENTS Page

I. EXECUTIVE SUMMARY ..................................................................................................... 1 A. The Project Background ................................................................................................. 1 B. Surveys and Impacts on Land Acquisition by the Project ................................................ 1 C. Legal and Policy Framework .......................................................................................... 1 D. Project Objectives, Compensation and Entitlement Policy .............................................. 2 E. Participation and Consultation ........................................................................................ 2 F. Information Disclosure and Dissemination ...................................................................... 2 G. Implementation Arrangements ........................................................................................ 3 H. The Updated Resettlement Plan Preparation and Implementation Schedule .................. 3 I. Resettlement Implementation and Corrective Actions ..................................................... 4 J. Cost Estimate and Budget .............................................................................................. 4

II. THE PROJECT AND LAND ACQUISITION IMPACTS ........................................................ 6 A. Project Background ........................................................................................................ 6 B. Summary of Land Requirements .................................................................................... 7 C. Efforts in Minimizing Land Acquisition Impacts and Resettlement................................... 8 D. Land Acquisition and Resettlement Activities to Date ..................................................... 8

III. SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS ................................. 9 IV. SOCIOECONOMIC CONDITIONS ......................................................................................14

A. Background and Methodology of the Socioeconomic Survey ........................................14 B. This section of the resettlement plan presents the findings of the 2011 SES. ................14

V. LEGAL AND POLICY FRAMEWORK ................................................................................20 A. Relevant Vietnamese Legislation ...................................................................................20 B. ADB Policies on Involuntary Resettlement and Indigenous Peoples and Other Relevant Policies................................................................................................................................21

VI. OBJECTIVES AND PRINCIPLES FOR COMPENSATION AND RESETTLEMENT ..........24 A. Objectives .....................................................................................................................24 B. Reconciliation of Government and ADB Policy on Resettlement....................................24

VII. ELIGIBILITY AND ENTITLEMENT .....................................................................................29 A. Cut-off Date and Eligibility .............................................................................................29 B. Principles of Compensation ...........................................................................................29 C. Entitlement ....................................................................................................................30

VIII. CONSULTATION AND DISCLOSURE ............................................................................40 A. Objectives .....................................................................................................................40 B. Consultation during Resettlement Plan Preparation. ......................................................40 C. Consultations in 2010 and 2011 ....................................................................................42 D. Information Disclosure ...................................................................................................46

IX. GRIEVANCE AND REDRESS MECHANISM .....................................................................48 X. RESETTLEMENT AND INCOME RESTORATION .............................................................50

A. Resettlement .................................................................................................................50 B. Income Restoration .......................................................................................................52 C. Income Restoration Activities ........................................................................................53

XI. CORRECTIVE ACTION REQUIREMENTS .........................................................................54 XII. ETHNIC MINORITIES .........................................................................................................63 XIII. GENDER ISSUES ............................................................................................................67

A. Socioeconomic situation of project affected women. ......................................................67 XIV. GENDER STRATEGY......................................................................................................73

A. Gender Strategy ............................................................................................................73 XV. INSTITUTIONAL ARRANGEMENTS ..................................................................................75

A. Responsibility ................................................................................................................75

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XVI. MONITORING AND EVALUATION .................................................................................78 A. Internal Monitoring .........................................................................................................78 B. External Monitoring........................................................................................................78

XVII. IMPLEMENTATION SCHEDULE .....................................................................................81 XVIII. COST ESTIMATE ............................................................................................................82

ANNEXES ANNEX 1: MAPS OF THE PROJECT AREA AND ALIGNMENT ............................................................... 86 ANNEX 2: RESETTLEMENT DUE DILIGENCE REVIEW ......................................................................... 88 ANNEX 3: SES AND DMS FORM ............................................................................................................ 122 ANNEX 4: PUBLIC INFORMATION BOOKLET ....................................................................................... 126 ANNEX 5: SAMPLE OF MEETING MINUTES ......................................................................................... 138 ANNEX 6: DETAILED RESETTLEMENT BUDGET BY DISTRICT .......................................................... 143

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LIST OF TABLES

Table II-I: Summary Project Components Requiring Land Acquisition ......................................................... 7 Table II-II: Land Required for Resettlement Sites .................................................................................... 7 Table III-I: Summary of Affected Households by Main Types of Impacts ..................................................... 9 Table III-II: Total Project Land Requirements for Civil Works and Resettlement Sites (m

2) ................ 9

Table III-III: Losses of Residential and Agricultural Land (Area and As Proportion) .................................. 10 Table III-IV: Land Acquisition for Project Civil Works (m

2) .......................................................................... 10

Table III-V: Land Required for Resettlement Sites (m2).............................................................................. 11

Table III-VI: Affected Houses by Location, Floor Area, Severity of Impact ......................................... 11 Table III-VII: Severity of Loss of Productive Land (Households) ................................................................ 12 Table III-VIII: Affected Trees, Plants and Crops (Civil Works and Resettlement Sites) ............................. 12 Table III-IX: Affected Secondary Structures (Civil Works and Resettlement Sites) .................................... 12 Table III-X: Affected State Owned Assets ................................................................................................... 13 Table IV-I: SES Sample by Location ........................................................................................................ 14 Table IV-II: Household Sizes as Percentage of Total Affected Households by Location .................. 15 Table IV-III: Percentage Household Members by Age Distribution...................................................... 15 Table IV-IV: Percentage of Affected Households Members by Education Attainment ...................... 15 Table IV-V: Social Policy Households, Other Vulnerable Households and Households Headed by Women (No. of Households) .................................................................................................................... 16 Table IV-VI: Percentage of Affected Households by Main Household Source of Income ................. 17 Table IV-VII: Percentage of Affected Households by Average Monthly Household Income ............. 17 Table IV-VIII: Sources of Credit Expressed as Affected Households Borrowing & Percentage Total Affected Households per Commune ....................................................................................................... 18 Table IV-IX: Purpose of Loan by Percentage Affected Households Borrowing ................................. 18 Table IV-X: Household Assets, Sanitation & Access to Water/Electricity by Percentage Total Affected Households ................................................................................................................................ 19 Table VI-I: Gaps Between National Laws and ADB Policy on Involuntary Resettlement .................. 25 Table VII-I: Entitlement Matrix .................................................................................................................. 31 Table VIII-I: Location and Schedule of First Orientation Meetings for Affected Persons ................. 41 Table VIII-II: Summary of Participant in Consultation Meetings .......................................................... 44 Table VIII-III: Summary of Issues Presented in Consultation Meetings ..................................................... 44 Table VIII-IV: Meetings with Other Stakeholders ........................................................................................ 44 Table X-I: Resettlement Sites ................................................................................................................... 51 Table X-II: Stabilization Assistance Entitlements ........................................................................................ 52 Table XI-I: Summary of Resettlement Implementation to March 2013 ....................................................... 54 Table XI-II: Compensation and Assistance Already Provided and Entitlement Gaps Related to Households with Affected Houses .......................................................................................................... 56 Table XI-III: Summary Matrix of Entitlement Gaps and Corrective Actions Required ................................ 58 Table XI-IV: Summary Budget to Implement Corrective Actions ................................................................ 61 Table XI-V: Schedule for Implementation of Corrective Measures ............................................................. 62 Table XII-I: Key Socio-Economic Conditions of the Affected Ethnic Minority Households ......................... 64 Table XII-II: Number of Affected Ethnic Minority Households and Persons by Commune ............... 64 Table XII-III: Land Acquisition Impacts on Ethnic Minorities ....................................................................... 65 Table XIII-I: Sex Disaggregated Household Population ............................................................................. 67 Table XIII-II: Age Distribution of Females from Affected Households......................................................... 68 Table XIII-III: Employment of Affected Women ........................................................................................... 69 Table XIII-IV: Education Attainment of Affected Women ............................................................................ 70 Table XIII-V: Number of Affected Households Headed by Women ............................................................ 70 Table XIII-VI: Incomes of Households Headed by Women ........................................................................ 71 Table XIII-VII: Distribution of Severity of Land Losses on .......................................................................... 71 Table XIII-VIII: Summary of Land Acquisition Impact on Households Headed by Women ........................ 72 Table XIII-IX: Impacts on Houses of Households Headed by Women ....................................................... 72 Table XVII-I: Schedule of Key Activities ................................................................................................. 81 Table XVIII-I: Resettlement Budget ......................................................................................................... 82

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Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

ABBREVIATIONS

ADB – Asian Development Bank CPC – Commune People’s Committee DPC – District People’s Committee DCARB – District Compensation and Resettlement Board DARD – Department of Agriculture and Rural Development DOC – Department of Construction DOF – Department of Finance DONRE – Department of Natural Resources and Environment DPI – Department of Planning and Investment DOT – Department of Transport DMS – detailed measurement survey EMA – external monitoring agency IOL – inventory of losses LURC – land use rights certificate MOF – Ministry of Finance MOLISA – Ministry of Labor, Invalids and Social Assistance MONRE – Ministry of Natural Resources and Environment MARD – Ministry of Agriculture and Rural Development MOT – Ministry of Transport NGOs – non-government organizations CRIP – compensation and resettlement information pamphlet ROW – right-of-way RPMU – railway project management unit PPTA – project preparatory technical assistance SES – socioeconomic survey TOR – terms of reference VND – Vietnamese dong VNR Vietnam Railway Corporation

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DEFINITION OF TERMS Assistance

Means additional support provided to APs losing assets (particularly productive assets), incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life.

Compensation Means compensation to the affected properties of displaced persons at the fully replacement costs or in kind with the replacement conditions.

Cut-off date

Means the date prior to which the occupation or use of any part of the project area makes residents or occupiers or users of the same eligible to be recognized as displaced persons. The cut-off date coincides with the date of the hand-over of the stakes to the respective people’s committees (end of census of displace persons and the compiling of the inventory of losses [IOL] that were conducted).

Detailed Measurement Survey

Means the finalization and/or validation of the results of the IOL, severity of impacts, and list of displaced persons. The final cost of compensation, assistance and resettlement is determined following completion of the DMS. The DMS will be done by different District Compensation and Site Clearance Committees in the phase of resettlement plan implementation once the benchmarks of the project site demarcation are put on the ground.

Displaced Person Displaced Persons in a project area could be of three types: (i) persons with formal legal rights to land lost in its entirely or in part; (ii) persons who lost the land they occupy in its entirely or in part who have

no formal legal right to such land, but who have claims to such lands that are recognized or recognizable under national laws; and

(iii) person who lost the land they occupy in its entirely or in part who have neither formal legal rights nor recognized or recognizable claims to such land The involuntary resettlement apply to all three types of displaced persons.

Entitlement Means the range of measures comprising compensation, assistance and resettlement (including income restoration support, transfer assistance, income substitution, relocation support and resettlement which are due to the displaced persons, depending on the type and severity of their losses, to restore their economic and social base. The entitlement for displaced persons will be determined by different District Compensation and Site Clearance Committees (called Compensation Plan) in the phase of resettlement plan implementation once the DMS is completed and signed by the relevant parties. The entitlement is developed in this RP for the different impacted assets and categories.

Host community Means the community already in residence at a proposed resettlement or relocation sites (Communities receiving the relocating people).

Livelihood Restoration/ Improvement

Means the re-establishment or improve of sources of income and livelihood of relevant displaced persons through the resettlement plan policy and its implementation compared to pre-project or pre-displacement.

Inventory of Losses Means the process of identification, location, measurement and valuation of replacement cost of all fixed assets that will be recovered or adversely affected by or as a result of the project. These include, (without limitation or being an exhaustive list) lands used for residence, commerce, agriculture, ponds; dwelling units, stalls and shops, other structures, such as fences, tombs, wells; trees with commercial value, sources of income and livelihood. It also includes the assessment of the severity of the impact of land and property on the affected assets and the severity of impact to the livelihood and productive capacity of displaced persons. IOL is carried in the phase of resettlement plan preparation.

Land recovery Means the processes by which all or part of land and property owned,

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possess, occupies or uses, are compulsorily recovered or otherwise acquired from an individual, household, firm or private institution by the State or are acquired by agreement. Decision on land recovery will be done through two steps: (i) Decision at the provincial or city for the whole project areas and subsequently (ii) Decision by the district to each individual.

Resettlement

Means the physical relocation of a displaced person from the displaced person’s pre-project place of residence and/or business.

Replacement Value

Means the amount calculated before displacement which is needed to replace an affected asset without deductions for taxes, and/or costs of transaction as follows: (i) Productive land (Agricultural, fishpond, garden, forest) based on market

prices that reflect recent land sales of comparable land in the district and other nearby areas, and in the absence of such recent sales, based on productive value;

(ii) Residential land based on market prices that reflect recent sales of comparable houses and residential land in the district and other nearby areas, and in the absence of such recent land sales, based on sales in other locations with similar attributes;

(iii) Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials;

(iv) Standing crops equivalent current market value of the crop at the time of compensation;

(v) Perennial crops and trees, cash compensation equivalent to current market value given the type, age and productive value (future production) at the time of compensation.

(vi) Timber trees, the price that would currently be paid for the tress on the nearest market based on the diameter or age of each tree at breast height.

Replacement Cost Study

Means the process involved in determining the replacement cost of land, houses and other affected assets based on surveys by independent evaluators.

Severely Affected Person

Means displaced persons who will (i)lose 10% or more of their total productive land and/or other productive assets. (ii) have to relocate.

Vulnerable People Means individuals or distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of land and property recovery or resettlement and specifically includes: (i) female headed households with dependents (ii) households with disabled persons, (iii) households falling under the current Ministry of Labour, Invalids, and Social Affairs benchmark poverty line, (iv) children and elderly households who are with no other means of support, (v) landless/homeless households, and (vi) vulnerable ethnic minorities.

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DRAFT UPDATE RP– LOT 3 1

Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

I. EXECUTIVE SUMMARY

A. The Project Background 1. With loan assistance from the Asian Development Bank (ADB), the Government of Viet Nam is currently preparing the Kunming-Haiphong Transport Corridor Project (TA 4050- VIE) to upgrade and rehabilitate transport infrastructure from the Haiphong Port of Viet Nam to Kunming City in Yunnan Province in the People’s Republic of China (PRC). The project sub-component for upgrading the Yen Vien–Lao Cai Railway Line will upgrade a section of railway line that traverses 285 kilometers (km) in a northwestern direction from Yen Vien Station near Hanoi to Lao Cai Station on the border with China. This section of railway line passes through four provinces of Lao Cai, Lao Cai, Phu Tho and Vinh Phuc and the City of Hanoi. Line improvements will consist mainly of:

(i) Selective improvement of the horizontal and vertical alignment and track layout; (ii) Stabilization of embankments and sliding slopes; (iii) Improvements of track-work including turnouts; (iv) Upgrading of bridges; (v) Improvements of safety of selected at-grade level crossings; (vi) Upgrading of stations and passing loops for train loads up to 1,200 tons and train

length of up to 400 meters (m); and (vii) Modernization of auxiliary facilities and provision of maintenance equipment and

facilities, as well as rolling stock. 2. The Lot 3 section of the Project traverses Lao Cai Province. The Project civil works components consist of extension of 3 passing loops, new loops, slope protection works, track realignment and construction/upgrading of train stations. Locations of the project are Thai Van rail station, Thai Nien rail station, Xuan Giao rail station, Lao Cai rail station, realignment of 6,073 m. B. Surveys and Impacts on Land Acquisition by the Project 3. This Resettlement Plan (RP) is prepared for LOT 3 in Lao Cai province. Land acquisition is required for the major works of extension the passing loops, realignment and for resettlement site construction. The resettlement plan was prepared in 2006 by the Railway Project Management Unit (RPMU) based on an Inventory of Losses and socioeconomic survey and is now updated based on the Detailed Measurement Survey (DMS), updated census, SES, consultation, and Replacement Cost Survey (RCS). A total of 29.82 ha will be acquired for the project civil works and land required for the establishment of five resettlement sites in Pho Moi Ward and in Van Hoa, Lang Den, Kim Son commune. According to the results of DMS and census, land acquisition for LOT 3 (in Lao Cai province) will cause impacts to 685households (with approximately 2,740persons). Loss of productive land will affect 328 households of whom 254 will lose more than 10%. Impacts of housing structures will affect 539households of whom allwill be fully affected and require relocation. Those requiring relocation are located in Pho Moi ward and Van Hoa commune. There are no impacts on pagodas, temples, churches or other sensitive assets of religions. C. Legal and Policy Framework 4. The legal and entitlement policy are developed based on the laws of the Government of Viet Nam such as land law (1993), Decrees related to land acquisition, compensation when the

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2 DRAFT UPDATE RP– LOT 3

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State takes over the land and other properties for the purposes of national defense, state and public benefits as well as for the economic development (Decree 197/2004/ND-CP, Decree 84/2007/ND-CP and Decree 69/2009/ND-CPetc.), the ADB’s Policy on Involuntary Resettlement (1995) and other relevant social safeguard policies of ADB. Based on the policy of ADB on involuntary and the relevant laws of Viet Nam related to land acquisition, compensation, assistance and resettlement, the Project Management Board had prepared the resettlement plan and it was approved by the Government of Viet Nam (the Government) and ADB in 2006. This updated resettlement plan is prepared based on the entitlement policy which was defined in the project resettlement plan 2006, but applied with the new policies of Viet Nam on land acquisition, Compensation, Assistance and Relocation (such as the Decree 84/2007/ND-CP; Decree 69/2009/ND-CP etc.). D. Project Objectives, Compensation and Entitlement Policy 5. The overall objective of compensation and entitlement policy for the project is to ensure that all people affected by the project will be able to at least restore their pre-project conditions while the poor and other vulnerable households will be eligible to additional assistance to improve their pre-project living standards and income-earning capacity through compensation and relocation assistance. Compensation will be based on the principle of replacement cost or in kind compensation at the replacement conditions while additional assistance in cash and/or in-kind will also be provided depending on the severity of impacts. Income restoration measures/improvement programs for severely affected and vulnerable households are designed and will be implemented in consultation with and participation of APs and other stakeholders in Lao Cai Province during resettlement plan preparation in 2006 and updated resettlement plan 2010. E. Participation and Consultation 6. Different instruments, channels of consultation and participation were organized during a resettlement plan preparation period in 2006 and in the period of updating for resettlement plan from March to April 2010. The public consultation and participation was carried with leaders of affected communes, affected districts and relevant institutions at the provincial and district levels of Lao Cai province. The consultation with and participation of displaced persons and other stakeholders were related to stakeholders’ concerns to the project, the project compensation and resettlement policies; options of displaced persons to relocation, compensation modes (in cash or in kind) and income restoration programs, mechanisms of participation and consultation though different phases of project, complaint and grievances, gender and issues of vulnerable groups etc. Concerns and suggestions raised by stakeholders and especially the affected people were elicited and incorporated in the resettlement plan. F. Information Disclosure and Dissemination 7. During the preparation of the draft resettlement plan in 2006 orientation meetings were conducted for project stakeholders and affected households, and a Project Information Booklet was distributed to affected households and project affected sites. During the updating of the resettlement plan in 2010 and 2011 various meetings and interviews were held with district, commune authorities and APs covering updated information on the project, the updated relevant laws of GoV related to land acquisition, compensation, assistance and resettlement. The updated resettlement plan has been disclosed to affected persons by way of dissemination of an updated Public Information Brochure and public consultation meetings conducted up to September 2011. The final approval resettlement plan is also uploaded on the ADB website

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(www.adb.org). 8. In the implementation phase, the periodical monitoring and evaluation reports on RP implementation will be made available to affected households through the affected commune offices and the District Compensation and Site Clearance Committee (DCSCC), the office of RPMU as well as be uploaded on the ADB website. G. Implementation Arrangements 9. Responsibilities of all relevant authorities and institutions from Central Government to Commune levels on the land acquisition, compensation, assistance and resettlement are clearly described in the Chapter of Institutional Arrangement of the Decree 197/ND-CP-2004 and Decree 84/ND-CP-2007 and 69/2009/ND-CP. The Lao Cai Provincial People’s Committee (PPC) and its relevant departments are responsible for reviewing, approving land acquisition, compensation costs at replacement values, relocation site development and directing the lower levels in implementing the resettlement plan including the requirements on the Public information campaign (such as mechanisms of DMS, disclosure of results on DMS, calculation for the entitlement package of each household, complaint and monitoring, participation and consultation, etc.). District People’s Committees (DPCs), DCSCCs, and commune people’s committees are responsible for carrying out DMS, consultation on compensation options of displaced persons and payment to each displaced person, as well as settling complaints from displaced persons. The monitoring and evaluation will be done internally and externally in order to make sure that the objectives and principles of the resettlement plan are met. H. The Updated Resettlement Plan Preparation and Implementation Schedule 10. The estimated schedule of resettlement plan implementation is below. (Schedule would be revised later once ADB has comments to updating RP).

Activity Time

Establishment of Resettlement Committee and Grievance Redress Committee (at city/provincial level)

Completed

Confirmation of alignment and land acquisition boundaries Completed Land acquisition demarcation Completed Consultations with key stakeholders, local People’s Committees and civil society Mass Organizations. Establish Resettlement Redress Mechanism at Ward/Commune Level.

Completed

Resettlement Plan Updating May – September 2013

Mobilization of EMA May 2013 Disclosure of draft and then final Resettlement Plan (public consultation meetings, dissemination of PIB)

October 2013

Confirmation of replacement resettlement land September – December 2013

Train resettlement staff January 2012, October 2013

Update replacement cost study by qualified appraiser Annually 2010 - 2013 Preparation of local detailed compensation plans 2010 2012 –

September 2013 ADB provides concurrence to updated resettlement plan. Updated resettlement plan disclosed to displaced peoples and uploaded on ADB website

October 2013

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Activity Time

Disbursement of compensation and assistance, as well as commencement of income restoration strategy,

December 2013

Resettlement and land clearance 2010 - December 2013

RPMU and EMA confirm complete disbursement of compensation, assistance money and commencement of income restoration programs by specific area and that specific sites are free of encumbrances.

December 2013

Grievance redress mechanism operation 2010 to June 2014 Income restoration activities and assistance to vulnerable APs March 2012 to June

2014 Internal monitoring Quarterly External Monitoring Semi-annually Uploading of external monitoring reports to ADB website Semi-annually Post-resettlement evaluation by External Monitor 6 months after

completion of implementation of the resettlement plan

ADB = Asian Development Bank, EMA = environmental monitoring agency, PIB = public information booklet, RPMU = railway projects management unit.

I. Resettlement Implementation and Corrective Actions 11. Land acquisition and resettlement for CP3 commenced in 2010 prior to the approval of an updated resettlement plan and was almost completed by December 2012. A resettlement due diligence survey was undertaken in January 2013 to assess the extent of compliance of resettlement implementation with the approved 2006 resettlement framework. The due diligence review concluded that many substantial requirements of the approved project resettlement plan had been complied with (such as effective adequacy of compensation rates as well as provision of most required assistance measures) but there were a number of gaps to be addressed as well as pending actions to be completed to ensure both compliance with the approved RP as well as completion of the RP. Accordingly the updated resettlement plan includes corrective measures to address these gaps to ensure full compliance with the approved 2006 RP. The corrective measures provide for a quantified, budgeted and time bound action plan action. The budget for the corrective measures is estimated at VND 15,050,059,200.

Corrective actions include enhanced consultation and disclosure; income restoration; supplementary compensation for non-land assets on land either ineligible for compensation or not recognized as residential land to ensure compensation at full replacement value; supplementary livelihood restoration measures; inclusion within the RP of APs residing in 1ha site in Lao Cai City owned by Vietnam Railway; completion of Lang Den Resettlement Site (Lao Cai City) to enable resettlement of 73 households awaiting relocation; and completion of compensation to one pending household. The corrective actions will be undertaken from November2013 to June 2014. Financing of the corrective actions will be sourced from the Government of Vietnam.

J. Cost Estimate and Budget 12. The resettlement budget is VND 193,596,234,847(approximately $9,218,868). This represents costs already incurred or otherwise previously committed as well as the budget for the required corrective actions. The costs for resettlement include: Direct Resettlement Costs (compensation, transitional allowances, income restoration assistance, resettlement site preparation); external monitoring; Administration Costs (to include the cost of replacement cost studies); and contingency costs. All compensation is to be based on the principle of

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DRAFT UPDATE RP– LOT 3 5

Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

replacement cost and will be updated periodically up to the point of disbursement of compensation. Financing of the resettlement budget will be sourced from the Government of Vietnam.

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6 DRAFT UPDATE RP– LOT 3

Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

II. THE PROJECT AND LAND ACQUISITION IMPACTS

A. Project Background 13. The project will upgrade the existing Yen Vien – Lao Cai Railway Line located in the north and north-west of Vietnam. The railway line traverses 285 km in a northwestern direction from Yen Vien Station near Hanoi to Lao Cai Station on the border with the PRC. This section of railway line passes through the four provinces of Lao Cai, Yen Bai, Phu Tho and Vinh Phuc and the City of Hanoi. 14. Line improvements will consist mainly of:

(i) Selective improvement of the horizontal and vertical alignment and track layout; (ii) Stabilization of embankments and sliding slopes; (iii) Improvements of track-work including turnouts; (iv) Upgrading of bridges; (v) Improvements of safety of selected at-grade level crossings; (vi) Upgrading of stations and passing loops for train loads up to 1,200 tons and train

length of up to 400m; and (vii) Modernization of auxiliary facilities and provision of maintenance equipment and

facilities, as well as rolling stock.

15. The project railway line, a non-electrified single-track line, which opened between1903 and 1910, traverses about 285 km in a generally northwesterly direction from Yen Vien station, along the northern bank of the Red River to Lao Cai. The line crosses a varied terrain, including mountainous areas; connects a number of cities, towns, and industrial and residential areas; and carries substantial traffic (transit traffic between Hai Phong port and the PRC’s Yunnan province, bilateral trade between Viet Nam and the PRC, and domestic traffic, including from the apatite mine at Xuan Giao to the phosphate and chemical company near Tien Kien). The railway line also provides reliable and cheap passenger transport to the poor northern provinces. Rail services are popular, especially for tourists and locals visiting the mountainous region around Sa Pa, which is about 35 km from Lao Cai. The alignment of the railway is characterized by tight curves; steep gradients; poor quality track, in particular lack of ballast; old and worn rail; insufficient track capacity at main stations; passing loops that are too short to accommodate full-length trains; and bridges that have deteriorated due to war damage, corrosion, and steel fatigue and which require speed restrictions. In addition, proximity to the Red River means that some sections of the railway embankment require regular embankment protection works to prevent subsidence.

16. The Project’s reform agenda will support the Government’s objective to make rail transport more competitive and financially sustainable, thereby reducing the burden on state finances and increasing the competitiveness of the economy. The improved transport network will increase access to Lao Cai province, which is among the poorest provinces in Viet Nam and whose population includes a number of ethnic minorities. It will open up opportunities for trade and investment and foster economic growth in the sub-region. The employment and income generating opportunities from increased trade and economic growth will help to reduce poverty. ADB provided technical assistance to prepare the Project.

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Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

17. The Lot 3 section of the Project traverses Lao Cai Province. The Project civil works components consist of upgrading bridges, construction of level crossings, slope protection works, track realignment and construction/upgrading of train stations. The alignment will pass through 05 communes of Lao Cai. 18. This resettlement plan is prepared for only Lot 3 (land acquisition for the project in Lao Cai Province). B. Summary of Land Requirements 19. A total of 36.23ha of land are required for the Lot 3 section of the Project in Lao Cai City, Bao Thang District and Bao Yen District of Lao Cai Province. Of this total area 12.69ha is required for the project civil works and 23.55ha is required for the resettlement sites. Land acquisition affects a total of 685 households. A summary of the Project’s components for which land acquisition is required is set out in the table below. Locations of the project sites and alignment are shown in Annex 1 and Annex 2.

Table II-I: Summary Project Components Requiring Land Acquisition

Project Component by City/District Location

Lao Cai City - Lao Cai Station Pho Moi and Van Hoa Wards - Lao Cai Station Goods Yard Pho Moi Ward - Pho Moi Resettlement Site Pho Moi Ward - Resettlement Site (Ho Dai Phat Thanh Truyen Hinh) Duyen Hai Ward - Resettlement Site (Ho so 6) Duyen Hai Ward - Resettlement Site (Lang Den) Dong Tuyen Commune

Bao Thang District - Thai Nien Station Thai Nien Commune

Bao Yen District - Thai Van Station Kim Son Commune - Resettlement Site Kim Son Commune

Table II-II: Land Required for Resettlement Sites

Dístrict Commune Capacity

(Lots) Land Acquisition and Resettlement Site

Status

Lao Cai City Pho Moi Ward

93 Land acquired in 2005; Site completed in 2009

Duyen Hai Ward (Ho Dai Phat Thanh Truyen Hinh)

109 Land acquired in Sep 2009; Site completed in Nov 2011.

Duyen Hai Ward (Ho so 6)

139 Land acquired Sep 2009; Site completed Oct 2012.

Dong Tuyen (Khu Lang Den)

192 Land acquired Sep 2011; Site completed Apr 2013

Bao Yen Kim Son 9 Land acquired Sep 2011; Site completed May 2012.

Total 542

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Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

C. Efforts in Minimizing Land Acquisition Impacts and Resettlement 20. Alternatives were studied and applied to minimize land acquisition and resettlement impacts while at the same time providing the most operational gains in railway line safety and efficiency. Track extensions and passing loops could have been added on either side of the Rail Station, but site surveys by project consultants determined which areas impacted the least on persons and communities. The Project generally applied a policy of minimization for clearing the Construction Corridor (7m from edge of embankment) and Safety Corridor (15m from edge of embankment). According to the Railway Law Decree No.31/2005/QH-11, all private and public land uses are forbidden within the Construction Corridor and only plants and structures under 1.5 are allowed in the Safety Corridor. The policy of minimization means that persons and their properties will not be evacuated from the Construction or Safety Corridors adjacent to the project’s right of way unless certain structures or land-uses create special safety risks to line operation. This approach was deemed appropriate for the national context, where clearing of structures within the entire width of the right of way along the entirety of the railway line is not deemed necessary. The main exceptions will be for the sections of realignment, where clearing the construction corridor was deemed necessary for the safety of operations. Except for the track realignment sections, most of the route of railway, locations of bridges and stations utilize existing land utilized by the railway, thereby significantly limiting the need to acquire additional land. D. Land Acquisition and Resettlement Activities to Date 21. A draft Resettlement Plan for the project was prepared in 2006. Resettlement implementation commenced in 2010 prior to the approval of the updated resettlement plan and isnow almost completed. Due diligence was conducted on resettlement implementation in January 2013. While resettlement implementation was generally consistent with the approved 2006 RP, a number of gaps were identified through the diligence review which requires supplementary/corrective actions. The status of resettlement implementation and required actions are set out in a Section XVI of the RP. A copy of the due diligence review report is attached as Appendix 2 to the RP.

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Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

III. SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS

22. A total of 685 households will be affected by land acquisition for Project civil works and resettlement sites. Of this number 539 require relocation due to loss of housing and 351 lose productive land. No businesses are affected by the Project.

Table III-I: Summary of Affected Households by Main Types of Impacts

Location Total Affected Households

Households Requiring Relocation

Households Losing

Productive Land

Affected Businesses

Lao Cai City 626 520 42 0 Bao Thang District 37 10 29 0 Bao Yen District 22 9 9 0

Total 685 539 80 0

23. There are no impacts on pagodas, temples, churches, or other sensitive assets of religions or indigenous groups. 24. There are no impacts on shops or other commercial enterprises. 25. A total of 36.23 ha are required for the Project for both civil works and resettlement sites. Of this area 25.87ha is privately occupied land and 10.36ha is state managed land. State managed land acquired is located in Lao Cai City and includes land owned by Vietnam Railways, transportation land (roads, paths etc), irrigation land, and unutilized fallow land. The vast majority of the land requirements are situated in Lao Cai City which has two civil works components and four resettlement sites. A summary of the total project land requirements is set out in the table below. Table III-II: Total Project Land Requirements for Civil Works and Resettlement Sites (m2)

Land Type Bao Thang Bao Yen Lao Cai

City Total

- Privately Occupied Land (Civil Works)

13,243 2,443 70,428 86,114

- Privately Occupied Land (Resettlement Sites)

- 3,695 168,890 172,585

Sub-Total Land Privately Occupied Land 13,243 6,138 239,318 258,699

State Managed Land (Civil Works) - 103,648 103,648

Total Project Land Requirements 13,243 6,138 342,966 362,347

26. Overall the most of the privately occupied land acquired is agricultural (81%) with residential land comprising 19% of the total area. Only in Bao Yen District is there an even loss of residential and agricultural land. A summary of the types of lands acquired for both civil works and resettlement sites is set out in the table below.

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Table III-III: Losses of Residential and Agricultural Land (Area and As Proportion)

Land Type (Area and %) Bao Thang Bao Yen Lao Cai

City Total

Residential Land (m2) 1,274 1,210 46,221 48,705

Residential Land (% of total) 10% 20% 19% 19%

Agricultural land (m2) 11,969 4,927 193,097 209,993

Agricultural Land (% of total) 90% 80% 81% 81%

Total Area Residential and Agricultural 13,243 6,137 239,318 258,698

27. A more detailed breakdown of land acquisition types by Project component and location is set out the following two tables.

Table III-IV: Land Acquisition for Project Civil Works (m2)

Land Type Bao Thang Bao Yen Lao Cai

City Total

Privately Occupied Land - Residential land 1,274 1,210 44,819 47,303

- Residential land (urban) - - 43,367 43,367

- Residential land (rural) 1,274 1,210 1,452 3,936

- Agricultural Land 11,969 1,232 25,609 38,810

- Paddy Land - 582 - 582

- Annual cropping land - 390 25,609 25,999

- Perennial land - 261 - 261

- garden, pond land - - - -

- Hill, forest land 11,969 - - 11,969 Sub-Total Privately Occupied Land for Civil Works 13,243 2,443 70,428 86,114

State Managed Land - Construction land transferred to

Railway, of which - - 12,483 12,483

Railway land already acquired - - 9,419 9,419 Land not yet acquired upon which

people are stably residing up to the time of land acquisition - - 3,064 3,064

- Transportation land - - 20,306 20,306

- Irrigation land, flooded land - - 7,959 7,959 Sub-Total State Managed Land for Civil Works

40,748 40,748

Total Land Required for Civil Works 13,243 2,443 111,176 126,861

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Table III-V: Land Required for Resettlement Sites (m2)

Land Type Bao Thang Bao Yen Lao Cai

City Total

Privately Occupied Land Residential land (urban) - - 1,102 1,102

Residential land (rural) - - 300 300

agricultural land Lang Den resettlement site - - 31,483 31,483

Agricultural land in Duyen Hai with LURC - - 49,616 49,616 Agricultural land with restricted land use rights - - 42,000 42,000

Agricultural land in Duyen Hai without LURC - - 44,389 44,389

Agricultural land in Kim Son with LURCC

3,695

3,695

Total Privately Occupied Land for Resettlement Sites - 3,695 168,890 172,585

LURC = land use right certificate

28. A total of 26,535m2 of house structures are affected by the project. The vast majority of the impacts on housing are experienced in Lao Cai City. Impacts on housing represents 539 households required to relocate. Of this number all have already relocated except for 54 households located in Pho Moi Ward of Lao Cai City which are located in a 1ha site already owned by Vietnam Railway to be used for the goods yard.

Table III-VI: Affected Houses by Location, Floor Area, Severity of Impact

Houses Type Bao

Thang Bao Yen

Lao Cai City

Total

Due to Land Acquisition for Civil Works Solid Structure House (m2) 751 247 11,445 12,443

Temporary Structure House (m2) - 42 930 972

Due to Land Acquisition for Resettlement Sites Solid Structure Houses (m2) - - 6,720 6,720

Temporary Structure Houses (m2)* - - 6,400 6,400

Total affected house structures (m2) 751 289 25,495 26,535

Fully affected houses (households) 10 9 520 539

Partially affected houses (households) 0 0 0 0 * the area of temporary houses presented here is based on an average area of 40m2 for the 160 affected

temporary houses

29. For this project, severe impact on livelihood is based on loss of at least 10% of productive resources. A total of 80 households experience loss of productive, of whom 18 experience severe loss of productive land (>10% and used for productive purposes). The distribution of severity and combination with physical displacement is presented in the following table. Another 11 households are deemed not to have their livelihoods severely affected even though losing more than 10% of agricultural land because the land in question while officially categorized as agricultural land is in fact not used for productive purposes.

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Table III-VII: Severity of Loss of Productive Land (Households)

Severity of Loss of Productive Land Bao

Thang Bao Yen

Lao Cai City

Total

10- <30% and not relocating 4 0 4

10- <30% and relocating 0 0

30- 70% and not relocating 5 5

30- 70% and relocating 0 0

> 70-100% not relocating 0

> 70-100% and relocating 9 0 9

Total experiencing severe loss of productive land (>10%) 4 9 5 18

<10% 25 31 56 > 10% loss but garden land not used for productive purposes 11 11

Total losing productive land 29 9 42 80

30. Impacts on trees, crops and other plants by location are set out in the following table.

Table III-VIII: Affected Trees, Plants and Crops (Civil Works and Resettlement Sites)

Type Unit Bao Thang Bao Yen Lao Cai City Total

paddy m2 - 614 24,630 25,244

vegetables m2 - 840 36,543 37,383

fruit trees Tree 9,091 275 4,997 14,363 timber trees Tree 1,364 6 8,532 9,902 ornamental plants Tree 3,030 25 470 3,525

31. A summary of main secondary structure losses is set out in the following table.

Table III-IX: Affected Secondary Structures (Civil Works and Resettlement Sites)

Type Unit Bao Thang Bao Yen Lao Cai

City Total

bathrooms units 6 1 638 - kitchens m

2 - 117 - 117

toilets units 5 12 638 655 Animal cages/enclosures (chicken, pig, buffalo) units 17 2 635 654 Walls/Fences m

2 57 1,059 1,982 3,098

water tanks m3 - 64 567 631

wells m 168 73 776 1,017 well apron instances 7 5 97 109 cement yard m

2 472 165 1,762 2,399

doors/gates (m2) m2 - - 1,298 1,298

doors/gates (pce) pce - - 1,342 1,342 water supply pipe md - 296 - 296 relocated items (aircons, watertanks, sewage systems) units 6 - 321 327

32. Affected state owned assets are located in Lao Cai City and Bao Thang District. In Lao Cai City a dormitory owned by Vietnam Railway is utilized by approximately 60 Railway workers

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and their families. Some of the households reside in the dormitory on an ongoing basis while others (such as those working on trains themselves) use the dormitories on an intermittent basis as an end of train route resting area. Vietnam Railways is constructing a replacement dormitory for its staff simultaneously with other project works on a site it already owns.Households currently residing in the dormitory on an ongoing basis are provided the option of purchasing a resettlement site plot at Lang Den Resettlement Site at a preferential rate.

Table III-X: Affected State Owned Assets

Type Unit Bao Thang Bao Yen Lao Cai

City Total

3 houses category 4, 2 storey ( Lao Cai Station dormitory) m

2 - - 2,738 2,738

common dining room, category 4 construction ( Lao Cai Station dormitory) m

2 - - 63 63

relocation of 220V electricity poles poles 1 - 42 43 relocation of 4 electrical lines Lines - - 4 4

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Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

IV. SOCIOECONOMIC CONDITIONS

A. Background and Methodology of the Socioeconomic Survey 33. The SES was conducted based on a sample of 173 affected households from a total of 577 affected households and was conducted using a structured questionnaire. The SES questionnaire form is attached to resettlement plan as Annex 3. 34. An earlier SES was conducted in March to June 2006 by Yen Lao Rail Company over the entire alignment of the Project from Hanoi to Lao Cai. In order to ensure that the socio-economic baseline was as relevant as possible, the SES was repeated in 2011 in Lao Cai Province for the updating of the resettlement plan for Lot 3.

B. Findings of the 2011 Socioeconomic Survey

1. Household Demographics

35. A total of 685 households are affected by the project for land acquisition for both the civil works and resettlement sites. Of this number 551households, comprising approximately 3025people are affected by land acquisition for civil works for project civil works. The latest SES was conducted in 2011 in preparation for the updated RP. The sample covered 173 households, which represents 31% of those affected by land acquisition for project civil works. The sex disaggregated household composition from the SES equates to 48 % male and 52 % female which is typical for Vietnam. A summary of the affected population disaggregated by sex is presented in the table below.

Table IV-I: SES Sample by Location

Project Affected Households by Location SES Sample

Location Total HHs* Sample

Size (HH) Sample

as % Persons Male Female

Lao Cai City

Pho Moi 467 140 30% 496 240 256

Van Hoa 30 10 33% 27 13 14

Subtotal Lao Cai City 497 150 31% 25% 253 270

Bao Thang District

Thai Nien 9 3 33% 14 7 7

Xuan Giao 26 14 54% 58 31 27

Subtotal Bao Thang District 35 17 49% 49% 38 34

Bao Yen District

Kim Son 19 6 32% 24 11 13

Subtotal Bao Yen Dist 19 6 32% 32% 11 13

Total 551 173 31% 619 302 317 * The number of project affected households in the table above comprises those affected by the civil works.

36. The distribution of affected households by household size expressed as a percentage of affected households per commune is presented below.

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Table IV-II: Household Sizes as Percentage of Total Affected Households by Location

Commune < 4 members 5–6 members > 6 members Total

Lao Cai City Pho Moi 51% 44% 5% 100% Van Hoa 90% 10% 100% Bao Thang District Thai Nien 33% 66% 0% 100% Xuan Giao 50% 36% 14% 100% Bao Yen District Kim Son 34% 33% 33% 100%

37. The age distribution of affected household members indicates that 16.3 % are under 15 years old; 76.5 % in the range of 15 to 60 years old; and 7.2 % are aged over 60 years old. The official working age in Vietnam is 15–60 for men and 15–55 for women. The age distribution of household members expressed as a percentage of the total affected population per commune is presented in Table II-III.

Table IV-III: Percentage Household Members by Age Distribution

Commune <15 years old 15–60 years old >60 years old Total

Lao Cai City Pho Moi 18 77 5 100 Van Hoa 22 70 8 100 Bao Thang District Thai Nien 0 100 0 100 Xuan Giao 21 71 8 100 Bao Yen District Kim Son 4 88 8 100

2. Education Attainment

38. The Vietnamese formal education system consists of primary school (years 1–5); secondary school (years 6–9); and high school (years 10–12). School attendance is compulsory up to age of 15 years by which time children should have completed secondary school. An analysis of education attainment of household members indicates that overall 12.9 % have completed high school; college and above 2.2%). Another have completed only secondary school and below. The education attainment of household members expressed as a percentage of total survey population by commune is in Table IV-IV.

Table IV-IV: Percentage of Affected Households Members by Education Attainment

Location No formal education

Under school age

Primary Secondary High

school College

and above Total

Lao Cai City Pho Moi 1 7 17 48 20 7 100 Van Hoa 0 8 33 44 15 0 100 Bao Thang District Thai Nien 0 0 0 100 0 0 100 Xuan Giao 0 13 28 52 7 0 100 Bao Yen District Kim Son 0 0 17 58 21 4 100

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3. Vulnerable and Social Policy Households 39. The SES gathered information on whether the households fell within the official classification of “social policy household”, women headed households,1 ethnic minority or unassisted elderly. Vietnam’s classification of “social policy household” incorporates those which are below the poverty line, have a disability or who have made a significant contribution to the revolution. The poverty line criteria applied at the time the SES was undertaken was average monthly per capita income of VND 260,000 for rural areas and VND 360,000 for urban areas.2 Data on the numbers of social policy, other vulnerable households and households headed by women is presented in the table below.

Table IV-V: Social Policy Households, Other Vulnerable Households and Households Headed by Women (No. of Households)

Commune Made

contribution to the revolution

Martyr/ Invalid

Poor Women Headed

Household

Ethnic minorities

Total

Lao Cai City

Pho Moi 10 1 33 64 24 132

Van Hoa 7 1 22 42 1 73

Bao Thang District

Thai Nien 2 0 0 0 0 2

Xuan Giao 0 0 11 1 11 23

Bao Yen District

Kim Son 0 0 0 4 0 4 * Heroic mothers are also included in the category of social policy households. However, none were noted in the survey.

4. Income Sources and Household Income

40. Information gathered on household main sources of income reveal that overall most households are reliant on income from animal husbandry and farming; followed by seasonal hired labor and trade/ providing services (e.g. tradespersons, hairdressers, etc).

1 The definition of women headed household applied during the SES was a household where a woman was listed as

the head of the household in the official household registration book. The numbers indicated in the table would thus include households headed by unpartnered women (single, divorced, widowed) and women who have the main economic responsibility in the family as well as other households where the household is headed by both spouses but where a woman is nonetheless listed as household head.

2 The national poverty line was subsequently revised to average monthly per capita incomes of VND400,000 for

rural areas and VND500,000 for urban areas. As a consequence, the number of households officially classified as poor at time of writing the updated resettlement plan would be significantly higher than when the SES was undertaken.

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Table IV-VI: Percentage of Affected Households by Main Household Source of Income

Commune State

employee Handicraft

Trade/ service

Seasonal hired

laborer

Animal husbandry

and farming

Retired Sum

Lao Cai City

Pho Moi 0 0 12 83 4 1 100

Van Hoa 0 0 42 41 17 0 100

Bao Thang District

Thai Nien 0 0 0 0 100 0 100

Xuan Giao 0 0 0 33 67 100

Bao Yen District

Kim Son 0 0 22 33 45 0 100

41. Information gathered on household income reveals that overall the majority of

households fall within the range of VND 1million‒VND3 million per month. This is followed by

households in the range of over VND 5 million, then less than VND 1 million. The table below presents the survey results as percentages of households within the given income ranges. Table IV-VII: Percentage of Affected Households by Average Monthly Household Income

Commune <VND 1 million

VND 1 million– VND 3 million– >VND 5 million

Sum VND 3 million VND 5 million

Lao Cai City

Pho Moi 9 75 15 1 100

Van Hoa 0 50 0 50 100

Bao Thang District

Thai Nien 0 100 0 0 100

Xuan Giao 21 65 7 7 100

Bao Yen District

Kim Son 33 0 0 67 100 VND = Vietnamese dong.

5. Access to Credit and Purposes of Borrowing

42. Data gathered on households borrowing practices revealed that vast majority had borrowed from a bank, follow by households borrowed from other sources (e.g. informal lenders) and none borrowed from neighbors, friends or relatives. Information regarding the sources of credit by numbers of households and percentage of total affected households is presented in the table below.

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Table IV-VIII: Sources of Credit Expressed as Affected Households Borrowing & Percentage Total Affected Households per Commune

Commune Household/

%

Borrow from Neighbors/Friend,

or Relatives

Borrow from

Banks

Borrow from other

sources Total

Lao Cai City Pho Moi HH 27 14 0 41 % 66 34 0 100 Van Hoa HH 0 0 0 0 % 0 0 0 0 Bao Thang District Thai Nien HH 0 2 0 2 % 0 100 0 100 Xuan Giao HH 0 4 0 4 % 0 100 0 100 Bao Yen District Kim Son HH 1 4 0 5 % 20 80 0 100

HH = household.

43. An analysis of the purposes of the credit indicates that the most common use was to support farming and husbandry. This was followed by expenditure for family, then support for business and for schooling fee of their children. Borrowing to pay for school fees would indicate low levels of disposable income. Data on the purposes of the credit as a percentage of households borrowing money is presented below.

Table IV-IX: Purpose of Loan by Percentage Affected Households Borrowing

Commune Support farming/

husbandry

Support business

Expenditure of family

Housing Schooling

fee of children

Total

Lao Cai City

Pho Moi 7 44 2 15 32 100

Van Hoa 0 0 0 0 0 0

Bao Thang District

Thai Nien 100 0 0 0 0 100

Xuan Giao 50 0 25 25 0 100

Bao Yen District

Kim Son 20 20 40 0 20 100

6. Household Assets, Sanitation and Access to Services (Water/Electricity) 44. The data on household assets, sanitation and access to services (water and electricity) are proxy indicators for household wealth (disposable income) and general standards of living, respectively. The table below presents the findings of the SES with regards to these indicators.

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Table IV-X: Household Assets, Sanitation & Access to Water/Electricity by Percentage

Total Affected Households

Commune

Car Motorcycle TV Refrigerator

With septic tank toilet

With running water

With power supply

Lao Cai City

Pho Moi HH 0 105 129 52 137 140 140

% 0% 22% 28% 11% 29% 30% 30%

Van Hoa HH 2 10 8 6 10 10 10

% 7% 33% 27% 20% 33% 33% 33% Bao Thang District

Thai Nien HH 0 4 3 0 0 0 3

% 0% 44% 33% 0% 0% 0% 33%

Xuan Giao HH 0 11 10 1 5 0 14

% 0% 42% 38% 4% 19% 0% 54%

Bao Yen District

Kim Son HH 0 2 6 2 6 0 6

% 0% 11% 32% 11% 32% 0% 32%

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V. LEGAL AND POLICY FRAMEWORK

45. The legal framework for the updated resettlement plan (compensation, resettlement and rehabilitation) under the project is defined in the Project Resettlement Plan which was approved by the Government of Viet Nam and ADB in 2006. The legal framework is also updated with the relevant regulations of the Government of Viet Nam such as Decree 84/2007 ND-CP, Decree 69/2009/ND-CP, Circular 14/2009 and Lao Cai Provincial People’s Committee Decision on compensation, assistance and resettlement of 2010 and 2011. The updates of the national legal framework have the effect of enhancing the previously approved resettlement plan entitlements. A. Relevant Vietnamese Legislation 46. The policies of Government on compensation, resettlement and assistance have been significantly improved from time to time, especially, since 2003, the date the land law was passed by the National Assembly. Since that time various laws, decrees, circulars and amendments to laws have been issued by the Government to improve the policies on land acquisition, compensation and assistance. The policies on land acquisition, compensation and assistance have also significantly improved on the requirements for consultation, participation, information dissemination, monitoring and evaluation. For projects which are financed by International Banks, the Government has also approved for the required waivers to meet international standards on involuntary resettlement. 47. The Constitution of the Socialist Republic of Viet Nam (1992) confirms the right of citizens to own and protect the ownership of a house. In addition, the Government has enacted a number of laws, decrees and regulations that constitute the legal framework for land acquisition, compensation and resettlement. The principal documents include the Land Law No. 13/2003/QH11, providing Viet Nam with a comprehensive land administration law; Decree No. 197/2004/ND-CP dated 3 December 2004, on compensation, rehabilitation and resettlement in the event of land recovery by the State, as amended by Decree No. 17/2006/ND-CP; Decrees No. 188/2004/ND-CP and 123/2007, specifying the methods for land pricing and land price frameworks in the event of land recovery by the State. Decree No. 84/2007/ND-CP, dated May 25, 2007 provides supplementary stipulations on the issues of LURC, land acquisition, land use right implementation, procedure of compensation, assistance in the event of land recovery by the state and grievance redress; Circular 116/2004/TT-BTC, December 7, 2004 guiding the implementation of Decree 197; Circular No. 116/2004 TT-BTC sets out in detail the types of compensation for different types of users and losses; assistance policies; provisions for individual and group resettlement, and the roles and responsibilities for the implementation of resettlement projects; Circular No. 114/2004/TT-BTC elaborates in detail the methods (direct comparison and income methods) for determining land prices; Decree No. 17/2003/ND-CP, promulgating the regulation on the exercise of democracy in communes, including requirements for consultation with and participation of people in communes. On 13 August 2009, the Government enacted the Decree 69/2009/ND-CP to amend for planning on land use, cost for land, land recovery, compensation and resettlement. This Decree provides for significantly enhanced assistance to severely affected households, especially households required to relocate and losing agricultural land. Circular 14/2009/TT-BTNMT dated 01 October 2009 guides on the details of implementing compensation, resettlement and resettlement assistance, process of land acquisition, land allocation, leasing land. 48. Other laws, decrees and regulations relevant to land management, land acquisition and

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resettlement include the Construction Law 16/2003/QH11 on compensation and relocation of people affected by ground clearance for investment projects, Decree 16/2005-ND-CP guiding on the implementation of the Construction Law, Decree 182/2004/ND-CP on penalties for administrative violations in land issues, Decree 198/2004/ND-CP on land use fees. 49. Laws, decrees and decisions relevant to public disclosure of information include Land Law, No. 13/2003/QH11, Article 39, requiring disclosure of information to affected people prior to recovery of agricultural and non-agricultural land of, respectively, 90 and 180 days minimum and Decision 3037/QD-BGTVT, 2003, making the RPMU together with the Resettlement and Site Clearance Committee responsible for public disclosure through mass media of the project policies and the extent of site clearance to local people, particularly those that will be affected. 50. Decrees relevant to protection and preservation of cultural property include Decree No. 172/1999/ND-CP, Article 25, requiring that sites currently recognized for cultural and historical preservation and that are situated within the boundaries of waterway safety corridors, should be kept intact according to current legal regulations. 51. Relevant Lao Cai PPC decisions include the following: Decision 68/2007 dated 14/9/2007 regarding decision to acquire land for the project and resettlement sites; Decisions 45/2009/QD-UBND, dated 25 December 2009 of Lao Cai PPC on Land Acquisition, Compensation, Assistance and Resettlement (and Decision 49/2010 dated 29/12/2010 on Acquisition, Compensation, Assistance and Resettlement applicable for compensation and assistance from January 2011)3. And Decision 22/2011/QD-UBND, dated 18 August 2011 addition to Decision 45/2009/QD-UBND.

52. Decision 37/2010/QD-UB dated 24 December 2010 on the classification of the street types, locations and unit cost for lands in 2011. B. ADB Policies on Involuntary Resettlement and Indigenous Peoples and Other Relevant Policies 53. The applicable ADB social safeguards policies are the policy on involuntary resettlement (1995) and policy on indigenous peoples (1998) along with the policy on gender and development (1998), the accountability mechanism (2003), policy on public communication (2005). There are some policies of ADB after 2006 such as a public communication OM section L3/BP 19-Decemebr 2008, accountability OM l1/BP 19-December 2008 and on 20 July 2009, the ADB Board of Directors approved a Safeguard Policy Statement (SPS) that strengthens protections already in place on the environment, involuntary resettlement (safeguard requirement 2) and Indigenous Peoples (Safeguard requirement 3). The SPS became effective on 20 January 2010. However, the resettlement policy framework for this project area based on the ADB’s policies applicable at the time the resettlement plan received ADB’s original concurrence in 2006 and subsequent policies issued by the ADB after 2006 will not be applied to this project. 54. The objectives of ADB Policy on Involuntary Resettlement is to avoid resettlement wherever possible, to minimize involuntary resettlement by exploring project and design alternatives, to enhance, or at least restore, the livelihoods of all displaced persons (APs) in

3 Both PPC decisions 45/2009 and 49/2010 apply ND 69/2009. PPC decision 49/2010 updates PPC decision

45/2009.

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real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. 55. All safeguard policies of ADB involve a structured process of impact assessment, planning, and mitigation to address the adverse effects of projects throughout the project cycle. The safeguard policies require that (i) impacts are identified and assessed early in the project cycle; (ii) plans to avoid, minimize, mitigate, or compensate for the potential adverse impacts are developed and implemented; and (iii) affected people are informed and consulted during project preparation and implementation. The policies apply to all ADB-financed projects, including private sector operations, and to all project components. 56. The main objectives and principles of the involuntary resettlement policy according to ADB’s requirements are:

(i) Involuntary resettlement should be avoided where feasible. Where population displacement is unavoidable, it should be minimized by exploring all viable project options.

(ii) All compensation is based on the principle of replacement cost. Each involuntary resettlement is conceived and executed as part of a development project or program. Affected people should be fully informed and consulted on compensation and/or resettlement options.

(iii) Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted.

(iv) The absence of a formal legal title to land is not a bar to policy entitlements. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers of others who wish to take advance of such benefits.

(v) Particular attention must be paid to the needs of the poorest affected households and other vulnerable groups that may be at high risk of impoverishment. This may include affected households without legal title to land or other assets, households headed by women, the elderly or disabled, and ethnic minority peoples. Appropriate assistance must be provided to help them improve their socio-economic status.

(vi) The full costs of resettlement and compensation should be included in the presentation of project costs and benefits.

(vii) Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and ensure compliance with involuntary resettlement procedures during implementation.

57. The ADB’s Policy on Indigenous Peoples has the objective to design and implement projects in a way that fosters full respect for Indigenous Peoples’ identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the Indigenous People themselves so that they (i) receive cultural appropriate social and economic benefits; (ii) do not suffer adverse impacts as a results of projects; and (iii) can participate actively in project that affect them. It defines “indigenous peoples” as “those with a social or cultural identity distinct from the dominant or mainstream society”. "Indigenous peoples" is a generic concept that

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includes cultural minorities, ethnic minorities, indigenous cultural communities, tribal people, natives, and aboriginals. The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them. 58. The policy on indigenous peoples is “designed to promote the participation of indigenous peoples in project preparation and implementation, to ensure that they benefit from development interventions that would affect them, and to provide effective safeguards against any adverse impacts”. In any ADB interventions, the approaches to be used are as follows: (i) to achieve the greatest possible reduction of poverty among the affected indigenous peoples; (ii) when negative impacts are unavoidable, they should be minimized as much as possible, and appropriate measures will be taken to mitigate the adverse impacts; (iii) in enhancing the benefits of a development intervention for indigenous peoples or reducing negative impacts of a development intervention, clear mechanisms for accurate and objective analysis of their circumstances will be prepared; and (iv) the mechanisms for any intervention must be transparent and should ensure accountability. 59. The ADB’s Policy on Gender and Development (1998) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate and that their needs are explicitly addressed in the decision-making process. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. 60. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (2005) and OM Section L3/BP (2005), and (ii) Accountability Mechanism (2003).

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VI. OBJECTIVES AND PRINCIPLES FOR COMPENSATION AND RESETTLEMENT

A. Objectives 61. The overall objectives of this resettlement policy are (i) to avoid, if not, minimize resettlement impacts; (ii) if impacts are unavoidable, RP is prepared in a way to ensure that affected persons are not worse off; rather, they should be able to at least maintain or otherwise improve their pre-project living standards and income-earning capacity. The Project should also provide an opportunity for the local population to derive benefits from it. Likewise, the Project should serve as an occasion for the local population to participate in its planning and implementation, thereby engendering a sense of ownership over this development undertaking. B. Reconciliation of Government and ADB Policy on Resettlement 62. With the promulgation of Decree 197/2004/ND/CP (3/12/2004), Decree 84/2007; Decree 69/2009-ND-CP and other relevant decrees as stated above, the policies and practices of the Government have been significantly improve time to time and become more consistent with ADB’s social safeguards policies. Nonetheless, provisions and principles adopted in this Resettlement Framework will supersede the provisions of the relevant decrees currently in force in Viet Nam wherever a gap exists, as provided for under Decree 131/2006/ND-CP (November 2006), which regulates the management and use of official development assistance. 63. It should also be noted that as per Decree 197/2004 (i) Article 1, Item 2 states that for the projects which financed from ODA, if the compensation, assistance and resettlement required by the financiers are different form Decree 197/2004/ND-CP, before signing the international loan agreement, the project owner must report to the Prime Minister for his considerations and decision; (ii) Article 32, it states "Apart from the supports prescribed in Articles 27, 28, 29, 30 and 31 of this Decree, basing themselves on the local realities, the provincial-level People’s Committee presidents shall decide on other supporting measures to stabilize life and production of persons who have land recovered; special cases shall be submitted to the Prime Minister for decision”, therefore, if additional gaps not mentioned below are found during resettlement plan updating, the required assistance or support will be included in the updated resettlement plan. 64. The differences between the Government’s Laws and Decrees and ADB Policy with regard to resettlement and compensation, and how to address these gaps are shown in the table below.

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Table VI-I: Gaps Between National Laws and ADB Policy on Involuntary Resettlement

Key Issues National Laws ADB Policy Project Policy

Non-titled users to lands

Land law/2003/QH11, Articles 42 and 43 defined on the conditions to compensation for lands (classified for the cases are eligible to compensation and not eligible to compensation). Decree 197/2004/ND-CP, Articles 6 (Item 1); Article 10 (Item 6) and Article 14 (Item2), request the Peoples’ Committees of the provinces or centrally-run cities shall consider providing support to the affected person (who is not eligible to compensation for land) on case-by-case basis depends on the provincial/city conditions. Decree 197/2004/ND-CP, Article 18 (Item 2): Depends case by case, non-land assets (constructed before the declaration of competent authorities on land use and planning) would be either compensated or provide with the assistance.

Non-titled APs are not entitled to compensation for land but are entitled to payment for non-land assets, such as dwellings, trees etc. and also for other improvement to land, at full replacement cost. Assistance to restore their pre-project living standards. If they are poor and vulnerable, appropriate assistance must be provided to help them improve their socio-economic status compared to pre-project implementation.

APs will not be compensated for affected land which is state-owned or for land for which they are not eligible to receive LURC. However, if the loss of such land severely affects their income levels or represents more than 10% of their productive assets they will be entitled to income restoration assistance. All affected peoples will receive compensation for affected non-land assets which they regardless of land tenure status. Vulnerable affected peoples shall receive additional assistance to ensure restoration of their living standards compared to pre-project levels.

Compensation for land

Land law 2003/ QH 11 (Article 42); Decree 197/2004/ND-CP (Article 9, Item 1) and Circular 116/2004/TT-BTC) said that the compensation prices for lands are based on the land used purpose and at the price of transferring the land use right. However, Decree 69/2009 classifies value of some land types into two parts (i) compensation and (ii) additional subsidy. Decree 123/2007 which amends Decree 188/2004, sets price limits (with floor and ceiling values) of lands and authorizes Provincial People’s Committees to set local land prices by establishing

All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market value, plus any transaction costs such as administrative charges, taxes, registration and titling costs. In the absence of functions markets, a compensation structure is

Compensation for affected land will be at replacement cost. Replacement cost is to be equivalent to market rates plus transactions costs. The Project will conduct replacement cost surveys and determine project-specific compensation rates equivalent to current market rates in different parts of the project

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Key Issues National Laws ADB Policy Project Policy

ranges for all categories of land and land prices in each category. The price limit would not be allowed to exceed a benchmark price by more than 20 per cent nor undercut the benchmark price by more than 20 per cent. Decree 123/2007/ND-CP and Decree 69/2009/ND-CP have the same statements and guidance. However, in remote, isolated areas, or an area with socio-economically difficult conditions, poor infrastructure, when the actual price of land in the market is lower than minimum price limit in the Decree, the provincial people’s committee will adjust the specific price to be applied locally and report it to the Ministry of Finance.

required that enables affected people to restore their livelihoods to level at least equivalent to those maintained at the time of dispossession, displacement, or restricted access.

area. Replacement cost values shall be reviewed periodically to ensure that they are valid at time of payment of compensation.

Compensation for Houses and structures

Decree 197/2004-ND-CP: - Article 18 states about the cases of houses and

structures on affected land will be or will not be compensated or assisted linked to the legal status of the affected land.

- Article 19 -Houses and structures of household will be compensated at the replacement cost. For buildings and substructures of collective institutions, the deduction value will be applied.

- Article 20, Item 2 (b) and (c): + Houses, structures were constructed (on land

not eligible to compensation) prior to land use plans or the right of way announcements by the competent authorities will not be compensated, but assisted with maximum value up to 80% of replacement cost.

+ Houses and structures constructed after land use plans or the right of way announcements will be not be compensated, but provided assistance on case-by-case basis. Decree 69/2009/ND-CP- Article 24 allows paying compensation for buildings at the replacement cost, but only to household or individuals, not for the collective institutions.

For non-land assets, all eligible affected people (have houses and substructures in the project affected area before the cut-off date), whether titled, legalizable, or non-titled, need to be compensated at replacement cost, through cash or replacement assets.

Non-land assets will be compensated at replacement cost, regardless of land tenure status.

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Key Issues National Laws ADB Policy Project Policy

Non-registered business

Decree 197/2004/ND-CP, Articles 26 and 28: Only registered businesses are eligible for assistance.

Those whose livelihoods and incomes are adversely affected are to be provided with compensation and assistance sufficient to restore their economic and social wellbeing to at least pre-project levels.

All those experiencing loss or negative impacts on the businesses are to receive compensation for lost income and income rehabilitation assistance regardless of business registration status. Those losing employment are to receive compensation for lost income and income rehabilitation assistance regardless as to whether or not they have labour contracts and regardless of the business registration status of the affected business. as to whether the employing business is registered

Provision of rehabilitation assistance

Decree 197/2004/ND-CP, Article 29: APs losing more than 30% of productive land will be entitled to living stabilization and training/job creation assistance. Decree 184/2007/ND-CP and Decree 69/2009- Articles 17-20 strengthen the assistance provision and provides for the long term assistance to poor households. Decree 84/2007/ND-CP has improved for the process of compensation and rehabilitation for the severely project affected people on the agricultural land.

Rehabilitation assistance is required for those who lose 10% or more of their productive income generating assets and/or being physically displaced. Focus on strategies to avoid further impoverishment and create new opportunities to improve status of the poor and vulnerable people.

Transitional assistance (including stabilization allowances) and Income restoration assistance will be provided to those losing 10% or more of their productive land or productive assets. Transitional assistance (including stabilization allowances) will be provided to those required to relocate.

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65. The gaps identified as table above will be bridged with the entitlement policy in this resettlement plan as requirement of compliance with the ADB policy. These gaps will be closely monitored in the resettlement plan implementation by an independent monitoring agency and will be clearly stated in its reports.

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VII. ELIGIBILITY AND ENTITLEMENT

A. Cut-off Date and Eligibility

66. The cut-off date for eligibility for entitlement will be based on the date of updating of compensation plans at the commune/ward level. The local level compensation plans will be updated prior to land acquisition requirements for civil works. The respective local communities and affected households will be advised of the applicable cut-off date by the relevant commune/ward People’s Committee at the time the local level compensation plans are updated. 67. Households are eligible to compensation and rehabilitation will include: (a) those who have formal legal rights to land or other assets; (b) those who initially do not have formal legal rights to land or other assets but have a claim to legal rights based upon the laws of the country; upon the possession of documents such as land tax receipts and residence certificates; or upon permission of local authorities to occupancy or use the project affected plots; and (c) those who have no recognizable legal right or claim to the land they are occupying. 68. Persons covered under (a) and (b) are provided compensation at full replacement costs for the land they lose, payment for non-land assets they own and necessary assistance in cash or in-kind. Persons covered under (c) are provided compensation at full replacement cost for non-land assets they own, resettlement assistance (if required to relocate), income restoration assistance, and other assistance, as necessary, to achieve the objectives set out in this policy provided that they occupy the project area prior to the cut-off date of the project. Those covered under category (c) above, if vulnerable, are also entitled to other special assistance to improve their living standards compared to pre-project levels. 69. Persons who occupy the project area after the cut-off date will not be eligible to any compensation or assistance. This is stated in Article 18 (Item 3 and item 5 of Decree 197/2004). B. Principles of Compensation 70. All compensation will be either in cash or in kind and based on the principle of replacement conditions or at the replacement cost. In case of cash compensation, replacement cost is the amount calculated before displacement which is needed to replace an affected asset without deduction for taxes and/or costs of transaction as follows:

(i) Productive Land (agricultural, aquaculture, garden and forest) based on actual current market prices that reflect recent land sales in the area, and in the absence of such recent sales, based on recent sales in comparable locations with comparable attributes, fees and taxes for LURC or in the absence of such sales, based on productive value;

(ii) Residential land based on actual current market prices that reflect recent land sales, and in the absence of such recent land sales, based on prices of recent sales in comparable locations with comparable attributes; fees and taxes for LURC

(iii) Houses and other related structures based on actual current market prices of materials and labor without depreciation nor deduction for salvaged building materials; fees

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(iv) Annual crops equivalent to current market value of crops at the time of compensation;

(v) For perennial crops, cash compensation at replacement cost is equivalent to current market value given the type, age and productive value (future production) at the time of compensation.

(vi) For timber trees, cash compensation at replacement cost will be equivalent to current market value for each type, age and relevant productive value at the time of compensation based on the diameter at breast height of each tree.

71. In case of in kind compensation, the principles will be as follows:

(i) Residential land will be the same area of land lost and same conditions of the

affected site such as location, physical infrastructure and social services or otherwise improved.

(ii) Productive land will have the same type and productivity and ready for using at the time of handing over the affected land to the project.

(iii) Building and other substructures will be at the replacement conditions. (iv) Either grant with LURC and ownership of building without any taxes fees or if not,

taxes and fees for LURC and ownership of building must be included in the package of compensation to displaced people.

C. Entitlement 72. Project eligible persons covered under this resettlement plan include those affected by land acquisition for the project civil works as well as land acquisition for the fiveresettlement sites. 73. The approved project entitlements developed (in the approved resettlement plan, prepared by the Project in 2006 and updated with new Decrees of GOV after 2006 in an implementation column) and presented in the entitlement matrix below correspond to the impacts identified according the land acquisition impact categories. Entitlements adopted are based on Government laws and ADB policies on the social safeguards and other social aspects. The project entitlement matrix covers compensation, resettlement and assistance policies for resettlement and livelihood restoration/improvement. The entitlement policy includes several measures to bridge gaps between the policy of the Government and ADB consistent with other such gap filling measures approved by the Government for other ADB-financed projects in Viet Nam. 74. The Entitlement Matrix for the displaced people with the different impacted categories is described as in Table below.

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Table VII-I: Entitlement Matrix (Applied for households affected by project area and resettlement site areas)

Type and Level of

Impact Entitled Persons Entitlement Policy Implementation Issues

A. Agricultural Land A.1: Temporarily Affected Agricultural Land

Loss of use of the land for a period less than one year (contingency entitlement)

User with permanent right (legal and legalizable)

Cash compensation for loss of crops and trees at current market prices AND compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease AND restoration of land to its previous or better quality BUT no compensation for land if returned to original user, although the Project will pay rent to displaced people during the temporary use of displace people’s land

If Project impacts last more than one year, displaced people have an option to (a) continue the temporary use arrangements or (b) permanent land acquisition at full replacement cost (as defined in A2).

User with lease or temporary right

Cash compensation for loss of crops and trees at current market prices AND compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease AND restoration of land to its previous or better quality BUT no compensation for land if returned to original user, although the Project will pay rent to displaced people during the temporary use of displaced people’s land

Non-legal user Cash compensation for loss of standing crops and trees at current market prices AND compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease BUT no compensation for land

Land-Use/ Management Organization (e.g., government office, state/private company, community group)

Cash compensation for loss of standing crops and trees at current market prices AND compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease AND restoration of land to its previous or better quality BUT no compensation for land, although Project will pay rent to displaced people during the temporary use of displaced people’s land

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

A.2 Permanently Affected Agricultural Land Less than or equivalent to 10% total agricultural land or productive assets (i.e. marginally affected displaced people)

User with permanent right (legal and legalizable)

Cash compensation for loss of standing crops and trees at current market prices

AND Cash compensation for acquired land at full replacement cost AND Income restoration and livelihood change grants and assistance (as specified in Decree 69/2009 and Lao Cai PPC Decision 45/2009/QD-UBNDand 49/2010/QD-UBND) consisting of cash grant equivalent to 2 times the value of compensation for the acquired land, vocational training for working age household members and agricultural extension assistance.

- Steps of Land recovery, DMS, information disclosure/ dissemination, compensation payment followed as per guidance in the Decrees 197/2004/ND-CP, 84/2007/ND-CP, 69/2009/ND-CP and policy of Lao Cai Province.

User with lease or temporary right

Cash compensation for loss of standing crops and trees at current market prices AND Cash compensation for loss of net income for the remaining leased/assigned period OR Cash assistance equivalent to 30% of the replacement cost value of the affected land, whichever is higher (remaining 70% of replacement cost to be paid to the Land-Use Management Office –see below).

- Steps of Land recovery, DMS, information disclosure/ dissemination, compensation payment followed as guidance in the Decrees 197/2004/ND-CP, 84/2007/ND-CP, 69/2009/ND-CP and policy of Lao Cai Province.

Non-legal user Cash compensation for loss of standing crops and trees at current market prices BUT no compensation for land

Non-legal users will NOT be required to evacuate remaining plot of land

Land-Use/Management Organization (e.g., government office, state/private company, community group)

Cash assistance at 70% replacement cost of the affected land which will go to the commune budget after 30% of replacement cost of affected land is paid directly to displaced people AND cash compensation for loss of standing crops and trees at current market prices

More than 10% of total agricultural land or productive assets (i.e., Severely AP)

User with permanent right (legal and legalizable)

Cash compensation for loss of standing crops and trees at current market prices AND Cash compensation for acquired land at full replacement cost

Land-for-land compensation within the same or neighboring commune will be given priority. - Steps of Land recovery,

DMS, information disclosure/ dissemination, compensation

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

AND Income restoration and livelihood change grants and assistance (as specified in Decree 69/2009 and Lao Cai PPC Decision 45/2009/QD-UBND consisting of cash grant equivalent to 2 times the value of compensation for the acquired land, vocational training for working age household members and agricultural extension assistance. AND Stabilization assistance consisting of a cash grant equivalent to 30kg of rice per household member for periods of 6-24 months depending on severity of impact.

payment, assistance followed as guidance in the Decrees 197/2004; 84/2007 69/2009/ND-CP and policy of Lao Cai Province.

- Design and implement for the economic restoration activities based on AP’s choice.

User with lease or temporary right

Cash compensation for loss of standing crops and trees at current market prices AND special assistance allowances AND Cash compensation for lost income from the affected land for the remaining lease/assigned period OR Cash assistance at 30% of the replacement cost of the affected land, whichever is higher

Commune and District authorities will assist AP to secure replacement land with similar leasing or temporary use arrangements

Non-legal user (i) No compensation for loss of land but will be allowed to continue to use any remaining land that APs are informally occupying; (ii) Cash compensation for loss of crops and trees at market prices. (iii) Provision of Transition Allowances and income restoration program (iv) For non-titled or other APs with no other productive land holdings, local authorities will allocate replacement land with temporary or lease rights

Land-Use/ Management Organization (e.g., government office, state/private company, community group)

Cash assistance at 70% replacement cost of the affected land which will go to the commune budget after 30% of replacement cost of affected land is paid directly to displaced people AND Cash compensation for loss of standing crops and trees at current market prices.

Commune and District authorities will assist LMOs to secure replacement land with similar leasing or temporary use arrangements

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

B. Residential and Commercial Land B.1. Temporarily Affected Residential and/or Commercial Land

Any type (contingency entitlement)

All users No compensation for land, although the Project will pay rent to displaced people during the temporary use of displaced people’s land.

B.2. Permanently Affected Residential and/or Commercial Land a) With no houses or major structures built thereon

User with permanent right (legal and legalizable)

Cash compensation for land lost at full replacement cost OR replacement land of equal value and acceptable to the AP with joint LURC issued in name of male and female heads of household, as appropriate

Land-for-land compensation within the same or neighboring commune will be given priority

User with lease or temporary rights

Cash assistance at 30% of the replacement cost of the affected land.

b) With houses or major structures built thereon with remaining land sufficient to rebuild upon

User with permanent right (legal and legalizable)

Cash or assistance to repair or rebuild the structure in case of partial impact. AND special assistance allowances AND Cash compensation for land lost at full replacement cost OR replacement land of equal value and acceptable to the AP with joint LURC issued in name of male and female heads of household, as appropriate

User with lease or temporary right

Cash assistance at 30% of the replacement cost of the affected land. AND cash or assistance to rebuild/repair structure AND special assistance allowances

Non-legal user Compensation at replacement cost in materials, cash or combination of both according to the actual loss OR, if partially affected, the cost of repairing or rebuilding the structure BUT no compensation for illegal land lost, although may rebuild on the remaining illegal land

Poor, vulnerable APs and landless APs will be allowed to continue to use any remaining land that APs are informally occupying.

c) With houses or major structures built thereon without sufficient remaining land on which to rebuild.

User with permanent right (legal and legalizable)

Assistance from local authorities and CARB to locate possible plots for relocation AND special assistance allowances AND Cash compensation for land lost at full replacement cost OR replacement land of equal value and acceptable to the displaced people with joint LURC issued in name of male and female heads of household, as appropriate

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

User with lease or temporary right

Cash assistance equivalent to 30% of the replacement cost value of the affected land; AND assistance from local authorities and RPMU to locate possible plots for relocation AND special assistance allowances

Non-legal user Cash compensation for affected structure at full replacement cost BUT no compensation for land

Poor and vulnerable APs who have no other land will be allocated with replacement land in a fully serviced resettlement site or in an individual location with title or temporary lease/land rights. No APs will be displaced until they are allocated land within the same or neighbouring commune.

Tenant in private or government housing

Six months rent allowance AND assistance in finding new and affordable rental accommodation AND special assistance allowances

Notice to tenants by the owner has to be given at least two months in advance

C. Houses C.1. Completely Affected Houses

Owners of structures (regardless if land is owned or not)

Compensation at full replacement cost in cash, with no deduction for depreciation or salvageable materials. Rental assistance allowance for 6 months. Improve for the poor quality of house (assistance to the households who are fully affected on houses to have a minimum standard of house type 4 with an area of 30 m

2).

Other transitional assistance applicable as indicated below

Steps of Land recovery, DMS, information disclosure/ dissemination, compensation payment, assistance followed as guidance in the Decrees 197/2004/ND-CP, 84/2007/ND-CP 69/2009/ND-CP and policy of Lao Cai Province. Rental assistance allowance will be extended by5months beyond the date the resettlement site land is handed overshould the resettlement site not be completed by the time of displacement up until such period of time that the resettlement site is satisfactorily

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

completed. APs eligible for allocation of resettlement site lots will not be required to pay more than the compensation amount of affected residential land for a resettlement plot. Vulnerable APs will be supported 50% of the cost of the resettlement site plot and are entitled to repay the balance of the cost of purchase of the resettlement plot over a period of 5 years without interest.

C.2. Partially Affected Houses

Owners of structures (regardless if land is owned or not)

Compensation at replacement cost in material, labour, cash or a combination of all, with no deduction for depreciation or salvageable materials OR cost of repair of property to original or better condition.

Steps of Land recovery, DMS, information disclosure/ dissemination, compensation payment, assistance followed as guidance in the Decrees 197/2004/ND-CP, 84/2007/ND-CP 69/2009/ND-CP and policy of Lao Cai Province.

Tenant AP has an option to stay with the owner's agreement OR If decides to move out with six months’ rent allowance AND assistance in finding new, affordable rental accommodation

Notice to tenants by the owner has to be done at least two months in advance

D. Other Structures (e.g. Pigsty, Toilet, etc.) Owners of

structures (regardless if land is owned or not)

Cash compensation for affected structure at replacement cost OR compensation to relocate the structure OR cost of repair of structure to original or better condition.

No deductions for depreciation or salvaged materials

E. Trees/Standing Crops Owners

(regardless if land Cash compensation for loss in perpetuity of trees and standing crops at current market prices

Compensation for trees calculated on basis of type, age, and productive value

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

is owned or not) Compensation for crops calculated on basis of highest yield in last three years

F. Community Assets (05 institutions)

Village, Ward, Government Unit

Restoration of affected community buildings and structures to original or better OR Replacement in areas identified in consultation with affected communities and relevant authorities

If income loss is expected (e.g. community irrigation, forest, pasture or fishing spot), the village is entitled to compensation for the total production loss (over 3 years), which should be used collectively for community benefits, such as income restoration measures or infrastructure

G. Business Affected (Non-land) G.1. Temporary Loss of Business and Income Source Affected

(contingency entitlement)

All regardless of status

Cash compensation for the duration of business/income generation disruption

G.2 Businesses that will rebuild business structures on remaining portion of land AND businesses that will lose entire land and need to relocate to other areas.

(contingency entitlement)

Legally registered businesses with official financial documents

Net income multiplied by six months Project will give reasonable time for displaced people to continue their business operation while rebuilding their structures. In turn, displaced people will rebuild their structure as soon as payment is released and clear the area in the agreed timeframe.

Non-registered businesses (e.g., small shops)

Minimum wage per month at the respective province multiplied by six months

H. Loss of Income of Employees or Hired Laborers H.1 Temporarily Affected (while business is reorganizing) within Remaining Land

(contingency entitlement)

Employees and workers

Cash compensation for lost salary/wages for each month they cannot work OR assistance in securing new employment, such as

Businesses will be encouraged to retain existing employees

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

skills training or start- up materials and equipment H.2 Permanent Job Loss Due to Relocation of Business

Employees and workers

Cash compensation for 6 months salary/wages OR cash compensation for remaining contract period, whichever is higher OR assistance in securing new employment, such as skills training or start- up materials and equipment

Project will encourage employers to provide Severance Pay for employees

(contingency entitlement)

I. Special Assistance Allowances I.1. Transport Allowance

Relocating displaced people

Cash grant sufficient to transport all household effects to new location of residence.

Exact amount will be determined by PPC according to distance

I.2. Subsistence in Transition Allowance Relocating

displaced people, severely displaced people, vulnerable groups, displaced people rebuilding houses on remaining land

Cash grant equivalent to minimum of 30 kg of rice per person per month for six (6) months

I.3. Timely Removal Bonus Relocating

displaced people Maximum of VND 5 million per household for timely dismantling of structures and land clearance, payable immediately upon removal, where and as applicable by provincial legislation

Exact amount and timeframe will be determined by PPC according to type and grade of structures

I.4. Social Assistance Allowance

Displaced people receiving special government assistance and other vulnerable HHs

Maximum of VND 5million per displaced people’s household, where and as applicable by provincial legislation.

Level of support will be defined by PPC, depending on type and level of social assistance received

I.5 Income Rehabilitation Assistance Severely affected

and vulnerable APs Stabilization allowance grant equivalent to 30kg of

rice per household member per month for 6 to 24 months depending on severity of impact; and

Livelihood change grant equivalent to 2 times the compensation paid for loss of productive land

Type of vocational training and agricultural extension will be determined by PPC together with AP, based on AP’s individual needs and

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Type and Level of Impact

Entitled Persons Entitlement Policy Implementation Issues

(regardless of severity of impact), OR, if the affected productive land is in a residential area, supplementary compensation equivalent to 30% of the value of residential land in the area for the area affected (whichever is higher)and

Eligibility for one vocational training course free of charge at any state-funded training program in the province for each household member of working age; and

Agricultural extension support

preferences (see Chapter on Rehabilitation Strategy for more details)

I.6 Other Assistance Severely displaced

people and vulnerable groups

Priority hiring in project-related employment opportunities, as commensurate with skills and capacities of displaced people

Severely displaced people and vulnerable groups

CARB = Compensation, Assistance and Resettlement Board, DMS = detailed measurement survey, LMO = land management office, LURC = land use rights certificate, m

2 = square meter, PPC = provincial people’s committee, VND = Vietnamese dong

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VIII. CONSULTATION AND DISCLOSURE

A. Objectives

75. The communication strategy for this resettlement plan is based on the principles of transparency, timeliness, participation, meaningful engagement, and inclusiveness. Means of communication and consultation are to promote participation of those who may otherwise tend to be marginalized such as women, indigenous people, and the poor. Stakeholder communication will encompass institutional stakeholders, communities within the project area, and persons directly affected by the project. 76. Institutional stakeholders include (i) government agencies responsible for the design, management, and implementation of the project; and (ii) state institutions, community based organizations whose mandates share an interest with the outcomes and/or impacts of the project. 77. Households and affected individuals have been consulted during resettlement plan preparation and updating and will continue to be meaningfully consulted on all project activities which affect them. Consultation covers information on project objectives and policies; project technical design; implementation activities and schedules; impacts resulting from land acquisition and mitigation measures; benefit and opportunities; institutional arrangements; grievance redress mechanisms; and the results of project monitoring and evaluation. All significant communications are be recorded4 and stakeholders will have the opportunity to present questions, opinions and suggestions. 78. Information disclosure and dissemination related to land acquisition are not only required by ADB, but also by GoV as in Article 39 of Land law (2003), Articles 34, 43, 52 and 53 of Decree 197/2004 and Article 49 of Decree 84/2007. B. Consultation during Resettlement Plan Preparation

(i) Consultation and participation organized in 2006

a. Meetings 79. The first orientation meeting for APs was conducted in each of the project sites during the conduct of the IOL and SES in March to June 2006 by the resettlement surveying team. The meetings provided basic information on the Project, principles and policies for resettlement, and an outline of the process for developing the Resettlement Plan. The resettlement specialists trained the survey teams to facilitate the orientation meeting and provided a standard checklist of main points to be covered at each meeting. The checklist was then signed by the Head of the survey team, commune official and at least one affected household member, as the meeting minutes. The checklist also provided space to detail other topics covered at the meeting and any comments or questions arising from the APs. The participants were also asked to sign an attendance sheet, where further space was reserved for individual comments. To help ensure equal access to information, the participation of women was monitored at each meeting. A total of 551 people attended the meetings, of which

4 Significant consultations will typically be recorded in writing (such as minutes) and with the informed consent of those participating.

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180 (32.7%) were women (see table below).

Table VIII-I: Location and Schedule of First Orientation Meetings for Affected Persons in 2006

A. Participants

No. Location Date Total Women Hanoi City

Dong Anh fly-over bridge 14–16 June 2006 45 12

Vinh Phuc Province

1 Thạch Lỗi station 17 March 2006 2 1

2 Hương Canh station 16 March 2006 2 0

Phu Tho Province

3 Việt Trì station 21 March 2006 4 1

4 Phủ Đức station 20 March 2006 1 1

5 Tiên Kiên station 22 March 2006 3 1

Lao Cai Province

6 Chí Trủ station 19 March 2006 8 2

7 Vũ Ẻn station 21 March 2006 6 1

8 Mai Tùng station 30 March 2006 58 11

9 Cổ Phúc station 21 March2006 8 7

10 Mậu A station 27 March 2006 8 7

11 Mậu Đông station 25 March 2006 7 3

12 Lâm Giang station 23 March 2006 6 3

13 Lang Thíp station 27 March 2006 21 3

14 Van Phu station 08 June 2006 19 8

15 Realignment km169 - 171 8–11 June 2006 52 6

Lao Cai Province

16 Thái Văn station 24 March 2006 2 1

17 Thái Niên station 23 March 2006 2 1

18 Xu ân Giao station 30 March 2006 7 2

19 Lao Cai station 11–14 May 2006 85 35

20 Realignment km 283 -291 4–6 June 2006 & 8–9 June 2006

40 14

21 Pho Moi Resettlement Site 6–7 June 2006 45 20

22 Van Hoa Resettlement Site 8–9 June 2006 120 40

Total 551 180

b. Orientation Workshops for Local Government and Authorities 80. The primary purpose of the Orientation Workshops was for local government, displaced people’s representatives, and other stakeholders to review and comment on the draft Resettlement Plan which was prepared by the TA consultants in 2006. Two workshops were held, one in Lao Cai City of Lao Cai Province for all project sites under the jurisdiction of the Yen-Lao RPUC; and another in Viet Tri City in Phu Tho Province for all project sites under the jurisdiction of the Vinh Phu RPUC and the Dong Anh fly-over bridge under the Ha Thai RPUC. The workshops were facilitated by the senior resettlement officer at RPMU and the national resettlement specialist for the feasibility study. The workshops were attended mainly by representatives of the provincial Departments of Transport; Construction; Natural Resources and Environment; and Finance for each of the four provinces and Hanoi City; People’s Committee for each province, as well as districts and communes with substantial numbers of displaced people; representatives of each RPUC and the RPMU; and displaced people

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representatives. A total of 25 participants attended the workshop in Viet Tri City and 35 participants in Lao Cai City, of which only 7 participants were women. Copies of the draft Resettlement Plan prepared in 2006 were distributed to relevant government offices, RPUC and other stakeholders one week prior to the orientation workshops. Meeting Minutes were drafted and signed by the Vice-Chairman of the Lao Cai Province People’s Committee in Lao Cai City and the Director of the Vinh Phu RPUC in Viet Tri City for each workshop. 81. At the workshops, the Draft Resettlement Plan was presented chapter-by-chapter and then the floor was opened for general discussion. Participants’ questions and comments pertained mostly to clarification on the project’s resettlement policy, differences between local government and ADB policy, application of compensation pricing and suggestions for other project components. Workshop discussions were recorded by way of meeting minutes.

c. Disclosure of the Draft Resettlement Plan

82. The Draft Resettlement Plan was disclosed by way of dissemination of a Project Information Booklet (PIB) to all APs and project stakeholders as well as uploaded on ADB’s website. The Information Guide on Public Consultation and the ADB’s Accountability Mechanism were presented at the second Orientation Workshop and 600 copies of each were provided to the RPUC for distribution to affected peoples at each project site. The PIB was prepared as an easy-to-understand Question and Answer booklet about the Project. The eighteen questions in the PIB address the following main topics:

(i) Basic information about the Project, including identification of the responsible institutions

(ii) Project policies and principles on resettlement (iii) Definition of Affected Persons (iv) Legal and policy framework for determining compensation rates at replacement

cost (v) Compensation policy for affected lands (vi) Relevance of land title to compensation and entitlements (vii) Compensation policy for houses and structures (viii) Compensation policy for trees and crops (ix) Compensation policy for businesses and income (x) Allowances for transport, transition, and other rehabilitation assistance (xi) Entitlement policy for renters (xii) Entitlement policy for publicly owned or common land and assets (xiii) Eligibility cut-off date (xiv) Time limit for land clearance and dismantling structures (xv) Proposed schedule for entire resettlement process (xvi) Mechanism for responding to grievances and complaints (xvii) Contact person for question, comments or complaints (xviii) Arrangements for monitoring and evaluation of the Project

83. The project information booklet used for the consultation in 2006 is attached as Annex 4. C. Consultations in 2010 and 2011

84. In 2010 and 2011 the resettlement consultant team, in coordination with local authorities, carried out the second round consultations with stakeholders. This round focused on the consultation with the commune authorities and affected people. The meetings were

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held with wards/communes in Lao Cai province and briefed the affected communes and affected households about the project, policy of ADB on social safeguards, and that the new policy of ADB (SPS) which took effect from January 2010 would not be applied to this project. On the other hand new the Government legislation and policies on land acquisition, compensation and resettlement such as Decree 84/2007/ND-CP; Decree 69/2009/ND-CP, etc. would be applied to the project where these enhanced benefits to affected persons. During this round of consultations, the team also discussed with the project affected households about the updated socioeconomic survey and IOL as well as other relevant aspects related to resettlement plan preparation and implementation including:

(i) Possibility of arranging “land for land” compensation in the district, commune, especially agricultural land.

(ii) Potential risks if there is no land-for-land compensation with respect to productive land.

(iii) Preference of local people and local authorities on the modes of resettlement (assisted resettlement or self-relocation).

(iv) Concerns on compensation cost. (v) Potential of employment and economic restoration programs in the localities. (vi) Mechanisms of payment, complaint. (vii) Gender and vulnerable group issues. (viii) Capacity and experience of district compensation and resettlement Committee

with national and international financed projects. 85. The main feedback from people who participated in the public consultations is as follows:

(i) All participants to the meetings expressed their support to the project because they understand that with the improvement of the railway from Yen Vien to Lao Cai, the social and economical impacts would be very positive. However, the project affected persons request to be fairly paid for their affected properties and to be assisted through the process of compensation and resettlement. Therefore, they emphasized that the compensation has to be at the market prices and to be updated at the time of compensation payment.

(ii) Those preferring assisted resettlement requested that the replacement residential land should have well located, have appropriate physical infrastructures and access to social services. They also noted that if the cost of plot is more than the package they are compensated for their affected residential land, that they should not have to pay for the balance (i.e. that the balance should be subsidized by the project) and a minimum area of plot should be 200 m2.

(iii) The participants proposed that the project should implement activities of economic restoration such as training, employment, access to the loans, and agricultural extension programs. They are also happy with the proposed policy of supporting vulnerable affected groups.

(iv) The affected peoples confirmed that the information presented on the mechanisms of grievance redress, settling of complaints and monitoring and evaluation are clear.

86. The time to organized consultations meeting on each commune and the people attending the meeting are shown in Table VII.IIbelow:

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Table VIII-II: Summary of Participant in Consultation Meetings

Participants

No. Location Date Total Women Ethnic

Minorities

Lao Cai Province

1 Van Hoa Commune 17 December 2010 13 6 0

2 Thái Niên station 9 August 2011 11 5 0

3 Xuân Giao Commune 10 August 2011 16 7 15

4 Pho Moi Ward 27-28-29 May 2009 469 199 22

Total 509 217 37

Table VIII-III: Summary of Issues Presented in Consultation Meetings

Issue Presented/Raised Provisions within Resettlement Plan

Possibility of land for land compensation For those who are physically displaced, replacement land will be provided at three resettlement sites. There is no replacement land available for acquired productive land

Concerns of risks for livelihood for those losing productive land

Various income restoration measures will be made available for households losing productive land including a grant equivalent to two times the compensation for acquired productive land as well as vocational training for working age household members and agricultural extension.

Compensation rates All compensation rates will be based on replacement costs determined through a replacement cost study and will be updated prior to time of compensation.

Resettlement sites should be adequately prepared

Three resettlement sites are being prepared with adequate services (including water and electricity).

Gender and assistance to vulnerable households

The RP contains a gender action plan and special provisions for vulnerable and ethnic minority households.

Grievance redress mechanism and means of compensation

Clear information has been provided to affected households through consulting meetings and a public information brochure.

87. Consultation meetings were conducted with local government authorities and other institutional stakeholders in 2010 and 2011. The main purpose was to present information regarding the resettlement plan, with specific focus on issues covered under their respective mandates. These consultation meetings are outlined in Table VII.4.

Table VIII-IV: Meetings with Other Stakeholders

No Name Address Position Date of

interview

I Departments of Lao Cai

1 Nguyen Duc Dinh DOC Lao Cai Office Manager 14/12/2010 2 Pham Thi Yen DOC Lao Cai Specialist 14/12/2010 3 Nguyen Huu Đuc Lao Cai DONRE Vice Director 14/12/2010 4 Nguyen Thi Thom Lao Cai DARD Manager 15/12/2010

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No Name Address Position Date of

interview

5 Ngo Duc Hoang Lao Cai DOLISA Vocational Training Manager 15/12/2010

6 Le Thi Thu Ha Lao Cai Women Union Vice Chairman 15/12/2010

7 Bui Phuong Mai Lao Cai City Farmer Union Chairman 15/12/2010

8 Nguyen Thi Khuyen Lao Cai City Women Union Vice Chairman 16/12/2010

9 Nguyen Thi Thanh Huong

Lao Cai City Women Union Officer 16/12/2010

10 Bien Thi Thu Phuong Lao Cai Agribank Vice Manager of Customer Services 16/12/2010

II Bao Thang District

1 Nguyen Cong Binh

Department of Natural Resources and Environment Manager 10/8/2011

2 Nguyen Tien Sy

Department of Natural Resources and Environment Staff

10/8/2011

3 Hoang Thi Thu Thuy Department of Financial Planning Manager

10/8/2011

4 Do Hong Quan Department of Finance Staff

10/8/2011

5 Do Ba Hung UrbanManagement Department Manager

10/8/2011

6 Do Van Dai Farmer District Vice Chairman 11/8/2011

7 Nguyen Thi Dung 150 street 19/5, town Pho Lu, Bao Thang Director

10/8/2011

III Bao Yen District

1

Tran Van Dung

Natural Resources and Environment Department Deputy manager 08/8/2011

2

Bui Bac Trung

Natural Resources and Environment Department Staff

08/8/2011

3 Nguyen Huong An

Financeplans department Staff

08/8/2011

4

Do Huu Chien

District of Economic Infrastructures Department Deputy manager

08/8/2011

5 Vu Thi Hong Women Affairs District Staff 09/8/2011 6 Nguyen Huong Chinh Farmer District Staff 09/8/2011 7 Hoang Ngoc Oi BaoYenshopbusiness Officer 09/8/2011

IV Pho Moi Ward

1 Vu Ngoc Long Pho Moi Ward Chairman 16/12/2010 2 Luong Duc Thien Pho Moi Ward Vice chairman 16/12/2010 3 Le Manh Tuong Pho Moi Ward Urbanmanagers 14/12/2010 4 Tran Quang Hung Pho Moi Ward Cadastral staff 14/12/2010 5 Pham Thi Thanh Tuyet Pho Moi Ward Cadastral staff 14/12/2010 6

Tran Thi Vai Nguyen Tri Phuong, Tổ 16, Pho Moi Ward Resident 17/12/2010

7 Nguyen Van Tuan Khanh Yen street, Pho Moi, Lao Cai city

Resident 17/12/2010

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No Name Address Position Date of

interview

8 Le Thi Son Pho Moi Ward Resident 17/12/2010 9 Hoang Thi Hue Pho Moi Ward Resident 17/12/2010

10 Dang Van Kim Pho Moi Ward Builder 17/12/2010 11 Nguyen Van Bay Pho Moi Ward Resident 17/12/2010 12 Nguyen Van On Pho Moi Ward Resident 17/12/2010

V Van Hoa Commune

1 Phung Quang Thuc Van Hoa Commune Vice chairman 16/12/2010 2 Nguyen Thi Ngoc Van Hoa Commune Cadastral staff 16/12/2010 3 Do Thi Duyen Van Hoa Commune Head of Hong Ha

village 15/12/2010 4 Hoang Thi Lan Van Hoa Commune Secretary of Hong Ha

village 15/12/2010 5 Bui Xuan Anh Van Hoa Commune Farmer 15/12/2010 6 Tran Van Thanh Van Hoa Commune Farmer 18/12/2010 7

Vu Xuan Sinh Van Hoa Commune Farmer

18/12/2010 8 Nguyen Van Duong Van Hoa Commune Farmer 18/12/2010 9 Do Van Hoa Van Hoa Commune Farmer 18/12/2010

10 Pham Duc Thinh Van Hoa Commune Farmer 18/12/2010

VI Xuan Giao Commune

1 Nguyen Thi Minh Xuan Giao Commune Vice chairman 10/8/2011 2 Pham Minh Tuan Xuan Giao Commune Cadastral staff 10/8/2011 3 Hoang Van Sam Xuan Giao Commune Head of Vang village 10/8/2011 4 Nguyen Thi Hao Xuan Giao Commune Resident 10/8/2011 5 Truong Danh Duong Xuan Giao Commune Resident 10/8/2011 6 Truong Danh Hoi Xuan Giao Commune Resident 10/8/2011

VII Kim Son Commune

1 Lam Sy Quang Kim Son Commune Chairman 09/8/2011 2 Bui Trinh Hai Kim Son commune Cadastral staff 09/8/2011 3 Doan Van Du Kim Son Commune Head of Village 09/8/2011 4 Trieu Hong Kim Son Commune Farmer 09/8/2011 5 Nguyen Duy Huan Kim Son Commune Farmer 09/8/2011 6 Hoang Van Tinh Kim Son Commune Farmer 09/8/2011 7 Vu Dinh Loi Kim Son Commune Farmer 09/8/2011 8 Ha Cong Son Kim Son Commune Farmer 09/8/2011

DOC = Department of Construction; DONRE = Department of Natural Resources and Environment; DARD = Department of Agriculture and Rural Development; DOLISA = Department of Labor, Invalids and Social Assistance;

D. Information Disclosure

88. Information related to the Project, land acquisition and resettlement impacts, resettlement planning processes, policy and entitlements, resettlement and rehabilitation options, institutional arrangements, as well as the grievance redress mechanism was disclosed to affected households through consultation meetings conducted during resettlement planning preparation and updating in 2006 as well as in 2011. The draft resettlement plan was disclosed by way of a PIB in 2006. 89. The contents of the updated resettlement plan has been disclosed to affected households by way of public consultation meetings and dissemination of an updated PIB in 2010 and 2011 to affected households. The PIB has also been posted at the commune People’s Committees offices in the respective project areas. A translated version of the approved resettlement plan will also be provided to each Commune and District People’s Committee and

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will be publically accessible. The approved resettlement plan will also be uploaded on ADB’s website. Copies of the PIBs disseminated in 2006 and 2010-2011areattached to the resettlement plan in Annex 4. 90. The DCARBs will provide additional disclosure following any formal revisions to the updated RP as a result of changes in scope or design layout, etc. 91. Key information in the updated resettlement plan disclosed to the affected households, includes (i) compensation, relocation and rehabilitation options, (ii) DMS results, (iii) detailed asset valuations, (iv) entitlements and special provisions, (v) grievance procedures, (vi) timing of payments, (vii) displacement schedule, and (viii) monitoring and evaluation. The information will be made publicly available in Project and commune offices and provided to the affected households in the form of a summary resettlement plan, an information leaflet. A Summary on periodic external monitoring reports as well as the final evaluation report will also be made available to affected households. 92. At the beginning of compensation and resettlement implementation, meetings will be held with stakeholders to inform all of them about the implementation process and to publicize approvals. These are required in the policies of ADB and in Land law 2003, Decrees 197/2004; 84/2007 and 69/2009 of GoV. This task will be done by RPMU, DCARBs of Lao Cai, districts and affected commune authorities. 93. In the period of resettlement plan implementation, information disclosure requirement will also include the requirements set out in the Decrees 197/2004, 84/2007 and 69/2009, covering final cadastral map, draft and final site planning, draft and approved compensation plans for affected peoples, all decisions and approvals related to compensation and resettlement, etc. 94. In the period of resettlement plan implementation, information disclosure requirement will also include the requirements set out in the Decrees 197/2004, 84/2007 and 69/2009, covering final cadastral map, draft and final site planning, draft and approved compensation plans for affected peoples, all decisions and approvals related to compensation and resettlement, etc.

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IX. GRIEVANCE AND REDRESS MECHANISM

95. A well-defined grievance redress and resolution mechanism has been established to address affected peoples grievances and complaints regarding land acquisition, compensation and resettlement in a timely and satisfactory manner. All affected peoples have been made fully aware of their rights, and the detailed procedures for filing grievances and an appeal process has been publicized through an effective public information campaign. The grievance redress mechanism and appeal procedures are explained in the PIB distributed to all affected peoples. 96. Displaced people are entitled to lodge complaints regarding the land acquisition and resettlement, including entitlements, compensation and assistance rates, payment, procedures for resettlement and income restoration programs as well as other land management related matters. Displaced people’s complaints can be made verbally or in written form. In the case of verbal complaints, the committee hearing the complaint will be responsible to make a written record during the first meeting with the displaced people. The displaced people will be exempt from or RPMU will pay for all administrative and legal fees incurred in the resolution of grievances and complaints. 97. For the purposes of grievance redress and resolution, the respective compensation and resettlement boards at the district/town and city/provincial levels will also serve as the Grievance Redress Committees. The commune officials will make all reasonable attempts to settle AP issues at the commune level through community consultation. All meetings will be recorded by the commune and resettlement committees and copies will be provided to displaced people. Copies of minutes of meetings will be provided to RPMU and ADB upon request. Submission and settlement of complaints are guided as in Article 138 of Land law (2003), Articles 162,163 and 174 of Decree 181/2004/ND-CP instructing on the land law implementation, Articles 63, 64 of Decree 84/2004 and Decree 136/2006/ND-CP. 98. Based on the above, a four-stage procedure for redress of grievances has been established:

(i) Stage 1: Complaints from displaced people are in the first instance lodged verbally or in written form with the Commune’s People’s Committee (CPC). The complaint will be discussed in an informal meeting with the displaced people and the CPC. It will be the responsibility of the CPC to resolve the issue within 15 days from the date the complaint is received. All meetings will be recorded and copies of the minutes of meetings will be provided to displaced people.

(ii) Stage 2: If no understanding or amicable solution can be reached or if no response is received from CPC within 15 days of registering the complaint, the affected peoples can appeal to the City/District Resettlement Committee. The displaced people must lodge the complaint within 30 days of registering the original complaint and must produce documents that support his/her claim. The City/District Resettlement Committee will provide a decision within 1 month of receiving the appeal.

(iii) Stage 3: If the displaced person is not satisfied with the decision of the District Resettlement Committee or in the absence of any response, the displaced person can appeal to the PPC. The PPC will review and issue a decision on the appeal within 15 days from the day it is received.

(iv) Stage 4: If the displaced person is still not satisfied with the decision of PPC or in the absence of any response within the stipulated time, the displaced person,

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as a last resort, may submit his/her case to the District Court. 99. The external monitoring agency will be responsible for checking the procedures for and resolutions of grievances and complaints. The said external monitoring agency (EMA) may recommend further measures to be taken to redress unresolved grievances.

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X. RESETTLEMENT AND INCOME RESTORATION

A. Resettlement

i. Scale of impacts on residential land and houses 100. There are501households required torelocate. They are 486households located in Lao Cai City (Pho Moi Ward and Van Hoa Commune); 5household in Bao Thang District and 9households in Bao Yen District (Kim Son Commune). Of these 446 have already been relocated. The remaining 54 households are located a 1ha site belonging to Vietnam Railway in Pho Moi Ward of Lao Cai City and 1 household are located in Xuan Giao station of Bao Thang district..

ii. Resettlement Assistance Measures and Preferences 101. The resettlement assistance provided consists of transportation assistance sufficient to transport all personal household effects, rental assistance for 6 months plus one of two options: (i) self-relocation utilizing compensation and assistance money; or (ii) partial assisted resettlement in the form of a resettlement plot. 102. Details of the principles of resettlement assistance are set out below:

(i) Cash compensation at replacement cost (free from taxes and transaction costs) for the entire affected land plus with bonus for self-relocation, self relocation including the households prefer to the plots. OR;

(ii) Plot at the resettlement site of similar attributes with secure tenure or plot at the residential sites. The process of compensation a plot at the resettlement site will be as follows:

The area of allocated plot(s) at the resettlement site will be the same area of residential land area acquired for the project (it means that depends on the area acquired by the project, one HH could be allocated with one or more than one standard plots at the relocation sites).

If the selling cost of plot(s) at the new site is more than the value of the affected residential land, affected peoples receive new plot at no additional cost. If the plot at the new site is equal the value of affected residential land, affected peoples receive new plot at the new site without any balance.

Vulnerable households will be supported with 50% of the purchase cost of the resettlement site plot, with the entitlement to repay the balance due over a period of five years without interest.

If the plot(s) at the new site is less than the value of affected residential land, affected peoples will receive plot(s) and the difference in cash.

Detailed regulation on plot allocation will be developed by DCSCC through consultation with DPC, commune and affected peoples then need a concurrence of RPMU and an approval of district PC.

The DMS did not identify any landless households which would require special assistance. Such assistance would be through provision of land-for-land of similar attributes with secure tenure at no cost to landless

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households. The size of land will not be less than 40 m2 or cash equivalent, if affected peoples prefer for self-relocation. Following the final decision of affected households with regard to their relocation options, the key steps below presents the required activities, timeline, and groups responsible in order to design, construct and relocate households to the new resettlement sites.

103. The Lao Cai People’s Committee and People’s Committees of Districts in the project area have established 5resettlement sites for the various residential development needs of the localities. The resettlement sites are equipped with basic infrastructure and utilities (water and electricity). All 5 resettlement sites are located at the administrative centres of the respective city/district and as such have good access to social services such as schools, health services and markets. Details of resettlement sites are described as in table IX.2 below.

Table X-I: Resettlement Sites

Resettlement Site Lots Reserved Type of plot Completion Date

Pho Moi (Lao Cai City) 131 80m2 Oct 2007 Infrastructure of “Ho Sau” relocation site-Duyen Hai Ward (Lao Cai City)

137 62-144m2 Dec 2010

Infrastructure of Lake no.6 relocation site-Duyen Hai Ward (Lao Cai City)

145 90m2 Nov 2011

Infrastructure of Lang Den-Dong Tuyen Commune

192 100m2 Feb 2014

Kim Son 9 120m2 Feb 2012

104. For those APs who are required to relocate and who elect assisted resettlement, should the resettlement sites not be satisfactorily completed by the time the rental assistance period expires, the rental assistance will be extended as needed up until the resettlement site is satisfactorily completed.

105. Lao Cai City has four relocation sites, including three relocation sites were planned between 2007 and 2009. Lao CaiCity planning in 2011 added“Lang Den” Relocation site for resettlement arrangement for the Project. All 4 relocation sites of Lao Cai City are near the city center, infrastructure and social services are very good. 106. The distance from the project areas to the relocation sitesis relatively close and ranges from 1km to 3 km. APs are generally able to resettle within the same ward. 107. The relocation sites have completed construction of technical infrastructureas well as social infrastructure, such as preschools. The households have moved to resettlement areas. 108. Bao Yen district has a Kim Son relocation site with an area of 2.400m2. The households relocated there are from the same commune. The distance from the project area to Kim Son relocation site approximately 1km. 109. With regard to timing of payment to affected peoples and relocation, disbursement of compensation is at least four months prior to displacement; for villas, at least 5 months. This allows affected peoples to have sufficient time to rebuild their houses. Affected households are

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not displaced until the commune/ward allocates land acceptable to affected peoples and until affected peoples received full compensation and allowances due them. For affected households who opt to receive cash compensation for self-relocation, they arecompensated in full for all their losses (land and non-land assets) and the necessary relocation and transition allowances as per updated resettlement plan. The DCSCC and commune authorities assist relocating households through the process of land purchasing and providing LURCs. The DCSCC also assist relocating families (as needed) to deal with residential land developers in the localities for households who elect to buy plots or apartments at the sites being developed by site developers or by districts (not by the project owner). B. Income Restoration 110. All the affected livelihoods are land-based related to animal husbandry and cultivation. The Project’s income restoration measures for Lao Cai consist of assistance to ensure stabilization in the short to medium term and assistance aimed at providing capacity for sustainable long term livelihood improvement. 111. Consultations with local authorities in each of the project areas confirmed that there is no state-owned land available to enable land-for-land compensation as an option. 112. Specific income restoration assistance measures are set out below:

(i) Stabilization assistance: Affected peoples households losing at least 10% of their productive land as well as households required to relocate shall receive cash assistance stabilization assistance equivalent to 30kg of rice per household member for periods of 6 to 24 months depending on the severity of impact as follows:

Table X-II: Stabilization Assistance Entitlements

Impact Months Entitlement to

Stabilization Assistance

10%–70% loss of productive land and not required to be relocated

6

10%–70% loss of productive land and required to be relocated

12

70%–100% loss of productive land and not required to be relocated

12

70%–100% loss of productive land and required to be relocated

24

Required to be relocated 6

(ii) Livelihood change assistance: Affected peoples households losing

productive land shall receive a one-time cash grant equivalent to 02 times the compensation value of the affected land, OR, if the affected land is located in a residential area, theyare entitled to a cash grant equivalent to 30% of the value of residential land for the area affected in addition to compensation (whichever is higher).

(iii) Vocational training: Household members of working age of affected peoples households losing productive land shall be entitled to participate in one vocational training course at any state-funded vocational training centre within

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the province free of charge. Household members of vulnerable households shall be entitled to participate in one additional vocational training course free of charge.

(iv) Agricultural extension: Households losing productive land are entitled to receive agricultural extension support in areas of their preference (e.g. husbandry, cultivation, horticulture, etc) by the Lao Cai Agricultural Extension Service of the Department of Agriculture and Rural Development free of charge.

C. Income Restoration Activities

113. The following training and assistance programs are available to the affected households to access:

(i) For vocational training: There are 17 vocational training centers in Lao Cai Province. Almost of the districts of Lao Cai Province have their vocational training centers. There are courses of 03 months; 24 months and 36 months. The fees for the courses would normally be VND 300,000 (for 03 months); VND 2,160,000 (for 18 months) and VND 4,400,000 per month per trainee. For trainees who follow the programs with the support of the Government will be eligible to VND 6,000,000 per month. There are different programs such as faring activities, husbandry and skills to work for the industrial areas. After training the trainees have chance to work for factories with the salary of about VND 3,000,000 per month. .The fields of training are construction, electric welding, Car reparation, domestic electricity, industrial electricity, car and construction machine driving, forestry and agricultural, husbandry activities etc.

(ii) Agricultural Extension Centers of Lao Cai and its sub-centers at the

districts: This Center and its sub-center are responsible for providing training and implementing the programs on agriculture, forestry and husbandry. These activities are suitable to the old people and farmers.

(iii) Women Unions from the Provincial to commune levels: Implementing the

programs for women, which currently support by the Government and Lao Cai province. This Union also can help women accessing the loans from the social Bank at the locality and vocational training for women as well as help women with the access to employment. The Women Union of Lai Cai is implementing the programs in Van Hoa and Pho Moi commune for young people, especially for children of farmers such as IT; fresh vegetable planting, business mobilization and husbandry etc.

(iv) Agribanks at the province and districts: Farmer Associations in Lai Cai are running the programs according to the loans for the poor famers with an interest of 0.7% per month. The famer association also running the programs with the loan from the social Banks for the farming activities. The “Hien Thanh” Association is focusing on the vocational training and TA for the people from the families who are affected by land acquisition with assistance for the seedlings and marketing for the outputs such as fresh vegetableplanting,fish aquacultural activities, porcupine raising etc. The agribank has loan for the sort and mediem terms with an interest of 15% per year.

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XI. CORRECTIVE ACTION REQUIREMENTS

A. Due Diligence of Resettlement Implementation 114. The Resettlement Plan for the Project was prepared and approved in 2006. The 2006 Resettlement Plan stipulated that implementation of land acquisition and resettlement was to take place following in accordance with an approved updated resettlement plan.

115. Compensation and land acquisition was implemented from 2010 in advance of an approved Updated Resettlement Plan, of which the vast majority was undertaken 2010 to 2012. As of March 2013, 630 households of a total of 685 affected households had been compensated and their affected land acquired. The households remaining to be compensated consisted of 54 households residing at the 1ha site in Lao Cai City owned by Vietnam Railway and one household in Bao Thang District who had not yet agreed with the basis of the compensation assessment. 116. A due diligence review of resettlement implementation was conducted by a resettlement specialist engaged by ADB in January 2013. Resettlement implementation in Lao Cai has also been subject to monitoring by the project external monitor in August 2012. A copy of the due diligence report is attached as annex 2. A summary of the status of resettlement implementation as of March 2013 is set out in the following table.

Table XI-I: Summary of Resettlement Implementation to March 2013

Location

Total AHs (by

both project & resettle-

ment sites)

Total AHs by Railway project

Total AHs by

resettle-ement sites

No. of HHs

received compen-

sation payment

HHs compensated

but not yet relocated (pending

completion of Lang Den

Resettlement Site)

No. of HHs not

yet received compen-

sation payment

Years of payments

Lao Cai city

626 497 129 572 73 54 2010,

2011,2012

Bao Thang district

37 37 0 36 1 2011, 2012

Bao Yen district

22 19 3 22 0 2011, 2012

Total 685 553 132 630 73 55

117. The due diligence review indicated that resettlement had been implemented according to GoV requirements, but was consistent with the approved RP in most respects. However, a number of gaps were noted between RP requirements and actual implementation. The gaps were due to resettlement being implemented in advance of an approved updated RP which would have otherwise provided relevant provincial agencies the basis to provide the higher level of entitlements. Gaps between actual implementation and requirements under the approved RP are related to certain types of

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relocation assistance; percentage of full compensation provided for non-land assets for certain cases; partial implementation of livelihood restoration measures; additional requirements for consultation and disclosure. Incomplete actions relate to non-relocation of some households in Lao Cai City due to delay in completion of one resettlement site (Lang Den); provision of compensation and assistance to 54 households in the 1ha site in Lao Cai City owned by Vietnam Rail; and resolution of compensation payment for 1 household in Bao Thang District due to non-agreement over the compensation offered. The gaps and the associated corrective actions required are set out in the following summary matrices.

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Table XI-II: Compensation and Assistance Already Provided and Entitlement Gaps Related to Households with Affected

Houses

Assistance Provided to Date Entitlement Gaps

AP

En

titl

em

en

t

Typ

e

HH

s W

ith

Aff

ecte

d

Ho

uses

Level o

f

co

mp

en

sati

on

for

no

n-l

an

d

assets

Tra

nsp

ort

ati

on

Allo

wan

ce

Liv

ing

Sta

biliz

ati

on

Allo

wan

ce

Ren

tal

Assis

tan

ce

Resett

lem

en

t

sit

e lo

t

Bo

nu

s f

or

Tim

ely

Rem

oval

Are

an

y H

Hs

po

or/

vu

lnera

ble

?

Affected house built on residential land with legally recognized land use rights

287 100% Y Y Y Y No None

Lao Cai City (245); Bao Thang (10); Bao Yen (9)

Entitlement to minimum size lot. Difference in cost met by the Project.

Affected house built on non-residential land (e.g. farming land) with legally recognized land use rights*

96 100% N N Y Y No

Lao Cai City Entitled to purchase resettlement site lot. Difference in cost not met by Project. If poor, payment over 5 years and 50% reduction of purchase cost

Transport allowance; Stabilization living allowance

Affected house built on land with no legally recognized land use rights and land which is ineligible for compensation

102 80% N N N N No

Lao Cai City Entitled to purchase resettlement site lot. Difference in cost not met by Project. If poor, payment over 5 years and 50% reduction of purchase cost

Compensation at full replacement cost for non-land assets; Transportation allowance; Living Stabilization allowance; Rental assistance (6

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Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

Assistance Provided to Date Entitlement Gaps A

P

En

titl

em

en

t

Typ

e

HH

s W

ith

Aff

ecte

d

Ho

uses

Level o

f

co

mp

en

sati

on

for

no

n-l

an

d

assets

Tra

nsp

ort

ati

on

Allo

wan

ce

Liv

ing

Sta

biliz

ati

on

Allo

wan

ce

Ren

tal

Assis

tan

ce

Resett

lem

en

t

sit

e lo

t

Bo

nu

s f

or

Tim

ely

Rem

oval

Are

an

y H

Hs

po

or/

vu

lnera

ble

?

months); Bonus

Affected house built on land with no legally recognized land use rights and land which is ineligible for compensation (1ha site belonging to Vietnam Rail)

54 Not yet Not yet

Not yet

Not yet N No

No special assistance. However, entitled to purchase pending availability of lots

Compensation at full replacement cost for non-land

assets; Transportation

allowance; Living Stabilization

allowance; Rental assistance (6

months); Bonus

* Garden land provided additional compensation equivalent to 30% value of residential land for affected area if located in urban area. Already displaced.

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Table XI-III: Summary Matrix of Entitlement Gaps and Corrective Actions Required

Requirement Status No. of APs Gap and Corrective Actions

Loss of Land and Non-land Assets

(i) Compensation rates for land and non-land assets

Compensation was based on replacement costs assessed by the Provincial People’s Committee on an annual basis. Compensation rates were revised prior to disbursement to ensure that the rates paid were current. Compensation for residential land was land based with APs not required to pay additional money for resettlement lots if the latter was higher. Compensation rates for other land as well as non-land assets assessed as equivalent to replacement values.

No action required other than payment of supplementary compensation for those whose houses were built on land not considered residential land (indicated below).

Impacts on Housings/Relocation

(ii) Affected house built on residential land with legally recognized land

use rights

Entitlements provided as per RP entitlement framework

287 None

(iii) Affected house built on non-

residential land (e.g. farming land)

with legally recognized land

use rights

Compensated at full replacement cost for land and non-land assets. Provided rental assistance and bonus. Garden/ agricultural land provided additional compensation equivalent to 30% value of residential land for affected area if located in urban area.

96 Transport allowance; Stabilization living allowance;

(iv) Affected house built on land with no legally recognized land use rights and land which is ineligible for

Compensated for non-land assets at 80% replacement cost. Entitled to purchase resettlement site lot. Difference in cost not met by Project. If poor, payment over 5 years and 50% reduction of

102 Compensation for difference for full replacement cost for non-land assets; Transportation allowance; Living Stabilization allowance; Rental assistance (6 months); Bonus

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purchase cost. No other relocation assistance. Already compensated but some still not displaced (pending completion of Lang Den Resettlement Site).

(v) Affected house built on land with no legally recognized land use rights and land which is ineligible for compensation (1ha site belonging to Vietnam Rail)

Not yet displaced 54 Compensation at full replacement cost for non-land assets; Transportation allowance; Living Stabilization allowance; Rental assistance (6 months); Bonus No special assistance. However, entitled to purchase pending availability of lots

(vi) Provision of replacement land at resettlement site for eligible households with affected houses

A number of households in Lao Cai City have not yet relocated to a resettlement site due to delays in full completion of Lang Den resettlement site

73 Completion of the Lang Den resettlement site (Lao Cai City)

Impacts on Livelihood

(vii) HH losing garden land (Lao Cai City) (Bao Thang Dist)

Garden land not used for productive purposes or otherwise severity of loss represents less than 10% of income source. Garden land provided additional compensation equivalent to 30% value of residential land for affected area located in residential area. No other income restoration assistance.

None

(viii) HH losing productive land with LURC Lao Cai City (Lang Den Resettlement Site) 5 HHs (Bao Thang) 27 HHs (Bao Yen) 1 HH

Stabilization allowance for period of 6-12 months depending on severity of loss. Assessed as severely affected if losing 10% or more of productive land. Cash assistance for occupational change equivalent to 2 times the value of farming land acquired land. Cash assistance for farming materials (Bao

33 Supplementary income restoration assistance as needed to restore livelihoods. (see “Income Restoration” below).

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Yen)

(ix) HH losing productive land with lease rights

Stabilization allowance for period of 6 months. Cash assistance equivalent to 30% of the value of affected land. Cash allowance for farming materials. No such cases.

0 None

(x) Affected businesses/ shops

None 0 None

(xi) Income Restoration

Most APs livelihoods were not primarily land based. No shops were affected. Monetary assistance was provided according to GoV policies for loss of productive land. Market built at one resettlement site (Ho So 6)

To be determined following livelihoods needs assessment. (Provisionally estimated at 20 APs for planning purposes)

Needs assessment for other non-monetary livelihood restoration assistance to be conducted. Consultations with severely affected APs and provincial service providers (e.g. DOLISA, Women’s Union, DARD) to be conducted to identify preferences for livelihood restoration assistance and appropriate activities. Livelihood restoration activities (such as vocational training and agricultural extension) to be free of charge as indicated in RP. Project related employment opportunities to be extended to APs as indicated in RP.

Other

(xii) Other APs not yet compensated

1 affected household in Bao Thang District not yet compensated due to disagreement basis of compensation offered.

1 Consultation and negotiation with AP as needed. Resolution of AP’s grievance to be expedited.

(xiii) Consultation & Disclosure

Disclosure of RP entitlements disclosed during RP preparation via consultation meetings, PIB and uploading of RP. During implementation DMS data and entitlements according to GoV requirements disclosed during implementation

All The updated RP (including required corrective actions) needs to be disclosed. Consultations regarding livelihood restoration to be conducted for those whose livelihoods are severely affected. Consultations regarding resettlement options to be conducted for those still to be displaced.

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118. The corrective actions will cost an estimated VND 15,050,059,200. The budget for the resettlement plan will be financed by the Government. The resettlement committee will be responsible for the disbursement of the compensation, allowances and assistance funds. The resettlement budget funds will be subject to thorough fiduciary monitoring and auditing. Disbursement of entitlements to affected persons will also be closely monitored by the PPC, RPMU and EMA.

Table XI-IV: Summary Budget to Implement Corrective Actions

Item

Ref in Corrective

Actions Table Quantiy

Ave Rate (VND)

Total (VND)

I Compensation & Assistance for Relocating HHs

I.1 Transportation allowance for relocating HHs

(iii), (iv), (v) 252 2,400,000 604,800,000

I.2 Living stabilization allowance for relocating HHs

(iii), (iv), (v) 252 400,000 100,800,000

I.3 Rental assistance for relocating HHs (estimated for 6 months)

(iv), (v) 156 9,000,000

1,404,000,000

I.4 Bonus for timely removal for relocating HHs

(iv), (v) 156 5,000,000 780,000,000

I.5 Supplementary compensation

for difference for full replacement cost for non-land assets on land either ineligible for compensation or not recognized as residential land(estimate)

(iv) 102 404,000,000

I.6 Compensation for non-land assets belonging to HHs on 1ha site owned by Vietnam Rail (provisional sum)

(v) 54 10,000,000,000

II Livelihood restoration II.1 Needs assessment (included in

DDIS consultant budget) (xi) -

II.2 Vocational training and agricultural extension (provisional sum)

(xi) 20 4,000,000 80.000.000

III Other APs not yet compensated

(xii) 1 40,000,000

IV Consultation and disclosure (already covered in administrative costs and contingency for URP budget)

(xiii)

V Administration (2% items I-IV)

268,272,000

VI Contingency (10% items I-V) 1,368,187,200

Total 15,050,059,200

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119. The corrective actions will be implemented following approval of the URP. The target schedule to implement these actions is indicated in the table below.

Table XI-V: Schedule for Implementation of Corrective Measures

Item Period

1 Consultation and Disclosure 1.1 Disclosure of URP and Corrective Actions Nov 2013 1.2 Consultations on relocation for those yet to relocate Oct-Dec 2013 1.3 Detailed calculation of non-land assets for HHs due

supplementary compensation (item I.5 in Corrective Action Plan Budget)

Nov – Dec 2013

1.4 Detailed calculation of non-land assets for households residing at 1ha site owned by Vietnam Rail (item I.6 in Corrective Action Budget)

Nov 2013 - Jan-2014

1.5 Issuance of individual decisions to affected households(except HHs in 1 ha site owned by Vietnam Rail)

Dec-2013

1.6 Payment of supplementary compensation and assistance entitlements required in Correction Actions

Jan 2014

1.7 Completion of Lang Den resettlement site (Lao Cai City) and allocation of resettlement site lots to eligible HHs

Feb 2014

1.8 Issuance of individual decisions to affected householdsat 1 ha site owned by Vietnam Rail

Feb 2014

1.9 RPMU issues report of payment of supplementary compensation and assistance (for all relevant HHs except HHs in 1ha site owned by Vietnam Rail), completion of Lang Den Resettlement Site and allocation of resettlement site plots to eligible HHs.

Feb 2014

RPMU issues report confirming complete payment of compensation and assistance for HHs on 1ha site owned by Vietnam Rail

March 2014

2 Livelihood restoration 2.1 Needs assessment and consultations Nov 2013 – Feb 2014 2.2 Vocational training and agricultural extension Dec 2013 – Aug 2014

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XII. ETHNIC MINORITIES

120. The Asian Development Bank defines Ethnic Minorities (or Indigenous Peoples) as having:

(i) Descent from population groups present in a given area before modern state or territories were created; and

(ii) Maintenance of cultural and social identities separate from mainstream or dominant societies or cultures.

121. Characteristics that reinforce the above definition include:

(i) Self-identification and identification by others as being part of a distinct

indigenous cultural group, and the display of the desire to preserve their cultural identity;

(ii) A linguistic identity different from that of the mainstream or dominant society; (iii) Social, economic, and political traditions and institutions distance from the

mainstream society; (iv) Economic system oriented more toward a traditional system or production than

toward the mainstream production system; and/or (v) Unique tie with and attachment to traditional habitat and ancestral territory and its

natural resources.

122. The Government of Vietnam recognizes 54 different national ethnic minorities, whose definitional categorization is consistent with ADB policy. These ethnic minorities derive from three main linguistic families, namely Sino-Tibetan (32 groups), Mon-Khmer (24 groups) and Malayo-Polynesian (7 groups). Originally, the Mon-Khmer and Malayo-Polynesian groups lived in the Mekong Delta, Central Highlands and South-Central regions of Vietnam, while the Sino-Tibetan groups lived mainly in the northern mountainous areas and the North-Central region. This ethno-geographic distribution generally holds true today, although modern history has occasioned more dispersion and intermixing with the different ethnic groups, as well as with the majority Kinh. 123. The Government of Viet Nam recognizes the same social position, rights and obligations of all ethnic groups within the territory of the Vietnamese State, as declared by the National Assembly in the 1946, 1959, 1980 and 1992 Constitutions of Viet Nam. However, acknowledging a certain development lag among ethnic minorities, the Government has enacted several policies and programs that provide preferential support to ethnic minority social and economic development (notably, Program 135 on hunger eradication and poverty reduction and Program 143 for remote communes with special difficulties), as well as established the Committee for Ethnic Minorities and Mountainous Areas (CEMMA) to coordinate the implementation of these programs. Asian Development Bank policy on Indigenous Peoples (or Ethnic Minorities) is described in Chapter of legal framework above. A. Socio-Economic Conditions of Ethnic Minority Households in the Project Areas.

124. Socio-economic information on project-affected ethnic minority households was collected in 2011 as part of the SES and DMS for the updated Lao Cai resettlement plan. The socio-economic data is presented below and compared against a number of key socio-economic indicators for all project affected households in the project area. The indicators are

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generally similar, however, ethnic minority households reveal slightly lower household wealth (based on household assets) and higher rates of vulnerability (in terms of poverty and households headed by women) compared to the average.

Table XII-I: Key Socio-Economic Conditions of the Affected Ethnic Minority Households

Commune/District Ethnic Minority

Affected Households All Affected Households

Number of affected Households 36 551 Average size of family (person) 3.3 3.6 Main occupations Animal husbandry and

farming Animal husbandry

and farming Average area of residential land holding (m

2) 116 92

Average area of main house (m2) 20 23

Average area of productive land holding (m2) 284 216

Average income per year (VND) 19,197,500 N/A

Households have television 83% 90%

Households have motorbikes 81% 76%

Households have Refrigerator 47% 35% Households with power 94% 100% Households with running water or drilling well 64% 87% Households with borrowed Loans 19% 28% Purposes of using loan Business/Husbandry Farming/

Husbandry Households classified as poor under MOLISA poverty line

8% 4%

Female headed households 6% 39%

m2 = square meter, MOLISA = Ministry of Labour, Invalids, and Social Affairs, VND = Vietnamese dong.

Note: The data for the ethnic minority households presented above was collected as part of the DMS survey, whereas the comparative data for average of all households was collected from the SES. For those indicators marked “NA”, it was not possible to compare the data because of mismatch in indicators. For example the SES collected data on piped water whereas the DMS collected data on piped water/drilled well.

B. Scope of land acquisition impacts on Ethnic Minorities in Lao Cai Province

125. There are 36 ethnic minority households (ethnic Tay) in the project area, residing principally in communes of Pho Moi Ward in Lao Cai City and Xuan Giao Commune in Bao Thang District. The ethnic Tay in the project area are fluent in Vietnamese, have high rates of literacy and tend to be well integrated in to local communities.The locations and numbers of these households are presented in the table below.

Table XII-II: Number of Affected Ethnic Minority Households and Persons by Commune

No. District/Commune Total number of

affected HH

Number of affected Ethnic Minority households

Number of persons

I Lao Cai City 497 25 71

1 Pho Moi 467 24 69

2 Van Hoa 30 1 2

II Bao Thang District 35 11 46

1 Thai Nien 9 0 0

2 Xuan Giao 26 11 46

III Bao Yen District 19 0 0

1 Kim Son 19 0 0

Total 551 36 117

HH = household

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126. The physical resettlement impacts experienced by these households are summarized below. The most predominant impact is loss of agricultural land (31 households), followed by loss of residential land and housing (20 of households).

Table XII-III: Land Acquisition Impacts on Ethnic Minorities

Commune

Number of

Ethnic Minority affected houses

Affected residential land (HH)

Area (m

2)

Affected houses

Area (m

2)

Affected Agricultural

land (HH)

Area (m

2)

Lao Cai City

Pho Moi 24 19 1,989 19 716 19 6,236

Van Hoa 1 1 44 1 20 1 88

Subtotal 25 20 2,033 20 736 20 6,324

Bao Thang District

Thai Nien 0 0 0 0 0 0 0

Xuan Giao 11 0 0 0 0 11 3,909

Subtotal 11 0 0 0 0 11 3,909

Bao Yen District

Kim Son 0 0 0 0 0 0 0

Subtotal 0 0 0 0 0 0 0

Grand Total 36 20 2,033 20 736 31 10,233

HH = household

C. Activities for Ethnic Minority Plan 127. The affected ethnic minority households are considered as a vulnerable group requiring additional attention in the execution of the resettlement plan activities. The Project includes the following specific activities to address ethnic minority issues for households affected by land acquisition and relocation in project sites.

(i) The project is to ensure meaningful consultation and participation of affected ethnic minority households. The participation of ethnic minority households in consultation activities is to be monitored and separate consultation meetings arranged if required (such as low levels of participation in regular meetings). Culturally recognized ethnic minority community leaders, such as community elders, CEMMA representatives, etc., are to be specifically included in the consultation processes.

(ii) During preparation of and updating resettlement plan, ethnic minority affected households have participated in discussions related to land acquisition, DMS compensation, assistance and resettlement as well as the issues of the vulnerable groups.

(iii) The District Compensation and Resettlement Committees will include the members from CEMMA and this committee will include at least one male and one female representative from ethnic minority displaced people’s households.

(iv) During the commencement of the Project, workshops on resettlement activities will be conducted for women and men from displaced people’s households (including relocatees and host communities) and special emphasis will be given

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to the participation of ethnic minority displaced people’s households and ethnic minorities in host communities.

(v) Capacity-building training programs will be designed to provide training to the provincial and District members of the Compensation and Resettlement Committees, representatives of CEMMA, commune leaders from ethnic minority communities and one representative from the ethnic minority affected households.

(vi) The training will be provided detailed information on resettlement activities, such as entitlement policy, compensation and rehabilitation strategy, grievance procedures, proposed resettlement sites, etc to the affected ethnic minority households in the languages, tools understandable and accessible to them.

(vii) Because of the increased risk in the spread of HIV/AIDS with the influx of construction workers, the HIV/AIDS and human trafficking awareness program will also include local leaders from ethnic minority communities and representatives from CEMMA.

(viii) Disaggregated monitoring indicators by gender and ethnicity will be developed for management information systems and the SES will be administered on 100% of ethnic minority displaced people’s households to ensure sufficient data for monitoring and evaluating the social and economic impacts of resettlement on ethnic minorities.

(ix) Funds to support ethnic minorities (as one of the vulnerable group) will be provided through Income Restoration/Rehabilitation Assistance.

(x) Ethnic Minority displaced people will also receive priority for jobs and commercial spaces nearby their living places.

(xi) Compensation payments will be monitored specifically to ensure that they are paid out fully and directly to ethnic minority households and that no discrimination is exercised against them.

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XIII. GENDER ISSUES

128. The Government of Vietnam recognizes women as equal to men under the laws and constitution of Vietnam (1992). The Government has also ratified the International Labour Organization conventions on Equal Remuneration and Discrimination in Employment. Vietnam has the highest ranking in the gender development index (0.732) in the ASEAN region. The Vietnam Women’s Union was established in 1930 with a mandate to promote the interests and welfare of Vietnamese women. It operates at all administrative levels from the central to commune levels with membership of over 13 million women. However, given these impressive results, women still face significant challenges to achieve equity within society. The implementation of resettlement mitigation measures needs to be cognizant of these challenges and biases within society to ensure the equitable participation of women and that the impacts on women’s property, settlement, and livelihoods are effectively mitigated. 129. ADB’s policy for gender and development is described in the chapter concerning the legal framework above. 130. This chapter presents the socioeconomic situation of women in the project areas of Lao Cai followed by the resettlement plan’s gender strategy aimed at ensuring the effective mainstreaming of gender issues in resettlement plan implementation.

A. Socioeconomic situation of project affected women. 131. The information below presents the results of the 2011 SES with respect to women. 132. Gender Distribution from the total affected population. With regard to gender ratio, there are affected communes which males are more than females and there are communes which female are more than male. Bu in total, the population is comprised by males at 49 % and female at 51%. The results of survey on gender characters are shown in the table below.

Table XIII-I: Sex Disaggregated Household Population

District Commune Total of

Household Socioeconomic Survey

HH Household Members

Male Female

Lao Cai City Pho Moi 521 140 496 240 256

Van Hoa 30 10 27 13 14

Subtotal Lao Cai City 551 150 523 253 270

Bao Thang District Thai Nien 9 3 14 7 7

Xuan Giao 26 14 58 31 27

Subtotal Bao Thang District 35 17 72 38 34

Bao Yen District Kim Son 19 6 24 11 13

Subtotal Bao Yen District 19 6 24 11 13

Total 605 173 619 302 317

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133. Age distribution: The age distribution of affected women is shown in Table X-II. Survey results show that most affected women are in the working age group (15–60 years). Then followed by the rates over 60 year olds and under 15 years olds.

Table XIII-II: Age Distribution of Females from Affected Households

Commune No. of

Persons/% Under 15 years old

15 to 60 years old

Over 60 years old

Total

Lao Cai City

Pho Moi Person 17 52 6 75

% 23 69 8 100

Van Hoa Person 0 0 0 0

% 0 0 0 0

Bao Thang District

Thai Nien Person 0 0 0 0

% 0 0 0 0

Xuan Giao Person 0 3 0 3

% 0 100 0 100

Bao Yen District

Kim Son Person 1 13 2 16

% 6 81 13 100

134. Employment: The table below shows that, most of affected women are working on farming and husbandry and working as seasonal laborer, and that there is a significant rate of unemployment. It is low numbers of affected women who are running trade or services and handicraft and there is none from sample survey are living on pension. The data presented below only includes women of working age and excludes those in full-time education.

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Table XIII-III: Employment of Affected Women

Commune State

employee Handicraft

Trade/ service

Seasonal hired

laborer

Animal husbandry

and farming Unemployed Retired

Total number of

person within

working age

Lao Cai City

Pho Moi Person 0 0 3 23 1 0 0 27

% 0 0 11 85 4 0 0 100

Van Hoa Person 0 0 0 0 0 0 0 0

% 0 0 0 0 0 0 0 0

Bao Thang District

Thai Nien Person 0 0 0 0 0 0 0 0

% 0 0 0 0 0 0 0 0

Xuan Giao Person 0 0 0 0 1 0 0 1

% 0 0 0 0 100 0 0 100

Bao Yen District

Kim Son Person 0 0 0 2 2 0 0 4

% 0 0 0 50 50 0 0 100

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135. Education: Most of affected women have good levels of education, high rates of women are currently undertaking or have completed high school or college and university. The statistics by communes and district show that the educational status of men and women is very similar. 136. Details of the educational status of affected women are described in Table XIII.IV.

Table XIII-IV: Education Attainment of Affected Women

Commune

No formal education

Under school

age Primary Secondary

High school

College and

above Total

Lao Cai City

Pho Moi Person 1 0 19 36 12 7 75

% 1 0 22 50 17 10 100

Van Hoa Person 0 0 0 0 0 0 0

% 0 0 0 0 0 0 0

Bao Thang District

Thai Nien Person 0 0 0 0 0 0 0

% 0 0 0 0 0 0 0

Xuan Giao Person 0 0 1 2 0 0 3

% 0 0 33 67 0 0 100

Bao Yen District

Kim Son Person 0 0 2 10 3 1 16

% 0 0 13 62 19 6 100

B. Affected Households Headed by Women 137. There are a total of 111 households headed by women affected by land acquisition for the project. The numbers of households by location are presented in the table below.

Table XIII-V: Number of Affected Households Headed by Women

Ward/ Commune HHs Headed by Women

Lao Cai City Pho Moi 64 Van Hoa 42 Subtotal 106 Bao Thang District

Thai Nien 0 Xuan Giao 01 Subtotal 01 Bao Yen District

Kim Son 04 Subtotal 04

Grand Total 111

138. Table XI.V presents data of incomes of 20sample of affected households headed by women. Their household income levels are similar to those of non-female headed households. Most households headed by women have household incomes within the range of VND 1 million

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to VND 3 million per month.

Table XIII-VI: Incomes of Households Headed by Women

Commune Under VND 1,000,000

VND 1 million–VND

3 million

VND 3 million–VND

5 million

Over VND 5,000,000

Total

Lao Cai City

Pho Moi HH 5 21 1 0 27

% 19 78 3 0 100

Van Hoa HH 0 0 0 0 0

% 0 0 0 0 0

Bao Thang District

Thai Nien HH 0 0 0 0 0

% 0 0 0 0 0

Xuan Giao HH 0 1 0 0 1

% 0 100 0 0 100

Bao Yen District

Kim Son HH 2 0 0 2 4

% 50 0 0 50 100 The definition and the statistics of the above table about FHH is the households led by women (no husband).

139. All households headed by women which will lose more than 10% of their productive landholdings (one households will lose from 10% to 30%; one households will lose from 30% to 70%, and 17 will lose more than 70%). There are 28 households headed by women that will experience loss of residential land and all are fully affected and need to relocate. No households headed by women will experience impacts on shops or other forms of businesses. The table below summarizes the distribution of severity of land losses on households headed by women.

Table XIII-VII: Distribution of Severity of Land Losses on Households Headed by Women

Commune Household Affected (Productive Land)

Household Affected (Residential Land)

<10% 10%–30%

30%–50%

50%–70%

>70% Total Fully Partially

Lao Cai City Pho Moi 0 0 0 0 16 16 25 0 Van Hoa 0 0 0 0 0 0 0 0

Subtotal 0 0 0 0 16 16 25 0

Bao Thang District Thai Nien 0 0 0 0 0 0 0 0 Xuan Giao 0 0 1 0 0 1 0 1

Subtotal 0 0 1 0 0 1 0 1

Bao Yen District Kim Son 0 1 0 0 1 2 3 1

Subtotal 0 1 0 0 1 2 3 1

Total 0 1 1 0 17 19 28 2

140. The severely affected households headed by women will lose a total of 4,019 m2 of land. The largest category of affected land is garden land followed by residential land. The table below summarizes the land acquisition impacts on severely affected households headed by women.

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Table XIII-VIII: Summary of Land Acquisition Impact on Households Headed by Women

District/Commune Land Type Total area lost by Households (m

2)

Numbers of Households

Lao Cai City Residential 2,158 25

Garden 704 12

Pond 0 0

Agricultural 410 4

Sub total 3,272 41

Bao Thang District Residential 0 0

Garden 0 0

Pond 0 0

Agricultural 83 1

Sub total 83 1

Bao Yen District Residential 295 3

Garden 0 0

Pond 0 0

Agricultural 368 2

Sub total 664 5

Total 4,019 47

141. The numbers above includedouble counting of affected households. 142. A total of 28 households headed by women will experience impacts on their residential housing. All of households are with fully affected houses and will need to relocate.

Table XIII-IX: Impacts on Houses of Households Headed by Women

Locality

Number of Households Affected area of house (m2)

Partially affected

on houses

Fully affected on houses,

but have remaining

land rebuild houses

Fully affected and

have to move

Total area of partially

affected houses (m

2)

Total area of fully affected house (m

2)

Lao Cai City 0 25 25 0 678

Bao Thang District 0 0 0 0 0

Bao Yen District 0 3 3 0 132

Total 0 28 28 0 810

m2 = square meter.

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XIV. GENDER STRATEGY

A. Gender Strategy 143. The gender strategy provides for specific measures and activities to ensure equitable participation of women in decision making and project benefits.

(i) The project is to ensure the meaningful and equitable consultation and participation of women. Consultation meetings will be conducted at convenient times and locations. Invitations to attend public consultations are to include the names of both spouses heading households. Women are to be consulted separately on their preferences for livelihood restoration measures. Women of households required to relocated are to fully participate in consultations on resettlement arrangements. Special attention is to be paid to ensuring that all women heading households, ethnic minority women and other vulnerable women are meaningfully consulted, including conducting separate consultation activities if required.

(ii) At the commencement of the project, a capacity building training program on resettlement activities will be designed for the women and men commune officials, and women and men from affected households to orient them about resettlement activities. Participation of poor women, female headed households and ethnic in the training will be ensured. The training will include information on resettlement activities, compensation, management of compensation money, grievance procedures and impact of the project on livelihood activities related to loss of agricultural produce, and other productive assets. The objective of the training is to provide affected communities with understanding of resettlement issues and better access to compensation resources and information on grievance procedures;

(iii) The DCSCC will include representatives from district and commune Women’s Union and women from affected households;

(iv) Both men and women have participated in the conduct of the DMS; (v) Livelihood activities will be planned with active involvement of women; need

assessments for livelihood activities and skill development of livelihood activities will be conducted separately for women;

(vi) Compensation payment and cash assistance will be given to both men and women from the households;

(vii) Registration of land rights will be issued jointly in the names of husband and wife or otherwise in the name of the head of households headed by women;

(viii) Special measures will be taken in the relocation of elderly, disabled and female headed households in terms of location of new site together with their extended families/relatives. For elderly and disabled women and men, assessments will be made of the suitability of apartments where such are offered;

(ix) At least 30% of jobs and commercial spaces provided by the RPUC or Rail Station will be reserved for women. As per the Labor Code (as amended in 2002), all employment for the Project will respect Government commitments to gender equity including (i) deployment of women workers in construction works, and (ii) ensuring that no differential wages will be paid to men and women for work of equal value.

(x) Sex disaggregated indicators will be developed for monitoring of changes in living standards, social benefits, livelihood program, and resettlement activities.

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(xi) Gender sensitization training on gender and resettlement will be provided to relevant staff from the executing agency, and District Compensation Committees, local leaders and representatives from mass organizations.

(xii) A Gender Specialist (national consultant) will be recruited to operationalize the above gender strategy. The Gender specialist will coordinate with the Resettlement Specialist, relevant stakeholders and local authorities to ensure that gender issues are effectively mainstreamed in to resettlement plan implementation.

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XV. INSTITUTIONAL ARRANGEMENTS

A. Responsibility 144. The implementation responsibilities are clearly described in the Decrees 197/2004; 84/2007 and 69/2009. 145. The following key institutions (the project owner, local authorities, local NGOs etc.) will be responsible and accountable for resettlement plan implementation. 1. The Railway Project Management Unit under Vietnam Railways 146. The RPMU under Vietnam Railways will be responsible for all components of Project implementation, which includes updating the Resettlement Plan, as well as its implementation, monitoring and evaluation. 147. The main responsibilities of the RPMU will be to:

(i) Organize the updating of the Resettlement Plan in close collaboration with

provincial People’s Committees; (ii) Review and allocate necessary budget for resettlement activities; (iii) Arrange for the conduct of an replacement cost study by an external qualified

appraiser; (iv) Supervise and monitor implementation and progress; (v) Supervise compensation payments to Affected Persons; (vi) Supervise and monitor land acquisition and relocation; (vii) Assist in resolving grievances and complaints arising from Affected Persons; (viii) Coordinate with relevant government agencies and other organizations to assist

planning, implementation, monitoring and evaluation of the Resettlement Plan; and

(ix) Submit the updated Resettlement Plan to the Ministry of Transport and the ADB.

2. Provincial People’s Committee of Lao Cai and its relevant Departments 148. The responsibilities of Provincial People’s Committee of Lao Cai; its Relevant Departments (DONRE; DOF; DOC and Department of Ethnic Minorities) and their lower administrative levels are guidance as in the Decree 197/2004 and Decrees 84/2007 and 69/2009 related to implementing compensation and resettlement. To implement for the Ethnic Minority tasks, the Provincial Department of Ethnic Minority at the provincial level need to consult with CEMMA for its helps and directions. 149. The PPC of Lao Cai will be overall responsible for resettlement activities within its administrative jurisdiction. The main responsibilities including:

(i) Prior to Appraisal, establish the DCSCC for the project; (ii) Review and approve unit costs for private and public assets adversely affected

by the Project to reflect replacement cost; (iii) Approve on land recovery for the project and compensation plans for each

households. (iv) Review and approve Updated Resettlement Plan.

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(v) Provide guidance in the updating and implementation of the resettlement plan. (vi) Provide guidance for the outstanding issues in the phase of resettlement plan

implementation.

3. District Compensation, Assistance and Resettlement Board (DCARB) 150. The DCARBs, which are normally headed by the Vice-Chair of DPC, will include the heads of the offices of Finance; Natural Resources and Environment; Transport; Agriculture; and Commune People’s Committee Chairperson of affected communes. In addition to above, representatives of relevant mass organizations (CBOs) such as the provincial Farmers’ Association and Women’s Union and Representatives of Ethnic Minorities as well as representatives of affected households are also included. The responsibilities of DPC are clearly described in the Decrees 197/2004 and 84/2008. The main responsibilities of the DCARBs are the following:

(i) Coordinate, supervise and manage resettlement activities to be conducted by CPCs.

(ii) Conduct of the DMS; (iii) Review the Updated resettlement plan for endorsement to the PPC; (iv) Oversee the updating and implementation of the resettlement plan; (v) Organize, plan and carry out resettlement activities in the district on behalf of the

DPC and under the guidance of the PPC and RPMU; (vi) Assist the DCSCC in the DMS, consultation and disclosure activities, design and

implementation of income restoration program, coordination with various stakeholders;

(vii) Prepare the compensation plan in accordance with the approved updated resettlement plan and submit to DPC for review and approval;

(viii) Assist in the identification and allocation of land for eligible affected households; (ix) Ensure the timely disbursement of compensation payments and other

entitlements to affected households; (x) Assist in the resolution of grievances; (xi) Prepare resettlement audit report on a quarterly basis.

151. The DCARBs should form at least for the following teams:

(i) Mapping and DMS team (ii) Compensation calculation team and Relocation arrangement team (iii) Data base management team (for land recovery, DMS, payment, relocation

arrangement, complaint etc.). (iv) Livelihood restoration and community liaison team, including for the settling of

complaints

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4. Commune People’s Committee 152. The CPC will assist the DCARBs in their resettlement tasks. Specifically, the CPC will be responsible for the following:

(i) Assign Commune officials to assist the DCARBs in the updating cadastral map and the resettlement plan and implementation of resettlement activities;

(ii) Identify replacement land for affected households; (iii) Sign the DMS/Agreement Compensation Forms along with the affected

households; (iv) Cooperate with RPMU and DCARBs in organizing consultation and

participation of DPs (v) Assist in the resolution of grievances; and, (vi) Actively participate in all resettlement activities and concerns.

5. Project Supervision Consultants 153. To make sure that resettlement plan will be implemented affectively, PSC will have the key tasks as follows:

(i) Review the training and capacity building program designed and continue to implement necessary training and capacity-building interventions;

(ii) Review and assess the progress of consultation and disclosure programs undertaken. Continue (and revise consultation and disclosure strategy as necessary) the consultation and disclosure process to ensure the continuous and active involvement of affected households, other stakeholders such as executing and implementing agencies, women and community-based organizations, and other stakeholders in a timely and transparent way;

(iii) Monitor and provide technical advice as needed to ensure that the effective and timely updating of replacement costs, as required, during implementation;

(iv) Provide technical advice and monitor the DMS, preparation of local compensation, assistance and resettlement plans for affected households, implementation of income restoration programs, data base management;

(v) Assist in implementation of gender strategies and ethnic minority specific actions. Assist in addressing all social development related issues in implementing resettlement; Develop appropriate monitoring indicators and assist RPMU and DCARBs in monitoring and evaluation;

(vi) Coordinate with the EMA. Ensure that findings and recommendations of the EMA are discussed with RPMU and DCARBs for appropriate action;

(vii) Assist RPMU in the preparation of quarterly progress reports on resettlement. Assist in the preparation of a midterm and Resettlement Completion Report to properly document the actual resettlement impacts, resettlement implementation and evaluation of resettlement plan implementation. The reports will be based on the reports of internal and external monitoring and evaluation and ADB Review mission Aide-Memoires and Memoranda of Understanding; and

(viii) Closely supervise and ensure that required budget and logistics for the grievance redress committees are in place and available.

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XVI. MONITORING AND EVALUATION

154. There are two systems of monitoring to make sure that this RP will be implemented smoothly. A. Internal Monitoring 155. Internal monitoring is the responsibility of the executing agency. The executing agency will conduct regular and ongoing monitoring of the implementation of the resettlement plan will produce semi-annual monitoring reports in addition to their other monitoring and reporting responsibilities. 156. Internal monitoring and supervision will have the following objectives:

(i) Compensation and other entitlements are computed at rates and procedures as provided in the approved resettlement plan, with no discrimination according to gender, vulnerability, or any other factor;

(ii) Affected households are paid their compensation and other entitlements as per approved updated resettlement plan, ensuring that all entitlements are delivered as planned and agreed, including compensation in cash or in kind, allowances, replacement land, resettlement sites developed and people moved onto them; Grating of LURC to relocating household at the resettlement sites.

(iii) Income restoration programs designed and delivered including modifications in the programs and provision of additional cash and in-kind assistance to the participating affected households as and when necessary;

(iv) Public information, public consultation and grievance redress procedures are followed as described in the approved resettlement plan;

(v) Affected public facilities and infrastructure are restored promptly; and (vi) The transition between resettlement and commencement of civil works is smooth

and that sites are not handed over for civil works until affected households have been satisfactorily compensated and resettled.

B. External Monitoring 157. The main objective of external monitoring is to provide an independent periodic review and assessment of: (i) achievement of resettlement objectives; (ii) changes in living standards and livelihoods; (iii) restoration of the economic and social base of the affected people; (iv) effectiveness and sustainability of entitlements; and (v) the need for further mitigation measures. 158. Strategic lessons for future policy formulation and planning will also be drawn from the monitoring and evaluation of resettlement. This is possible through a Post-Resettlement Implementation Evaluation Study that will be carried out from 6 to 12 months following completion of all resettlement activities. 159. The EMA will be recruited prior to resettlement plan implementation activities. Relative to compliance monitoring during resettlement implementation, the main activities of the EMA will revolve around the following:

(i) Review implementation capacity of DCSCC, existing baseline data and gather additional socio-economic information, as necessary, on sample affected households;

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(ii) Monitor updating and implementation of the resettlement plan; (iii) Identify any discrepancy between policy requirements and actual implementation

of resettlement; (iv) Monitor the resolution of complaints and grievances of affected households; and (v) Provide recommendations for improving resettlement updating and

implementation. (vi) Issue certification that each displaced person has received the full payment. (vii) Carry out compensation and resettlement audit.

160. Specific to resettlement updating and implementation activities, the EMA will monitor and evaluate specific issues such as the following:

(i) Public consultation and awareness of resettlement policy and entitlements; (ii) Coordination of resettlement activities with construction schedule; (iii) Land acquisition and transfer procedures; (iv) Construction/Rebuilding of replacement houses and structures at new relocation

sites or new places which self-relocate by displaced people. (v) Level of satisfaction of displaced people with the provisions and implementation

of the resettlement plan; (vi) Adequacy of compensation and assistance measures to restore lost assets,

livelihoods and living standards. (vii) Grievance redress mechanism (documentation, process, resolution); (viii) Effectiveness, impact and sustainability of entitlements and income restoration

programs and the need for further improvement and mitigation measures. (ix) Relocation site development from identification of sites in consultation with

displaced people, to resettlement site development and relocation of displaced people. Land title issues and process of land title granting.

(x) Capacity of displaced people to restore/re-establish livelihoods and living standards. Special attention will be given to severely affected displaced people and vulnerable displaced people;

(xi) Resettlement impacts caused during construction activities. (xii) Participation of displaced people in resettlement plan updating and

implementation

161. The methods to be employed by the EMA in its monitoring work are summarized hereunder:

(i) Review of detailed measurement survey documents to be able to establish a baseline for monitoring and evaluating project benefits. The EMA to check on a random basis the DMS process with displaced people from identification to agreement on DMS results. During the conduct of the DMS, the EMA will also monitor the DMS process to determine and assess if DMS activities are being carried out in a participatory and transparent manner.

(ii) Review of SES baseline. Sampling will include 20% of severely affected displaced people as well as at least 10% of all other displaced people. The same displaced people interviewed during resettlement plan updating will be interviewed. Special attention will be paid to the inclusion of women, ethnic groups, the very poor, the landless and other vulnerable groups, with set questions for women and other target groups; and, the database disaggregates information by gender, vulnerability and ethnicity

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(iii) Resettlement audit will be conducted during the monitoring period. The EMA will be present at the time of disbursement of payments to displaced people during monitoring. The EMA report will include resettlement audit per monitoring period.

(iv) The TOR for External Monitoring will be prepared by RPMU and get it agreed by ADB before inviting for external monitoring for resettlement plan.

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XVII. IMPLEMENTATION SCHEDULE

162. The estimated schedule for key activities is presented below.

Table XVII-I: Schedule of Key Activities Activity Time

Establishment of Resettlement Committee and Grievance Redress Committee (at city/provincial level)

Completed

Confirmation of alignment and land acquisition boundaries Completed Land acquisition demarcation Completed Consultations with key stakeholders, local People’s Committees and civil society Mass Organizations. Establish Resettlement Redress Mechanism at Ward/Commune Level.

Completed

Resettlement Plan Updating May – September 2013

Mobilization of EMA May 2013 Disclosure of draft and then final Resettlement Plan (public consultation meetings, dissemination of PIB)

October 2013

Confirmation of replacement resettlement land September – December 2013

Train resettlement staff January 2012, October 2013

Update replacement cost study by qualified appraiser Annually 2010 - 2013 Preparation of local detailed compensation plans 2010 2012 –

September 2013 ADB provides concurrence to updated resettlement plan. Updated resettlement plan disclosed to displaced peoples and uploaded on ADB website

October 2013

Disbursement of compensation and assistance, as well as commencement of income restoration strategy,

December 2013

Resettlement and land clearance 2010 - December 2013

RPMU and EMA confirm complete disbursement of compensation, assistance money and commencement of income restoration programs by specific area and that specific sites are free of encumbrances.

December 2013

Grievance redress mechanism operation 2010 to June2014 Income restoration activities and assistance to vulnerable APs March 2012 to June

2014 Internal monitoring Quarterly External Monitoring Semi-annually Uploading of external monitoring reports to ADB website Semi-annually Post-resettlement evaluation by External Monitor 6 months after

completion of implementation of the resettlement plan

ADB = Asian Development Bank, EMA = external monitoring agency, PIB = project information booklet, RPMU = railway projects management unit.

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XVIII. COST ESTIMATE

163. The resettlement budget is estimated at VND 193,596,234,847(approximately $9,218,868). The summary of resettlement cost estimates are presented in the table below. The costs for resettlement include: Direct Resettlement Costs (compensation, transitional allowances, income restoration assistance, resettlement site preparation); external monitoring; Administration Costs (2% of direct resettlement costs) to include the cost of replacement cost studies; and Contingency Costs (25% of direct resettlement costs). 164. The compensation rates applied have been based on the Lao Cai Provincial People’s Committee (PPC) gazetted rates for land, structures, crops and other non-land assets. The PPC compensation rates are re-assessed annually based on appraisals of market and replacement values conducted by the Provincial Department of Natural Resources and Environment and published on 1 January each year. The rates applied in each specific case have been the applicable rate at the actual time of issuance of the notice of payment of the compensation to each affected household (irrespective of the time of the initial assessment). That is, the compensation provided in each case is based on the assessed replacement value at the time of payment. The compensation rates previously applied have been reviewed through independent due diligence and have been assessed as generally consistent with replacement values. 165. The budget for the resettlement plan is financed by the Government. The resettlement committee is responsible for the disbursement of the compensation, allowances and assistance funds. The resettlement budget funds are subject to thorough fiduciary monitoring and auditing. Disbursement of entitlements to affected persons will also be closely monitored by the PPC, RPMU and EMA. 166. The resettlement budget below presents compensation and assisstance already provided (or otherwise committed but not yet dispursed) as well as additional funds required as supplementary corrective action measures to ensure consistency with the entitlement policy contained in the approved 2006 RP for this project. 167. A summary of the resettlement budget is shown below.

Table XVIII-I: Resettlement Budget

Item Unit Quantity

Cost (VND 1,000)

A. Direct Resettlement Costs (Sum I:V)

102,805,868

I. Compensation for affected land

358,651 29,148,705

I.1. Land acquired for civil works

126,861 23,991,717

1.1.1. Residential land m2 47,303 21,923,021

I.1.2. Agricultural Land m2 38,810 597,976

I.1.3. Construction land transfered to Railway m2 12,483 1,470,720

I.1.4. Transportation land m2 20,306 -

I.1.5. Irrigation land, flooded land m2 7,959 -

I.2. Land acquired for resettlement sites m2 235,485 5,156,988

Item Unit Quantity Cost

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(VND 1,000)

II. Houses and other structures

20,881,271

II.1. Category 3 building comprising 3 rows - Lao Cai Station dormatory

6,821,440

II.2. Houses (Associated with Civil Works LAR)

13,415 7,673,241

II.2.1. Solid Structure House

12,443 7,492,448

II.2.2. Temporary Structure House

972 180,794

II.3. Houses (Associated with Resettlement Sites LAR)

7,040 2,626,100

II.3.1. Solid Structure Houses

6,720 2,536,100

II.3.2. Temporary Structure Houses Unit 160 90,000

II.4. Secondary Structures (Associated with Civil Works LAR)

2,943,004

II.5. Secondary Structures (Associated with Resettlement Site LAR)

817,486

III. Trees, Crops

2,162,617

III.1. Trees, Crops (Associated with Civil Works LAR)

0

1,301,897

III.2. Trees, Crops (Associated with Resettlement Site LAR)

0 - 860,720

IV. Civil Infrastructure 0 - 1,116,261

V. Assistance

49,497,014

V.1. Assistance (Associated with Civil Works LAR) 0 - 26,148,196

relocation support HH 262 626,100

electricity installation assistance HH 17 17,000

relocation of water pipe HH 9 13,500

well assistance HH 9 27,000

resettlement site plot (minimum size) HH 245 14,700,000

self relocation assistance in lieu of resettlement site

HH - 710,000

incentive bonus for relocation (solid built house)

HH 111 55,500

incentive bonus for relocation (temporary built house)

HH 134 40,200

rent assistance HH 358 5,706,000

Farming materials (seedlings, etc) HH

16,000

stablization support HH 314 613,600

Occupational change assistance for loss of agricultural land

m2

18,644 719,392

agricultural land support in residential area of ward

m2

20,166 2,903,904

V.2. Assistance (Associated with Resettlement Sites LAR)

0 - 20,520,818

relocation support HH 23 55,200

stablization support HH 23 18,400

agricultural land support in residential area of ward (Duyen Hai)

m2

49,616 17,865,481

Occupational change assistance for loss of agricultural land

m2

35,178 944,037

Item Unit Quantity Cost

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(VND 1,000)

rent assistance HH 23 207,000

relocation assistance for telephone, water pipe HH 23 41,400

resettlement site plot (minimum size) HH 23 1,380,000

incentive bonus for relocation (solid built house)

HH 12 6,000

incentive bonus for relocation (temporary house)

HH 11 3,300

V.3. Supplementary Assistance Above Lao Cai PPC Regulations

2,828,000

Supplementary bonus for timely removal HH 358 2,615,000

Supplementary assistance for severely affected HHs losing >10% of productive land

HH 25 150,000

Supplementary assistance for severely affected HHs losing >10% of productive land

HH 7 63,000

B. Implementation Cost

2,832,465

implementation cost (2%)

1,921,742

demarcation of LAR boundary markers cost

256,000

DMS cost - Lao Cai Station

316,723

DMS cost - revised land

338,000

Total LAR Costs (Sum A+B)

105,638,333

C. Resettlement Site Construction

72,907,842

Pho Moi Resettlement Site (Pho Moi, Lao Cai City)

9,599,877

Dai Truyen Hinh Resettlement Site (Duyen Hai, Lao Cai City)

11,137,867

Lake No 6 Resettlement Site (Duyen Hai, Lao Cai City)

23,247,844

Lang Den resettlement site

22,516,612

Duyen Hai market

5,252,000

Kim Son resettlement site (Bao Yen Dist)

1,153,642

D. Corrective Action Measures

15,050,059

Transportation allowance for relocating HHs HH 252 604,800

Living stablization allowance for relocating HHs

HH 252 100,800

Rental assistance for relocating HHs (estimated for 6 months)

HH 156 1,404,000

Bonus for timely removal for relocating HHs HH 156 780,000

Supplementary compensation for difference for full replacement cost for non-land assets on land either ineligible for compensation or not recognized as residential land (estimate)

HH

102 404,000

Compensation for non-land assets belonging to HHs on 1ha site owned by Vietnam Rail (provisional sum)

54 10,000,000

Livelihood restoration

-

Vocational training and agricultural extension (provisional sum)

HH 20 80,000

Item Unit Quantity Cost

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(VND 1,000)

Other APs not yet compensated HH 1 40,000

Consultation and disclosure (already covered in administrative costs and contingency for URP budget)

-

Administration (2%)

268,272

Contingency (10%)

1,368,187

E. External Monitoring Costs

500,000

Grand Total Resettlement Budget (Sum A to E)

193,596,235

Approximate USD (using 1USD:VND21,000) 9,218,868

168. Administration and implementation includes the costs associated with conduct and implementation of consultations and the grievance redress mechanism.

169. A detailed resettlement budget disaggreated by district is presented in Annex 6.

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ANNEX 1: MAPS OF THE PROJECT AREA AND ALIGNMENT

Figure 1: Map of Project Area

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Figure 2: Map of Project Alignment

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ANNEX 2: RESETTLEMENT DUE DILIGENCE REVIEW

VIE: GMS Kunming-Haiphong Transport Corridor Project

Yen Vien-Lao Cai Railway Upgrading

(Lot 3 – Lao Cai Province)

Due Diligence Review (Draft Report)

Prepared for the Asian Development Bankby the Individual Consultant

March 2013

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Note:

The Resettlement Due Diligence review was commissioned by ADB and undertaken based on field work (consultations, surveys and review of official documents) during January 2013.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 96 INTRODUCTION 98 OBJECTIVES AND METHODOLOGY 99 FINDINGS 101 CONCLUSIONS AND RECOMMENDATIONS 104 INFORMATION DISSEMINATION 110 ANNEXES 112

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ABBREVIATIONS

ADB

Asian Development Bank

AHs Affected households

APs Affected persons

DArD Department of Agriculture and Rural Development

DMS Detailed measurement survey

DoLISA department of Labour, War Invalids and Social Affairs

DP Displaced people

EMO External monitoring agency

FHH Female headed household

HH Household

HHM Household member

HoH Head of household

IOL Inventory of losses

LuRc Land use right certificate

RPMU Railway projects management unit

NGO Non-government organization

VNR Vietnam Railway Corporation

PC People’s Committee

RCS Replacement Cost Survey

ROW Right of way

RP Resettlement plan

VND Vietnamese dong (currency unit)

WU Women’s Union

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GLOSSARY

Cut-off date - Means the completion date of DMS on land and assets affected by such sub-project works as road, safety corridor ... In this resettlement plan it is the date of completion of technical map and design. APs and local authorities will be informed of the cut-off date for each components and any person enters the project area after the cut-off date will not be compensated and supported if they do not have evidence that: (i) they are not involved in IOL; or (ii) they have legal acquired assets after completion of IOL and before DMS.

Affected Households /Affected Persons

– In the case of affected household, it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components.

Detailed Measurement Survey

– With the aid of the approved detailed engineering design, this activity involves the finalization and/or validation of the results of the inventory of losses (IOL), severity of impacts, and list of DPs earlier done during RP preparation. the final cost of resettlement can be determined following completion of the DMS.

Entitlement – Refers to a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. which are due to the DPs, depending on the type and severity of their losses, to restore their economic and social base.

Host community

– Means the community already in residence at a proposed resettlement or relocation site.

income Restoration

– This is the re-establishment of sources of income and livelihood of the affected households.

Inventory of Losses (IoL)

– This is the process where all fixed assets (i.e. lands used for residence, commerce, agriculture, including ponds; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; trees with commercial value; etc.) and sources of income and livelihood inside the project right-of-way (ROW) are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs calculated. Additionally, the severity of impact to the affected assets and the severity of impact to the livelihood and productive capacity of DPs will be determined.

Land Acquisition

– Refers to the process whereby an individual, household, firm or private institution is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation at replacement costs.

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Relocation

– This is the physical relocation of a DP from her/his pre-project place of residence and/or business.

Replacement Cost Study

– This refers to the process involved in determining replacement costs of affected assets based on empirical data.

Severely Affected Households

– This refers to affected households who will (i) being physically displaced from housing (ii) lose 10% or more of their productive assets (income generating),

Vulnerable Groups

– These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) female headed households with dependents, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support, and (v) landless households, (vi) indigenous people or ethnic minorities.

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EXECUTIVE SUMMARY This due diligence report is prepared for CP3 Sub-project of Yen Vien – Lao Cai Railway improvement and upgrading project developed over the area of Bao Thang and Bao Yen districts and Lao Cai City, Lao Cai province. The due diligence review was undertaken in January 2013. The components of the Sub-project include upgrading and expansion of 04 railway stations and improvement of 66.5km railway section. The report is prepared in line with the following main objectives:(i) conduct replacement cost survey andreview activities of compensation and resettlement for APs in Lao Cai province to assess whether the compensation is carried out at full replacement cost for lost assets, especially land, houses and structures; and(ii)review the involuntary resettlement in the linked projects including 05 resettlement sites, confirming compliance with involuntary resettlement policy in the Social safeguard policy statement (SPS,2009) of the ADB. Measures used for preparation of the report consist of:

(i) Checking secondary information (including project documents of the linked project) and the project documents of RPMU;

(ii) Organizing consultation meetings with the representatives of local leaders including those from RPMU - PMU, Compensation, Assistance and Resettlement Boards of the relevant districts, city, wards and communes and other representatives of community and affected households; and

(iii) Direct filed observation

Through survey and review done from 3 to 8 Jan 2013 in Lao Cai, the Consultant has noted some main fact-findings as follows:

1. Regarding the number of AHs and quantities, the project has 683 affected households (including 551 households affected by the project and 132 households affected by construction of 05 resettlement sites), 550 displaced households (including 524 households within the project area and 26 households in the 04 resettlement sites of Lao Cai city). In Lao Cai province, the affected land area is 12,69 ha and required land for construction of 05 resettlement sites (04 sites in Lao Cai city and 01 site in Bao Yen district) is 17,13 ha. Besides, the quantity of affected works and structures is rather high. The implementation of compensation, assistance and resettlement is assigned to the city and district compensation boards with budget from RPMU. At present, 683 out of 628 households have received compensation and handed over the site. The compensation has been maded according to the compensation rate issued by the provincial people’s committee applicable at the time of payment.

2. In the process of technical design, the design Consultancy has also conducted survey and provided a number of measures to minimize the impacts on land acquisition. For example, as calculated the construction is done in condition that the railway line is still operating and people along the railway line can still live normally, minimizing temporary affected land acquisition by organizing construction, gathering materials in the land area under management of the railway or local authorities in order to avoid damages to trees, crops and the works of the people.

3. In case of implementing compensation, assistance and resettlement, the compensation, assistance and resettlement committees of the relevant districts and

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city have held meetings with people and community consultation to disseminate information and introduce the project. However, the committees should explain more clearly to the people about mechanism of complaints and grievance redresses when introducing the project.

4. Organization for survey, measuring and inventory of the Project is done relatively well. People are all informed of the measuring time. However, problems still occurred while identifying land sources for applying compensation cost, resulting in claims and complaints from the people. The reasons include loose land management of local authorities so households occupied land or reclaimed illegally. It is strongly recommended that the local authorities should strengthen their management capacity and enhance communication to raised the people’s awareness and observation to the State regulations.

5. The number of households with affected agricultural land is relatively small. Within the Project area, incomes of households are mainly from free work, businesses and small services, … There is rare number of households have main income from agriculture. Therefore, Therefore, there are few number of households whose agricultural land is affected at the level of over 10%.

6. Regarding compensation, assistance and resettlement policy, in the implementation process the city and district compensation boards mostly apply compensation, assistance and resettlement policies as stipulated by Lao Cai province. However, the Consultant has conducted a replacement cost survey at the project locations and realized that the PPC annually provides the districts with guidelines on market price survey for residential land, so the cost issued by the province is rather close to the market price. One more point is noted that upon the compensation options submitted by the compensation boards, the PC of districts and city with their experience in implementation of some ADB and WB funded projects have actually readjusted some compensation policies to match with the project resettment framework – e.g.: increasing assistance cost of minimum land lot for the households who have to self-settle their new accomodation;for the poor households who buy land in the resettlement site, 50% of payable fee for LURC will be deducted;; households who receive land in the resettlement sites is provided with a additional allowance in case the compensation payment for land is lower than the value of a minimum resettlement plot … The rental assistance for the resettlement households is paid by the compensation committee at the price of VnD 1,500,000/household/month (one and a half million Vietnamese dong) and the time of receiving the assistance is counted from the date that households hand over the land to the project until they receive resettlement land plus 11-month period for house construction (equivalent to VND 16,500,000/household). In general, the majority of APs concurred with the rates applied in the compensation option and people are ready to relocate in the resettlement sites.

7. The Sub-project has 05 resettlement sites (04 sites in Lao Cai city and 01 site in Bao Yen district). At the time of the survey, 4 out of 5 resettlement sites had been put into operation and welcomed households to relocate in. Many of the households have settled their lives. The remaining 01 sites (01 in Lao Cai city) wereunder construction and expected to be complete and welcome households in the first quarter of 2014. All the resettlement sites have social and technical infrastructure, such as lighting system, water supply system, school, market, etc

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8. Regarding the rate for agriculture land, the PPC of Lao Cai has issued a set of compensation rates for land per year. The survey on replacement cost in localities shows that the acquired agriculture land is mainly garden and crop land of households. In the project area, there is no transaction of agriculture land so there is no market price for this type of land. Besides, the households in the project area still receive support for agriculture land located in residential areas at 30% of the average land price in the acquired land area as specified in the land price table of the PPC at the time of providing support. Generally, the compensation cost for the agriculture land together with different types of supports is relatively beneficial for people and they can buy agriculture land in other places for production.

9. Regarding the rate of structures, the survey on replacement cost conducted with relocated households and some construction contractors/building suppliers in the local area and relevant local authorities found out that the rates of structures per market price is generally not much different from the compensation rates issued by the province. The compensation rates of the province for housing and structures of the households within the project area is mainly for class-4 houses or temporary houses at the rate of VND360,000/m2. However, houses rebuilt by households in the resettlement sites are brick houses and 03-04 storey houses at the rate of about VND2,000,000/m2 meanwhile as stipulated by the PPC houses built in the resettlement sites are brick and 03-04 story houses and the rates for building these houses are VND2,210,000/m2 – VND2,430,000/m2. Consultation to the households in the resettlement sites shows that all the households agree with the compensation costs for structures and works with the rates issued by the PPC.

10. Regarding to the income restoration policies, the districts and city compensation boards have carried out compensation and support for seriously AHs in compliance with the project policies. In addition, because in affected area livelihood of households is mainly from small businesses and self-employment, the compensation committees have actively created favourable conditions in the resettlement sites so that the seriously affected households can rent kiosks for income generation. Throughout the survey, it has been found that the expectation of the affected households is to receive more micro-credits from banks so that they can have funds for the purpose of business organizations for income generation.

INTRODUCTION With the assistance loan 2302-VIE from the Asian Development Bank (ADB)and CVN 6006 01 of the Agency of French Development (AFD), the Government of Viet Nam is currently preparing the Kunming-Haiphong Transport Corridor Project to upgrade and rehabilitate transport infrastructure from the Haiphong Port to Kunming City in Yunnan Province, China.The project sub-component of the Yen Vien–Lao Cai Railway Line will upgrade a section of 285km railway line in a northwestern direction from Yen Vien Station, Hanoi to Lao Cai Station on the border with China. This section of the railway line passes through four provinces of Lao Cai, Lao Cai, Phu Tho and Vinh Phuc and the City of Hanoi. Line improvements will mainly consist of:

(viii) Selective improvement of the horizontal and vertical alignment and track layout;

(ix) Stabilization of embankments and sliding slopes;

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(x) Improvements of track-work including turnouts;

(xi) Upgrading of bridges;

(xii) Improvements of safety of selected at-grade level crossings;

(xiii) Upgrading of stations and passing loops for train loads up to 1,200 tons and train length of up to 400 meters (m); and

(xiv) Modernization of auxiliary facilities and provision of maintenance equipment and facilities, as well as rolling stock, carriage

The project will provide significant socio-economic benefits. The project implementation will require involuntary resettlement of some local residents. The involuntary resettlement occurs when the APs have to relocate their houses, assets, income and occupation beyond their expection to serve for such prject as Yen Vien – Lao Cai project for greated benefits of community. If there are no appropriate mitigation measures, negative impacts will cause AHs to get in poverty and difficult situation, especially for the poor households and vulnerable groups.

Involuntary Resettlement in Package CP3

The Lot 3 section of the Project traverses Lao Cai Province. The Project civil works components consist of extension of 3 passing loops, new loops, slope protection works, track realignment and construction/upgrading of train stations. Locations of the project are the railway stations of Thai Van, Thai Nien, Xuan Giao and Lao Cai, realignment of 6,073 m. Total length of the upgraded and improved railway line is about 66.5 km.

Land acquisition is required for the major works of extension the passing loops, realignement and resettlement site. The resettlement plan was prepared in 2006 by the Railway Project Management Unit (RPMU) based on an Inventory of Losses and socio-economic survey and is now updated based on the Detailed Measurement Survey (DMS), updated census, socio-economic survey, consultation, and Replacement Cost Survey (RCS). A total of 12,69 ha land in Lao Cai province will be acquired for the project and the land area acquired for construction of the 05 resettlement sites in Lao Cai province (04 sites in Lao Cai city and 01 site in Bao Yen district) are17,13 ha.

Upon request of the donor, RPMUhas to prepare an updated resettlement plan for the project over the area of Lao Cai province. At present, the plan has been prepared by a consultant and is now under review of ADB. An updated resettlement plan is required to be prepared for the project in Lao Cai Province. In the project implementation period, a large proportion of the land acquisition and resettlement activities have already been undertaken in advance of an approved updated resettlement plan.As requested by the ADB, Lao Cai province has paid compensation so a due diligence of the adequacy of compensation is required to assess the need for supplementary actions to ensure that the updated resettlement plan complies with the agreed resettlement framework for the project as set out in the approved 2006 resettlement plan for the project as well as relevant policies of ADB and Vietnam.

OBJECTIVES AND METHODOLOGY Objectives

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A due diligience report is prepared with the following main objectives:(i)review activities of compensation and resettlement for the APs in Lao Cai province to assess whether the compensation is carried out at full replacement cost for lost assets, especially land, houses and structures; and(ii)review the involuntary resettlement in the linked projects including 05 resettlement sites,assessing compliance with policy and entitlements set out in the approved Project RP 2006; (iii) conduct replacement cost survey to identify whether the compensation cost for lost assests, affected part of land and house structures is at replacement cost and whether the compensation amount is adequate for the APs to buy replacement land in the local resettlement sites; (iv) assess satisfaction of the APs with the compensation cost and capability of replacement of their affected asset. The specific tasks include:

Identifying collected information relating to the compensation process and resettlement activities for the AHs over the area of Lao Cai province and confirming if implementation situation and entitlements currently comply with SPS,2009. This is defined in the entitlement matric shown in the Resettlement Policy Framework approved by the Government and ADB;

Conducting replacement cost survey at locality by the following methods:

(i) desk study of decrees, circulars about compensation principles when the State acquires land for the purposes of national defence, economic development, public utilities such as Land Law 2003; Decrees no. 197/2004/ND-CP; 123/2007/ND-CP; Decree no. 69/2009/ND-CP dated 13/08/2009 issued by the Government providing supplement regulations on land use planning, land price, land acquisition, compensation, assistance and resettlement, amended Decree 188/2004/ND-CP dated 16/11/2004; Circular 116 and 114/2004 of the Ministry of Finance regarding method of pricing and price frame of different types of land… The documents of Lao Cai province including Decision no. 45/2009/QD-UBND dated 25/12/2009of Lao Cai PPC 45/2009/QD- UBND dated 25/12/2009 of Lao Cai PPC promulgating regulations on compensation, assistance and resettlement in case of land acquisition by the State for the purpose of national defence, security and benefits, public benefits and economic development over the area of Lao Cai province; Document no. 3465/UBND-QLDT dated 27/12/2010 of Lao Cai PPC to Vietnam Railway, PCs of Lao Cai city, Bao Thang district, Bao Yen district regarding applying compensation, assistance and resettlement policy according to the ADB policy framework for Yen Vien – Lao Cai railway upgrading and improvement; Decision no. 22/2011/QD-UBND dated 18/8/2011 of Lao Cai PPC amending and supplementing some articles of the Regulation on compensation, assistance and resettlement when the State acquires land for the purposes of national defence, security, national benefits, public interests and economic development over the area of Lao Cai provinceissued together with the Decision no. 45/2009/QD-UBND dated 25/12/2009 of Lao Cai PPC in 2011; Decision no. 49/2010/QD-UBND dated 29/12/2010 of Lao Cai PPC issuing regulation on price of lands, land classification, land area division and reidentification of streets and land location over the area of Lao Cai province in 2011; .v.v.

(ii) Meeting with the Offices of Finance, Offices of Natural Resources and Environment, Site clearance and compensation boards of the districts and city

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to learn the applied legal frame, principle, method and process to determine land unit price and other assets. The Consultant have discussed and listened to explanation of the above mentioned offices and board about the replacement cost applied to the APs of the project area. In case of no transaction of land of different types (not residential land) to determine market prices, based on actual experience such as productivity and location, and discuss replacement cost for these types of land.

(iii) Meeting with local suppliers, building material shops and contractors to interview and determine current price of materials, labours and building prices for houses and other civil works.

(iv) Meeting with people who deal fruit, farm produce, agricultural specialists, staff of the local agriculture offices to prepare market price for annual and perennial trees.

Review and assess the resettlement sites for the relocated households and confirm if resettlement and compensation activities comply with the policy objectives and entitlements set out in the approved project RP 2006. Besides, identify outstandings (if any), andprovide recommendations based on results of verification and review in surveying process.

Methodology Measures used for preparation of the report consist of:(i) Checking secondary information (including project documents of the linked project) and the documents of RPMU; and (ii) Organizing consultation meetings with the representatives of local leaders including those from RPMU - PMU, Compensation, Assistance and Resettlement Boards of the relevant districts, city, wards and communes and other representatives of community and affected households (the list is attached as Annex 1);and iii) Direct filed observation.

FINDINGS

Total 683 households are affected by the project over the area of 02 districts of Bảo Thắng and Bảo Yên, and Lao Cai city, Lao Cai province, including 551 households affected by the project construction and 132 households affected by construction of 05 resettlement sites. By surveying some households on site and working with the representatives of the local compensation board, it has been realized that the number of households with over 10% affected agriculture land is not as many as shown in the working draft of updated RP report as well as in the monitoring report available at the time of the due diligence review because of the following reasons: (i) the households located in the affected area are involved in agricultural production but it is not their main income source. The income of households living near railway stations is mainly from small businesses, service and self-employment; (ii) the average acquired productive land of household is several hundreds of square meters and the acquired land is adjacent to living area. Even if the households are allotted with the productive agriculture land area, they still have some lots of paddy field in other places and/or provided with productive forest land with large area. Almost all the agriculture land areas of the households are used for vegetables and crops for their own consumption mainly

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and partly for selling. It is not their main income source. It is recommended that the monitoring conduct survey, review and identify the quantity and classify clearly the number of households with over 10% of affected agriculture land. Affected Public Land The area of affected public utilities is mainly under management of the railway authority and the remaining affected area is of road and irrigation works under management of the PCs of communes along the railway corridor. With this affected area, the PCs of communes are ready to hand over land to the railway authority for construction of the project once it is commenced.

Besides, in the project area, structures or other sensitive assets of religious groups and native groups such as pagoda, church, temple, etc. are not affected. There is no impact on enterprises or other commercial shops.

The Resettlement Implementation of the Sub-project

At present, the compensation and resettlement for the Sub-project are being carried out by the districts and city compensation boards in Lao Cai province. The following is compensation progress of the sub-project:

Table1: Summary of compensation progress in Lao Cai province*

Area

Total no. of AHs (by

both project & resettle-

ment sites)

Total no. of

AHs by Railway project

Total no. of AHs by

resettlement sites

No. of relocated HHs

No. of HHs

received compen-

sation payment

No. of HHs not

yet received compen-

sation payment

Years of payments

Lao Cai city

626 497 129 486 572 54 2010,2011,2012

Bao Thang district

35 35 0 6 34 01 2011,2012

Bao Yen district

22 19 3 9 22 0 2011,2012

Total 683 551 132 501 628 55

* As of January 2013.

As of March 2013, 1 households have not yet handed over the site. Some of them have received compensation and sent their letters of petition, as in the case of01 household in Bao Thang district, Xuan Giao commune.

Reasons for these oustanding cases are presented in the below table:

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Table 2: Summary of Reasons for Outstanding Cases

Location Outstanding issues of affected households

Reasons, current situation and results of solving issues by Compensation board

Comments and recommendations of the Consultant

Bao Thang district

1

- Household: Trần Đức Nam, the Kinh people, Vong 1 hamlet, Xuan Giao commune - Impact on agricultural land

- Household of Mr. Tran Duc Nam has not yet agreed to receive compensation (43millions VND). They requested for 01 resettlement plot. They have not yet handed over the site to the project. - The district compensation board has replied the household in writing.

- District compensation board, PC of Xuan Giao commune are requested to encourage the household to receive compensation payment and hand over the site

In addition, there has not yet been a solution to compensation for 54households within 1ha site (at the area of goods, Lao Cai station), who built houses illegally on land owned by Vietnam Rail. These households are employees of Vietnam Rail. The PPC is trying to find a solution for these cases. This issue will be dealt with after having a policy and specific compensation solution of Lao Cai province and be included in the RP.

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INFORMATION DISSEMINATION

The information dissemination is implemented for the package CP3 by the compensation, assistance and resettlement boards of districts and Lao Cai city of Lao Cai province.From 2006, the meetingsof consultation, notice and introduction of the project to residential groups and AHs have been organized.

The project manual has been delivered to the AHs. The consultation meetings with relevant agencies for implementation of announcementon land acquisition planning was held in 2008 and then the meetings with people to disseminate and inform of the approved general land acquisition planning were held on 27-28-29 May 2009. The meetings were participated by representatives of people with acquired land and those of local authorities and communities (minutes of meetings are attached).

During the DMS, in 2009 and 2010 the compensation, assistance and resettlement boards of districts and city have carried out detailed measurement survey.

Before conducting DMS, the compensation, assistance and resettlement boards of districts and city had informed the AHs of measuring time and the households all know about the time.

Basically, the compensation, assistance and resettlement boards of districts and Lao Cai cityhave followed the information dissemination according to the project policy framework. The people in the area have had activities involved in the process of preparation and implementation of the project compensation.

However, in fact some households did not understand clearly the process of complaints and grievance redresses, particularly the steps of making complaints. This situation causes delay in solving complaints raised by the people because complaints are reviewed by many agencies. The compensation boards and local authorities at different levels are requested to enhance dissemination and guidance to people so that they can understand clearly about the mechanism of complaining and grievance redressing.

Period of compensation, assistance and resettlement implementation

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The compensation and site clearance of the project is mainly carried out in 2011 and 2012. As of March 2013, the compensation boards have paid compensation and assistance to 628 out of 683 households.628 out of 683 households have handed over their land for construction. The affected households have received compensation correctly and adequately with the compensation unit price and quantities according to the compensation documents approved by the district and city PC applicable at the time of payment.

As of January 2013, apart from the households who have neither received compensation nor handed over their land, compensation and site clearance for the 1ha of goods keeping siteunder the management of Lao Cai station have not yet been done. The reason is that compensation option for 144 households living in this site (including 60 households in 03 collective housing blocks and 54 households with encroaching land and houses) has not been prepared yet.For 60 households who are staff and officers of the station and railway industry, the RPMU is currently having option for their relocation in residing area of the railway industrywhich will be built within the project scope. Besides, if people do not want to move to the residing area, the railway industry will propose Lao Cai PPC and Lao Cai city compensation board to consider and locate these households to Lang Den resettlement site, Dong Tuyen commune. . .

For 54 households who encroached the station area, 8 out of them have bought liquidated houses (excluding residential land area) from the station management unit. 46 remaining households are living in their houses that have been constructed in encroached land. At present, Vietnam Railway in coordination with branches and sectors of Lao Cai province is reviewing to propose an option for compensation and assistance to 54 encroaching households. The planned compensation option to these households includes: (i) For residential land, no compensation is made to households for residential land. However, in case of their own expectation, they will be located to the resettlement site of Lang Den, Dong Tuyen commune. As expected, these households are entiled to buy land in the resettlement site at the unit cost according to the pricing fixing by Lao Cai PPC; (ii) For the area of residential houses, structures and works of the households, it is expected that 08 households who have bought liquidated houses would normally be expected toreceive compensation at 100% unit price for residential houses and structures and the remaining 46 households who are living in encroached land without construction licence wouldreceive compensation at 80% unit price for residential houses and structures; (iii) For trees and crops, the households will received compensation at 100% unit price for trees and crops. The project entitlement policy set out in the approved 2006 RP requires all non-land assets to be compensated at full replacement cost regardless of land tenure status.

Satisfaction of People with Compensation Rates

Generally, people in the area concent to the compensation rate of the project. As discussing with the compensation boards, the compensation rate proposed in the master option for site clearance and resettlement of the project has been approved at the Decision no. 706/AD-UBND dated 28/3/2008 by Lao Cai PPC. However, in implementation period, the compensation boards all apply price according to the unit price at the time of issuing. The Consultant have conducted replacement cost survey over the are and compared with the compensation rate specified by Lao Cai PPC and had the following finding:

a) Regarding compensation rate, the survey shows that rates currently applied for residential land of households in Lao Cai city in 2011 is VND480,000/m2 according to the Decision no. 49/2010/QĐ- UBND dated 29/12/2010 of Lao Cai PPC promulgating regulation on prices of different types of land, land classification, land area division

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and re-identification of streets and land location over the area of Lao Cai province in 2011. Households living in the area nearly have no transaction of residential land because the PPC have informed them about the plan on upgrading the railway station from 2003. The Consultant have conducted the replacement cost survey by investigating and consulting households, working with representatives of local authorities as well as consulting housing office to collect information. The survey shows that the unit price of land in this area is about VND1.2 million/m2. However, in this area there is almost no transaction of residential land because the PPC have issued notice on station upgrading planning since 2003.Almost all the households is self-willed to move to this area for living and cultivation.

For the households who have received compensation on residential land at the above mentioned rate, they will be relocated in the resettlement sites in the city (about 1.5 – 4 km from their old living area) with land-for-land option. These households are arranged to land plots of 80 – 100 m2 at the land rate of VND750,000/m2 as specified in the decision of of Lao Cai PPC. Based on the Decision no. 45/2009/QD- UBND dated 25/12/2009 of Lao Cai PPC. According to the decision, if the compensation for residential land of the households is lower than the value of a minimum resettlement lot, the State will pay for the difference. Therefore, all the households have desired to received in the resettlement site and have been affordable for that. The replacement cost survey shows that price of the residential land in the current resettlement sites is valued at about VND4 – 5 million/m2 depending on location. Therefore, the rate that APs purchase the resettlement lots is less than 20% of the estimated actual value.

b) For the households whose residential land is acquired and have to relocate in Bao Thang district, they all received, apart from compensation for their residential land, an assistance allowance of a minimum resettlement land plot for their self-resettlement. Lao Cai PPC issued the document no. 96/UBND – QLDT dated 12/1/2012concerning assistance price of minimum land plot to self-settlement households for project site clearance: Yen Vien – Lao Cai railway upgrading and improvement. As specified in the Decision, for the households in Thai Nien station, the applied assistance allowance should be the minimum one for infrastructure investment unit cost which will be VND70,000,000/portion (seventy million dong), equal to infrastructure investment unit cost in Truong Quan Su resettlement site;for the households in Xuan Giao station, the applied assistance allowance should be the minimum one for infrastructure investment unit cost which will be VND110,000,000/portion (one hundred and ten million dong), equal to infrastructure investment unit cost in Vang 1 hamlet. The site survey shows that generally the households have agreed with the compensation rate for residential land of the project. At present, the affected households have all bought their houses and settled their life.

With unit price for agriculture land, Lao Cai PPC has issued a set of compensation rate for land year by year. The survey on replacement cost shows that the area of acquired agriculture land is mainly garden and crop land of households. Productive land in the area is mostly reclaimed and cultivated by households themselves. No transaction for agriculture land is carried out in the project area. Therefore, no market price is available for this type of land.Besides, the households in the Project area are entitled to an assistance allowance for agriculture land in residential area at 30% ofthe average land price in the acquired land area as specified in land price table of the PPC at the time ofsupporting. Generally, with the compensation cost for agriculture land and relatively beneficial assistance to people, they can rent agriculture land nearby for production.

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For the AHs of vulnerable groups of the project, the survey on some displaced households show that the PPC have a document specifying additional assistance allowance to them as below:

- For the poor households, in addition to assistance allowance for poor households, they are entitled to a deduction of 50% fee for LURC. For example, when they buy land plot in the resettlement site, they only have to pay VND37,500,000 (thirty seven thousand five hundred dong) which is 50% deduction of the official price of VND75,000,000 (seventy five million dong).

- For households with war invalids or revolutionary martyr, they are entitled to a deduction of 70% fee for LURC.

In addition, the vulnerable households have received micro-credits with low interest from social policy bank to have capital for production, business and small service to stabilize their lives.

Generally, the vulnerable households of the project have received fully assistance from the project. Therefore, they are all having stable lives as prior to the project.

Regarding organization of the compensation, assistance and resettlement boards of the districts and city, they all have their own task group for implementation of compensation, assistance and resettlement for the sub-project. The units in charge of resettlement plan implementation all have staff who have already involved in projects funded by international donors such as ADB, WB…However, because most of the staff of the compensation boards have not much experience in international funded project, the boards need to strengthen their capacity by training.

Regarding to the income recovery policies, the district and city compensation boards have carried out compensation and assistance to severely affected households in compliance with the project policies. Generally, because in affected area livelihood of households is mainly from small businesses and self-employment, the compensation boards have actively created favourable conditions in the resettlement sites so that the severely affected households can rent kiosks in market of the resettlement sites or nearby markets for income generation. Throughout the survey, it has been found that the expectation of the affected households is to receive more micro-credits from banks so that they can have funds for the purpose of business organizations for income generation.

Besides, basedon the tax policy of Lao Cai province, for the poor who are entitled to resettlement plots but do not have enough money for receiving LURC, they will have priority to pay for this fee gradually without interest over a5 year period.

Construction of Resettlement Sites

As of December 2012, 04 out of 05 resettlement sites have been built and already located by the displaced households. The resettlement site of Lang Den, Dong Tuyen commune, Lao Cai city and the resettlement site of mountainous village 6AB, Kim Son commune, Bao Yen districtare under construction. These two sites are expected to be complete and can be located by the displaced households in the first quarter of 2013.

The survey shows that the households located in the project area mainly earn for their living by free working, small business and service at border gate area and in Lao Cai city so relocation of these households to the resettlement sites does not have great impacts on their

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livelihood. Moreover, the current resettlement sites provide more convenient conditions for households because they have had better social and technical infrastructure. For example, Lang Den resettlement site under construction is new Kim Thanh, a main border gate of Lao Cai city in the near future. This is connection point with Ha Noi – Lao Cai express way.

All these 05 resettlement sites are provided with the technical and social infrastructure to serve for relocated households. Generally, the relocated households are desired to relocate in the resettlement sites.

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Gaps in Policies and Settling Measures

Generally, in implementation of compensation, assistance and resettlement of Yen Vien – Lao Cai railway upgradingand improvement project over the area of Lao Cai province, the RPMU and the district and city compensation boards have complied with the policies specified in the RP. The gaps between the two policies have been harmonized by the RPMU and the compensation boards for the project.The entitlements proposed for the AHs have been identified in the project resettlement policy framework. The gap between the resettlement policy framework and regulations of Lao Cai city on land acquisition and compensation for project site clearance is shown as below:

Regarding the compensation rate for land and non-land assets, ADB policy requires that compensation rates should be based on replacement costs determined by a qualified appraiser and be effective at the time of paying compensation. In the context of this project in Lao Cai Province, the compensation rates were based on annually updated official PPC rates which are based on the PPC’s own replacement cost appraisals conducted by the Department of Natural Resources and Environment. No separate project-specific replacement cost study was conducted. With respect to this matter, the Consultant conducted a survey to assess the adequacy of the compensation rates. The survey included interviews with affected householdsas well as representatives of local governments. The survey showed that the cash compensation rates for residential land werelower than the transaction price on the market at the time of making compensation payment. However, because the project has made compensation in form of “land for land” in the resettlement site with additional allowances (including not being required to pay more for the resettlement site lot than the compensation amount of the affected residential land), the compensation rates for residential land is deemed to be equivalent to replacement value. The compensation rates for productive land, trees, crops and structures are not much different from the market prices. Accordingly no significant gap with respect to replacement cost rates was noted.

Concerning additional assistance allowances to the relocated households, based on the project policies, the relocated peoples, severely APs, vulnerable groups, people with affected houses… will receive additional allowance in cash, equal to minimum 30 kg rice/person/month for 6 months. However, when reviewing the compensation option of the project, the Consultant found this allowance was not applied consistently.Households who were required to relocate but had built on land either not eligible for compensation or not recognized as residential land were not provided the stablization assistance. Based on the results of the DMS survey, interviews with relevant authorities in the project areas as well as interviews with affected households, no poor households were noted amongst the affected households. However, this entitlement should be included in the project entitlements to be disclosed to affected households with the approved updated RP. Should any APs identify themselves to the compensation board as being vulnerable or if subsequent internal and external monitoring indicate poor and vulnerable households, this entitlement should be provided.

A number of households (101) were compensated at less than the full compensation rate for affected houses due to having built on land either not recognized as residential land or land being ineligible for compensation. However, the agreed project resettlement framework requires that affected persons are to be compensated at full replacement cost for non-land assets irrespective of the legal status of the affected land. The project should therefore provide supplementary compensation to such affected persons to ensure that they receive compensation at full replacement cost for affected non-land assets.

A number of households (54) are residing on a 1ha site in Lao Cai City owned by the Vietnam Railway to be used as the goods yeard for the project. Most of these households have built their houses without required persmission. A decision regarding these cases had not yet been made at the time of the due diligence review. These households need to be included in the RP and provided with compensation for

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affected non-land assets at full replacement costs as well as other transitional and resettlement assistance required in the project resettlement framework.

Livelihood restoration activities to date have been limited to provision on certain types of cash assistance. However, no systematic livelihoods restoration plan has been prepared. It is recommended that a needs assessment be undertaken to actual residual livelihood restoration needs of severely affected households and that a livelihoods restoration program be prepared accordingly.

Consultation and disclosure activities have been undertaken as described elsewhere in this report. The consultation and disclosure measures need to be enhanced through more thorough disclosure of the entitlements. This could be undertaken as part of the disclosure of the approved updated RP and corrective action measures. Consultations should be undertaken as part of preparation of the livelihood restoration strategy.

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CONCLUSIONS AND RECOMMENDATIONS Conclusions Based on information provided by representatives of local governments and AHs, interviews by the Consultant with different stakeholders, including AHs, governmental representatives, field observations, the concluding aspects of the report are as follows:

The compensation, assistance and resettlementof Yen Vien – Lao Cai railway upgrading and improvement project, the package CP3 have complied with the laws and regulationsof the Government of Vietnam and the involuntary resettlement policy of the ADB. The people in the project area have been compensated mainly in 2010 and 2011. The compensation, assistance and resettlement board of Lao Cai province have paid compensation and allowances for lands, trees, crops, structures… to the households at the compensation rate as specified in the compensation option of the city and district PCs applicable at the time of payment and the households have received compensation in accordance with the approved option.

The due diligence survey shows that generally the AHs concur with the compensation rates

and they were able to buy replacement assets such as landand build houses. The APs realize that the socio-technical infrastructure of their new accommodation is of much higher standard than their affected houses. At the time of the survey, almost all the relocated households had taken over the land in the resettlement sites and had built or were building houses for their living settlement.

Regarding the compensation rates applied to affected assets inthe project areas, it was

found that the compensation rate for trees, crops and structures were made according to the rate stipulated by the PPC.The PPC rates were based on annual replacement cost surveys they themselves conducted annually. RPMU did not coordinate with the compensation boards to carry out a separate replacement cost survey specific for the project affected areas. However, the resettlement due diligence surveyconcludes that compensation rates were effectively at replacement cost and/or otherwise adequate for the following reasons:

Residential land: Residential land was effectively compensated in the form of land-for-land

at resettlement sites (except for Bao Thang district where no resettlement site was constructed –see below). APs used their compensation to purchase resettlement plots and this was sufficient to purchase the resettlement plots. If the cost of the resettlement plot was higher than the compensation received for affected residential land, the province paid the balance. If the cost of the resettlement plot was lower than the compensation received then the APs would receive the balance in cash. Furthermore, APs eligibile to be allocated resettlement site lots were eligible to pay the purchase amount over a period of 5 years without interest. Even though APs were provided the option of assisted resettlement at one of the resettlement sites or self-relocation, APs opted to relocate to resettlement sites because the resettlement sites were well situated and well serviced. Vulnerable APs (poor and policy households) were entitled to additional support to purchase resettlement site plots in the form of 50% reduction in the LURC cost required to purchase the lot as well as given a period of 5 years in which to pay the balance at no interest. With respect to Bao Thang District where no resettlement site was constructed, the eight affected households required to relocate were provided with a self-relocation allowance of VND70 million or VND110 millionin addition to compensation and other relocation allowances to purchase and prepare replacement residential plots. The due diligence survey observed that this was sufficient to enable these households to purchase suitable replacement land. Therefere, despite the observation of the due diligence survey that compensation rates for residential land were lowerthan the market price of land transacted at the time of paying compensation, the forms of compensation together with related assistance and allowances were sufficient

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to replace affected residential land. Agricultural land: Affected households were satisfied with compensation received for

agricultural land. There is hardly any transactions of agricultural land around the project areas so the resettlement due diligence review was not able to assess market prices for agricultural land.However, it is noted that affected households received an additional allowance equivalent to 30% the value of residential land in the area above the compensation value of the affected agricultural land (which was mostly garden land) because the affected agricultural land was located in residential areas. As a result, the people in the area all agree with the compensation rate for agriculture land.

Non-land assets: The compensation rate for houses, other main structures and secondary structuresas well as perennial trees, the replacement cost survey shows that the compensation rate was close to the then current market prices.

Recommendations

A Corrective Action Plan (CAP) should be prepared to address the gap issues identified through the due diligence review and be incorporated in to the Updated Resettlement Plan (URP). The CAP should be disclosed to APs together with disclosure of the approved URP.

It is required to strengthen the coordination between the RPMU and the city and district

compensation boards so as to speed up the progress on site handover for construction. The RPMU and the compensation boards should hold progress meetings to seize situation of compensation and site clearance so that they can make proposals and recommendations to the city and district PCs for issuing timely policies to contribute in faster progress on site clearance.

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ATTACHMENTS 1. List of interviewed staff and households

No. Full name Position Address Note

I Lao Cai city

1 Vu Lan Manager of Lao Cai city construction project management unit

Lao Cai city construction project management unit

2 Nong Van Dung Deputy Manager of Lao Cai city construction project management unit

ditto

3 Nguyen Manh Hung

Site clearance staff of Lao Cai city construction project management unit

ditto

4 Tran Quang Hanh Chairman Van Hoa commune

1 Nong Thi Ngu Displace household, Lao Cai

railway station

Resettlement site at the end of Pho Moi bridge

2 Ba Dua ditto ditto

3 Vu Van Danh ditto Group 31, Pho Moi

ward

4 Nguyen Duy Bang ditto Group 30A, Pho Moi

ward

II Bao Thang district

1 Nguyen Cong Binh Vice chairman of Bao Thang DRC

Bao Thang DRC

2 Do Ba Hung Head of natural resources and environment, Member ofBao Thang DRC

ditto

3 Nguyen Tien Sy Member ofBao Thang DRC ditto

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Xuan Giao commune

1 La Thi Chien Displace household Xuan Giao commune

2 La Van Vang Displace household Xuan Giao commune

III Bao Yen district

1 Nguyen Van Dung Vice chairman of Bao Yen DRC Bao Yen DRC

2 Nguyen Van Trung Member ofBao Yen DRC Bao Yen DRC

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2. Minutes of public consultation meeting

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3. Some pictures on site

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ANNEX 3: SES AND DMS FORM

SOCIO-ECONOMIC SURVEY FORM

YEN VIEN-LAO CAI RAILWAY PROJECT

Project: Yen Vien-Lao Cai railway project Capital source: Asian Development Bank Name of consultant agency: Date of survey: ...................................................................... Name of household head: .................................................. Home address: Village/hamlet ..............................Ward/commune: ..................... District.................. Province/City................ Location of affected land (One household may have several land-plots and assets on different locations, in this case, please mark all of sites that household will be affected). Acquired area for constructing the railway [ ] Within ROW (only take down structures but not land acquisition, only for new sections

due to line adjustment) [ ] Resettlement sites [ ] A. GENERAL INFORMATION ABOUT THE HOUSEHOLD AND INFRASTRUCTURES, SOCIAL SERVICES Ask 30% of PAHs only, of which 20% is adversely affected households (relocated households, households lost more than 10% agricultural land)

1. Household Composition (including the household head)

No. Full name

Sex Relationship with household head

Age

National group

Primary Occupation

Education Children at school age

1=Male 2=female

0=household head 1=Husband/wife 2=Father/mother 3=Son/daughter 4=Son/daughter-in-law 5=Nephew/niece 6=Sister/brother 7=Others

1=Kinh 2=Khmer 3=Cham 4=Others

1=Staff 2=Retired 3=Business/ service 4=Handicraft 5=Hired labor 6=Farming 7=Unemployment

0=illiterate 1= primary 2= secondary 3= high school 4=university

0=going to school

1= not going to school

1

2

3

4

5

6

7

8

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2. Legal status of residency Have certificate of permanent resident [ ] Registered as long-term temporary resident [ ] Having no above [ ] 3. Living condition 3.1 Average yearly household income of HH: ………………. VND Main resource of Income:

1. From agricultural activity: ………….… .VND/month accounting for………%

2. From business running: ………….…. ..VND/month accounting for………%

3. From hired labour, salary………….….. VND/month accounting for………%

4. From other sources ………….……….. VND/month accounting for………%

Average monthly household expenditure ........... ...............VND/month

Monthly Income - expenditure balance:…………… VND/month

3.2 Household amenities and consumes

Electricity [ ] No electricity [ ]

Water: Tape water [ ] Drilled/Dug well [ ] River [ ]

Sanitation condition:

WC with disintegrative basin [ ] Temporary WC [ ] No WC [ ]

Car [ ]

Motorcycle [ ]

Television [ ]

Refrigerator [ ]

Telephone [ ] 3.3 Obtained loans

From bank……………………….VND;

Purpose of loan from the Banks: …………..…………………………………….

From other organizations (classify): …………………………VND

Purpose of loan …………………………….......................................................

From individual …..........................VND

Purpose of loan…………………………………………………………….………

3.4 Other information

Female Headed household (Without husband):

Social policy household

o Vietnam heroic mother [ ]

o Family served the revolution receiving social subsidy [ ]

o Family with wounded soldiers or revolutionary martyrs [ ]

Household with disabled members: [ ] Quantity:….

All members are old [ ]

Poor HHs according MOLISA poverty line [ ]

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3.5 Access to public facilities and community health

Facilities /social service 1.Yes 2.No

1 = very near 2 = near 3 = rather far 4 = far 5 = very far 6 = unknown

a. Water sources

River

Public supply locations

b. Market

Permanent markets

Temporary markets

Other sources

c. Kindergarten and Schools

Kindergarten

Primary school

Secondary school

High school

d. Transport

Village/communal roads

River (usually use)

e. Religious structures

Pagoda/temple/church

Sport centre, stadium

Other entertainment areas (specify)

f. Health services

Commune Medical station

Hospital/General clinic

Private medical station

Pharmacy

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B. Inventory of Losses (IOL)

C. QUESTIONS FOR CONSULTATION

3.1. If you have to move, which way of resettlement would you choose

- Receive compensation for self-relocation management [ ]

The reason is:

+ Having available houses at other places [ ]

+ Having land plots at other places [ ]

+ Buying land yourselves [ ]

- Plot or apartment at the resettlement site constructed by the project [ ]

3.2. Which income restoration program would you choose?

- Vocational training [ ]

- Farming and livestock husbandry programs [ ]

- Cash assistance for self-employment [ ]

Why do you want to receive with cash assistance for self-employment?

………………………………………………………………………………..

Surveyor Team leader

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ANNEX 4: PUBLIC INFORMATION BOOKLET

KUNMING – HAIPHONG TRANSPORT CORRIDOR PROJECT Upgrading Railway Line from Yen Vien to Lao Cai Hanoi – Phu Tho – Vinh Phuc – Lao Cai – Lao Cai

PUBLIC INFORMATION BOOKLET Prepared by: MINISTRY OF TRANSPORTATION VIETNAM RAILWAYS RAILWAY PROJECT MANAGEMENT UNIT WILBUR SMITH ASSOCIATES, INC.

April 2006

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1. QUESTION: WHAT IS THE KUNMING-HAIPHONG TRANSPORT CORRIDOR PROJECT AND WHO IS RESPONSIBLE FOR IT? ANSWER: The Government of Viet Nam, with assistance from the Asian Development Bank (ADB), is preparing a project to increase capacity on the Transport Corridor from Haiphong in Vietnam to Kunming in China. The Project will include upgrading on the Railway Line to meet passenger and transport demands for 2020. The railway section to be upgraded traverses about 285 km in a northwestern direction from Yen Vien Station near Hanoi to Lao Cai Station on the border with China, passing through the provinces of Lao Cai, Lao Cai, Phu Tho, Vinh Phuc and Hanoi City. The improvements will consist mainly of:

Selective improvement of the horizontal and vertical alignment and track layout;

Stabilization of embankments and sliding slopes;

Improvements of track-work including turnouts;

Upgrading of bridges;

Improvements of safety of selected at-grade level crossings;

Upgrading of stations and passing loops for train loads up to 1,200 tons and train length of up to 400m; and

Modernization of auxiliary facilities and provision of maintenance equipment and facilities, as well as rolling stock. The Railway Project Management Unit (RPMU) of Vietnam Railways maintains overall responsibility for the Project, working in close collaboration with the Railway Public Utility Companies (RPUC) for Ha Hai, Ha Thai, Vinh Phuc and Yen Lao. The Project is currently in the process of preparing a Feasibility Study that will include engineering surveys, railway operations analyses, social and environmental impact assessments, resettlement plans, preliminary design and costing, economic and financial appraisal, prioritization and selection of engineering alternatives, and recommendations. If the Project is considered feasible, detailed designs are expected to begin at the end of 2006 and project implementation in 2007.

2. QUESTION: WILL THE PROJECT REQUIRE RESETTLEMENT AND, IF SO, WHAT ARE THE PROJECT’S RESETTLEMENT POLICIES? ANSWER: Improvements on the Railway Line have been designed to avoid and minimize resettlement as much as possible. However, land acquisition and resettlement are unavoidable in some situations, particularly for the new stations, addition or extension of passing loops, and track realignment. Where resettlement is unavoidable, the Project’s Policy Objective is to assist affected persons to maintain or improve their pre-project living standards and productive capacity. The Basic Principles are as follows:

Affected persons are entitled to compensation for lost or damaged land and assets, income and businesses, as well as transition allowances and rehabilitation assistance;

Lack of legal rights to land will not prevent affected persons from Project entitlements, unless the affected persons has encroached on the Project Area after the eligibility cut-off date (see Question 10);

Compensation for land and assets will be provided according to current replacement cost in local markets or government pricing lists, whichever is higher;

Preparation, implementation and monitoring of resettlement will be carried out with the meaningful consultation and participation of affected persons and relevant authorities; and

Compensation will be paid in full and directly to affected persons before the award of civil works contracts.

3. QUESTION: WHO ARE AFFECTED PERSONS AND HOW WILL I KNOW IF I AM AN AFFECTED PERSON? ANSWER: An affected personis any person or organization whose land or assets, income or businesses are lost or damaged as a result of the Project. All affected persons were notified of their status at the first Orientation Meeting during the Project’s Inventory of Losses in March and April 2006. A full list of affected persons and their entitlements is also included in the Project’s

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Resettlement Plan, which was presented at the Second Orientation Workshops in Viet Tri and Lao Cai in April 2006 and is available for public viewing at the Commune People’s Committee (CPC). If you are still unsure if you are an affected person, please ask your local Rail Station to help you to contact the RPUC for more information. You may also contact the RPUC by yourself at the address provided at the end of this booklet. 4. QUESTION: HOW AND BY WHOM ARE COMPENSATION RATES AND ENTITLEMENT POLICIES DETERMINED?

ANSWER: The main legislation and policies for determining the Project’s compensation rates and entitlements are Decree 197/2004/ND-CP, Circular 116/2004/TT-BTC, and related provincial legislation; and ADB’s Policy on Resettlement (1995). If there are any conflicts between these two policies, Decree 197 states clearly that “[w]here the international agreements which Vietnam has signed or acceded to contain provisions different from those of this Decree, the provisions of such international agreements shall apply” (Article 2). Compensation rates will be determined according to Replacement Cost in local markets, while allowances and special assistance will also be provided to ensure that all affected persons are able to maintain or improve their pre-project living standards and productive capacity. Final decisions about compensation rates and Project entitlements will be made by the Provincial People’s Committee in accordance with Decree 197 and ADB resettlement policy. 5. QUESTION: WHAT IF MY LAND IS REQUIRED BY THE PROJECT? ANSWER: Marginally affected agricultural lands will be compensated by cash, while severely affected agricultural lands (i.e., more than 10% of landholding) will be compensated by cash or replacement land of equal value. If replacement land is unavailable in the locality, the Project will support farmers with special assistance to help them change occupations and re-establish productive capacity. Compensation prices for land will

be according to replacement cost in local markets or provincial pricing lists, whichever is higher. The same principles apply for residential and other types of land. However, for severely affected residential lands, the affected persons will have the option to re- organize on the remaining landholding or relocate. Special assistance for transition and rehabilitation will be provided to relocating households (see Question #10). Formal land title (i.e., Land Use Rights Certificate [LURC]) will be issued to the husband and wife for all replacement land provided by the Project. 6. QUESTION: DO WE NEED FORMAL LAND TITLE TO CLAIM COMPENSATION AND OTHER PROJECT ENTITLEMENTS? ANSWER: No! Lack of formal land title (i.e., legal rights) or LURC is NOT a bar to Project entitlements. The Project recognizes three types of land users: Legal land users: Affected persons who have formal land title or LURC Legalizable land users: Affected persons who are in the process of applying for formal land title, or in other ways can prove that they have occupied the land by legal means or traditional claim. Non-legal land users: AP who do not have or cannot show that they have occupied the land by legal means or traditional claim Legal and legalizable land users are entitled to compensation for land, assets and Project allowances. Non-legal land users will NOT be compensated for land, but they will be compensated for fixed assets and any improvements made on land, as well as entitled to Projects allowances. However, people occupying or using the affected land after the eligibility cut-off date will NOT be entitled to Project entitlements (see Section 13). 7. QUESTION: WILL I BE COMPENSATED FOR LOST OR

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DAMAGED HOUSES AND STRUCTURES? ANSWER: Yes! Houses and any other structures (e.g., shops, stables, fences, etc.) destroyed or damaged by the Project will be compensated at replacement cost so that owners can build another structure of the same size and standard. The Project will also compensate for any costs related to moving, dismantling and rebuilding. Compensation for houses and structures is available for all types of affected persons, regardless of formal land title (see Question # 6) 8. QUESTION: WHAT ABOUT MY TREES AND CROPS? ANSWER: Affected trees and crops (including fish crops) and trees will also be compensated at replacement cost in current markets. Compensation for trees and crops is available for all types of affected persons, regardless of formal land title (see Question # 6) 9. QUESTION: WHAT ABOUT BUSINESSES AND INCOME LOSSES RESULTING FROM LOSS OF EMPLOYMENT? ANSWER: Businesses that are required to close or relocate will receive cash compensation for the duration of the disruption. Businesses that are legally registered will be compensated for net income for the entire period of disruption or relocation. Businesses that are NOT legally registered will receive cash compensation equivalent to the monthly minimum wage in the province for a minimum period of 6 months. Persons who lose their jobs because of disruption to businesses or other land (such as for sharecroppers or agricultural laborers) will also receive cash assistance. Persons whose jobs are temporarily affected will receive cash compensation equivalent to lost wages during the disruption or assistance in securing new employment, such as skills training or start-up capital. Persons who lose their jobs will receive cash compensation equivalent to 6 months wages or the remaining period of their contract, whichever

is higher, and assistance in securing new employment. 10. QUESTION: WHAT TYPES OF ALLOWANCES AND SPECIAL ASSISTANCE IS AVAILABLE FOR AFFECTED PERSONS? ANSWER: To help ensure that all affected persons will be able to restore pre-project living standards and productive capacity, the Project will provide allowances and special assistance to severely affected households and vulnerable groups. Severely Affected Households are households losing more than 10% of productive assets or households required to relocate. Vulnerable Groups are defined as poor households, single female-headed households with dependents, landless households without non-land income sources, elderly households without laborers, or households where the household head or spouse suffers a physical disability or illness that prevents them from earning income. Other allowances, such as the Timely Removal Allowances, are available to all affected persons.

Transport Allowance: Cash assistance to transport household effects, salvaged and new building materials up between VND2-5 million, depending on the stipulations of relevant provincial legislation;

Transition Subsistence Allowance: Cash assistance for the transition period equivalent to a minimum of 30 kg of rice per person per month in each household;

Rehabilitation Assistance: In-kind assistance (e.g., skills training, preferential credit, production materials) aimed at restoring pre-project productive capacity equivalent to a maximum value of VND 3 million per one male and one female laborer in each household;

Timely Removal Allowance: Cash allowance for timely removal of structures and land clearance in the Project Area equivalent to a maximum of VND 5 million per household, depending on the stipulations of relevant provincial legislation

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Priority Employment: Affected personswill receive priority in the contractors’ hiring policy for the Project’s civil works, as commensurate with their skills and abilities. 11. QUESTION: WHAT ABOUT RENTERS AND LAND LEASERS? ANSWER: Renters of houses will receive 6 months rent allowance or, if they prefer, the option to stay with the owner’s agreement. The Project will give renters at least 2 months leave notice and assist them to identify appropriate replacement housing. Persons leasing land will be compensated in cash for 30% of replacement cost of affected land or for loss of net income from remaining period on lease, whichever is higher. 12. QUESTION: WHAT ABOUT COMMON PROPERTY RESOURCES? ANSWER: Common land resources will be replaced in areas identified in consultation with affected communities and relevant authorities. Affected buildings and structures will be restored to original or better condition. If community income loss is anticipated (e.g. irrigation, community forests, village fishponds), the affected village will be entitled to compensation for the total production loss. This compensation should be used collectively for community needs, such as income restoration measures or infrastructure. 13. QUESTION: DOES THIS MEAN THAT ANYBODY IN OUR COMMUNITY CAN CLAIM COMPENSATION? ANSWER: No! Project entitlements are reserved for those persons who were surveyed during the Inventory of Losses. The eligibility cut-off-date for Project entitlements will be the date of the Detailed Measurement Survey. Persons who encroach into the Project Area after the cut-off-date will NOT receive compensation or other entitlements. 14. QUESTION: WHEN DO WE NEED TO CLEAR THE

PROJECT AREA? ANSWER: Clearing the Project Area will take place only after compensation has been received by affected persons. After the affected persons has acknowledged receipt of payment, the Project shall provide a reasonable timeframe to clear the Project Area, approximately 60 days to dismantle concrete houses and 30 days for simple houses and other structures. 15. QUESTION: WHAT IS THE PROCESS FOR IMPLEMENTING THE RESETTLEMENT PLAN?

ANSWER: The Resettlement Plan will be submitted to the Government of Vietnam and ADB for approval as a part of the Project’s Feasibility Study. If the Feasibility Study is approved, then detailed designs and updating of the Resettlement Plan will likely begin in late 2006. Compensation and Resettlement Board (CARB) will be established by the relevant Provincial People’s Committees (PPC) to verify the Inventory of Losses with detailed measurements and other aspects of the Resettlement Plan. Once the final Resettlement Plan is approved by the PPC, Government of Vietnam and ADB, the affected persons and will sign an Agreement Compensation Form that details the compensation items, rates and units for each individual household. Then the CARB will pay out compensation in full and directly to the affected personsbefore the civil works contracts are awarded. An Independent Monitoring Organization will also be responsible for verifying that the Resettlement Plan is being implemented according to plan. Upon successful verification, the Project will begin construction works. Programs related to rehabilitation assistance will be carried out within 6 months of relocation and clearance of the Project Area. QUESTION: IF I HAVE ANY DISAGREEMENTS OR DISPUTES DURING THE PROJECT, HOW CAN I VOICE MY COMPLAINTS? ANSWER: Affected persons should present their complaints to the CPC or the relevant RPUC. All verbal complaints will be

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recorded along with written complaints. The CPC will have 15 days to respond in writing to the complaint. If the affected persons are dissatisfied with the resolution of the Commune, they may bring their complaint to District or PPC. The District or PPC will then have 30 days to respond in writing to the complaint. If the affected persons are still dissatisfied, they may pursue their grievances through the National Court System. Affected persons will be exempt from all taxes, administrative and legal feesrelated to filing complaints and grievances, except for cases pursued through the National Court System. Affected persons may also file a written complaint directly with ADB through the Office of the Special Project Facilitator. For more information, please see the “Information Guide to the Consultation Phase of the ADB Accountability Mechanism” provided together with this Project Information Booklet. 17. QUESTION: AS A RESIDENT OF PROVINCE, WHAT CAN I DO TO HELP? ANSWER: We would like you to participate fully in all consultation meetings and other project-related activities to ensure that you are fully informed about the Project and your views are taken into account. Your active participation during the survey, detailed designs, and implementation allows us to determine measures to mitigate negative impacts and identify solutions to potential problems. 18. QUESTION: HOW WILL I KNOW IF THE PROJECT MEETS ITS POLICY OBJECTIVE FOR RESETTLEMENT? ANSWER: The RPMU and the project supervision consultant’s resettlement specialists will monitor all project activities. RPMU will also hire an Independent Monitoring Organization to verify and report on resettlement implementation and recommend solutions to any problems or concerns that affected persons may have. Reports will be prepared and submitted to ADB. A post-resettlement evaluation will also be undertaken to assess whether

pre-project living standards and productive capacity have truly been restored. The ADB will also monitor these activities during its regular supervision missions during the period of project implementation. If you have further queries and suggestions, or would like to receive a full copy of the entitlement framework for the project (which describes all expected losses and the compensation required for each), please call or see us at: RAILWAY PUBLIC UTILITIES COMPANY Address: Phone Number: Contact person: or DISTRICT/PROVINCIALCOMPENSATION AND RESETTLEMENT BOARD: Address: Phone Number: Contact person:

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PUBLIC INFORMATION BOOKLET 2010

CON MINH-HAI PHONG CORRIDOR

UPGRADING HA NOI-LAO CAI RAILWAY PROJECT

SUMMARY DOCUMENT OF

COMPENSATION, ASSISTANCE AND

RESETTLEMENT POLICY

SOCIALIST REPUBLIC OF VIETNAM

2010

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I. Project Background 1. Asian Development Bank (ADB) has provided and approved the technical assistance (TA) for the Government of the Socialist Republic of Vietnam (GOV) for constructing Con Minh-Hai Phong corridor, upgrading Ha Noi-Lao Cai railway project via special technique assistance fund ADB-TA No.4050-VIE. 2. The construction of Con Minh-Hai Phong corridor, upgrading Ha Noi-Lao Cai railway project is expected to promote the traveling and transportation between Vietnam and China. Along with the road and highway network, the railway will complete the economic delta centres linking main development centres of Vietnam and China.

3. The Con Minh-Hai Phong corridor, upgrading Ha Noi-Lao Cai railway project relates to upgrading railway from Yen Vien station (Ha Noi city) to Lao Cai station near the border with China. The project traverses Ha Noi, Vinh Phuc, Phu Tho, Lao Cai and Lao Cai provinces with 285 km long.

II. Land Acquisition Impacts and Resettlement Plan

4. Land acquisition and its impacts will be based on land acquired for the project construction and operation including railway, stations and safe corridor. The land acquisition impacts could be temporarily (during the construction only) or permanently. Land acquired for the project would be consisted of residential land, agricultural land, forestry land, commercial land etc and houses and other structures. There are APs would be severely affected (significantly impacts to the income and living conditions) and APs which would be only marginal impact. 5. To prepare the Resettlement Plan, the main following activities will be done by RPMU and PPTA consultant of the social safeguards:

Carry out the socio-economic survey and inventory of losses. Consultation with key stakeholders/APs on the entitlement for

compensation and resettlement, livelihood restoration, mechanisms for payment, complaint and grievance, participation and consultation through the different phases of the project etc.

Initial identify on the potential of resettlement sites and replacement land for agricultural activities (if possible).

Study on the feasible measures/ programs for the livelihood restoration for the project severely affected persons.

Prepare a draft and then final Resettlement Plan/ disclose the draft RP to the relevant stakeholders/APs for their feedback.

Submit the Resettlement Plan to ADB and GoV for their review and approval.

III. Legal Framework

6. The Resettlement Plan will be mainly based on the following requirements:

i. ADB Safeguard Policy Statement (SPS) on Involuntary

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Resettlement and Indigenous People ii. Land Law No. 13/2003/QH11, providing Viet Nam with a

comprehensive land administration law. iii. Railway law dated 14 June 2005 iv. Decree No. 197/2004/ND-CP, on compensation, rehabilitation

and resettlement in the event of land recovery by the State, as amended by Decree No. 17/2006/ND-CP.

v. Decree No.84/2007/ND-CP on supplementary regulations on land use right certificates, land acquisition, land use right implementation, compensation and assistance procedures in the event of land acquisition by the State and grievance redress.

vi. Decree 69/2009/ND-CP to amend for planning on land use, cost for land, land recovery, compensation and resettlement.

vii. Circular 114/2004/TT-BTC, guiding the implementation of Decree 188.

viii. Circular 116/2204/TT-BTC, guiding the implementation of Decree 197.

ix. Circular 14/2009/TT-BTNMT dated 01 October 2009 guides on the details of implementing about compensation, resettlement and resettlement assistance, process of land acquisition, land allocation, leasing land.

x. Relevant Decisions of Lao Cai Province on compensation and relocation when the State takes back the land for the purposes of national defense, national and public benefits and for economic development.

IV. Objectives and Principles on compensation and resettlement

7. The overall objective of the compensation and entitlement policy for the Project is to ensure that all people affected by the Project will be able to at least restore their pre-project conditions while the poor and vulnerable households will be eligible to additional assistance to improve their pre-project living standards and income-earning capacity through compensation and relocation assistance. Compensation will be based on the principle of replacement cost while additional assistance in cash and in-kind will also be provided depending on the severity of impacts. The details of comparison on the gaps between the policy of Viet Nam on land acquisition, Assistance and Resettlement and Policy of ADB on involuntary resettlement and entitlements for the project affected persons will be analyzed/ developed and disseminated to the stakeholders including local authorities and APs later. All entitlement will be summarized in an Entitlement Matrix for the project affected persons

V. Livelihood Restoration and Improvement 8. Income restoration measures or programs for severely affected and vulnerable households will be designed and implemented in consultation with and participation of APs and other stakeholders during RP preparation and then also during RP updating. The measures/programs will include of land (agricultural extension) and non-land based (vocational training) programs and diversify the programs by taking into account of gender, ages of the project affected persons.

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VI. Mechanism of Public Consultation and Participation

9. Consultation with and participation of the affected people and key stakeholders will (i) inform local authorities and affected people, affected community/ institutions about the project development and get their feedback for the RP preparation and implementation; (ii) reduce the potential of conflicts, (iii) minimize the risk of project delays, and (iv) enable the project to design the resettlement and rehabilitation programs as a comprehensive development programs to fit the needs and priorities of the affected people, thereby maximizing the economic and social benefits of the project development.The objectives of the Public Information Campaign and Consultation Program are to inform and get feedback from key stakeholders about all aspects of compensation and Resettlement Planning, Livelihood Restoration/ Improvement Plan. Main objectives are as follows:

To fully share key information about the project with the affected people.

To obtain information about the needs and proposed priorities of the effected people as well as information about their reactions/feedback to proposed resettlement policies, RP and other relevant activities to Livelihood Improvement Plan.

To obtain the cooperation and participation of the affected people, Ethnic Minority Communities and host communities through all phases of resettlement planning and implementation for RP.

To ensure the transparency in all activities related to land acquisition, resettlement, rehabilitation/ improvement and activities required for RP.

In different phases of RP preparation and implementation, main information about compensation and resettlement will be announced at public places and delivered to stakeholders.

VII. Grievance Redress Mechanism

10. Four-stage procedure for redress of grievances is proposed:

Stage 1: Complaints from DPs are in the first instance lodged verbally or in written form with the Commune’s People’s Committee (CPC). The complaint will be discussed in an informal meeting with the DP and the CPC. It will be the responsibility of the CPC to resolve the issue within 15 days from the date the complaint is received. All meetings will be recorded and copies of the minutes of meetings will be provided to DPs.

Stage 2: If no understanding or amicable solution can be reached or if no response is received from CPC within 15 days of registering the complaint, the DP can appeal to DPC or District Compensation and Resettlement Committee. The District PC or District Compensation and Resettlement Committee will provide a decision within 15 days of receiving the appeal.

Stage 3: If the DP is not satisfied with the decision of District PC or District Compensation and Resettlement Committee or in the absence of any response, the DP can appeal to the Provincial People’s Committee within 45

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days from the date of receiving the decision from DPC or District Compensation and Resettlement Committee. The Provincial People’s Committee will review and issue a decision on the appeal according to the timing regulated by the laws of Viet Nam.

Stage 4: If the DP is still not satisfied with the decision of Provincial People’s Committee or in the absence of any response within the stipulated time, the DP as a last resort may submit his/her case to the District Court within 45 days of receiving the decision from the PPC. The District Court will review and issue a decision on the appeal according to the timing regulated by the laws of Viet Nam

VIII. Monitoring and Evaluation 11. There will be two systems of monitoring and evaluation for the compensation and resettlement implementation.

a) InternalMonitoring Internal monitoring and supervision will have the following

objectives: i. Compensation and other entitlements are computed at

rates and procedures as provided in the approved RP, with no discrimination according to gender, vulnerability, or any other factor;

ii. Affected households are paid their compensation and other entitlements as per approved updated RP, ensuring that all entitlements are delivered as planned and agreed, including compensation in cash or in kind, allowances, replacement land, resettlement sites developed and people moved onto them; granting of LURC to relocated HH at the resettlement sites.

iii. Income restoration programs including modifications in the programs and provision of additional cash and in-kind assistance to the participating affected households as and when necessary;

iv. Public information, public consultation and grievance redress procedures are followed as described in the approved RP;

v. Affected public facilities and infrastructure are restored promptly; and

vi. The transition between resettlement and commencement of civil works is smooth and that sites are not handed over for civil works until affected households have been satisfactorily compensated and resettled.

b) External Monitoring The external monitoring agency (EMA) will be recruited

prior to RP updating activities. Related to compliance monitoring during resettlement implementation, the main activities of the EMA will revolve around the following: i. Monitor updating and implementation of the RP; ii. Identify any discrepancy between policy requirements

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and actual implementation of resettlement; iii. Monitor the resolution of complaints and grievances of

affected households; iv. Provide recommendations for improving resettlement

updating and implementation. v. Issue certification that each AP has received the full

payment. vi. Carry out compensation and resettlement audit.

Specific to resettlement updating and implementation

activities, the EMA will monitor and evaluate specific issues such as the following: • Participation and awareness of community of

resettlement policy and entitlements; • Coordination of resettlement activities with construction schedule; • Land acquisition and transfer procedures; • Construction/Rebuilding of replacement houses and structures • Level of satisfaction of APs with the provisions and

implementation of the RP; • Grievance redress mechanism (documentation,

process, resolution); • Effectiveness, impact and sustainability of entitlements

and income restoration programs and the need for further improvement and mitigation measures

• Relocation site development (housing and market) need participation of APs such as identification and development of resettlement sites, issues of land use right and process of LURC granting.

• Capacity of APs to restore/re-establish livelihoods and living standards. Special attention will be given to severely affected DPs and vulnerable APs;

• Resettlement impacts caused during construction activities.

• Participation of APs in RP updating and implementation

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ANNEX 5: SAMPLE OF MEETING MINUTES

MINUTE OF COMMUNITY CONSULTATION MEETING (Consultation with affected households/organizations)

I. Time and place of consultation

1.1 Locality: Van Hoa commune, Lao Cai city, Lao Cai province

1.2 Location: The cultural hall of Hong Ha hamlet, Van Hoa commune

1.3 Time: 08:00, 17/12/2010

II. Participants

1. Representatives of Communal People’s Committee (CPC) and hamlet

- Mr./Ms.: Phung Quang Thuc Position: Vice President of CPC

- Mr./Ms.: Nguyen Thi Ngoc Position: Commune Cadastral Staff

- Mr./Ms.: Do Thi Duyen Position: Head of Hong Ha hamlet

- Mr./Ms.: Hoang Thi Lan Position: Secretary of the hamlet Communist Party

2. Representatives of affected households (PAP)

Total number of participants in the meeting: 13 households.

In which: Male: 7 households; Female: 6 households

Number of ethnic minorities: 0 households

Age: 20-60 years old.

3. Representatives of consultation team

- Mr./Ms.: Le Duc Huy Position: Team Leader

- Mr./Ms.: Nguyen Quan Tung Position: Secretary

- Mr./Ms.: Nguyen Thi Thuy Quynh Position: Member

- Mr./Ms.: Nguyen Thi Kim Huong Position: Member

And other members

III. Purpose and content of consultation

3.1 Purpose

(i) Providing affected households with project dissemination of information and compensation and resettlement policies, requirements and objectives of the Resettlement Plan for the Yen Vien-Lao Cai Railway Upgrading Project; delivering leaflets of project information and compensation and resettlement plan;

(ii) Acquiring opinions and expectations of households concerning the compensation and resettlement, gender and vulnerable groups, resettlement arrangements and income rehabilitation measures/programs for affected people.

Vietnam Railway SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

YEN VIEN - LAO CAI RAILWAY UPGRADING PROJECT

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3.2 Contents

1. Delivering leaflets of project information, compensation and resettlement;

2. A CPC representative gives speech and introduction of participants;

3. The consultation team introduces purposes of consultation;

4. Discussion and opinions of the participants who are present at the meeting and explanations of the consultation team;

3.3 Summary of consultation results and participants’ opinions

3.3.1 Concerning the draft on compensation and assistance policy

a. Presentation of consultant team:

The compensation policy complies with the Government’s current regulations as Decree 197/ND-CP/2004, Decree 84/2007/ND-CP and Decree 69/2009/ND-CP, guiding circulars, decisions of the Provincial People's Committee and the ADB Policy on involuntary resettlement. Namely, it will include: (i) compensation amounts to be calculated on the basis of the number of affected properties determined through the detailed measurement surveys (DMS) and replacement costs, (ii) The allowances and assistances under the guidance of Decree 69/2009/ND-CP in 2009, (iii) such income restoration programs as job training, job placement in industrial zones, micro-production credits, (iv) procedures for complaints and grievances. For more detailed contents, households can refer in the summary sheet of project information distributed at the meeting.

3.3 Summary of consultations and opinions of the participants

3.3.1 The draft policy on compensation and assistance

a. The presentation of the consultants:

Compensation policies comply with current regulations of the government as 197/ND-CP/2004 Decree, Decree 84/2007/ND-CP and Decree 69/2009/ND-CP, the circular result, the decision of the provincial People's Committee and Policy involuntary resettlement of ADB. In particular will include: (i) the compensation is calculated on the basis of the number of properties affected tally determined through measurement details and prices at replacement costs, (ii) The grant towards result of Decree 69/2009/ND-CP in 2009, (iii) the income restoration programs such as vocational training, job placement in the industrial zones, micro-production support. (iv) procedures for lodging complaints. The detailed contents of the households considered in the summary sheet of information about the project at the meeting.

b. Discussion questions:

b.1 Is the public agricultural land available in the commune for “land exchange of land” plan?

- Ms. Nguyen Thi Ngoc, the Communal Cadastral Staff: Currently, the commune has no public agricultural land for the implementation of the “land exchange of land” plan for affected households whose agricultural land is affected in the project area.

- Opinions of households also confirm that no local public agricultural land is available (even wild land is no longer available).

b.2 Is it difficult to procure local agricultural land for farming production?

- Mr. Nguyen Van Phien, Hong Ha hamlet: asserts that the purchase of local agricultural land for the farming production is very difficult.

- Hoang Thi Lan, Hong Ha hamlet: the local agricultural land is not available; buying local agricultural land for the farming production is very difficult because there are no sellers.

3.3.2 Resettlement

a. Presentation of consultant team:

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b. Discussion questions:

(i) Recommendationsof affected households who have to move to resettlement sites

- Mr. Tran Van Thanh, Hong Ha hamlet: We must know where the resettlement sites are? How is the infrastructure like? ... We must be facilitated to move to our new residence, our children must be given priorities for going to schools.

- Mr. Vu Xuan Sinh, Hong Ha hamlet: I'm very supportive of the Project of the State but the Project lasts so long. I'm not comfortable for doing my business and working. I hope the departments and agencies at all levels to speed the working progress and tell me where I will get to know about a resettlement site, where it is and when to move to a resettlement site.

- Ms. Nguyen Thi Thuy, Hong Ha hamlet: We are very excited about the Project, we are watiting to move soon to a resettlement areas because our present habitat is fairly damp or flooded.

All households are in need of moving to a resettlement site and are looking for visiting a resettlement site before receiving the money of compensation.

3.3.3 Income restoration program

a. Presentation of consultant team:

b. Comments and opinions:

- Ms. Phung Quang Thuc, a vice chairman of the CPC, recommends: households living in residential areas where the project runs through are primarily doing farming, so if there are income restoration programs, loans and credits for business and trade should be taken into account by opening training courses for business guidelines and rice-yield and plantation increase,...

- Ms. Tran Thi Tinh, Hong Ha hamlet: I trade with vegetables; I wish the Project will support me with a small kiosks for selling vegetables and fruits.

- Mr. Nguyen Van Phien, Hong Ha hamlet: I am a carpenter so I do want a new facility in a resettlement site or in a common center of carpentry production.

3.3.4 Gender issue and vulnerable groups

a. Presentation of consultant team:

b. Discussion questions

(i) QUESTION: what are women interested in? What are challenges and obstacles of women, in general, and female-headed householders, in particular? Do women support the Project?

ANSWER:

- Ms. Pham Thi Tinh, Hong Ha hamlet: I worry about moving to a resettlement site that I do not know where it is located and convenient for our family business or not?

- Ms. Nguyen Thi Ly, Hong Ha hamlet: Now we just hope the Project to be soon deployed and pay the compensation to us; we have to manage our earning for living but can not wait for what to be said at the meetings then put it over there as they always are.

- Ms. Nguyen Thi Thuy Hong Ha hamlet: We are very supportive of the project, moving us faster makes us excited because it is very damp here. The planning has been made for long but we still have not moved. However, we also anxious and wonder what to do in a new habitat? Where to go? It may be far away. We are anxious to encounter difficulties and disadvantages.

(ii) Question: which ways and methods of the compensation, assistance and resettlement programs are the best for the project dissemination and consultation of women’s opinions?

ANSWER:

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- It is through the women’s unions, because they capture the best minds and aspirations of women; it is more favorable than through the CPC. If information is provided through the CPC, women hesitate because it is governmental.

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3.4 Some typical pictures of the consultation meeting

Mr. Phung Quang Thuc expresses his opinion.

Mr. Le Duc Huy, the consultation team leader give presentation about the Project.

Households express their opinions in the

meeting. A discussion with a group of women.

The minute of meeting endsat the same days and is unanimously approved.

The Consultant team

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ANNEX 6: DETAILED RESETTLEMENT BUDGET BY DISTRICT

ITEM QUANTITY COST (VND 1,000)

UNIT BAO

THANG BAO YEN

LAO CAI TOTAL

BAO THANG BAO YEN LAO CAI TOTAL

A DIRECT RESETTLEMENT COSTS (Sum I:V)

4,243,910 2,591,821 96,048,261 102,805,868

I COMPENSATION FOR AFFECTED LAND

13,243 2,443 342,966 358,651 443,358 327,511 28,448,041 29,148,705

I.1 LAND ACQUIRED FOR CIVIL WORKS

13,243 2,443 111,176 126,861 443,358 257,306 23,291,053 23,991,717

1.1.1 Residential land

1,274 1,210 44,819 47,303 180,040 229,957 21,513,024 21,923,021

Residential land (urban) m2 - - 43,367 43,367 - - 20,816,160 20,816,160

Residential land (rural) m2 1,274 1,210 1,452 3,936 180,040 229,957 696,864 1,106,861

I.1.2 Agricultural Land m2 11,969 1,232 25,609 38,810 263,318 27,349 307,309 597,976

Paddy Land m2 - 582 - 582 - 16,296 - 16,296

Annual cropping land m2 - 390 25,609 25,999 - 7,402 307,309 314,712

Perennial land m2 - 261 - 261 - 3,651 - 3,651

garden, pond land m2 - - - - - - - -

Hill, forest land m2 11,969 - - 11,969 263,318 - - 263,318

I.1.3 Construction land transfered to Railway m2 - - 12,483 12,483 - - 1,470,720 1,470,720

Railway land already acquired m2 - - 9,419 9,419 - - - -

Land not yet acquired upon which people are stably residing up to the time of land acquisition

m2

- - 3,064 3,064 - - 1,470,720 1,470,720

I.1.4 Transportation land m2 - - 20,306 20,306 - - - -

I.1.5 Irrigation land, flooded land m2 - - 7,959 7,959 - - - -

- - - -

I.2 LAND ACQUIRED FOR RESETTLEMENT SITES

m2 - 3,695 - 231,790 235,485 - 70,205 5,156,988 5,156,988

Residential land (urban) m2 - - 1,102 1,102 - - 2,644,800 2,644,800

residential land (rural) m2 - - 300 300 - - 27,000 27,000

agricultural land Lang Den resettlement site m2 - - 31,483 31,483 - - 377,796 377,796

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Agricultural land in Duyen Hai with LURC m2 - - 49,616 49,616 - - 595,392 595,392

Agricultural land with restricted land use rights m2 - - 42,000 42,000 - - 1,512,000 1,512,000

Agricultural land in Duyen Hai without LURC m2 - - 44,389 44,389 - - - -

land transferred to organizations m2 - - 48,455 48,455 - - - -

Land transferred to television station m2 - - 1,800 1,800 - - - -

Temporary Market land company t-intersection m2 - - 300 300 - - - -

Transportation land m2 - - 12,345 12,345 - - - -

Agricultural land in Bao Yen District m2 3,695 3,695 - 70,205 - 70,205

- - - -

II HOUSES AND OTHER STRUCTURES

868,558 1,683,899 18,336,733 20,881,271

II.1 Category 3 building comprising 3 rows - Lao Cai Station dormatory

- - - - - - 6,821,440 6,821,440

3 houses category 4, 2 storey m2 - - 2,738 2,738 - - 6,506,667 6,506,667

Lao Cai Station assets

invested by own funds m2 - - - - - - - -

common dining room,

category 4 construction m2 - - 63 63 - - 68,774 68,774

other items

- - - - - - 246,000 246,000

- - - -

II.2 Houses (Associated with Civil Works LAR)

751 289 12,375 13,415 736,500 414,185 6,530,475 7,673,241

II.2.1 Solid Structure House

751 247 11,445 12,443 728,582 406,266 6,357,600 7,492,448

one storey house m2 - 80 - 80 - 248,294 - 248,294

one to four storey house m2 111 70 - 181 291,375 124,852 - 416,227

category 4 house m2 217 - 6,205 6,422 235,988 - 4,498,625 4,734,613

category 4 house (semi tiled) m2 20 24 550 594 10,875 7,338 199,375 217,588

house -wooden post m2 327 73 4,530 4,930 164,808 25,782 1,630,800 1,821,390

category 4 house (semi tiled) m2 76 - 160 236 25,536 - 28,800 54,336

II.2.2 Temporary Structure House

- 42 930 972 7,919 7,919 172,875 180,794

temporary house m2 - - 900 900 - - 162,000 162,000

temporary house m2 - 42 30 72 7,919 7,919 10,875 18,794

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- - - -

II.3 Houses (Associated with Resettlement Sites LAR)

7,040 7,040 - - 2,626,100 2,626,100

II.3.1 Solid Structure Houses

6,720 6,720 - - 2,536,100 2,536,100

house 1-2 storey with tiled

roof m2 - - 856 856 - - 620,600 620,600

house with steel frame (cho

nga cong ty) m2 - - 300 300 - - 108,750 108,750

category 4 house m2 - - 1,444 1,444 - - 1,046,900 1,046,900

category 4 house (semi tiled) m2 - - 230 230 - - 41,400 41,400

house with wooden post m2 - - 3,790 3,790 - - 682,200 682,200

house (semi tiled wooden

post) m2 - - 100 100 - - 36,250 36,250

II.3.2 Temporary Structure Houses

160 160 - - 90,000 90,000

temporary house Unit - - 100 100 - - 75,000 75,000

temporary house Unit - - 60 60 - - 15,000 15,000

- - - -

- - - -

II.4 Secondary Structures (Associated with Civil Works LAR)

132,058 1,269,714 1,541,232 2,943,004

bathroom Unit 5 - 239 244 7,500 - 179,250 186,750

wall m2 - 90 - 90 - 253,574 - 253,574

wall m2 - 52 - 52 - 100,188 - 100,188

wall m2 - 141 - 141 - 184,418 - 184,418

wall m2 - 148 - 148 - 169,100 - 169,100

kitchen m2 - 89 - 89 - 233,986 - 233,986

kitchen m2 - 28 - 28 - 21,193 - 21,193

building m2 - 71 - 71 - 33,605 - 33,605

ornament pce - 6 - 6 - 60 - 60

Xây đá hộc móg nhà m3 - 239 - 239 - 91,938 - 91,938

insulation m2 - 170 - 170 - 7,765 - 7,765

bathroom m2 - 6 - 6 - 9,433 - 9,433

bathroom Unit 1 - 222 223 200 - 55,500 55,700

toilet Unit 5 5 239 249 7,500 7,500 179,250 194,250

toilet Unit - 7 222 229 - 1,400 55,500 56,900

bathroom extension 0 - 97 - 97 - 12,086 - 12,086

pig stye Unit 11 2 146 159 12,375 2,250 109,500 124,125

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Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

buffalo stall Unit 1 - 36 37 1,000 - 18,000 19,000

chicken shed Unit 5 - 289 294 5,000 - 144,500 149,500

water storage tank m3 - 64 420 484 - 27,098 89,250 116,348

well md 168 37 584 789 34,104 5,928 93,674 133,705

well md - 37 - 37 - 8,891 - 8,891

well apron Unit 7 5 73 85 1,400 1,000 7,300 9,700

fence m3 57 40 1,240 1,337 32,950 23,354 511,500 567,804

wall m2 - 588 - 588 - 16,817 - 16,817

ceiling m2 - 327 - 327 - 25,804 - 25,804

concrete yard m3 - 2 - 2 - 1,916 - 1,916

concrete post m3 - 0 - 0 - 289 - 289

water supply pipe md - 296 - 296 - 18,460 - 18,460

pavement md - 40 - 40 - 669 - 669

concrete gate m3 - 20 - 20 - 805 - 805

fence m2 - - 58 58 - - 4,350 4,350

door m2 - - 1,240 1,240 - - 25,296 25,296

door m2 - - 58 58 - - 4,594 4,594

relocation of aircon Unit - - 3 3 - - 1,188 1,188

relocation of hot water tank Unit - - 56 56 - - 7,392 7,392

relocation of sewage system Unit - - 41 41 - - 5,412 5,412

relocation ò water tank Unit 6 - 41 47 1,030 - 5,412 6,442

cement yard m2 472 165 881 1,518 15,000 10,187 18,677 43,864

ceramic tiles m2 149 - 411 560 14,000 - 25,688 39,687

- - - -

II.5 Secondary Structures (Associated with Resettlement Site LAR)

- - 817,486 817,486

bathroom Unit - - 121 121 - - 90,750 90,750

bathroom Unit - - 56 56 - - 14,000 14,000

toilet Unit - - 121 121 - - 90,750 90,750

toilet Unit - - 56 56 - - 28,000 28,000

pig stye Unit - - 8 8 - - 4,000 4,000

buffalo stall m3 - - 8 8 - - 1,700 1,700

chicken shed m - - 148 148 - - 23,739 23,739

water tank unit - - 147 147 - - 14,700 14,700

well m3 - - 192 192 - - 79,200 79,200

well apron m2 - - 24 24 - - 1,800 1,800

fence m2 - - 684 684 - - 13,954 13,954

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DRAFT UPDATE RP– LOT 3 147 Annex 6

Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

fence m2 - - - - - - - -

door Unit - - 741 741 - - 293,436 293,436

door Unit - - 601 601 - - 79,332 79,332

relocation of aircon Unit - - 4 4 - - 528 528

relocation of hot water tank Unit - - 3 3 - - 396 396

cement yard m2 - - 881 881 - - 18,677 18,677

ceramic tiles m2 - - 635 635 - - 39,688 39,688

relocation of sewage Unit - - 146 146 - - 19,272 19,272

relocation ò water tank Unit - - 27 27 - - 3,564 3,564

- - - -

III TREES, CROPS

490,027 40,215 1,632,375 2,162,617

III.1 Trees, Crops (Associated with Civil Works LAR)

- - -

490,027 40,215 771,655 1,301,897

paddy m2 - 614 - 614 - 3,255 - 3,255

vegetables m2 - 840 6,543 7,383 - 8,000 32,715 40,715

fruit trees Tree 9,091 275 2,997 12,363 300,003 28,589 539,460 868,052

timber trees Tree 1,364 6 3,532 4,902 90,024 95 194,260 284,379

ornamental plants Tree 3,030 25 348 3,403 100,000 275 5,220 105,495

- - - -

III.2 Trees, Crops (Associated with Resettlement Site LAR)

- - - - - - 860,720 860,720

paddy m2 - - 24,630 24,630 - - 73,890 73,890

vegetables m2 - - 30,000 30,000 - - 150,000 150,000

fruit trees Tree - - 2,000 2,000 - - 360,000 360,000

timber trees Tree - - 5,000 5,000 - - 275,000 275,000

ornamental plants Tree - - 122 122 - - 1,830 1,830

- - - -

IV CIVIL INFRASTRUCTURE 0 - - - - 611,261 - 505,000 1,116,261

removal of 220V electricity

poles Pole 1 - 42 43 611,261 - 420,000 1,031,261

removal of 4 electrical lines Line - - 4 4 - - 85,000 85,000

- - - -

V ASSISTANCE

1,830,706 540,197 47,126,112 49,497,014

V.1 Assistance (Associated with Civil Works LAR) 0 - - - - 1,600,706 306,752 24,240,738 26,148,196

relocation support HH 8 9 245 262 12,000 26,100 588,000 626,100

electricity installation HH 8 9 - 17 8,000 9,000 - 17,000

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Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

assistance

relocation of water pipe HH - 9 - 9 - 13,500 - 13,500

well assistance HH - 9 - 9 - 27,000 - 27,000

resettlement site plot

(minimum size) HH - - 245 245 - - 14,700,000 14,700,000

self relocation assistance in

lieu of resettlement site HH 8 - - - 710,000 - - 710,000

incentive bonus for relocation

(solid built house) HH - - 111 111 - - 55,500 55,500

incentive bonus for relocation

(temporary built house) HH - - 134 134 - - 40,200 40,200

rent assistance HH 8 9 341 358 12,000 67,500 5,626,500 5,706,000

Farming materials (seedlings,

etc) HH 8 16,000 - - 16,000

stablization support HH 27 42 245 314 316,800 100,800 196,000 613,600

Occupational change assistance for loss of agricultural land m2 11,969 1,232 5,443 18,644 525,906 62,852 130,634 719,392

agricultural land support in

residential area of ward m2 - - 20,166 20,166 - - 2,903,904 2,903,904

- - - -

V.2 Assistance (Associated with Resettlement Sites LAR) 0 - - - - - 188,445 20,332,373 20,520,818

relocation support HH - - 23 23 - - 55,200 55,200

stablization support HH - - 23 23 - - 18,400 18,400

agricultural land support in residential area of ward (Duyen Hai) m2 - - 49,616 49,616 - - 17,865,481 17,865,481

Occupational change assistance for loss of agricultural land m2 - 3,695 31,483 35,178 - 188,445 755,592 944,037

rent assistance HH - - 23 23 - - 207,000 207,000

relocation assistance for

telephone, water pipe HH - - 23 23 - - 41,400 41,400

resettlement site plot

(minimum size) HH - - 23 23 - - 1,380,000 1,380,000

incentive bonus for relocation

(solid built house) HH - - 12 12 - - 6,000 6,000

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DRAFT UPDATE RP– LOT 3 149 Annex 6

Yen Vien - Lao Cai Railway Upgrading Project Package CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01 Contract No. YVLC-003-CP3

incentive bonus for relocation

(temporary house) HH - - 11 11 - - 3,300 3,300

- - - -

V.3 Supplementary Assistance Above Lao Cai PPC Regulations

230,000 45,000 2,553,000 2,828,000

Supplementary bonus for

timely removal HH 8 9 341 358 17,000 45,000 2,553,000 2,615,000

Supplementary assistance for severely affected HHs losing >10% of productive land HH 25 - 25 150,000 - - 150,000

Supplementary assistance for severely affected HHs losing >10% of productive land HH 7 - 7 63,000 - - 63,000

- - - -

B IMPLEMENTATION COSTS

338,000 51,836 2,442,628 2,832,465

implementation cost (2%)

- - - - - 51,836 1,869,905 1,921,742

demarcation of LAR boundary markers cost

- - - - - - 256,000 256,000

DMS cost - Lao Cai Station

- - - - - - 316,723 316,723

DMS cost - revised land

- - - - 338,000 - - 338,000

- - - -

- - - -

C TOTAL LAR COSTS (Sum A+B)

4,581,910 2,643,658 98,490,889 105,638,333

- - - -

D RESETTLEMENT SITE CONSTRUCTION

- - - - - 1,153,642 71,754,200 72,907,842

Pho Moi Resettlement Site (Pho Moi, Lao Cai City)

- - - - - - 9,599,877 9,599,877

Dai Truyen Hinh Resettlement Site (Duyen Hai, Lao Cai City)

- - - - - - 11,137,867 11,137,867

Lake No 6 Resettlement Site (Duyen Hai, Lao Cai City)

- - - - - - 23,247,844 23,247,844

Lang Den resettlement site

- - - - - - 22,516,612 22,516,612

Duyen Hai market

- - - - - - 5,252,000 5,252,000

Kim Son resettlement site (Bao Yen Dist)

- - - - - 1,153,642 - 1,153,642

- - - -

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Package CP3 Yen Vien - Lao Cai Railway Upgrading Project Contract No. YVLC-003-CP3 ADB Loan No. 2302-VIE and AFD Loan No. CVN 6006 01

E CORRECTIVE ACTION MEASURES

- - - 15,050,059

Transportation allowance for relocating HHs

HH

252 - - - 604,800

Living stablization allowance for relocating HHs

HH

252 - - - 100,800

Rental assistance for relocating HHs (estimated for 6 months)

HH

156 - - - 1,404,000

Bonus for timely removal for relocating HHs

HH

156 - - - 780,000

Supplementary compensation for difference for full replacement cost for non-land assets on land either ineligible for compensation or not recognized as residential land (estimate)

HH

102

- - - 404,000

Compensation for non-land assets belonging to HHs on 1ha site owned by Vietnam Rail (provisional sum)

54

- - - 10,000,000

Livelihood restoration

- - - -

Vocational training and agricultural extension (provisional sum)

HH

20 - - - 80,000

Other APs not yet compensated HH 1 - - - 40,000

Consultation and disclosure (already covered in administrative costs and contingency for URP budget)

- - - -

Administration (2%)

- - - 268,272

Contingency (10%)

- - - 1,368,187

- - - -

F EXTERNAL MONITORING COSTS

- - - 500,000

- - - -

G

GRAND TOTAL RESETTLEMENT BUDGET (Sum C:F)

4,581,910 3,797,300 170,245,089 193,596,235