Lao PDR: Northern GMS Power Transmission Project

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1 Resettlement Plan July 2014 Lao PDR: Northern GMS Power Transmission Project Prepared by Electricity Du Laos for the Asian Development Bank.

2 CURRENCY EQUIVALENTS (as of 30 June 2014) Currency unit KN KN1.00 = $ $1.00 = KN8.052 ADB AF AH AP CC DAFEO DEPP DMS EdL EO GMS GNPTP GoL gwh HH IEE IPP KEXIM KM kv LAK MEM MONRE MW MVA NGO PEMC PIC PIU PMU PRC RAP RoW SLI TL UNDP USD ABBREVIATIONS Asian Development Bank affected family affected household affected person compensation committee District Agricultural and Forestry Extension Office Department of Energy Policy and Planning detailed measurement survey Electricity Du Laos environmental office Great Mekong Subregion GMS Northern Power Transmission Project Government of Lao s People Democratic Republic gigiwatt-hour household initial environmental examination independent power plant Korea Export Import Bank kilometer kilovolt Lao PDR kip Ministry of Energy and Mines Ministry of Natural Resources and Environment megawatt megavolt ampere non-government organization project environmental management committee project implantation consultant project implementation unit project management unit project resettlement committee resettlement action plan right of way SNC Lavalin International transmission line United Nation Development Program United State Dollar

3 WEIGHTS AND MEASURES km (kilometer) 10,000 meters kv(kilovolt) 1,000 volts mw(megawatt) 1,000 watt gwh(gigawatt-hour) 1,000,000 watt-hour mva(megavolt ampere) 1,000 amperes GLOSSARY Affected person As per Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005), any person or organization affected by a project, who in the context of acquisition of assets or change in land use, would have their: (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house, land (including residential, commercial, agricultural, plantations, forest and grazing land) water resources or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily adversely affected; (iii) business, occupation, place of work or residence areas adversely affected with or without displacement; and/or (iv) community resources adversely affected. Compensation Payment in cash or in-kind at replacement cost for an asset to be acquired by the Project. Corridor This is the 25 m wide strip of land that will contain the transmission line; It is the same as RoW. This is the standard width for Lao PDR. Cut-off date The date that a population record or census, preferably at the project identification stage, serves as an eligibility cut-off date in order to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The cutoff date is the date when the census for the RP was completed. The Cut-Off date for this Project is 31/3/2012 for Module 3, and 31/5/2012 for Module 1 and 2. Land acquisition The process whereby a person is compelled by the Government through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the State in the implementation of the Project or any of its components in return for consideration. Meaningful consultation A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into

4 decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. Replacement cost The method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets is not taken into account. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standard. Right of way This is the 25 m wide strip of land that will contain the transmission line. This is the standard width for Lao PDR. Stakeholders Individuals, groups, organizations interested in and potentially affected by the project or having the ability to influence a project. Vulnerable group As per Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005), distinct groups of people who might suffer disproportionately from the loss of fixed and movable assets, other assets and production base or face the risk of being marginalized from the effects of resettlement and specifically include: (i) divorced or widowed female headed households with dependents and low income; (ii) households with disabled or invalid persons; (iii) households with persons falling under the generally accepted indicator for poverty as defined by the Ministry of Labor and Social Welfare, or the landless; and (iv) elderly households with no means of support. (i) (ii) NOTES The fiscal year (FY) of the Government of ends on 30 September. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 30 September In this report, "$" refers to US dollars. This 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.

5 Greater Mekong Subregion (GMS) Northern Power Transmission Project RESETTLEMENT ACTION PLAN (RAP) Volume 1 of 2 Final Report June 2014

6 Greater Mekong Subregion (GMS) Northern Power Transmission Project RESETTLEMENT ACTION PLAN (RAP) Volume 1 of 2 Final Report June 2014

7 TABLE OF CONTENTS ABBREVIATIONS... V GROSSARY... VI EXECUTIVE SUMMARY Introduction Project background Project components Need for the project Project alternatives Project location Organization and financing of the project Project cost Project construction schedule Scope of impacts Resettlement action plan (RAP) Methodology of rap data collection Summary of resettlement and social safeguards PROJECT DESCRIPTION Project background Project components Need for the project Project alternatives No Build Alternative Corridor Alignment Project location Overall Map of Project Map of Each Transmission Line Organization of the project Project activities Project cost Project construction schedule SCOPE OF LAND ACQUISITION AND RESETTLEMENT Introduction Corridor alignment alternatives Methodology for determining impacts i

8 2.4 Land acquisition impact Scope of impact Loss of assets SOCIO-ECONOMIC INFORMATION AND PROFILE Demography Economic status of APs Living conditions Livelihood activity and income INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION Rationale, objective and scope Identification of key stakeholders Central Government of Lao PDR Bodies Provincial/District Government of Lao PDR Other Concerned Stakeholders Participation process Involvement of Government of Lao PDR Consultation with Villages & Local Communities Common concerns of affected people and responses of the project Information disclosure and consultations GRIEVANCE REDRESS MECHANISMS LEGAL FRAMEWORK National laws and regulations Constitution Law (1991) Electricity Law (2008) Land Law (2003) Road Law (1999) Forestry Law (2008) Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005) Other Relevant Laws ADB POLICY ON involuntary resettlement (1995) Gap analysis between national laws and ADB policy ENTITLEMENTS, ASSISTANCE AND BENEFITS Basic principles and objectives Entitlement for compensation and mitigation Project principles for compensation and mitigations Permanent Land Acquisition for the Tower Foundations Restricted Use on Land Traversed by Transmission Lines ii

9 7.3.3 Crops and Trees Structures and Assets Temporary Land Occupation & Impacts on Non-Land Assets during Construction Special Assistance and Allowances for the 2 Displaced Households Special Measures for Poor and Vulnerable People Entitlement matrix RELOCATION OF HOUSING AND SETTLEMENTS RESETTLEMENT BUDGET AND FINANCING PLAN Arrangement for valuing and disbursing compensation Costs of mitigating involuntary resettlement impacts Source and flow of budget INSTITUTIONAL ARRANGEMENT Executing Agency: Electricité du Laos Ministry of Natural Resources and Environment (MoNRE) Project Management Unit (PMU) Environmental Office (EO) Project Environmental Management Committee (PEMC) District Environment and Social Management Committee (DESMC) Village Environment and Social Management Committee (VESMC) Project Implementation Consultant (PIC): SNC Lavalin International (SLI) External Monitoring Organization (EMO) IMPLEMENTATION PLAN AND SCHEDULE MONITORING AND REPORTING Internal monitoring External monitoring Post implementation monitoring and evaluation ANNEXES iii

10 LIST OF TABLES TABLE 2-2: SCOPE OF LAND ACQUISITION TABLE 2-3: LOSS OF ASSETS TABLE 3-1: NUMBER AND SCALE OF AFFECTED FAMILY AND GENDER TABLE 3-2: ETHNIC COMPOSITION OF THE TOTAL POPULATION IN AFFECTED VILLAGES TABLE 3-3: ECONOMIC STATUS OF ETHNIC HOUSEHOLDS AT AFFECTED DISTRICTS BY MODULE TABLE 3-4: ECONOMIC STATUS OF ETHNIC HOUSEHOLDS AT AFFECTED DISTRICTS BY MODULE 2(A) TABLE 3-5: ECONOMIC STATUS OF ETHNIC HOUSEHOLDS AT AFFECTED DISTRICTS BY MODULE 2(B) TABLE 3-6: ECONOMIC STATUS OF ETHNIC HOUSEHOLDS AT AFFECTED DISTRICTS BY MODULE TABLE 3-7: ACCESS TO INFRASTRUCTURAL SYSTEM AND SOCIAL AFFAIRS TABLE 3-8: INCOME STRUCTURE OF AFFECTED HOUSEHOLDS AND AVERAGE DAILY INCOME OF AP TABLE 3-9: STRUCTURE OF ANIMAL HUSBANDRY OF ALL THE POPULATION IN THE AFFECTED VILLAGES TABLE 7-1: ENTITLEMENT MATRIX TABLE 11-1: ENVIRONMENTAL AND SOCIAL IMPLEMENTATION PLAN TABLE 12-1: MONITORING INDICATORS (INTERNAL) LIST OF FIGURES FIGURE 1-1: MAP OF PROJECT LOCATION... 9 FIGURE 1-2: TRANSMISSION LINE BETWEEN PAKLAY SUBSTATION, PAKLAY DISTRICT, XAYABURY PROVINCE AND NONHAI SUBSTATION, MEUN DISTRICT, VIENTIANE PROVINCE (MODULE 1 CONTRACT 1 ADB) FIGURE 1-3: TRANSMISSION LINE BETWEEN PAKLAY SUBSTATION, XAYABURY PROVINCE AND KENTHAO SUBSTATION (THE LAO-THAI BORDER), XAYABURY PROVINCE (MODULE 2 (A) CONTRACT 2 KEXIM) FIGURE 1-4: TRANSMISSION LINE BETWEEN PAKLAY SUBSTATION, XAYABURY PROVINCE AND XAYABURY SUBSTATION, XAYABURY PROVINCE (MODULE 2 (B) CONTRACT 2 KEXIM) FIGURE 1-5: TRANSMISSION LINE BETWEEN BOUN NEUA SUBSTATION, PHONGSALY PROVINCE AND NAMO SWITCHING STATION, OUDOMXAY PROVINCE (MODULE 3 CONTRACT 2 KEXIM) FIGURE 1-6: LAYOUT OF PAKLAY SUBSTATION/SWITCHYARD FIGURE 1-7: LAYOUT OF BOUN NEUA SUBSTATION/SWITCHYARD FIGURE 4-1: CONSULTATION MEETING DURING INITIAL SURVEY IN EACH VILLAGE FIGURE 5-1: GRIEVANCE REDRESS PROCEDURE FOR THE NPTP FIGURE 9-1: SOURCE AND FLOW OF BUDGET FIGURE 10-1: ORGANIZATIONAL CHART iv

11 ABBREVIATIONS ADB Asian Development Bank AF Affected Family AH Affected Household AP Affected Person CC Compensation Committee DAFEO District Agricultural and Forestry Extension Office DEPP Department of Energy Policy and Planning DMS Detailed Measurement Survey EdL Electricité du Laos EO Environmental Office GMS Greater Mekong Subregion GMS NPTP GoL Greater Mekong Subregion Northern Power Transmission Project Government of Lao People's Democratic Republic GWh Gigawatthour HHs Households IEE Initial Environmental Examination IPP Independent Power Plants KEXIM Bank Korean EXIM Bank km Kilometer kv Kilovolt LAK Lao PDR Kip Lao PDR Lao People's Democratic Republic MEM Ministry of Energy and Mines MONRE Ministry of Natural Resources and Environment MW Megawatt MVA Megavolt Amperes NGO Non-Governmental Organization PEMC Project Environmental Management Committee PIC Project Implementation Consultant PIU Project Implementation Unit PMU Project Management Unit PRC Project Resettlement Committee RAP RoW SLI Right-of-Way SNC Lavalin International TL UNDP Transmission Line United Nations Development Programme USD United States Dollars v

12 GLOSSARY Affected Person (AP) Compensation Corridor Cut-off date Land acquisition Meaningful Consultation Replacement As per Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005), any person or organization affected by a project, who in the context of acquisition of assets or change in land use, would have their: (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house, land (including residential, commercial, agricultural, plantations, forest and grazing land) water resources or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily adversely affected; (iii) business, occupation, place of work or residence areas adversely affected with or without displacement; and/or (iv) community resources adversely affected. Payment in cash or in-kind at replacement cost for an asset to be acquired by the Project. This is the 25 m wide strip of land that will contain the transmission line; It is the same as RoW. This is the standard width for Lao PDR. The date that a population record or census, preferably at the project identification stage, serves as an eligibility cut-off date in order to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The cut-off date is the date when the census for the RP was completed. The Cut-Off date for this Project is 31/3/2012 for Module 3, and 31/5/2012 for Module 1 and 2. The process whereby a person is compelled by the Government through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the State in the implementation of the Project or any of its components in return for consideration. A process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. The method of valuation of assets that helps determine the amount vi

13 cost Right-of-Way (RoW) Stakeholders Vulnerable groups sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets is not taken into account. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standard. This is the 25 m wide strip of land that will contain the transmission line. This is the standard width for Lao PDR. Individuals, groups, organizations interested in and potentially affected by the project or having the ability to influence a project. As per Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005), distinct groups of people who might suffer disproportionately from the loss of fixed and movable assets, other assets and production base or face the risk of being marginalized from the effects of resettlement and specifically include: (i) divorced or widowed female headed households with dependents and low income; (ii) households with disabled or invalid persons; (iii) households with persons falling under the generally accepted indicator for poverty as defined by the Ministry of Labor and Social Welfare, or the landless; and (iv) elderly households with no means of support. vii

14 EXECUTIVE SUMMARY 1. INTRODUCTION The Greater Mekong Subregion Northern Power Transmission Project (GMS NPTP) will expand the electrical grid in northern Lao People's Democratic Republic (Lao PDR) making possible the further electrification of the country and facilitating the sale of electricity to Thailand. The Project will consist of 4 separate 115 kv Transmission Lines, new or upgraded substations, distribution components and other associated hardware. Also, 6,625 households will be connected to their local electrical grids. 2. PROJECT BACKGROUND The GMS NPTP is one of a collection of projects in the Greater Mekong Subregion (GMS) which is a natural economic area bound together by the Mekong River, covering 2.6 million km 2 and having a combined population of around 326 million. The GMS countries are Cambodia, the People's Republic of China (specifically Yunnan Province and Guangxi Zhuang Autonomous Region), Lao PDR, Myanmar, Thailand, and Viet Nam. In 1992, with assistance from Asian Development Bank (ADB), the six countries entered into a program of subregional economic cooperation, designed to enhance economic relations among the countries (Source ADB). With support from ADB and other donors, such as KEXIM Bank, the GMS Program helps the implementation of high priority subregional projects in transport, energy, telecommunications, environment, human resource development, tourism, trade, private sector investment, and agriculture. 3. PROJECT COMPONENTS The Project consists of Transmission Lines, Substations and Distribution Components (Module 1, 2 and 3). Since there are two Banks financing the Project, there are two Contracts (Contract 1-ADB, Contract 2-KEXIM). Contract 1 - ADB (Module 1: Xayabury Province) Module kv Transmission (89.9 km): o 89.9 km single circuit on double circuit towers between Nonhai and Paklay 115/22 kv Substations: o a 20 megavolt ampere (MVA) new substation in Paklay o the extension of 2 existing substations in Nonhai and Xayabury Contract 2 - KEXIM (Module 2 and Module 3: Xayabury, Vientiane and Phongsaly Provinces) Module kv Transmission (193 km): o Module 2(A): km single circuit on single circuit tower between Paklay and 1

15 Lao-Thai border near Kenthao for connection with the Thali substation located in the territory of Thailand o Module 2(B): km single circuit on double circuit towers between Paklay and Xayabury Distribution line ( km): o 69.7 km 22kV from Paklay o 43.9 km 22kV, 3.4 km 0.4 kv distribution line from Nonhai o 219 km 22kV, km 0.4 kv distribution line from Xayabury Connection to households (4,312 HHs): o from the Nonhai substation to 230 households o from the Xayabury substation to 1,795 households o from the Paklay substation to 2,287 households Module kv Transmission: o 92.6 km single circuit on double circuit towers between Namo and Boun Neua 115/22 kv Substations: o 20 mega volt ampere new substation (transformer feeder) in Boun Neua o a new 115kV switching station in Namo Distribution line ( km): o km 22 kv and km 0.4 kv from Boun Neua Connection to households: o from Boun Neua substation to 2,313 households 4. NEED FOR THE PROJECT Lao PDR is on the United Nations Development Program (UNDP) list of least developed nations and also on its list of Landlocked Developing Countries. Many people in Lao PDR are living below the poverty line. The government of Lao PDR (GoL) has repeatedly stated its plan to get off the list of least developed nations by the year One integral part of this plan is to invest in hydropower to bring in much needed income to the country as stated in the country s National Growth and Poverty Eradication Strategy. To distribute hydro generated electricity the expansion of the nation s electrical grid is necessary; this improved grid will facilitate the sale of electricity to Thailand and also make possible the electrification of many villages in northern Lao PDR. 5. PROJECT ALTERNATIVES The main alternative to land acquisition, resettlement and compensation is to redesign the transmission line corridor so as not to affect any residents in the Project area. These alternatives were addressed as follows: A) Alternatives Studied There were 2 alternatives to the existing PIC transmission line corridor studied. B) Detailed Design Alternatives - During the detailed design, if the Contractor determines that a high value asset is in the transmission line corridor, they must investigate moving the transmission line at least 12.5 m to either side 2

16 6. PROJECT LOCATION of the home or asset. The 12.5m is to be measured from the edge of the existing asset to the center of the new proposed corridor. The Project is located in Northern Lao PDR in the provinces of Vientiane, Xayabury, Phongsaly and Oudomxay and the districts of Kenthao, Sanakham, Meun, Xayabury, Phieng, Paklay, Boun Neua, Boun Tai, Namo. 7. ORGANIZATION AND FINANCING OF THE PROJECT - The Project is financed by Korea EXIM (KEXIM) Bank, ADB and Electricité du Lao (EdL). - EdL is the executing agency of the GMS NPTP as well as the Project owner. Project management will be responsible by the EdL s general manager, with day-to-day implementation carried out by EdL s Project Management Unit (PMU). Environmental and socio-economic aspects of the Project will be the responsibility of EdL s Environmental Office (EO). - Project detailed design, including detailed transmission line surveys, preparation and evaluation of tenders, and construction supervision, will be carried out by consultants/contractors in accordance with the Ministry of Energy and Mines (MEM), Ministry of Natural Resources and Environment (MONRE) and EdL according to EdL s regulations and guidelines. - The Project Implementation Consultant (PIC) is SNC Lavalin International (SLI). The contract for ADB component (Module 1) was awarded on 28 June 2013, and kick off meeting with the Contractor was held on 30 September 2013; and detailed measurement survey (DMS) is ongoing. The KEXIM components (Module 2&3) are in process of procurement; Edl has submitted the revised financial bid evaluation report to KEXIM, and the contract is expected to be awarded in Q PROJECT COST The total cost of the GMS NPTP is million USD including the cost for mitigating involuntary resettlement impact. 9. PROJECT CONSTRUCTION SCHEDULE The Project is expected to be completed in approximately two years. Specifically, the entire Project, including construction, is scheduled to be completed by June 2015 and the operation phase should start in late However, a delay in the operation of the KEXIM components is now imminent depending on the actual date of contract award. 10. SCOPE OF IMPACTS By the current design/alignment of the PIC, the 25 m RoW would go through some part of 107 villages. The detailed impacts in terms of land affected, houses, structures, crops and trees, and compensation cost are evaluated in Chapter 2.4 and Chapter

17 11. RESETTLEMENT ACTION PLAN (RAP) The RAP has the following purposes: - To establish resettlement implementation programs with sufficient investment resources to maximize benefits in relation to social impacts. - To build active participation in consideration and mitigation of social impacts in project resettlement planning and implementation. - To provide an adequate and appropriate compensation policy for social impacts, including the related transitional measures of support. - To address the socio-economic integration of social impacts in host communities through suitable improvement in infrastructure. - To ensure that the necessary measures for resettlement are in place before implementation. - To ensure establishment and implementation of a suitable structure for monitoring and evaluating the resettlement program. - To ensure that Affected Persons (APs) receive compensation for lost or damaged property 12. METHODOLOGY OF RAP DATA COLLECTION To develop the RAP, accurate and reliable socio-economic data and the land use within the 25 m wide transmission line corridor must be known. Data and information used in the RAP have mostly been collected through primary surveys at the village level and public consultations with key stakeholders in all 107 affected villages of the four provinces: Vientiane, Xayabury, Oudomxay and Phongsaly. Also included is data gathered from interviews and group consultations with different stakeholders, meetings with relevant Provincial and District Government departments, direct observations, and government documents. The information gained from interviews and observations and results from the socioeconomic survey would establish the reference point for analyzing input, proposed mitigation and monitoring. The various types of data have been correlated, checked and provide the basis for the preparation of the RAP. These methods fulfill the planning criteria outlined in ADB Policy on Involuntary Resettlement (1995), and the GoL Guidelines for Compensation and Resettlement of the People Affected by the Development projects No. 699/ SUMMARY OF RESETTLEMENT AND SOCIAL SAFEGUARDS - The Contractor shall not commence any construction activities until APs have been compensated. The contractor shall be allowed to work in a specific area only after receiving clearance to proceed by the Employer. - The Contractor shall avoid interference with historical and cultural sites, which are valued village resources, such as temples; cemeteries (or sacred forests); sacred shrines; sacred trees; lakes, or ponds; sacred mountains; other sacred locations. 4

18 - The Contractor shall appoint a staff person from his camp office to be a part of the Project Grievance Committee to assist in resolving local issues which may concern the Contractor. 5

19 1 PROJECT DESCRIPTION The Greater Mekong Subregion Northern Power Transmission Project (GMS NPTP) will expand the electrical grid of northern Lao People's Democratic Republic (Lao PDR) making possible the further electrification of the country and facilitating the sale of electricity to Thailand; it will consist of 4 separate 115 kv Transmission Lines (TLs), new or upgraded substations, distribution components and other associated hardware. Also, approximately 6,625 households will be connected to their local grids. 1.1 PROJECT BACKGROUND The GMS NPTP is one of a collection of projects in the Greater Mekong Subregion, a natural economic area bound together by the Mekong River, covering 2.6 million km 2 and having a combined population of around 326 million. The GMS countries are Cambodia, China (specifically Yunnan Province and Guangxi Zhuang Autonomous Region), Lao PDR, Myanmar, Thailand, and Viet Nam. In 1992, with assistance from ADB, the six countries entered into a program of subregional economic cooperation, designed to enhance economic relations among the countries. With support from ADB and other donors, such as KEXIM Bank, the GMS Program helps the implementation of high priority subregional projects in transport, energy, telecommunications, environment, human resource development, tourism, trade, private sector investment, and agriculture. 1.2 PROJECT COMPONENTS The Project consists of Transmission Lines, Substations and Distribution Components (Module 1, 2 and 3). Since there are two Banks financing the Project, there are two Contracts (Contract 1-ADB, Contract 2-KEXIM). Contract 1 - ADB (Module 1: Xayabury Province) Module kv Transmission (89.9 km): o 89.9 km single circuit on double circuit towers between Nonhai and Paklay 115/22 kv Substations: o a 20 megavolt ampere (MVA) new substation in Paklay o the extension of 2 existing substations in Nonhai and Xayabury Contract 2 - KEXIM (Module 2 and Module 3: Xayabury, Vientiane and Phongsaly Provinces) Module kv Transmission (193 km): o Module 2(A): km single circuit on single circuit tower between Paklay and Lao-Thai border near Kenthao for connection with the Thali substation located 6

20 in the territory of Thailand o Module 2(B): km single circuit on double circuit towers between Paklay and Xayabury Distribution line ( km): o 69.7 km 22kV from Paklay o 43.9 km 22kV, 3.4 km 0.4 kv distribution line from Nonhai o 219 km 22kV, km 0.4 kv distribution line from Xayabury Connection to households (4,312 HHs): o from the Nonhai substation to 230 households o from the Xayabury substation to 1,795 households o from the Paklay substation to 2,287 households Module kv Transmission: o 92.6 km single circuit on double circuit towers between Namo and Boun Neua 115/22 kv Substations: o 20 mega volt ampere new substation (transformer feeder) in Boun Neua o a new 115kV switching station in Namo Distribution line ( km): o km 22 kv and km 0.4 kv from Boun Neua Connection to households: o from Boun Neua substation to 2,313 households 1.3 NEED FOR THE PROJECT The high voltage electrical grid of Lao PDR is far from complete at this time and the GMS NPTP is needed for the improvement of the grid. The GoL has repeatedly stated its plan to get off the list of least developed nations by the year One integral part of this plan is to invest in Hydropower to bring in much needed income to the country as stated in the country s National Growth and Poverty Eradication Strategy. To distribute hydro generated electricity the strengthening of the nation s electrical grid is necessary; this improved grid will facilitate the sale of electricity to Thailand. Also, the GMS NPTP will make possible the electrification (or improvement of electrical service) for many villages in the northern part of the country; approximately 6,625 households are slated to be connected by the Project. Access to electricity is necessary to improve the economy of rural villages. 1.4 PROJECT ALTERNATIVES No Build Alternative If the GMS NPTP is not built, the lives of villagers in the area of the 25 m TL corridor would not be disrupted and there would be no environmental damage and social impact. However, because this Project is generally developed in rural areas, not in urban areas, there would be minimal impact to residents living along the transmission route alignment. Since the Project must be constructed according to both the Laws and Regulations of Lao PDR and policies of ADB, there should not be any significant effect on environment or society in project area. So, 7

21 the benefits of the sales of electricity to neighboring countries, such as Thailand, and providing electricity to Lao PDR residents outweigh those negative impacts Corridor Alignment The main alternative to land acquisition, resettlement and compensation is to redesign transmission line corridor so as not to affect any residents in the Project area. These alternatives were addressed as follows: A) Alternatives Studied: There were 2 alternatives to the existing PIC transmission line corridor studied; these are shown in ANNEX 6 of this report. B) Detailed Design Alternatives: During the detailed design, if the Contractor determines that a high value asset is in the transmission line corridor, they must investigate moving the transmission line at least 12.5 m to either side of the home or asset. The 12.5 m is to be measured from the edge of the existing home or asset to the center of the new proposed corridor. 1.5 PROJECT LOCATION The Project is located in Northern Lao PDR in the provinces of Vientiane, Xayabury, Phongsaly and Oudomxay and the districts of Kenthao, Sanakham, Meun, Xayabury, Phieng, Paklay, Boun Neua, Boun Tai, Namo Overall Map of Project On the map below the 4 transmission lines (also called corridors) are labeled Proposed 115 kv Transmission Lines ; their location within the country is shown. 8

22 Figure 1-1: Map of Project Location 9

23 1.5.2 Map of Each Transmission Line Below are the maps of the 4 Transmission Lines for the Project. Figure 1-2: Transmission Line between Paklay Substation, Paklay District, Xayabury Province and Nonhai Substation, Meun District, Vientiane Province (Module 1 Contract 1 ADB) 10

24 Figure 1-3: Transmission Line between Paklay Substation, Xayabury Province and Kenthao Substation (the Lao-Thai border), Xayabury Province (Module 2 (A) Contract 2 KEXIM) 11

25 Figure 1-4: Transmission Line between Paklay Substation, Xayabury Province and Xayabury Substation, Xayabury Province (Module 2 (B) Contract 2 KEXIM) 12

26 Figure 1-5: Transmission Line between Boun Neua Substation, Phongsaly Province and Namo Switching Station, Oudomxay Province (Module 3 Contract 2 KEXIM) 13

27 The layout of the two new substations to be built at Paklay and Boun Neua are shown below. Figure 1-6: Layout of Paklay substation/switchyard 14

28 Figure 1-7: Layout of Boun Neua substation/switchyard 15

29 1.6 ORGANIZATION OF THE PROJECT - The Project will be financed by Korea EXIM (KEXIM) Bank, ADB and Electricité du Lao (EdL). - EdL is the executing agency of the GMS NPTP as well as the Project owner. Project management will be responsible by the EdL s general manager, with day-to-day implementation carried out by EdL s Project Management Unit (PMU). Environmental and socio-economic aspects of the Project will be the responsibility of EdL s Environmental Office (EO). - Project detailed design, including detailed transmission line surveys, preparation and evaluation of tenders, and construction supervision, will be carried out by consultants/contractors in accordance with the Ministry of Energy and Mines (MEM), Ministry of Natural Resources and Environment (MONRE) and EdL according to EdL s regulations and guidelines. - The Project Implementation Consultant (PIC) is SNC Lavalin International (SLI). SNC LAVALIN International Inc EdL Office 4th Floor Transmission & Substation Development Department Lao-Thai Friendship Road, Thongkang Village, Sisatanak District, Vientiane Capital Tel: Fax: The contract for ADB component (Module 1) was awarded on 28 June 2013, and kick off meeting with the Contractor was held on 30 September 2013; and detailed measurement survey (DMS) is ongoing. The KEXIM components (Module 2&3) are in process of procurement; EdL has submitted the revised financial bid evaluation report to KEXIM, and the contract is expected to be awarded in Q The KEXIM funding will apply ADB Policy on Involuntary Resettlement (1995). The two main contractors will select subcontractors according to their needs. 1.7 PROJECT ACTIVITIES Project construction includes at least the following: - Selection of contractors. - Detailed design performed by contractors. - Compensation paid to Affected People or resettlement implemented. - Construction of Project. - Project begins operation. Key construction activities associated with installing 115 kv transmission lines using steel lattice towers, substations and other components will involve at least the following: Vegetation clearance where necessary along the Right-of-Way to meet minimum clearance requirements. Construction of temporary access tracks to the tower sites. 16

30 Vegetation clearance at each tower site and tower construction. The stringing of the conductors. Leveling, cutting and backfilling. Construction of substations will involve the following: Clearing and grubbing sites. Constructing the foundation works, buildings and steel supporting structures. Installing the electrical equipment. Leveling, cutting and backfilling. 1.8 PROJECT COST The total cost of the GMS NPTP is million USD including the cost for mitigating involuntary resettlement impact detailed in Chapter PROJECT CONSTRUCTION SCHEDULE The entire Project including construction is scheduled to be completed by June 2015 and the operation phase should start in late However, the delay in the operation of the KEXIM components is imminent depending on the actual contract award date There is no plan for decommissioning of the Project. See the GMS NPTP Initial Environment Examination for further details. 17

31 2 SCOPE OF LAND ACQUISITION AND RESETTLEMENT 2.1 INTRODUCTION The (RAP) has the following purposes: - To establish resettlement implementation programs with sufficient investment resources to maximize benefits in relation to social impacts. - To build active participation in consideration and mitigation of social impacts in project resettlement planning and implementation. - To provide an adequate and appropriate compensation policy for social impacts, including the related transitional measures of support. - To address the socio-economic integration of social impacts in host communities through suitable improvement in infrastructure. - To ensure that the necessary measures for resettlement are in place before implementation. - To ensure establishment and implementation of a suitable structure for monitoring and evaluating the resettlement program. - To ensure that Affected Persons (APs) to receive compensation for lost or damaged property. 2.2 CORRIDOR ALIGNMENT ALTERNATIVES The GMS NPTP would go through some part of 107 villages in 4 provinces. To see the entire list of villages, go to ANNEX 2. EdL does not wish to perform any resettlement for the Project. There were two alternative alignments considered. They were referred to as Variant 1 and Variant 2: Variant 1 this is the F/S alignment design and would require the relocation of 29 houses and other structures. The total Environmental and Social Cost of this option would be 813,198 USD. Variant 2 this alignment would incorporate all of the proposed alignment changes studied. Maps of these changes can be found in an ANNEX 6 of this report. With Variant 2 only two houses would have to be moved and compensated for. The removal of these two houses is unavoidable because they are in the location of the new Boun Neua substation that will be constructed. The cost of Variant 2 would be 795,478USD. Variant 2 was selected to minimize the resettlement impacts. 2.3 METHODOLOGY FOR DETERMINING IMPACTS To determine the impacts that would be caused by the proposed 25 m wide corridor, the land use within the 25 m wide transmission line corridor was studied as well as the surrounding communities. Data and information used in the RAP have been mostly collected through primary surveys at the village level and public consultations with key stakeholders in all 107 affected villages of the four (4) provinces: Vientiane, Xayabury, Oudomxay and Phongsaly. Also, included is data gathered from interviews and group consultations with different stakeholders, meetings with relevant Provincial and District Government departments, direct observations, and government documents. 18

32 The field methodology used a three step information gathering and analysis process which included: 1. Assembly of a multi-disciplinary assessment team including representatives from provincial and district government. 2. Village consultation including village focal group meetings, representative landscape transect walks and a village debrief to gain an insight into villagers perceptions of the positive and negative impacts of GMS NPT Project. 3. Data compilation and analysis was then conducted using a number of tools including village information sheets; landscapes and livelihood assessments; mapping; GPS coordinates and photos taken of the areas. The information gained from interviews and observations as well as results from the socio-economic survey establishes the reference point for analyzing input, proposing mitigation and monitoring. The various types of data have been correlated and checked and provide the basis for the preparation of the RAP. These methods fulfill the planning criteria outlined in the ADB Environmental Policy and ADB Operational Policy for Involuntary Resettlement, and the GoL Guidelines for Compensation and Resettlement of the people affected by Development projects No. 699/ LAND ACQUISITION IMPACT The transmission line mainly crosses rural and remote areas so it causes minor impacts on structures. In total, the project affects 2 houses, 31 affiliated buildings, 50,056 m 2 agricultural lands, 13,134 m 2 of residential and community land, and 18,288 m 2 of village forest land, 969 fruits trees, 48,218 industrial trees and 3 cemeteries. The tables below describe the affected population, affected land, buildings, substructures, trees, crop etc. of individual households and collective and public works. Detailed numbers is listed in Annex Scope of impact Table 2-1: Scope of land acquisition Contract/ No. of No. of Affected Affected Affected Districts Module Towers Villages households Persons Paklay /1 262 Sanakham Meun Subtotal Paklay /2(A) Kenthao Subtotal Xayabury /2(B) 379 Phieng Paklay Subtotal ,620 Boun Neua /3 301 Boun Tai Namor Subtotal Total 1,178 9 (*) 107 (*) 800 4,093 19

33 (*): Ban Namsong Village of Paklay District is affected by 3 modules (Module 1/1, 2/2(A) and 2/2(B)) but it is counted only once (in Module 1/1) so the total number of affected destrict/villages is 9/107. Among the AHs, 109 AHs with 729 APs were recognized as the poor, but no other vulnerable HHs who needs special assistance were found during the Inventory of Losses Loss of assets Table 2-2: Loss of assets Contract/ Module Districts Villages Structures Houses Buildings Agricultural land (m²) Resident & Community (m²) Village Forest (m²) Crops and trees Fruit trees Industrial trees 1/ ,948 2,199 3, /2(A) , , ,952-2/2(B) ,934 7,552 4, , / ,534 2,935 5, ,965 1 Total 9 (*) 107 (*) ,056 13,134 18, ,218 3 (*) Ban Namsong Village of Paklay District is affected by 3 modules (Module 1/1, 2/2(A) and 2/2(B)) but it is counted only once (in Module 1/1) so the total number of affected destrict/villages is 9/107 (See Table 2-1). Most of acquisition areas are agricultural land which consist mainly paddy field. Besides, a large of production forest land is also affected along with its industrial trees such as rubber and teak. Affected buildings are kitchen, rice barns, penstock, shelter, rice mill and shops, etc. Land Cemeteries 20

34 3 SOCIO-ECONOMIC INFORMATION AND PROFILE The socio-economic survey of APs was carried out by the National Consultant Group (NCG) Team from March to June of All AHs have been interviewed in details with the questionnaire (see the questionnaire template in Annex 8) and paid special attention to severely affected and vulnerable people. The tables below describe clearly the socioeconomic conditions of all affected areas. More detailed data for each affected village are presented in Annex DEMOGRAPHY Table 3-1: Number and scale of affected family and gender Contract/ Module 1 2/2(A) 2/2(B) 2/3 Province District No. of affected villages Households Population Total Affected Scale (%) Total Female Scale (%) Xayabury Paklay ,348 1, Vientiane Sanakham 5 2, ,315 4, Meun 11 3, ,702 9, Total for Paklay - Nonhai: 17 6, ,365 15, Xayabury Paklay* 13 2, ,545 6, Kenthao 8 2, ,545 5, Total for Paklay - Kenthao: 21 5, ,090 11, Xayabury Xayabury 8 2, ,420 6, Phieng 25 5, ,663 13, Paklay* 6 2, ,780 4, Total for Xayabury - Paklay: 39 9, ,863 24, Boun Neua , Phonsaly Boun Tai , Total for Phongsaly: 21 1, , Oudomxay Namor , Total for Oudomxay: , Total for Module 3: 30 2, , GRAND TOTAL: 107 villages 23, ,918 58, The scale of the AHs which varies from 0.3 to 7.7% shows that the project doesn t cause severe impacts on the villages. The table also points out that the scale of female (in average of 47%) is a bit lower than the average scale of the nation (50.0%). This could be related to sanitation, reproductive health for mothers and vaccination of mothers and children in the area. 21

35 Table 3-2: Ethnic composition of the total population in affected villages Module Province District Lao Khmou Hmong Yao 1 2(A) 2(B) 3 Iew Mien Thai Dam Lue Pray Hor Yang Xayabury Paklay Vientiane Xayabury Akha (Ikor) Sanakham 1, Meun , Sub-Total 2, , Paklay 2, Kenthao 2, Sub-Total 5, Xayabury 2, Xayabury Phieng 2, Phonsaly Paklay Sub-Total 5, Boun Neu Boun Tai Sub-Total Oudomxay Namor Sub-Total Total GRAND TOTAL 12,721 1,404 2, , Phounoi SCALE (%) There are in total 12 ethnic groups inhabited in the affected villages. In which Lao and Hmong households occupy largest scales (64.0% and 13.1%). Lao, Lue, Tai Dam and Yang ethnic groups are from Tai Kadai Linguistic family. They all speak Lao but also have their own dialects. Lao and Lue believe in Buddhism but Tai Dam and Yang believe in animism. Hmong and Iew Mien are from Hmong-Mien linguistic family. They speak their own language and both believe in animism. Khmou and Pray ethnic groups are from Mon-Khmer linguistic family. They have their own dialect and both believe in animism. 22

36 Phou Noi, Akha(Ikor) and Hor ethnic groups are from Tibeto-Burman Linguistic group. They have their own languages but officially speak Lao. They believe in animism. Most of the APs can understand Lao well. In fact, Lao was used smoothly for meeting and discussion in the affected communities. For the few others who cannot, especially women and elders, the village leaders provide information in their own dialects. 3.2 ECONOMIC STATUS OF APS Contract 1 Module 1 Province Xayabury Vientiane Table 3-3: Economic status of ethnic households at affected districts by Module 1 District Lao Khmou Hmong Yao Better-off M e dium Sufficient P o o r Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Paklay Scale (%) 100 Sanakham 1, Meun Total 1, Scale (%) Accordance to the Decree No. 201/PM dated 25/04/2012 of the Prime Minister, on Poverty and Development Standards for the period of , Poor is defined as lack of basic and essential factors for normal daily life due to low income (lower than 180,000 LAK/month/person). Sufficient is defined as afford to have and maintain basic and essential factors for normal daily life due to better income. Medium is defined as assurance for basic and essential factors for better daily life due to stable income and ability for savings. Better-off is defined as not only assurance for better living conditions but also afford to luxury lifestyle due to good and stable family income from investment and family business.table above shows up economic status classifications of the ethnic households that had been recorded by the local authorities for their management work. The data shows that most of Lao ethnic HHs in the area is better-off and only 1.3% of them is classified as poor. In comparison to this, among the Khmou, Hmong and Yao, the scale of the better-off HHs varies only between 11.0 and 14.2%, while their numbers of the poor are higher than the one for Lao: Khmou 5.4%; Hmong 10.8% and Yao 8.3%. 23

37 Province Contract 2 Module 2(A) Province Xayabury Table 3-4: Economic status of ethnic households at affected districts by Module 2(A) District Lao Khmou Better-off Medium Sufficient Poor Better-off Medium Sufficient Poor Paklay 2, Kenthao 2, Total 4, Scale (%) In this area, most of the Lao (93.2%) and Khmou (100%) HHs are better-off and there is no poor HH. Contract 2 Module 2(B) Xayabury Table 3-5: Economic status of ethnic households at affected districts by Module 2(B) District Lao Khmou Hmong Lue Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Xayabury Phieng Paklay Total 1, , Scale (%) Province Xayabury District Tai Dam Pray Iew Mien Better-off Medium Sufficient Poor Better-off Medium Sufficient Poor Better-off Medium Sufficient Poor Xayabury Phieng Paklay Total Scale (%)

38 Province Phonsaly On the Module 2(B), most of Lao, Khmou, Hmong, Lue and Iew Mien are classified as medium and sufficient. In exception, most of the Tai Dam and Pray HHs are better-off. There is no poor household among these Tai Dam and Pray ethnic groups. The scale of the poor household varies from % and can be ranked from low to high as follows: Iew Mien Lao Lue Hmong Khmou. Oudomxay Contract 2 Module 3 Table 3-6: Economic status of ethnic households at affected districts by Module 3 District Lao Khmou Lue Tai Dam Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Better-off Medium Sufficient P o o r Boun Neua Boun tai Total Scale (%) Namor Total Scale (%) Province Phonsaly Oudomxay District Akha (Ikor) Hor Phou Noi Better-off M e d i u m Sufficient P o o r Better-off M e d i u m Sufficient P o o r Better-off M e d i u m Sufficient P o o r Boun Neua Boun tai Total Scale (%) Namor Total Scale (%) The Module 3 also has diverse ethnic groups similar to Module 2(B). The above table shows that Lue, Phou Noi, Akha and Khmou mostly inhabit at Boun Neua and Boun Tai Districts in Phongsaly Province. Lue and Tai Dam are the main ethnic groups at Namor District in Oudomxay Province. 5 HHs of Hor, 3 HHs of Tai Dam and 3 HHs of Lao are minority groups in Phongsaly. Most of HHs of all the groups are classified as medium and sufficient. In comparison to other Modules, the scale of poor HHs is the highest and varies from %. The main cause may come from limited agricultural land, lack of necessary infrastructure, poor road condition, lack of water and lack of work employment 25

39 opportunity because the development of industrial sector is quite low at the moment. Therefore, basic infrastructures are needed for the region especially the electricity grid. The GMS NPTP will recruit local villagers for temporary work during the construction and for permanent work after the construction to take care of the trees under the transmission line RoW. In addition, the electricity from this project may bring good opportunity for work employment in the manufacturing factories that will be established in the future in the region. 3.3 LIVING CONDITIONS Contract Module Province District (A) 2(B) 3 Table 3-7: Access to infrastructural system and social affairs Kindergarten Education Elementary Secondary school school High school Health center Enough clean water (Y/N) Scale (%) of HHs connected to national electricity grid Village market Busservice company Xayabury Paklay Y Vientiane Sanakham Y Meun Y Subtotal Xayabury Paklay Y Kenthao Y Subtotal Xayabury Y Xayabury Phieng Y Paklay Y Subtotal Phonsaly Boun Neu N Boun Tai N Subtotal Oudomxay Namor N Subtotal Total

40 The fact of no kindergarten in the affected areas shows that the mothers have to spend most of time to look after their kids until they go to elementary school. It means that during the period of 6 years after giving birth, the mothers can only work as housewives but cannot take full time job. Elementary and secondary schools are a bit popular, but there is no high school in the affected villages. This means the youth have to spend more time and money for higher education. This may relate to the number of school drop students. On health facilities, according to Ministry of Health Plan, one village development cluster of 5-6 villages in rural area should have one health center. However, in the Module 3 area, at Boun Neua, Boun Tai and Namor Districts, there is a health center for villages so the people face difficult to the health care, especially in rainy season. On the clean water, most of the villages in Module 1 and Module 2 have access to clean water from the gravity fed water system. Together with villages located in the township center, they can enjoy enough clean water whole year round. However, in Module 3, the APs don t have enough water for the whole year. Mostly people get water from boreholes, wells and streams. Therefore, in dry season, streams become shallow and many villages face water shortage. Then health and sanitation problems would occur. On the access to the national electricity grid, all the HHs of Paklay District is connected to the grid. The government of Lao PDR has set up goal that in 2015, 80% of all villages will be connected to grid. There will be a challenge for some of villages in Xayabury and Phieng Districts and for most affected villages in Bou Neua, Boun Tai and Namor Districts of Module 3. Village market is the place where people can sell their agricultural products and buy goods for household consumption. However, there are only 3 village markets for total 17 villages of Module 1; 13 village markets for total 62 villages of Module 2; and 12 village markets for total 30 affected villages of Module 3. The villages that do not have market have to sell their products to groups of merchants who come to buy villagers products with low price. The bus service plays important role in rural areas. The bus service does not only provide travel to villagers but also transport agricultural products to district and provincial township centers. It is remarkable that in Module 3, there are 3 bus services providers in Namor District, one in Boun Neua and one in Boun Tai District. 27

41 3.4 LIVELIHOOD ACTIVITY AND INCOME Table 3-8: Income structure of affected households and average daily income of affected people Affected Households' Income per Category (in 1,000,000 Lao Kip per year) Unit: 1,000,000 LAK (except column 19) Total annual income of AHs Average annual income per AH Average daily income per AP Trading/ Contract Module Province District Livestock Employee/ Relatives Transportation Products nt Servant/ Sources Gathering Wood Governme Other NTFPs* Cultivation Services/ Fishing Handicraft Raising Daily Labor Offering Business Pension (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Sanakham 1, , ,461 Vientiane Meun 1, , , Total for Paklay - Nonhai: 2, , , (A) 2(B) 3 Percentage of Households' Income per Category (%): Xayabury Paklay 5, , ,032 Kenthao 1, , ,358 Total for Paklay-Kenthao: 6, , ,081 Percentage of Households' Income per Category (%): Xayabury , ,830 Phieng 4, , ,851 Xayabury Paklay 5, , ,406 Total for Module 2(B) 10, , , , ,632 Percentage of Households' Income per Category (%): Phonsaly Boun Neu , ,830 Boun Tai , ,649 Total for Phongsaly: 1, , ,243 Oudomxay Namor 2, , ,711 Total for Oudomxay: 2, , ,711 Total for Module 3: 3, , ,263 Percentage of Households' Income per Category (%): (*) NTFP: Non-timber Forest Products 28

42 According to the Prime Minister Decree No. 201/PM dated on 25/04/2012 on Poverty Criteria and Development Criteria from the 2010 to 2015, Article 3 of Group II says that the poverty criteria of a person is calculated from his/her average monthly income in Lao Kip (LAK). There are 3 criteria depending on the location: 1. For all regions of Lao PDR, the average income should be more than 192,000 LAK/person/month; 2. For urban areas, it should be more than 240,000 LAK/person/month; and for rural areas, it should be more than 180,000 LAK/person/month or 6,000 LAK/person/day. The last criterion is used for comparison: Lao Poverty Line is equivalent to an average income of 6,000 LAK/person/day. UN Poverty Line is equivalent to 10,000 LAK/person/day. The Millennium Development Goal of Lao PDR on poverty has set the income target of 900 US $/person/year with the aim at getting out of the list of the least developed country in the world. This means that 2.5 US $ per day has been targeted for each person. 2.5 US $ is equivalent to 20,000 LAK which is the current minimum labor wage rate per day of unskilled worker of Lao PDR which is equal to 600,000 LAK (75 US $)/month. The table above summarizes the income of all AHs by the project. It shows that only the APs at 2 districts: Paklay and Namor earn more than 2.5 US $ (20,000 LAK)/person/day. The average income of the APs at all 6 districts: Boun Neua, Boun Tai, Xayabury, Phieng, Sanakham and Meun are higher than the UN poverty level (1.25 US $ (10,000 LAK)/person/day), except the APs at Kenthao District. To reach the Millennium Development Goal of Lao PDR on poverty of 2.5 US $ (20,000 LAK)/person/day by the year 2020 is very challenging for all the APs. In Module 1, the main source of income is from cultivation (63.8%); the second source of income is from livestock raising (10.6%); and other 8.1% & 7.8% are from employee/daily labor and trading/services successively. In Module 2(A), the main income sources are from cultivation (86.9%), and trading/services/business (6.6%). For Module 2(B), the main income sources are from cultivation (45.1%), and trading/services/business (15.5%); employee/daily labor (13.8%), and livestock raising (0.2%). For Module 3, 71.4% of the income is from cultivation; 12.5% is from trading/services/business. In sum, most of the income of the AHs is from the agricultural activities. There is a need to support them how to implement new technique in agricultural activities by upgrading their accumulating agricultural skills. In addition, the training in micro-credit, micro-finance and management of village revolving fund will promote village socio-economic development. 29

43 Table 3-9: Structure of animal husbandry of all the population in the affected villages (Unit: head) Contract Module Province District Village Duck & Chicken Pig Cattle Buffalo Goat Turkey Xayabury Paklay Total (1 Village) 10, , Scale (%) Total (5 Villages) 14, , Sanakham 1 1 Scale (%) Vientiane Total (11 Villages) 47,097 7,026 7,271 1, Meun Scale (%) Total for Paklay-Nonhai: 72,920 7,555 10,950 3, Total (14 Villages) 55,150 2,390 4,682 1, Paklay Scale (%) Xayabury 2(A) Total (8 Villages) 48,281 3,396 3, Kenthao Scale (%) Total for Paklay-Kenthao: 103,431 5,786 7,702 2, Xayabury Total (8 Villages) 58,556 2,897 13, Scale (%) Total (25 Villages) 113,983 9,617 6,507 2, Xayabury Phieng 2(B) Scale (%) Total (7 Villages) 43,827 2,510 4,233 2, Paklay 2 Scale (%) Total for 40 villages 216,366 15,024 24,688 5, Phonsaly Boun Neu Total (12 Villages) 9,050 2, Scale (%) Boun Tai Total (9 Villages) 18,913 1, Scale (%) Total for Phongsaly: 27,963 4, Oudomxay Namor Total (9 Villages) 13, Scale (%) Total for Oudomxay: 13, Total for Module 3: 41,603 5,

44 Livestock ownership is the key savings for family. The livestock is the most important asset for rural families, provides a critical reserve against emergent needs from ill health, crop failures. Some families plan to use savings for rebuilding or repairing houses and for ceremonies such as wedding. The savings help families for purchasing clothes, learning materials and bicycles for children cycling to school. Some families with large number of animals can afford motorcycle and hand tractor of multiple utilization: transportation of agricultural products from the fields to the house and from the house to the district markets. This helps improve their livelihood. The animal yields direct benefits in the form of food and can raise farm productivity by providing fertilizer and drought power. The benefits from livestock can even extend to those who do not own livestock often the poorest members of the community. Non-owner is sometimes able to obtain manure for fertilizer, or help to develop new paddy fields. These may be given free of charge for livestock owners or at greatly reduced prices or in the form of animal hides. The role of livestock in rural Lao communities extends significantly beyond their economic value, it plays an important role in social and cultural relationships - loans and gifts of livestock contribute to family and community ties and often play a central role in cultural tradition such as weeding, funerals, rituals, and receptions. The above table shows that the highest scale of domestic animals in all the districts belongs to the duck and chicken group ( %). The percentage of number of pig, cattle, buffalo and goat varies in all the modules. The field survey revealed that the low percentage of pig heads ( %) is related to hog cholera that regularly kills pig population. The low percentage of cattle heads ( %) may be related to the limited grazing land due to most of the agricultural land has been used for crop and tree plantation. The low percentage of buffalo heads is related to the replacement of natural draught force with hand tractor. Goats are not friends of crops. So where people grow crops there the number of goats is small. The effective animal health prevention and new technology of animal husbandry are needed to improve the livelihoods of affected people along the GMS transmission line as a whole. 31

45 4 INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 4.1 RATIONALE, OBJECTIVE AND SCOPE Pubic consultations were conducted at the village, district and provincial levels between February and June The results of Initial and Final Public Consultations are presented in ANNEX 16 to ANNEX 21. The Project consultants in cooperation with the Project developers were responsible for all consultation meetings, including all expenditures such as transportation for participants, accommodation, and payment for those attending the meeting. The purposes of consultations were to introduce the proposed project to stakeholders, inform them as it develops, and identify their views and concerns. This approach fosters stakeholders engagement and contribution to the Project, enhances its acceptability and encourages realistic expectations as to what the Project will deliver to them. The consultation program was about: - Identify problems, concerns and needs. - Inform stakeholders about the Project. - Obtain feedback. - Learn from local knowledge and understanding. - Evaluate alternatives. - Promote ownership and enhance social acceptability. - Avoid or resolve conflicts. - Demonstrate commitment of the Project proponent in addressing issues raised during consultations. The scope of consultation focused on four main components: i Information Collection - involving collecting information on the environmental and social baseline conditions of the study area to determine key sensitive receptors; ii Information Dissemination - involving disclosure of information about the intended activity, project objectives and their outcomes in order to enable meaningful consultation; iii Consultation - involving an interactive, two-way flow of information, views and ideas between stakeholders and the Project proponent; iv Participation - defined as a voluntary process in which stakeholders and project proponents come together to share, negotiate and control the decision-making process in project design and management. It builds on the consultation component. The consultation process involved but was not be limited to: - Formal meetings with government authorities, institutions, individuals, specialists and any NGOs identified. - Meetings with opinion leaders, community representatives (village committees or councils). - Household survey questionnaires, aimed at the local population within the Project area. 32

46 The survey questionnaires are a fundamental component of both the environment and social aspects as they provide the basis for identifying impacts and developing management and mitigation measures that are specific to the local conditions. See examples of completed survey questionnaires in ANNEX IDENTIFICATION OF KEY STAKEHOLDERS Central Government of Lao PDR Bodies The central government concerning hydropower development can be listed as follows: - Ministry of Natural Resources and Environment - Ministry of Energy and Mines - Ministry of Agriculture and Forestry - Ministry of Planning and Investment - Ministry of Finance - Ministry of Health - Ministry of Labor and Social Welfare - Ministry of Information and Culture - National Land Management Administration - Any other relevant departments identified in consultation with EdL Provincial/District Government of Lao PDR Similar to those at the national level, the provincial and district administration and related key authorities include: - Provincial/District Cabinet Offices - Provincial/District Energy and Mines Offices - Provincial/District Land and Environment Offices - Provincial/District Agriculture and Forestry Offices - Provincial/District Planning and Investment Offices - Provincial/District Health Offices - Provincial/District Labor and Social Welfare Offices - Provincial/District Information and Culture Offices Other Concerned Stakeholders The other concerned stakeholders of the Project include the following: - Village heads in each of the Project affected villages. - Key village informants, including village teachers, village elders, spiritual leaders and health-care workers. - Directly and indirectly affected families in project area. - Gender and vulnerable groups (including ethnic minority group). - Key village interest groups including landowners, land users, identified vulnerable groups, guardians of cultural and spiritual sites etc. - Non-Governmental Organizations o Lao Women s Union o Lao National Front o Lao Front for National Construction o Lao Youth Association 33

47 4.3 PARTICIPATION PROCESS Involvement of Government of Lao PDR Participation with GoL stakeholders involves a series of formal meetings and discussions. The purpose of the interviews at national, provincial and district levels are to inform the stakeholders of the proposed project, to discuss the associated environmental and social issues as well as to gather any relevant secondary data. The meetings with district and provincial stakeholders also discuss the most practical and feasible mitigation measures in the opinion of these stakeholders. Consultation at these levels is an important step in the protocol of working in the local area. It is a courtesy to inform the relevant government bodies and leaders of the intention to conduct surveys and interviews in the Meun Sanakham, Kenthao, Paklay, Phieng, Xayabury, Namo, Bou Neau, and Boun Tai districts Consultation with Villages & Local Communities Consultation with members of the communities in the vicinity of the Project area were undertaken through village meetings, interviews with representatives of the local villages and as part of the household surveys. The survey was used to develop a baseline socioeconomic profile of the local communities and sought information on the level of awareness of the Project, concerns and expectations of the Project. Individual household interviewees, social dialogues were used to document the profile of communities, the range and extent of impacts both at the household and community level. Specifically the Village level consultations are held for the following purposes: - Gather information on the profile of the community and the possible social impacts of the Project on community structure, local resources and livelihood patterns. Some specific focus group discussions were also conducted in some villages. - Identify key environmental and social effects that may be created by the GMS NPTP development. Figure 4-1: Consultation Meeting during Initial Survey in Each Village 4.4 COMMON CONCERNS OF AFFECTED PEOPLE AND RESPONSES OF THE PROJECT All common concerns of APs and the responses of the project are described in the following table. 34

48 No. Common Questions/ Suggestions of APs 1 All compensation must base on the DMS and market price 2 New TL Alignment design should avoid houses, rubber trees, rice huts, agricultural land, and especially village cemetery 3 Employing local labor and affected people to work for the project 4 The project causes loss of village production forest where nontimber forest products (NTFPs) gathering is a main livelihood. As a trade-off, EdL should support water supply, electricity connection, village office, school Table 4-1 Common concerns of APs and the responses of the project Project s Responses/ Explanations The compensation is based on Decree No. 192/PM, on Compensation and Resettlement of People Affected by Development Projects, dated on 07/07/2005, and Regulations No. 2432/WREA-PMO for Implementing Decree No. 192/PM, dated on 11/11/2005. After the TL route alignment is finalized, DMS will be carried out. Discussion on the compensation cost will be organized between the committee, EdL and representatives of affected people. The grievance redress mechanism will also be accessible to all complaints. The project always try to avoid loss of people s properties as much as possible, particular urban area, village residential area, tree plantation land, protection and reservation forest, trees and crops, cemetery and sacred forest. For this reason, one of the team survey lead by Deputy Head of Village and Land officer will do ground checking to identify the impacts of the proposed tower foot-prints and the anticipated loss of fruit and industrial trees inside the 25 m width of acceptable the Right-of-Way of the 115 KV TL (25 m width corridor). The probably affected land owners should accompany the team to witness. The Inventory of Loss Form will be signed. If avoidance is impossible, the developer and the village elders and officials will discuss how to mitigate the impacts, what rituals and ceremonies to be performed and EdL will be responsible for the cost. Not all the construction work can be realized with machinery on the mountain slope and on the top of the hills. Human labor will be used to support the activities. APs in the village where the construction starts will have priority to be employed regarding the skills or capability. This recruitment should be implemented by the EdL team and the village authorities to avoid social conflicts. In comparison to hydropower and mining projects, this project causes minor impacts and its budget is also smaller. The project cannot afford to provide excessive budget for building or upgrading existing infrastructures to local communities. However, if the transmission line unavoidably affects any infrastructure, the cost for repairing or rebuilding will be borne by EdL. Pursuant to the Forestry Law, the re-forestation of affected community land and forest should be planned for mitigation, the budget for implementation and monitoring should be estimated for and the responsible institutions No. of Villages raised Contract 1 Contract 2 Module 1 Modul e 2(A) Module 2(B) Module

49 No. Common Questions/ Suggestions of APs Project s Responses/ Explanations No. of Villages raised Contract 1 Contract 2 Module 1 Modul e 2(A) Module 2(B) Module 3 and others should be appointed for. 5 The project should support to The project implementers understood and sympathized that how difficult the living develop infrastructures for conditions of local villagers are such as bad road, lack of water in dry season, difficult i affected villages, such as: Access road access to health center. So far, the government has been working hard to develop local infrastructures but budget is very limited. The main constraint is that factory cannot be ii Health center developed without electricity iii Water supply This project has minor social impact in comparison to hydropower and mining projects and iv Electricity its budget is also smaller. Therefore, it cannot afford to provide excessive budget for v School for children building other infrastructures to local communities vi Irrigation system However, after this project is completed, Oudomxay and Phongsaly will connect to EdL vii Village office grid, the electric power will be enough for development of big industries in the region viii Bridge Good infrastructures will automatically be constructed. The need of skilled and unskilled ix Village revolving fund local workforce will increase. In parallel, the income of local citizens will increase too x Transformer xi Street lights xii Other infrastructures xiii Thorlakhong (village loudspeaker) INFORMATION DISCLOSURE AND CONSULTATIONS EdL will ensure that the summary of this RAP written in Lao language, which is an official language of Laos and a language widely used in the project area, will be disclosed at all the commune offices in the project area two weeks after the final RAP is endorsed by MONRE, the PEMC and Provinces. The above mentioned information disclosure will be notified at community meetings to citizens prior to the disclosure. In addition, EdL will (i) produce a resettlement information booklet written in Lao language that summarizes the key impacts, compensation rates, entitlements, grievance procedures, and other information of greatest interest to APs; and (ii) distribute the booklet to each AH before the implementation of RAP. Compensation report will also be disclosed to project affected persons and in provincial and at district offices. 36

50 5 GRIEVANCE REDRESS MECHANISMS Due to differing perceptions, values, objectives and responsibilities among different stakeholders, a range of conflicts may occur among and between affected people, resettled villages, district authorities, central government and others. Obviously, avoidance is preferable to resolution, but that is not always possible. While the consultative and participatory nature of the impact assessments and RP are aimed at reducing disagreements and conflicting positions, in instances where disagreements do occur, it is important that they are resolved quickly before positions harden and the conflict escalates. The earlier that discord is recognized and dealt with, the higher the chance of a successful outcome. While every effort will be made to resolve conflicts by mutual agreement of the parties involved, in some cases, arbitration and adjudication on disagreements and conflicts by an external mediator will be required. If an AP, AH or group is not satisfied with, or has a complaint about, an aspect of the resettlement or compensation package, or if for any reason the compensation does not materialize according to the procedures set out in the RP and as agreed between the AP and implementing agency, he or she has the right to make a claim. The grievance redress mechanism and process for the GMS NPTP include three steps as discussed below: Step 1 At the village level, AP or group of APs can approach the Project Resettlement Committee (PRC) through village chief and present the grievance, and then allows its consideration at the lowest level of resettlement hierarchy. The issues can be resolved through discussions and mediation. The complaints must be addressed promptly and to be resolved within the time limit of 10 days. If the village level cannot resolve the complaints or if the claimants are not satisfied with the decision, the next step can be used either by the claimants or the village committees on behalf of the matters. PRC will be established in each village after EdL informs the provinces to start the project. PRC will be chaired by Deputy Head of Village, and consist of Village Land Administration Officer, Village Agricultural and Forestry Officer, Village Lao Front for National Construction (Niew Hom Ban/village elders), Village Social Security Officer, Village Women Union and Head of Village Development Cluster (Koum Ban Phathana). All complaints and grievances received and the decisions made will be recorded and monitored as part of both internal and external monitoring procedures. Step 2 At the district level an official Project Grievance Committee has to look after the issues within 15 days to resolve it to: respond the claimant grievance in terms of prior activities to be undertaken; and to ensure that the claims are reviewed within the context of the existing policy, regulations procedures and entitlement limits. The EA would be primary witnesses in order to both: (i) respond to the claimants grievance in terms of prior activities undertaken, etc.; and, (ii) ensure that the claim is reviewed within the context of the existing policy, regulations, procedures and entitlement limits, and that the compensation awarded does not go beyond established matter of practice. 37

51 The official Project Grievance Committee will be established after the PRC is established. This committee will be chaired by Deputy District Governor and consists of Deputy Head of District Office, Deputy of District Office, Deputy Head of Energy and Mines Office, Deputy Head of Land Administration Office, Deputy Head of Agriculture and Forestry Office, Deputy Head of Finance Office, District Lao Front for National Construction, Head of Village Cluster, Head of Affected Village. All complaints and grievances received and the decisions made will be recorded and monitored as part of both internal and external monitoring procedures. The Contractor of the Project shall appoint a staff person from his camp office to be a part of the Project Grievance Committee to assist in resolving local issues which may concern the Contractor. Step 3 The third step is access to the court system. In the first instance the case or grievance will be presented to Provincial Court. If the grievance can still not be resolved, or the AP is not yet satisfied with the findings at the Provincial Court, the second instance is for the claimant to present the case at National Court. Access to the courts is obviously a last resort. EdL will be responsible for meeting the administrative and legal costs that will be incurred in the resolution of complaints and grievances. Presenting below is the propose grievance redress procedure for the Project. APs are not satisfied with resettlement and compensation process Resolve at village level If not satisfy Appeal to official Project GC Examination of grievance If not satisfy need further step If satisfied the grievance settled Provincial Courts Final Decision Figure 5-1: Grievance Redress Procedure for the NPTP 38

52 6 LEGAL FRAMEWORK In Lao PDR, compensation principles and policy framework for land acquisition are governed by several statutory laws, decrees and regulations. 6.1 NATIONAL LAWS AND REGULATIONS Constitution Law (1991) The Constitution (1991) provides the following relevant articles: - Article 14: The State protects and promotes all forms of state, collective, and individual ownership. - Article 15: Land in Lao PDR is owned by the national community. The State ensures the right to use, transfers, and inherit it in accordance with the law. - Article 8: Establishes the right of all ethnic groups to protect preserve and promote their customs and heritage. All acts of division and discrimination among ethnic groups are prohibited Electricity Law (2008) Requires that Project proponent (EdL) is responsible for ensuring that environment is protected, and that residents are compensated in cash or in-kind for lost property, diminished living conditions, relocation and resettlement Land Law (2003) Land law stipulates that in case of the public infrastructure development projects cause damage to the trees, crops or buildings of the private owner, the land and structure owners have the right to be compensated for the damage. The Law makes some reference to the compensation entitlement for land in Article but not to structures: - Article 18: The District Administrative Authority is charged with taking consideration and approval of the allocation of the use right of agricultural land, under its management, to individuals and organizations for use by issuing the Land Certificates to them. - Article 26: The State shall make a reserve of construction land for public facilities and using for collective benefit. If there is a change in the objectives of the use of such land, it shall be again used for communal benefit, and this requires a prior authorization from the concerned agencies. - Article 42: Use of Water-Area Land, the administrative authority is charged with making the proposal to the district administrative authority connecting the allocation of such land to individuals or organizations. But if the individuals or organizations have undertaken the investigation of land and under agreement with MONRE and related sections, such land shall be used by those individuals or organizations. - Article 61: When land is required to be expropriated by the government for use in the public interest, the relevant authorities are required to compensate the land use possessor for their losses in a suitable manner. - Article 62: Loss of land use right and determination of assessed losses should be undertaken by a committee comprising representatives of all concerned agencies. 39

53 - Article 69: Compensation for losses caused by the actual situation which has to be accepted from other persons, who provide access passage or water drainage canal causing losses to cultivation, to construction assets of these persons or to the public. - Article 70: Compensation for losses caused by land requisition for the public purposes, the state or the collective shall pay a suitable compensation for the losses. In order to limit the compensation, it is required to have land at rate of five percent of the total land area of the village, district, province, municipality or special zone. For agricultural and forest land the District Agricultural and Forestry Extension Office (DAFEO) issues Temporary Use Certificates. People without proof of ownership and/or certificates are considered unregistered users. These users differ from illegal users. In case of acquisition, APs who hold the above documents but also those who are granted customary land use rights or are considered unregistered users since before the cut-off date, receive compensation under the Land Law Road Law (1999) The Road Law (1999) requires reasonable compensation to the owner whose land will be acquired for the right-of-way (RoW), relocation and replacement structures and loss of trees and crops (Article 19). In the Decree it is stated that privately owned land or land under permitted land use within the agreed RoW used for road construction will be expropriated, and the owner will receive reasonable compensation. However, in Laos it often is the case that structures and even part of housing are constructed within the RoW after the RoW has been announced. In this case in the Project compensation will be restricted for loss of materials of structures, repair costs and loss of trees Forestry Law (2008) States that forest land can be converted to other uses when necessary and if in the public interest, and subject to approval from responsible authorities. An individual or organization given permission to convert forest to another use is responsible for payment of a conversion fee, land reclamation and tree planting Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005) The several regulations and decrees have been formed for actual implementation in this proposed Project such as: - Decree 192 on Compensation and Resettlement of People Affected by Development Projects(July 2005), - Regulation on the Decree of Compensation and Resettlement(July 2005), - Implementing Regulations on Compensation and Resettlement and Technical Guidelines on Compensation and Resettlement in Development Projects (March 2010). The Decree 192/PM on Compensation and Resettlement (July 2005) rectifies key areas of the Land, Road and Forest Laws which would prevent informal land users and eligibility, and sets a clear definition of the Compensation mentioned in the Land, Road and Forest Laws and determines these as replacement cost. The Land, Road and Forest Laws have 40

54 provided the processes and mechanisms for acquiring and removal of structures and not just land and for determining entitlement, with community participation. This decree could apply to all development projects including government and domestic private or foreign development projects. Ministries, ministerial equivalent agencies, and MONRE have a mandate to issue decision, order, instructions, or notification on the implementation of the decree. This decree defines principles, rules and measures to mitigate adverse social impacts and to compensate damages that result from involuntary acquisition or repossession of land and fixed or movable assets. The key articles 04 to 16 have placed the detail procedures and main responsibilities of each resettlement work under the regulation. Along with the decree s Regulation on Implementation (November 2005) and Technical Guidelines (November 2005), it provides a comprehensive framework on resettlement planning in Lao PDR. The Decree recognizes the rights of vulnerable groups (i.e. households headed by women, disabled, elderly or very poor) and ethnic groups Other Relevant Laws The key Government agency responsible for the environmental and resettlement approval of Project via the ESIA process is the Water Resources and Environment Administration, MONRE of the Prime Minister s Office. MONRE is the main coordinating agency for environmental planning and management across all sectors. MONRE have developed a range of environmental and compensate regulations in regard to environmental impact assessment and resettlement action. In addition to these regulations, various government line agencies have responsibility for developing and implementing environmental impact assessment and compensation guidelines for their particular industry sectors. EdL has to ensure that all projects seeking approval through the MONRE, EIA and RAP process comply with the standard. The Politburo Party dated 23/7/1996 in implementing the decree No 194/PM on the Regulation for Buildings Replace (MPWT 1995). The implementation of the specifications of Ministry of Communication Transport Post and Construction issue No 1266/MCTPC dated 29/8/ 1995 related on controlling, vehicles evaluation, housing units, construction of buildings, household s consumption. In addition guidelines for assessment of the construction buildings evaluation cost. It is useful for estimation cost for housing unit price in the Lao PDR. 6.2 ADB POLICY ON INVOLUNTARY RESETTLEMENT (1995) The applicable ADB safeguards policies for addressing the adverse social impacts of the Project are the (i) Involuntary Resettlement (1995) and Operations Manual F2/BP (September 2006), and (ii) Indigenous People (1998) and Operations ManualF3/BP (September 2006). Closely linked with the two social safeguards policies is the Bank s Policy on Gender and Development (1998). The aim of ADB Policy on Involuntary Resettlement is to avoid or minimize the impacts on people, households, businesses and others affected by the acquisition of land and other assets, including livelihood and income, in the implementation of development project. Where resettlement is not avoidable, the overall goal of the ADB policy is to help restore the living standards of the affected people to at least their preproject levels by compensating for lost assets at replacement costs and by providing, as necessary, various forms of support. 41

55 The main objectives and principles of the policy on involuntary resettlement are as follows: a. Involuntary resettlement should be avoided where feasible. b. Where population displacement is unavoidable, it should be minimized by exploring all viable project options. c. All compensation is based on the principle of replacement cost. d. Each involuntary resettlement is conceived and executed as part of a development project or programme e. Affected people should be fully informed and consulted on compensation and/or resettlement options. f. 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 minimised and social harmony is promoted. g. The absence of a formal legal title to land is not a bar to ADB policy entitlements. h. 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. i. 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. j. The full costs of resettlement and compensation should be included in the presentation of project costs and benefits. k. Relocation and rehabilitation may be considered for inclusion in ADB financing for the project, if requested, to assure timely availability of the required resources and ensure compliance with involuntary resettlement procedures during implementation. ADB s Policy on Gender and Development 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. Other policies of the ADB that have bearing on resettlement planning and implementation are the (i) Public Communications Policy (March 2005) and OM Section L3/BP (September 2005), and (ii) Accountability Mechanism (OM Section L1/BP, dated 29 October 2003). 6.3 GAP ANALYSIS BETWEEN NATIONAL LAWS AND ADB POLICY The recent changes in the GoL legislation related to compensation and resettlement in development represents a significant improvement in the rights of citizens when their livelihoods, possessions and society are affected by development projects. 42

56 The Decree, similar to ADB Policy on Involuntary Resettlement (1995) requires that APs are compensated and assisted to improve or maintain their pre-project incomes and living standards, and are not worse off than they would have been without the Project. Both Lao Law and ADB policies entitle APs to compensation for affected land and nonland assets at replacement cost. However, definition of severely affected APs varies between ADBOMF2 (para 5) at 10% and the Government s Decree 192/PM (Article 8) at 20% of productive and/or income generating assets affected. However, in accordance with Decree 192/PM (Article 6) which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the Project, and the provisions of resettlement policies for other projects that have been agreed between Government and international donors (ADB and World Bank), the definition of severely affected - as people losing 10% or more of their productive or income generating assets - will be adopted as part of the Project s resettlement policy. Also, both Lao Law and ADB policies entitle non-titled APs to compensation for affected assets at replacement cost and other assistance so that they are not made worse off due to the Project. Decree 192/PM goes beyond ADB policy and provides APs living in rural or remote areas, or APs in urban areas who do not have proof of land-use rights and who have no other land in other places, compensation for loss of land-use rights at replacement cost, in addition to compensation for their other assets and other assistance. Both Decree 192 and ADB policy require that if non-titled APs are required to relocate, the Project will ensure they are provided replacement land at no cost to the APs, or cash sufficient to purchase replacement land. 43

57 7 ENTITLEMENTS, ASSISTANCE AND BENEFITS 7.1 BASIC PRINCIPLES AND OBJECTIVES Lao PDR legislation states that any person affected by a development project is entitled to compensation, which should cover the damage suffered or the asset lost. The following basic principles and objectives in respect of resettlement have been adopted for the Project: i. Acquisition of land and other assets, and resettlement of people will be minimized and avoided as much as possible. ii. All APs who will be identified in the Project-impacted areas at the cut-off date, and will be covered under the resettlement measures sufficient to assist them to improve or at least maintain their pre-project living standards, income-earning capacity, and production levels. Lack of legal rights to the assets lost will not bar the AP from entitlement/compensation to such rehabilitation measures. iii. The rehabilitation measures are to be provided in cash compensation at replacement cost without deduction for depreciation or salvageable materials for houses and other structures, agricultural land for land of equal productive capacity acceptable to the APs, replacement of residential and commercial land of equal size acceptable to the AP, and transfer and subsistence allowances. iv. Replacement residential and agricultural land will be as close as possible to the land that was lost, and acceptable to the AP. The Project will also assist villages to level residential sites and sites for livestock and fishponds. Villages will be provided with land titles for their existing and replacement land in due course. If the land not available, cash compensation at full replacement cost is applied. v. All APs should be fully informed and consulted on compensation and/or resettlement options. vi. APs shall be facilitated to get jobs which are created by the project s activities. vii. Temporarily affected land and communal infrastructure will be restored to Preproject conditions. viii. Voluntary donation will not be applied for any land and non-land asset. The compensation and resettlement activities will be satisfactorily completed and rehabilitation measures in place before the contractor commence any construction activities. The contractor shall be allowed to work in a specific area only after receiving clearance to proceed by EdL. ix. EdL will observe that institutional arrangements are in place to ensure effective and timely design, planning, consultation, and implementation of the land acquisition, compensation, resettlement, and rehabilitation program (if required). x. Existing cultural and religious practices shall be respected and, to the maximum extent practical, preserved. xi. Special measures shall be incorporated in the RAP and complementary social action plan to protect socially and economically vulnerable groups such as ethnic minority peoples, women-headed families, children and elderly people without support structures and people living in extreme poverty. xii. There will be effective mechanisms for hearing and resolving grievances during the implementation of the RAP. Any APs preferences and concerns for compensation and resettlement will be proposed to PMU and related PRCs. xiii. The summary of the RAP will be placed in project and commune offices for the reference of affected people as well any interested groups, and a resettlement 44

58 xiv. information booklet will be distributed to all the AHs before the implementation of RAP. Appropriate reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. 7.2 ENTITLEMENT FOR COMPENSATION AND MITIGATION According to the Decree on Compensation and Resettlement (2006), both the APs who are living in the Project area and those who are not living in the Project area but own land in the Project area are entitled to compensation. The APs previously deriving income from the exploitation of natural resources are also eligible for compensation based on the actual condition as well the APs whose land or incomes are temporarily affected by the Project activities. APs including the following persons will be entitled to compensation and rehabilitation: i. Persons whose agricultural, residential, or commercial land is in part or in total affected, temporarily or permanently, due to land acquisition of the Project. ii. Persons whose houses, residential plots or other structures are partially or totally affected, either temporarily or permanently, and whose houses, residential plots or other structures will be demolished or damaged due to land acquisition of the Project. iii. Persons whose businesses or sources of income are partially or in totally affected, temporarily or permanently, due to the Project. iv. Persons whose crops (annual and perennial), trees, facilities, infrastructure, are affected by the construction activities of the Project. v. Persons whose other assets are partially or totally affected, temporarily or permanently, by the Project. Mitigation for lost assets, such as housing may take several forms: - Cash payments - Replacing lost assets with the same or better assets - Redesign of the transmission line corridor 7.3 PROJECT PRINCIPLES FOR COMPENSATION AND MITIGATIONS Permanent Land Acquisition for the Tower Foundations In the different places, such as some paddy fields near a town with good irrigation for example, crops can be harvested twice a year. Thus the annual yield and output value of such paddy land is higher than others areas. Therefore, given the difference yields of paddy fields and different market prices in different towns and provinces, the actual compensation rate varies from province to province. The compensation cost for lost land including irrigated rice paddy fields, swidden/cultivation areas and other agricultural land has been evaluated based on total average productive value specific to the actual land area over the past ten years. The methodology for compensation estimation was agreed upon and finalized by the Project Environment Management Committee (PEMC) in consultation with concerned local authorities and affected villages. The PEMC is to set up a final compensation agreement before the construction takes place. 45

59 For permanent land acquisition, compensation paid will vary according to the type of land area that the Project requires. It is agreed by the local authorities and heads of affected villages that for productive farmland, mainly rice paddy land, the basic compensation would be 5 times of annual output value of the farmland. Accordingly, the formula below is to be used to estimate the unit rate of compensation cost: Compensation cost = [Average Annual Productive Value of Land per ha or m 2 ] * [Area of Lost Land (ha or m 2 )] * 5 (years) For residential land, compensation cost is set up by the PEMC and AHs negotiation and satisfactory agreement together. This calculation method was applied broadly in other projects of the EdL and generally has been satisfactory for both sides (project owner and APs) Restricted Use on Land Traversed by Transmission Lines For the household-owned plantation land and residential land with or without houses / structures, the project will compensate land-for-land with similar type and category, and free from transaction costs OR easement fee in cash equivalent to 100% of total value of the land. The land value is calculated as described in Section Land title/ land survey certificate will remain with the title/ registered owner. For community forest land, the project will compensate land-for-land or easement fee will be paid on a kilometer basis to each village the transmission line passes through nearby forest. Community forests are usually zoned by the village into 3 types: (i) conservation forest, (ii) protection forest, and (iii) production forest. There is no specific easement fee already set up for each type of forest. The rates are different from forest type and location, and to be set up based on negotiation and satisfactory agreement between the PEMC and affected communities Crops and Trees APs owning crops and trees in the RoW are entitled to cash compensation for loss of crops and trees at the current market value. Compensation for crops will be based on the anticipated harvest at market value while compensation for trees will be based on the type, age and productivity. Compensation for standing crops that are impacted by construction activities will be paid in full at estimated market value at harvest, regardless of the maturity of the crops. Compensation for valuable trees will be based on full-assessed value. However, for this Project the tree compensation unit cost was based on the formula used for the 115 kv Transmission Line project: Hongsa to Luang Prabang SS2, in Luang Prabang. The following principle is applied to estimate tree compensation: For Planted Industry Trees: Compensation Cost = [Land Clearing Cost + Cost of Seedling] + [(Maintenance Cost per year) * (Year of Maintenance)] For Planted Fruit Trees: Compensation Cost = [Land Clearing Cost + Cost of Seedling] + [(Maintenance Cost per year) * (Year of Maintenance)] + [(Average Harvesting Value per year) * (Year of Harvesting)] Note: Years of Harvesting for Fruit Trees may range from 1 to 7 years depending on fruit tree Species 46

60 The Regulation of Ministry of Agriculture and Forestry No. 0196/MAF.2000, dated on 15 August 2000, Article 23 identified the formula for compensation for the loss of plantation tree as follow: Cost of Tree Plantation form = [Land Use Cost] + [Land Development Cost] + [Cost of Existing Planted Tree] + [Cost of Agricultural Produces (if any)] In order to ensure that the compensation rates for economic trees are adequate replacement value and able to restore income for APs, each province will develop a detail list of compensation rates for various trees, which will be based on agreed formula and current yield, and market prices of different crops. The compensation rates will be the outcome of consultation and agreement with the PEMC Structures and Assets According to the relevant laws, decrees, regulations, and specific technical implementation, the basic compensation principle for structures and assets is to provide compensation at replacement value. Compensation will include: Cash to replace or repair lost structures to an equivalent size and standard. An allowance to cover the expense of relocation and loss of income during the transfer. The particular expense is to be determined during the DMS. In general, the transmission line project will affect a small number of structures such as wooden houses, mixed wooden and brick houses and huts as well as temporary structures. In addition, some small size traditional wood structures may be required to be moved by the villagers to nearby locations. In this case, the Project owner will pay all related cost for moving during and after project construction. For any loss of infrastructure facilities and community services such as roads, bridges, schools, electricity, water and others, the EdL will provide in-kind compensation by rebuilding these facilities to their original status. Such replacement will be completed during the construction of the GMS NPTP. In terms of cultural places, such as temple structures, temple lands cemeteries and banyan trees, special compensation will be based on the local traditional methodology; the local authority will assist the Project in understanding and implementing this. For this kind of compensation, the Project owner has to allocate money in the resettlement budget for compensation as well Temporary Land Occupation & Impacts on Non-Land Assets during Construction The income losses from temporary land occupation (such as lost crops) or disturbances during project construction will be compensated by the Project owner at replacement value and the cost of restoring land. Depending on the length of such occupation, most of the impacts will be limited to one crop loss, but some cases of occupation might take more than one year with multiple crop losses. The compensation will be based on average yield and market price of lost crops. Note that under EdL s construction contract requirement for temporary land occupation, such as access roads, it is preferred to use existing roads or paths rather than constructing a new one. This is to minimize the impact. The formulas below were used to compute temporary loss of land in similar previous EdL transmission line and power projects as well as compensation. The actual methodology 47

61 for compensation estimation needs to be agreed upon and finalized by the PEMC in consultation with concerned local authorities and affected villagers. The PEMC will set up a final compensation agreement before the construction takes place. Compensation Cost of the temporary loss land or rent land (paddy land, garden land, swidden land): Compensation cost = [Average Annual Productive Value of Land per ha or m 2 ] * [Area of Lost Land (ha or m 2 )] * [number of year of temporary loss] Note: the unit cost formula above was based on The 115 kv Transmission Line Project : Hongsa to Luang Prabang SS2, in Luang Prabang Province based on the Agreement of Luang Prabang Governor No.157/LPBGV, dated on 01/12/ Special Assistance and Allowances for the 2 Displaced Households The DHs are entitled for replacement of houses and structures, livelihood rehabilitation and compensation to loss of 187 planted trees in their residential areas. The 187 planted trees compensation cost in cash is in item IV for fruit trees in table for breakdown cost for Module 3. The residential land of 1,731 m 2 will be compensated as replacement at new site. The estimate compensation cost for houses and structures will pay in 2 portions: 1. Cost for buying new construction materials for new re-assemble houses and structures in an amount of: 42,636,000 LAK equal to 5,330 USD. 2. Cost for Allowances for Relocation and Livelihood Rehabilitation in an amount of: 78,486,000 LAK equal to 9,810 USD. The details of the cost for allowances for relocation and livelihood rehabilitation are as follows: i. Cash payment for dismantle, moving moveable assets and rituals for each household at 300 USD; ii. Support for land preparation at new relocation site at the rate of 1,200 USD/ha for 2 households; iii. Houses and structures re-assemble for 2 DHs at the rate of 36 USD/m 2 or 288,000 LAK/m 2. This is the average labor cost for building this house category. iv. Support the electrification of new house at the rate of 1,000,000 LAK per household. v. Support the water connection to district water supply at 500,000 LAK per household. vi. Food support during the transition period (16 kg of milled rice/person/month for 3 months Special Measures for Poor and Vulnerable People Special measures will be incorporated to protect socially and economically vulnerable groups such as ethnic minority groups, women-headed households, children, households headed by the disabled, the elderly, landless and people living below the generally accepted poverty line. Vulnerable APs will be provided with additional assistance ensure that they are equal beneficiaries of the project and are not further disadvantaged. A member of poor and vulnerable household will be facilitated to employ in the construction activities of the project in order to get additional income as the mitigation measure. 48

62 7.4 ENTITLEMENT MATRIX The entitlements in the matrix are based on the impacts as below table. Entitled Type of Losses Entitlements Persons I. Permanent Land Acquisition for the Tower Foundations A. Agricultural Land B. Permanent Acquisition of Residential Land for the T/L Towers Legal owner or occupant identified during DMS. Legal owner or occupant identified during DMS. Table 7-1: Entitlement Matrix For marginal loss of land, cash compensation at replacement cost which is calculated as follows: Compensation cost (CC) = Average Annual Productive Value of Land per ha or m 2 x Area of Lost Land (ha or m 2 ) x 5 years : CC=AAPVxALLx5 Marginal loss of land with remaining land sufficient to rebuild houses/structures: Cash compensation at replacement cost which is equivalent to the current market value of land of similar type and category, and free from transaction costs (taxes, administration fees). Affected Families (AFs) who are left without remaining land sufficient to rebuild houses/structures will be compensated by (i) Replacement land equal in area, same type and category, without charge for taxes, registration and land transfer, with land title if Land Titling Project is ongoing in the area; if not, land survey certificate, OR (ii) cash 49 Implementation Issues There are no APs losing more than 10%. However, if found during detailed design, entitlements will be as a priority, replacement land of similar type, category and productive capacity of land within the village, with land title if Land Titling Project is ongoing in the area, if not, land survey certificate. OR at the request of AP, cash compensation at replacement cost plus assistance to purchase and register land.

63 Type of Losses Entitled Persons Entitlements compensation at replacement cost. II. Restricted Use on Land Traversed by Transmission Lines A. Household- Legal owner or Owned occupant Plantation identified Land during DMS. B. Community Forest Land C. Residential Land with or without houses / structures Affected villages III. Crops and Trees Annual Crops, Owner Fruit and Nut Crops Legal owner or occupant identified during DMS. of and Land-for-Land with similar type and category, and free from transaction costs OR Easement fee in cash equivalent to 100% of total current market value of plantation land free from transaction costs (taxes, administration fees). Land title/ land survey certificate will remain with the title/ registered owner. Affected trees will be paid at replacement cost Land-for-Land or Easement Fee will be paid on a kilometer basis to each village the transmission line passes through nearby forest. Community forests are usually zoned by the village into 3 types: (i) conservation forest, (ii) protection forest, and (iii) Production forest. Land-for-Land with similar type and category, and free from transaction costs OR Easement fee in cash equivalent to 100% current market value of land of similar type and category, and free from transaction costs (taxes, administration fees). Land title/ land survey certificate will remain with the title/ registered owner. Each province will develop a detailed list of compensation rates for various trees, which will Implementation Issues This measure is specifically designed to prevent the kinds of disagreements EdL contractors have had with plantation owners in the past over tree trimming. This entitlement does not apply to government forestry concessions to log natural forest. Government forest close to villages is included in village land use plans and termed Community Forest. Reforestation of unstock or degraded forest will be applied based on satisfactory agreement between the PEMC and affected communities during the DMS Easement fee equivalent to 100% current market value of residential land is applied because household s need to buy replacement residential land due to the restrictions imposed on land. AFs will retain possession of salvageable crops and trees. 50

64 Type of Losses Trees, Timber Trees Entitled Persons Trees, regardless of tenure status IV. Structures and Assets Houses and Owner Structures identified during DMS, regardless of tenure status Community Facilities, Public infrastructures Community, agencies, organizations Entitlements be based on agreed formula and current yield, and market prices of different crops. The compensation rates will be the outcome of consultation and satisfactory agreement with the PEMC. Current market value of materials and cost of labor for structures at the time of compensation and allowance to cover the expense of relocation and loss of income during the transfer. For removable assets, the Project owner will pay all related cost for moving during and after project construction. For cultural places, such as temple structures, temple lands cemeteries and banyan trees, special compensation will be based on the local traditional methodology; the local authority will assist the Project in understanding and implementing this. For this kind of compensation, the Project owner has to allocate money in the resettlement budget for compensation as well. Replaced by the Project in a condition better than pre-project conditions. The full cost of construction, transportation and culturally compatible ceremonies required will be borne by the Project. Implementation Issues Compensation for loss of economic opportunity or income will be based on past average income and paid for a period determined by the local government being the timeframe deemed appropriate to achieve an alternative livelihood or restitution of pre-project state. There are only 2 houses in Boun Neua District located close to land proposed for new Boun Neua Substation, and other 31 structures will be affected. Examples: irrigation water supplies, drainage networks, village or farm access, spiritual or religious land or structures, schools, markets. 51

65 Entitled Type of Losses Entitlements Persons V. Temporary Land Occupation & Impacts on Non-Land Assets during Construction Temporary loss of Land Legal owner or occupant identified during DMS PAFs/APs To Be Determined APs whose land is taken temporarily due to civil works under the Project will be compensated at replacement cost and the cost of restoring land. Impacts on Owner Non-Land identified Assets (crops, during DMS, trees, houses, regardless of structures) tenure status VI. Special Assistance and Allowances for DHs - Relocation Legal owner or Transition subsistence allowance and rebuild occupant house identified and/or during DMS shop on residual or new land; - Loss of 10% of productive land Relocation to new land to rebuild house and/or shop Legal owner or occupant identified during DMS Compensation at replacement cost. This cost will be borne by the Contractors. See Item III and IV Transport allowance 52 Implementation Issues PAFs will sign a temporary occupation contract specifying: (i) period of occupancy; (ii) formula for calculation of production losses; (iii) frequency of compensation payment, and (iv) Land protection and rehabilitation measures. The DHs are entitled for replacement of houses and structures, livelihood rehabilitation and compensation to loss of 187 planted trees in their residential areas. The 187 planted trees compensation cost in cash is in item IV for fruit trees in table for breakdown cost for Module 3. The residential land of 1,731 m 2 will be compensated as replacement at new site. The estimate compensation cost for houses and structures will pay in 2 portions: 1. Cost for buying new construction materials for new re-assemble houses and structures in an amount of: 42,636,000 LAK equal to 5,330 USD. 2. Cost for Allowances for Relocation and Livelihood Rehabilitation in an amount of: 78,486,000 LAK

66 Type of Losses Not relocation but rebuild house/structu re/shop Entitled Persons Legal owner or occupant identified during DMS Repair allowance Entitlements VII. Special Measures for Poor and Vulnerable People Impacts on Vulnerable AP - To be prioritized for recruitment of civil vulnerable AP works of the project Implementation Issues equal to 9,810 USD. The details of the cost for allowances for relocation and livelihood rehabilitation are as follows: i. Cash payment for dismantle, moving moveable assets and rituals for each household at 300 USD; ii. Support for land preparation at new relocation site at the rate of 1,200 USD/ha for 2 households; iii. Houses and structures re-assemble for 2 DHs at the rate of 36 USD/m 2 or 288,000 LAK/m 2. This is the average labor cost for building this house category. iv. Support the electrification of new house at the rate of 1,000,000 LAK per household. v. Support the water connection to district water supply at 500,000 LAK per household. vi. Food support during the transition period (16 kg of milled rice/person/month for 3 months. Vulnerable AP include ethnic minority groups, womenheaded households, children, households headed by the disabled, the elderly, landless and the poor 53

67 8 RELOCATION OF HOUSING AND SETTLEMENTS The relocation of the 2 DHs at Boun Neua District from the new substation area is to be implemented as follows: i. The DESMC and VESMC as the supervisors and the implementation bodies of the RAP in collaboration with EdL team will find out the most appropriate land and location for the 2 DHs with the same area of 1,731 m 2 for replacement. The new land location will be within the current Phiengdokkham village boundary. It will depend on the availability of vacant site. ii. When the agreements on compensation cost and on new location are signed, the relocation process will be planned and it will depend on the start of Boun Neua Substation construction. The site preparation will be finished before the house and structures dismantle. The DHs will get allowances and be responsible for moving process. The moving process will be partly not at one time. After finishing land preparation, the DHs will start dismantle their current houses and move the construction materials to new site and then start building new houses as they still continue to stay at current place. When the construction finishes, the electricity and water connection complete, they can movie in. After that they can dismantle and move all other structures to the new site. iii. The land tenure and land use rights certificate will be granted by the Land Authority to all AHs. iv. The 2 AHs will get allowances for dismantle, transportation of moveable assets and ritual performance at the rate of 300 USD/hh. They will get allowance for rebuilding their houses and structures. v. The new houses of 2 AHs will be connected to city electricity grid and water supply by the project developer. vi. The relocation of 2 DHs will be within the same village boundary. The population living neighboring are well acquainted even relatives so the integration will be smoothly. In addition, while moving into new house Lao people will organize rituals and gatherings of relatives and neighbors. This will help good integration. Besides, the displaced households also get additional assistances as described in Section

68 9 RESETTLEMENT BUDGET AND FINANCING PLAN 9.1 ARRANGEMENT FOR VALUING AND DISBURSING COMPENSATION Compensation payments for buildings, land and other assets of the affected households will be based on the result of DMS, the valuing estimation of the compensation will be provided based on the policies described in this RAP. Determining the value and disbursing compensation for APs should include these activities and documentation: - Exact alignment of the Project site due to the transmission line construction; - Local consultation needs to be completed; - Agreement between authorities and APs on the alignment of RoW; - Impact evaluation and affective recording by EdL and related PRCs; - Cost estimation of the affected structures and land and forest have to be based on the actual data and related laws and regulations of resettlement and compensation; - Compensation in cash for APs assets will be paid to the individual APs; - Payment documentation will be prepared before compensation proceeds. In the case of partially affected land or houses, some affected owners could receive compensation in cash for those objects without moving to the new relocation area. The compensation process will be implemented with the agreement of the APs and related sectors. In case the compensation is not satisfactory to the APs, the grievance redress mechanism will be applied as described in Chapter 5 of this report. 9.2 COSTS OF MITIGATING INVOLUNTARY RESETTLEMENT IMPACTS The cost estimated for compensation to all losses and resettlement monitoring for the GMS NPTP for all modules as described in following tables. 55

69 i. Total Estimate Cost for Compensation, Relocation Allowance and Livelihood Rehabilitation Assistance for Module 3: Boun Neua Namor Module 3: BN - NM Phongsaly Oudomxay Unit Unit Price Total Total Last Estimation Boun Neua Boun tai Namor m2 LAK LAK USD I Types of Houses/Structures 1 House No ,000 38,871,000 4, House No ,800 34,986,000 4, Kitchen ,000 31,080,000 3, Toilet , Rice Barn ,000 2,200, Rice Mill ,000 1,800, Poultry pen ,000 1,400, Pig pen ,000 2,550, Fence (m) ,000 4,655, Total Estimate cost for compensation of Affected Assets of 2 Ahs at Boun Neua Substation Area: 117,542,000 14, rst Portion of the cost will cover the Allowances for relocation and livelihood rehabilitation: 78,757,000 9, nd Portion of the cost will cover the expenses for new construction materials for replacement: 38,785,000 4, II Allowances for Relocation and Livelihood Rehabilitation 1 Dismantle, moving moveable assets and rituals 2 9,335,000 1, Land Preparation and documentation (m2) 1,731 10,000 17,310,000 2, House and structures Reassemble ,900,000 3, Electrification 50 30,000 1,500, Water supply 40 20, , Support of Food (16 kg of milled rice/person/month for 3 months) ,000 3,072, Support for Livelihood Lost for 3 months ,000 15,840,000 1, ,757,000 9, III Types of Lands m2 1 Construction land 1, , , Rice Field ,152 3,000 3,456, Uplan Rice Field ,128 1,200 3,753, Private Forest ,344 1,200 1,612, Orchard ,368 2,500 5,920, Rubber Plantation ,928 2,500 12,320,000 1, Agarwood Plantation ,962 2,500 14,905,000 1, Eucalyptus Plantation , , Sugarcane Plantation ,408 2,500 3,520, ,534 46,187,400 5, The residential land of 1,731 m2 of 2 Ahs will be replaced at new location by district authority IV Types of Fruit Trees Tree 1 Guava , , Mango , , Jackfruit ,000 1,000, Mak Man > 8 years old ,000 1,100, Mak Man ~ 5 years old , , Longan , , Lemon , , Tamarind , , Mak nord > 8 years old , , Mak nord ~ 5 years old , , Ananas ,500 90, Papaya , , Tea tree , , ,275, V Types of industrial Trees Tree 1 Rubber 4,462 5,962 15,285 25, ,000 3,085,080, , Agarwood ,000 4,620, Eucalyptus ,000 4,200, Bamboo , , ,965 3,094,100, , VI Types of Cultural Sites site 1 Cemetery 1 1 2,400,000 2,400, (Cost for Rituals/ site) Total Estimate Cost for Compensation, Relocation and Livelihood Rehabilitation: 3,266,504, , (Exchange Rate: 8,000 LAK = 1 USD) 56

70 Compensation cost for loss of assets of the 2 DHs Compensation Cost for House No. 1 No. Items Unit Unit Price Total Unit Total (LAK) 1 Dismantle m2 30, ,890,000 2 Transport round 150, ,000 3 Re-assemble m2 120, ,560,000 4 New construction materials m2 79, ,977,000 5 Water pipe instalation m 20, ,000 6 Electric wire connection m 30, ,000 7 Land preparation m2 10, ,400,000 8 Cost for rituals house 50, ,000 9 Support of food (16 kg/prs/mth) prs 128, ,536, Support of livelihood loss House 12,958,000 Compensation cost for m2 617,000 38,871,000 Compensation Cost for House No. 2 No. Items Unit Unit Price Total Unit Total (LAK) 1 Dismantle m2 30, ,100,000 2 Transport round 150, ,000 3 Re-assemble m2 70, ,900,000 4 New construction materials m2 11, ,000 5 Water pipe instalation m 20, ,000 6 Electric wire connection m 30, ,000 7 Land preparation m2 10, ,910,000 8 Cost for rituals house 50, ,000 9 Food support (16 kg/prs/mth) prs 128, ,536, Support of livelihood loss House 15,164,000 Compensation cost for m2 499,800 34,986,000 Compensation Cost for Rice Mill No. Items Unit Unit Price Total Unit Total (LAK) 1 Dismantle m2 20, ,000 2 Transport round 50, ,000 3 Re-assemble m2 30, ,000 4 New materials 850,000 Compensation cost for m2 100,000 1,800,000 Compensation Cost for Kitchen No. Items Unit Unit Price Total Unit Total (LAK) 1 Dismantle m2 30, ,520,000 2 Transport round 150, ,000 3 Re-assemble m2 190, ,960,000 4 New Materials Kitchen 12,450,000 Compensation cost for m2 370,000 31,080,000 57

71 Compensation Cost for Rice Barn No. Items Unit Unit Price Total Unit Total (LAK) 1 Dismantle m2 20, ,000 2 Transport round 50, ,000 3 Re-assemble m2 30, ,000 4 New materials barn 1,050,000 Compensation cost for m2 100,000 2,200,000 Compensation Cost for Chicken Pen No. Items Unit Unit Price Total Unit Total (LAK) 1 Dismantle m2 10, ,000 2 Transport round 25, ,000 3 Re-assemble m2 15, ,000 4 New materials pen 675,000 Compensation cost for m2 50,000 1,400,000 Compensation Cost for Pig Pen No. Items Unit Unit Price Total Unit Total (LAK) 1 Dismantle m2 15, ,000 2 Transport round 25, ,000 3 Re-assemble m2 20, ,000 4 New materials pen 1,050,000 Compensation cost for m2 60,000 2,580,000 58

72 ii. Total Estimate Cost for Compensation and Relocation of Structures for Module 2A: Paklay - Xayabury Module 2A: PL - XBR Xayabury Unit Unit Price Total Total Xayabury Phieng Paklay Hut LAK LAK USD I Houses/Structures 1 Rice Hut ,500,000 27,000,000 3, (Relocation cost of Huts) II Types of Lands m2 LAK LAK USD 1 Construction land , Rice Field ,048 6,750 13,824,000 1, Uplan Rice Field , , Private Forest ,568 2,250 12,528,000 1, Orchard , , Rubber Plantation , , Agarwood Plantation , , Eucalyptus Plantation , , Teakwood Plantation ,368 2,500 5,920, Maize Plantation ,824 2,250 13,104,000 1, Casava Plantation , , Banana Plantation - 2, Makdeuai , , ,640 47,264,000 5, III Types of Fruit Trees Tree 1 Mango ,000 9,250,000 1, Jackfruit , , Mangosteen , , Monkhai , , Lemon , , Tamarind , , Coconut , , Lee Chee , , Longan , , Guava , , Banana ,000 5,250, ,850,000 2, IV Types of industrial Trees Tree 1 Rubber ,000 50,985,000 6, Agarwood ,000 16,200,000 2, Mai Dou/Mai Tae ,000 28,500,000 3, Teakwood 4,400 3,987 3,737 12,124 90,000 1,091,160, , Mai Ngiew ,000 35, Bamboo (Mai Sangphai) ,000 1,200, Bamboo (Mai phai) , , ,952 1,188,950, , Total Estimate Cost for Compensation and Relocation of Rice Huts: (Exchange Rate: 8,000 LAK = 1 USD) 1,281,064, ,

73 iii. Total Estimate Cost for Compensation for Module 2B: Paklay Kenthao Module 2B: PL - KT Xayabury Unit Unit Price Total Total Paklay Kenthao Hut LAK LAK USD I Types of Houses/Structures 1 Rice Hut 2 2 1,500,000 3,000, (Relocating Cost/hut) II Types of Lands m2 1 Construction land , Rice Field ,750 6,048, Uplan Rice Field , , Private Forest ,250 1,435, Orchard , , Rubber Plantation , , Agarwood Plantation ,250 2,016, Eucalyptus Plantation , , Teakwood Plantation ,500 1,920, Maize Plantation ,250 1,872, Casava Plantation ,624 2,250 5,904, Banana Plantation ,250 1,584, Makdeuai - 2, ,091,500 2, III Types of Fruit Trees Tree Mango ,000 8,050,000 1, Jackfruit , , Mangosteen , , Monkhai , , Lemon , , Tamarind , , Coconut ,000 50, Lee Chee ,000 2,500, Longan - 50, Guava - 50, Banana - 50, ,950,000 1, IV Types of industrial Trees Tree Rubber ,000 3,630, Agarwood ,000 16,200,000 2, Mai Dou/Mai Tae ,000 23,900,000 2, Teakwood 4,400 3,981 8,381 90, ,290,000 94, Mai Ngiew ,000 35, Bamboo (Mai Sangphai) , , Bamboo (Mai phai) , , , ,175,000 99, V Types of Cultural Sites site Cemetery 1 1 2,400,000 2,400, (Cost for Rituals/ site) Total Estimate Cost for Compensation and Relocation of Rice Huts: (Exchange Rate: 8,000 LAK = 1 USD) 839,616, ,

74 iv. Total Estimate Cost for Compensation for Module 1: Paklay Nonhai Module 1: PL - NH Vientiane Unit Unit Price Total Total Sanakham Meun Hut LAK LAK USD I Types of Houses/Structures Rice Hut 1 1 1,500,000 1,500, (Relocating Cost/hut) II Types of Lands m2 Construction land , Rice Field ,000 3,584, Uplan Rice Field ,500 96, Private Forest , , Orchard , Rubber Plantation , , Agarwood Plantation , , Eucalyptus Plantation , Teakwood Plantation , , Maize Plantation ,800 1,152, Makdeuai ,580 1,800 4,644, ,948 10,704,800 1, III Types of Fruit Trees Tree Mango ,000 78, Jackfruit , , Mangosteen , , Monkhai , Lemon , , Tamarind , , Coconut ,000 1,000, Lee Chee , Longan , , ,438, IV Types of industrial Trees Tree Rubber , , Agarwood ,000 12,000,000 1, Mai Dou/Mai Tae ,000 6,200, Teakwood ,000 12,800,000 1, Mai Ngiew , , Bamboo (Mai Sangphai) , Bamboo (Mai phai) , , ,128,000 4, V Types of Cultural Sites site Cemetery 1 1 2,400,000 2,400, (Cost for Rituals/ site) Total Estimate Cost for Compensation and Relocation of Rice Hut: (Exchange Rate: 8,000 LAK = 1 USD) 50,170,800 6,

75 Budget Plan for Environment Management and Monitoring plan for year 2014 of GMS NPTP No Appendix.No Description Month of year Total Budget plan for Environmental Management and Monitoring I Budget for PEMC and Technical staff of Environmental Office 1 DSA for field work of PEMC and minutes , ,013 2 DSA for field work of PEMC on their minutes with PAPs 1, ,888 3 DSA for field work of Technical staff of Environmental Office 1, , , , ,090 Total 6,120 4,970 sub-total 1 (USD) Total (Perdiem to the PEMC Commiitee and Technical Staffs of Environmental Office) II Administration Expenses 1 Office Stationary ,001 2 Gas oline ,376 3 fee for Environmental certificate sub-total 2 (USD) 3,815 Budget plan for Social Management III Compensation 1 Compensation, Module 1 Contract 1 ADB (Nonhai to Paklay) 6,271 6,271 2 Compensation, Module 2B Contract 2 KEXIM (Paklay-Kenthao) 104, ,952 3 Compensation, Module 2A Contract 2 KEXIM (Paklay-Xayabury) 160, ,133 4 Compensation, Module 3 Contract 2 KEXIM (Boun Neua-Namo) 408, ,313 sub-total 3 (USD) Total (III Compensation Section) 679, ,669 IV 1 Monitoring Monthly Monitoring 5,422 5,422 2 Quarterly Monitoring 5,422 5,422 3 Semi-Annual Monitoring 5,422 5,422 4 Annual Monitoring 5,422 5,422 sub-total 4 (USD) Total (IV Monitoring Section) Total I, II, III, IV Contingencies (10%) All Total 21,688 21, ,162 72, ,478 17,990 17,990 62

76 9.3 SOURCE AND FLOW OF BUDGET The budget for RAP includes compensation and monitoring. The budget for compensation and related activities will be all covered by EdL as the project developer. - Compensation: The EO of EdL will organize community meetings and pay directly to APs under witness of District Agriculture and Forestry Office, District Energy and Mine Office, Village Development Cluster, and Village Heads. - Monitor: PEMC will get budget directly from the EO of EdL for monitoring the project. The flow of budget is described in following figure: ADB Electricite du Laos (EdL) KEXIM Environmental Office (EO) of EdL Monitoring Provincial Environmental Management Committee (PEMC) Compensation Community meeting APs Witness: Provincial Environmental Management Committee (PEMC) District Agriculture and Forestry Extension Office (DAFEO) District Energy and Mine Office (DEMO) Village Development Cluster Village Heads Figure 9-1: Source and flow of budget Note: The budget for compensation and related activities will be all covered by EdL as the project developer. 63

77 10 INSTITUTIONAL ARRANGEMENT The project s institutional arrangement is described in the following figure: ADB Electricite du Laos (EdL) KEXIM Ministry of Natural Resources and Environment (MoNRE) Forest Clearing Committee Project Implementation Consultant (PIC) External Monitoring Organization (EMO) Contractor Project Management Unit (PMU) Provincial Environment Management Committee (PEMC) District Environment and Social Management Committee (DESMC) Grievance Redress Committee Compensation Committee Social Development Committee GMS NPTP EO Village Environment and Social Management Committee (VESMC) Working relation APs Consisting of Figure 10-1: Organizational Chart 10.1 EXECUTING AGENCY: ELECTRICITÉ DU LAOS EdL is the Executing Agency (EA) of the Project. EdL is responsible for realization of the Project, including resettlement policy framework MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT (MONRE) MoNRE will be responsible for the review and monitor of the updated IEE, EMP and RAP. MONRE staffs will join in PEMC s activities as arbiter. MONRE will send staffs to monitor the project 2 times per year during implementation of the EMP and RAP. Thus EMO must give them report before their mission PROJECT MANAGEMENT UNIT (PMU) PMU has been established right after the project was commenced. PMU has direct responsibility and day-to-day management oversight for implementing all aspects pertained to the Project s works, including planning, programming, budgeting, design, implementation, monitoring, evaluation, ensuring overall project s coordination and supervision of resettlement activities and coordination/liaison with the donors. 64

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