.~~~IO O12O RP82 OF VIT NAM ~~~ELECTRICITY. RESETTLIEMENT ACTION PlAsN (RAP) (FINAL REVISION) \} \ PECC4 POWER ENGINEERING CONSULTING COMPANY 4

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized X RP82 VOL. 20 ~~~~~SOCIALIST REPUBLIC OF VIET NAM OF VIT NAM \} \ ~~~ELECTRICITY PECC4 POWER ENGINEERING CONSULTING COMPANY 4.~~~IO O12O. ~~~~~~~PROJECT: DOC SOI - QUANG NGAI 220kV TRANSMISSION LINE FEASIBILITY STUDY REPORT RESETTLIEMENT ACTION PlAsN (RAP) (FINAL REVISION)

2 SOCIALIST REPUBLIC OF VIET NAM ELECTRICITY OF VIET NAM PECC4 POWER ENGINEERING CONSULTING COMPANY 4 SO 900:2000 PROJECT: DOC SOI - QUANG NGAI 220kV TRANSMISSION LINE FEASIBILITY STUDY REPORT RESETTLEMENT ACTION PLAN (RAP) (FINAL REVISION) Head of Department : Nguyen Kim Dong Head of Project Design: Nguyen Thanh Hai Khanh Hoa Province, October 2005 FOR AND ON BEHALF OF POWER ENGINEE LTING COMPANY 4 UYEN HUU TAP DEPUTY DIRECTOR

3 UNITS Units of Length m meter km kilometer Units of Area square meter m 2 km 2 square kilometer Units of Mass kg kilogram Units of Energy kwh kilowatt-hour MWh megawatt-hour GWh gigawatt-hour Units of Temperature C : degree Celsius or Centigrade Units of Electricity W watt KW kilowatt MW megawatt GW gigawatt A ampere V volt kv kilovolt kva kilovolt ampere MVA megavolt ampere Mvar megavar (mega volt-ampere-reactive) ohm Units of Time s second min minute h hour FS on Doc Soi - Quang Ngai 220kV transmission line 3

4 d m y Units of currency: VND US$/USD day month year Vietnam Dong US Dollar FS on Doc Soi - Quang Ngai 220kV transmission line 4

5 SUMMARY 1. Policy framework 2. Project impacts 3. Compensation policy 4. Public consultation 5. Grievance 6. Management organization 7. Implemetation schedule 8. Cost estimate 9. Information deiisemination CONTENTS CHAPTER 1: GENERAL INTRODUCTION 1.1 Basis of the report 1.2 Objectives and proposals 1.3 Validity of RAP implementation 1.4 Description of the project 1.5 Project impacts on land and assets 1.6 Project impacts mitigating measures on land and assets Total project cost CHAPTER 2: IMPLEMENTATION ORGANIZATION AND LEGAL 17 FRAMEWORK FOR COMPENSATION AND RESETTLEMENT 17 * 2.1. Institutional arrangements Organizational responsibility 2.3. Staffing organization and responsibilities Legal framework CHAPTER 3: ENTITLEMENT POLICY Definition of PAP and limitation to eligibility FS on Doe Soi - Quang Ngai 220kV transmission line 5

6 3.2 Resettlement and compensation principles Eligibility to get compensation entitlements Entilement policy 3.5 Impacted categories CHAPTER 4: SOCIO-ECONOMIC SITUATION OF PROJECT AREA 32 AND THE PROJECT IMPACTS 4.1 The socio-economic condition of project area Project impacts CHAPTER 5: PULIC PAR TICIPA TION AND CONSULTA TION Objectives of information campaign and consultation program Consultation and inform to people 5.3 Information dissemination and PAPs'consultation 38 CHAPTER 6: COMPLAINTS AND GRIEVANCE 40 CHAPTER 7: MONITORING AND SUPERVISION Internal monitoring 7.2 Independent monitoring CHAPTER 8: IMPLEMENTATION ORGANIZATION FOR 44 COMPENSA TIONAND RESETTLEMENT PLAN 8.1 Measures for the project implementation Announcement to PAPs Compensation and Resettlement deadlines RAP implementation process 8.3 RAP implementation schedule CHAPTER 9: COSTS AND BUDGET 9.1 Budget 9.2 Compensation price determination Project Land FS on Doc Soi - Quang Ngai 220kV transmission line

7 9.2.3 Trees and crops 9.3 Compensation cost estimate Compensation cost Cost for RAP establishment Management cost Monitoring cost Reserved cost 9.4 Total cost for RAP implementation CHAPTER 10: CONCLUSIONAND PROPOSALS Conclusion 10.2 Proposals APPENDICES Annex 1: Entitlement matrix Annex 2: Inventory of project affected households for Dung Quat 220kV 68 substation Annex 3: Entitlements of project affected households 67 Annex 4. Socio-economic household data sheet of PAPs 74 Annex 5: Minutes of public consultation FS on Doc Soi - Quang Ngai 220kV transmission line 7

8 SUMMARY Implementing the Vietnamese Communist Party's policy on the national industrialization and modernization program, EVN decided to use the loan of WB to invest in the Project "System Efficiency Improvement - Equitization and Renewable Energy" (3680-VN). One of its component is Doc Soi - Quang Ngai 220kV transmission line project with total route length of 60,303m through territory of Binh Son, Son Tinh, Nghia Hanh, Tu Nghia and Mo Duc districts of Quang Ngai province. Doc Soi - Quang Ngai 220kV transmission line project is constructed in-line with Doc Soi 220kV outgoing feeder at Doc Soi 220kV substation and Quang Ngai 220/lOkV substation in order to perfect the power grid, increase the transmission capacity on the line and the reliability, safety and continuity in power supply for Quang Ngai province and adjacent areas and furthermore, increasing the economical nature in operation. In addition, the construction of this project also aims to wait in front for receiving the electricity power source from Thuong Kon Tum HPP (expected to put into operation in 2010) for intermediate transport the electricity power of the plant into the national power grid. This makes contribution to upgrade the electricity power quality, creating the 220kV grid connection in provinces of Quang Nam, Binh Dinh and Western Highlands area, increasing the stability of power system, making the distribution and supporting of the power supply capacity in the system safer and more flexible. 1. Policy framework The plan on project compensation and resettlement is established based on Decree 197/2004/ND-CP dated December 3, 2004 of the Government regarding the compensation, resettlement support when the State takes back the land; Decree /ND-CP dated November 16, 2004 of the Government regarding the method to determine the land price and the price framework of land kinds; Decree 181/2004/ND-CP of the Government regarding the implementation of Land Law, etc... and guideline on RAP establishment of WB (the policy framework of unvoluntary FS on Doc Soi - Quang Ngai 220kV transmission line 8

9 resettlement OD 4.30). According to this policy, PAPs are people, households, entities with or without juridical personality for their assets on project impacted land and inventoried before the cut-off-date (May 25th, 2004) are compensated according to the Government's regulations. 2. Project impacts - Permanent land acquisition for construction of the tower foundation (total permanent land acquisition area of the whole project is 29,500m 2 ). - Causing damage to the industrial trees, crops (paddy, peanut, manioc...) and other assets in the tower foundation positions and within ROW Whereas: + Land area of paddy and crops (peanut, manioc...) : 165,300m 2. + Number of impacted eucalyptus tree : 65,020 trees + Number of impacted cashew tree :1,590 trees - Temporary land acquisition when the project is constructed Results of project data collection show that: + There are 100 households with 484 persons affected locate on the safe corridor of line. + No household loses over 25% area of agricultural land + No affect to cultural relics area, preservation area, pagoda and sensitive areas + No ethnic minority household among impacted households. During public consultation process, impacted households were agreed to select the compensation procedure on land and assets in cash. 3. Compensation policy The ending date of survey is May 25 th, The price for making compensation on land, assets and crops is based on the compensation unit price of Quang Ngai Provincial People's Committee. All impacted households are entitled according to the policy framework and Vietnam Decrees. Up till now, the survey result and damage inventory shows that no remarkable impacts to people, the community and the public assets. As a result, it is unnecessary to have economical recovery measures. FS on Doc Soi - Quang Ngai 220kV transmission line 9

10 4. Public consultation PAPs consultation to get feedback comments will restrict the contradictions and delay when implementing the project. The resettlement plan will be implemented following to the reference comments from the authorities and people in order to maximize their participation in the resettlement plan and implementation as well as socio-economical benefits. The authorities and people are consulted in line route location, the resettlement policy, implementation of RAP and grievance mechanism. 5. Grievance During project implementation, grievances of impacted people will be solved based on Vietnam law. All grievances will be solved equitably and the grievances procedures will be guided by related authorities. The griever will pay no cost for this grievance. CPPMB and the local authority are responsible for monitoring the RAP implementation process. In addition, an independent consulting agency will be assigned to supervise independently and appraise the compensation and resettlement implementation process in accordance with the policy stated in this dossier. This agency can be selected and awarded the contract by the PMB after the approved resettlement plan or selected and awarded the contract by WB. The supervising activities are implemented from the beginning of project implementation stage. This independent supervising agency will report to PMB or WB about its results of supervising activities. 6. Management organization CPPMB is the project coordinating unit and cooperates with other agencies such as the Provincial People's Committee, Power Company of Quang Ngai province and WB in implementing detailed works of project, especially the RAP implementation plan. 7. Project implementation schedule Technical investigation, establishing and submitting the construction drawing for approval: :04/ /2005 Establishing the site claerance documents and asking for compensation land: 09/ /2005 Establishing and submitting the bidding documents for approval (if any): 01/ /2006 FS on Doc Soi - Quang Ngai 220kV transmission line 10

11 Procurement of materials and equipment :11/2006 * 05/2007 Construction, revision, testing, hand-over : 02/ /2007 Commissioning and putting the project into operation : 12/ Cost estimate Total project compensation cost is about VND 10,266,778,900 (or USD 649,796). Total investment cost of the project is VND 164,032,602,000 (or USD 10,381,810) 9. Information dissemination The draft RAP will be disclosed in Quang Ngai province and the Information Development Center of WB (VDC) at 63 Ly Thai To, Ha Noi. CPPMB will send copies of entitlement statement form to the authority of project district. All feedbacks from the local authority and people are considered and supplemented into the RAP. FS on Doc Soi - Quang Ngai 220kV transmission line 11

12 CHAPTER 1 GENERAL INTRODUCTION 1.1 THE BASIS OF THE REPORT RAP report on Doc Soi - Quang Ngai 220kV transmission line is established based on the followings: + Correspondence No. 1095/EVN/KH-HDQT concerning the assignment of Feasibility Study establishment of projects which are expected to be financed by WB, in which CPPMB is the Owner on behalf of EVN. + The contract signed between CPPMB and PECC OBJECTIVES This report is set up with the purpose: + The overall objectives of RAP are to determine the compensation and resettlement program on basis of minimizing affected households and assets. Where unavoidable, the program will set out provisions to ensure and help affected households to improve or at least to maintain their pre-project conditions. + Helping to choose the right design alternative, minimize the degree of damage at the implementation of project and ensure the highest socio-economic interests of the project. During the project establishment, when implementing the survey of livelihood-economic-social damage of project area, there was the agreement with local authority concerning the policy on compensation and resettlement for PAPs. The survey and data collection work mainly focuses on the ROW. Where unavoidable, the program will set out provisions to ensure and help affected households to improve or at least to maintain their pre-project conditions. The objective of the Resettlement Policy is: All PAP's residing, working, doing business or cultivating land in right-of- way (ROW) of transmission line (T/L), surrounding areas of tower foundation, the substation areas, in the service roads under the Project as of the date of the baseline surveys are entitled to be provided with rehabilitation measures sufficient to assist FS on Doc Soi - Quang Ngai 220kV transmission line 12

13 them to improve. Lack of legal rights to the assets lost will not bar the PAP from entitlement to such rehabilitation measures. During RAP preparation, Decrees and Circulars of Vietnamese Government such as Decree 197/2004/ND-CP, Decree 181/2004/ND-CP, Decree 188/2004/ND-CP, etc and Decisions about compensation unit price issued by the provincial people's committees are applied. The entitlement policy in this RAP are suggested as follows: + Apply a compensation rate according to the market price or replacement price: Compensation of land and crops (short-day trees) at market price. Compensation of houses and trees (perennial trees) at conversion price. + All affected properties are legible from the cut-off-date (25/5/2004). The affected households who have been registered will be compensated. This RAP will be furnished to GOV and WB for concurrence 1.3 VALIDITY OF RAP IMPLEMENTATION Resettlement and compensation program for PAPs, policies and provisions on resettlement and compensation entitlement in RAP will only be applied after approval of WB and GOV. To meet RAP's objectives such as minimizing the resettlement and land acquisition, PAPs will be supplied the information on project, compensation and resettlement, the compensation costs will be paid at replacement cost or market cost. Thus, before implementing resettlement and compensation program, the project owner and local authorities should check and revise the applied compensation costs in this report. If there is any compensation unit price non-conforning at the time of program implementation, the local authorities and Resettlement and Compensation Board (RCB) need to revise them to ensure sufficient compensation payment for PAPs according to principles stated in RAP. 1.4 DESCRIPTION OF THE PROJECT Project location * Location: Doc Soi - Quang Ngai 220kV transmission line project with total length as per the expected alternative of 60,303m goes through territory of 5 districts namely Mo Duc, Tu Nghia, Nghia Hanh, Son Tinh and Binh Son, Quang Ngai Province. FS on Doc Soi - Quang Ngai 220kV transmission line 13

14 * Scale of the project - Total route length : 60,303m - Voltage level :220kV - Number of circuit : 02 circuits (only 1 st circuit is made in I" phase) - Width of ROW 21.2m - Conductor Aluminum steel reinforced conductor, code ACSR- 400/51 with grease layer for anti-erosion. - Ground-wire : Using composite optical fiber overhead ground-wire OPGW-68 on line route, for incoming section and outgoing section of 220KV substation suspended another ground-wire GSW-70, length of each section is about 2km. -Insulator using glass insulator or equivalent standard with antierosion zinc circle. Electro-mechanical load of suspension string is 7000daN and tension string is dan. The creepage distance of suspension disc is 295mm and tension disc is 340mm. - Towers steel tower with hot dip galvanizing, linked by bolts, domestic manufacturing. - Arms Manufacture arms with towers all-in one block - Foundation : using two types of foundation: raft foundation for weak soil and pier foundation (4 piers for each position) for good soil. 1.5 PROJECT IMPACTS ON LAND AND PROPERTIES a. Permanent impacts: - Permanent land acquisition for tower foundations, etc... total permanent land acquisition area of the whole project is 29,500m 2. b. Temporary impacts: - Trees, crops (peanut, manioc...) of all types within ROW and construction temporary road. - Trees, crops around the tower foundation construction areas. ROW of the OHL is regulated in Decree 106/2005/ND-CP dated 17/8/2005 of the Government concerning the detailed regulations and guidelines on implementation FS on Doc Soi - Quang Ngai 220kV transmission line 14

15 of some articles of the Electricity Law pertaining to the safe protection of high voltage power network. With the above characteristics, acquired land for the project includes of: - Permanent acquisition land area : 29,500m 2. - Temporary acquisition land area in ROW : 1,278,424m 2. - In the area of the project Doc Soi - Quang Ngai 220kV line, there are 100 households with 484 persons affected locate on the safe corridor of line. 1.6 PROJECT IMPACTS MITIGATION MEASURES ON LAND AND PROPERTIES Selection of rational line route: For the investigation and design of line route completely avoid passing: - Market areas, densely populated areas. - Airport, military areas, petrol warehouse - Near or parallel with communication system - Temple, pagoda - Protection forests, natural preserved areas, historic and cultural heritage, etc... - In addition, the route line is designed with direction conversion many times, creating many turning angles with high values, crossing roads many times in order to avoid affecting to houses and works. Technical solutions: Rational design of tower span, foundation structure is designed with different measures in conformity with the chosen site. Design a rational work execution alternative, choose time for work execution at periods of harvest and complete work when next crop is not yet cultivated (land is at rest). If the cultivated period cannot be avoided then manual construction measures are used in order to diminish the surface of land acquired for work execution, road for big trucks are not constructed, organize work according to many shifts at high productivity, reducing the time of lay-out acquisition. During the process of stringing conductor, make scaffold and pull conductor neatly on belt of land about Sm to avoid causing damages of trees and agricultural crops. Make definitely each item of work, each part of route line to reduce the time of FS on Doc Soi - Quang Ngai 220kV transmission line 15

16 land appropriation. Make full use of the existing roads for transportation of equipments and for other purposes during the time of work execution, limiting the construction of new road. During investigation and work execution process, the workers's camps (if any) are set up on vacant lot, on communal office area, not on private land or cultivated land. The result of these mitigating measures is that affected houses and land on the line route are the least. 1.7 TOTAL PROJECT COST Unit: VND Item Item content Amount (VND) 1 Construction cost 109,990,350,000 2 Equipment cost 3,861,528,000 3 Other cost 35,268,669,000 4 Contingency cost 14,912,055,000 5 Tota investmw cost ( ) 164,032,602,000 FS on Doc Soi - Quang Ngai 220kV transmission line 16

17 Resettlement Actio n Plan (RAP) CHAPTER 2 IMPLEMENTATION ORGANIZATION AND LEGAL FRAMEWORK FOR COMPENSATION AND RESETTLEMENT Project Management Board and Local Authority of all levels will be responsible for implementing RAP. It should be on schedule, suitable with approved schedule for the project. The coordination between the project owner and local authorities will be made closely in order to ensure entitlements for PAPs and to avoid the interruption or delay of RAP implementation. 2.1 INSTITUTIONAL ARRANGEMENTS The following institutions/agencies will be involved in implementing RAP: - Electricity of Viet Nam (EVN) - Quang Ngai Provincial People's Committee - Project Management Board - Central Power Projects Management Board - Consultant Company - Power Engineering Consulting Company No.4. - Department of Finance and Goods Price of Quang Ngai Province - Land Clearance Board of Quang Ngai province - People's Committees of affected districts: Binh Son, Son Tinh, Tu Nghia, Nghia Hanh and Mo Duc, Quang Ngai province. - Land offices of the above project districts. - Land clearance Committees of the above districts - People's Committees of project affected communes - Project affected persons 2.2 FUNCTIONS, TASKS FORCE AND RESPONSIBILITY *: Electricity of Viet Nam (EVN) EVN is the owner of the project and is responsible for managing and organizing of investment policy, investigation, design, construction as well as supervision for RAP implementation. EVN controls the project preparation and implementation via professional agencies, approving decisions concerning resettlement work submitted by PMB; assigning Central Power Projects Management Board (CPPMB) to directly manage the whole process of project implementation. FS on Doc Soi - Quang Ngai 220kV transmission line 17

18 * Project Management Board (PMB) Central Power Projects Management Board is assigned by EVN in directing the whole project including the implementation of RAP from impact survey, inventory, making plans for RAP implementation. Main tasks of PMB will be: + Making Master Plan, management and supervision of land clearance implementation to ensure full determination of relating PAPs, set out satisfied entitlements as per land clearance policy. + To ensure that all PAPs are announced of applied policies for RAP preparation. Entitlements of PAPs, project information and RAP are popularized under announcement form. This is considered the proof of their entitlement towards interests of RAP work. + Disseminate project information to PCs of all levels + Send RAP to Resettlement Committees, explaining applied models and entitlements in the project. + Supervision/monitoring for compensation payment, coordinate to implement land acquisition and site clearance. + Independent monitoring for RAP implementation, assigning an experienced and competent agency to do this. + Report the implementation process on land clearance work to EVN and WB. To meet this responsibility, PMB needs to establish a department or a group including experienced officers to monitor RAP and environment implementation. *. Quang Ngai Provincial People's Committee (PPC) PPC is the agency approving and directing matters concerning the RAP within the provincial area. The Project PPC are responsible for: * Directing departments, branches and local areas in province related to RAP preparation and implementation such as Land Department, Construction Department, Department of Finance and Goods Price and project affected DPCs. * Approving the costs of compensation in provincial area. * Approving dossiers of land delivery and recovery in provincial area. * Establishing Provincial Resettlement and Compensation Committee and directly manages the activities of this Board. FS on Doe Soi - Quang Ngai 220kV transmission line 18

19 * Directing and managing the coordination between Branches and local authorities in RAP implementation. * Department of Finance and Goods Price of Quang Ngai Province To be responsible for issuing detailed compensation unit prices applied in the provincial area. During the implementation process, Department of Finance-Goods Price needs to make cooperation with other departments such as Construction Department, Land Department, Department of Agriculture and Rural Development and People's Committee of Districts in order to establish the compensation unit price for premises, land, trees and crops. *: Compensation Committee of Quang Ngai province This Committee is decided to be established by Chairman of Provincial People's Committee in order to implement the duties regulated by the Provincial People's Committee. When implementing the compensation, assistance and resettlement (if any), it should have the participation of the Owner, representative of leaders from the Commune People's Committee Provincial where the land was recovered and representatives of households whose land was recovered. * People's Committees of affected Districts. Being responsible for guiding compensation and resettlement activities in district responsible for: + Creating good conditions and coordinate with relating agencies in survey, inventory of project impact; organize community consultation activities, information dissemination on the project implementation policy and land acquisition plan to people of district where project constructed. + Establishment of Resettlement Committee of District + Directing and monitoring RAP activities within areas managed by district + Solving relating matters during RAP implementation together with Resettlement Committee of district. *. Resettlement Committees of affected Districts The provincial PC assigns the districts to implement the compensation, assistance and resettlement. The Resettlement Committee of districts (Council of FS on Doc Soi - Quang Ngai 220kV transmission line 19

20 compensation, assistance and resettlement) is decided to be established by the Chairman of District PC and responsible for: * Establishing the alternative of compensation, assistance and resettlement (if any) within district area. * Advising the district PC in approval of compensation, assistance and resettlement alternatives. Checking the unit prices of compensation stated in RAP, suggest adjustment to comply with market prices at the plan implementation period. * Co-ordinating with PMB, consultant agency to organize RAP meetings in local section and organize community consultation together with project owner. * Directly make payment on compensation and allowances to PAPs in a timely manner. * Settling the complaints and grievances of PAPs, solving any difficulties during the implementation period, and suggest the solutions for the outstanding issues to Provincial Resettlement Committees and Owner. * Making monthly report and send them to PRCs, Owner and Chairmen of DPCs. Resettlement Committee of district will be headed by leader of district PC and consists of following members: - Leader of Finance - Planning Department: Vice Head - The Owner: standing member - Representative of Natural Resources and Environment Department: member - Representative of Industry and Commerce Department: member - Representative of Leader of District Tax Department: member - Representative of Leaders of affected Communes: member - Representative of PAPs and some other members decided by Head of the District Resettlement Board in order *to comply with the real situation. Staffs of Resettlement Boards of Districts will work concurrently and enjoy allowances according to DPC's decision. Assistants work during the project implementation and get salary during the work period. FS on Doc Soi - Quang Ngai 220kV transmission line 20

21 *. People's Committees of affected communes * Contributing to Overall Detailed Measurements Surveys. * Co-ordinate with Resettlement Committees of districts for classifying impacted assets, determine the legality and legibility of assets. * Certify affected assets in general survey for compensation dossier of each household (in the survey note). * Assisting local people in overcoming the difficulties during the process of construction or rehabilitation of damages caused by project implementation. Making public information about the project and disseminating policies in RAP. *: Project Affected Persons (PAPs) * Directly participate in the general survey, consider thoroughly their entitlement and responsibility policy. After getting full entitlements, PAPs should transfer the construction surface on time. * Propose expectation, requirement for the above mentioned institutions and monitor their implementation. 2.3 STAFFING ORGANIZATION AND RESPONSIBLES Table 2.1: Responsibilities of RAP implementing Institutions No. Activities Institutions Organizing meetings with PAPs to Land Clearance Committee 1 disseminate information about RAP implementation Monitoring and certifying impacted Project Management Board and 2 households and their assets Resettlement Committee of district coordinate with affected Commune ^People's _ Committees Project Management Board coordinates 3 Detailed measurement survey with Commune People's Committee and relevant Units of local authority. 4 Informing for PAPs Project Management Board 5 Decision on compensation problems Compensation Committee 6 Compensation payment Compensation Committee and Project Management Board 7 Internal Monitoring Project Management Board Department of Natural Resources and. Independent MonitorEnvironment or provincial socio-science 8 Independent Moitoring Units selected by Project Management Board. FS on Doc Soi - Quang Ngai 220kV transmission line 21

22 2.4 LEGAL FRAMEWORK This is a project with loan from World Bank so the legal grounds applied will be a combination of Vietnam and WB policies. a. Legal documents of Vietnam: * The Constitution of Vietnam, 1992 confirms the right of citizens to own a house and to protect the ownership of the house. * According to Vietnam Law on land passed by National Assembly Term XI, Session IV on November 26 th, 2003 and come into force from July Ist, * Decree No.197/2004/ND-CP issued by GOV on December 3rd, 2004 regulates compensation, resettlement support for recovered land by GOV. * Circular No.1 16/2004/TT-BTC issued December 7th, 2004 by the Ministry of Finance provides guidelines to implement Decree No.197/2004/ND-CP issued by GOV on December 3rd, 2004 regulates compensation, resettlement support for recovered land by GOV. * Decree No 188/2004/ND-CP of November 16th, 2004 on the stipulation of method to determine the land price and the frame for the price of land types. * Circular No.1 14/2004/TT-BTC issued November 16th, 2004 by the Ministry of Finance provides guidelines to implement Decree No 188/2004/ND-CP of November 16th, 2004 on the stipulation of method to determine the land price and the frame for the price of land types. * Decree No.18 1/2004/ND-CP issued by the GOV concerning the implementation of Land Law. * Decree No.182/2004/ND-CP dated 29/10/2004 issued by the GOV concerning the land price calculation method and the land price framework. * Decree No.198/2004/ND-CP dated 03/12/2004 issued by the GOV concerning the collection of land use charges. * Decree No.17/2001/ND-CP issued by the GOV concerning the regulation on management and using the ODA capital. FS on Doc Soi - Quang Ngai 220kV transmission line 22

23 * Decree No.105/2005/ND-CP dated 17/8/2005 issued by the GOV concerning the detailed regulations and guidelines on implementation of some articles in the Electricity Law. * Decree No.106/2005/ND-CP dated 17/8/2005 issued by the GOV concerning the detailed regulations and guidelines on implementation of some articles in the Electricity Law pertaining to the safe protection of high voltage network. b. World Bank Policy on Involuntary Resettlement (OD 4.30) * The primary objective of this policy is to ensure that PAPs who have lost assets are compensated at replacement cost and are provided with recovery measures to help them improve better or at least maintain their standard of life and their income capacity as in pre-project conditions. * The policy framework is established based on the principles and objectives, selection criteria for PAPs, entitlements, legal framework and institutions, mode of rehabilitation and compensation, the participation of people. Furthermore, procedures of grievance will be guided in the process of compensation, resettlement and rehabilitation for PAPs. c. Comparison between Government of Vietnam and World Bank Approaches There are a number of ways in which the approaches of the Vietnam Government - both in policy and practice - are compatible with World Bank guidelines so that PAPs can have legitimate entitlements. The most important compatibilities are: * Vietnam has a process whereby most people without legal land rights may meet conditions of legalization and receive compensation for losses. * Permanent residents are provided with options that include relocation to an improved site, or cash, or a combination of the two. * Resettlement sites offer not only better-improved infrastructure and services but also represent a higher standard of living. * Allowances are provided to help the PAPs in the transition period and there is an institutional structure through which people are informed, can negotiate compensation, and can appeal. Differences between the approaches and measures that need to be addressed within the program also exist. However, in this context, procedures exist within national and FS on Doc Soi - Quang Ngai 220kV transmission line 23

24 province governments that allow the granting of waivers of domestic law on specific projects that may be in conflict with that of the funding agency. d. Required Waivers In order to meet the requirements of the World Bank OD4.30 on Involuntary Resettlement a number of articles in various Vietnamese laws and regulations which do not ensure compensation at replacement cost or set eligibility provisions which do not extend the right to rehabilitation and or assistance to households without proper land paper, will be waived. The articles of law and regulations that will be waived are mentioned below: * Price of Land for Calculation of Compensation According to Vietnam regulations, the calculation of land price for compensation will be based on Decree 188/2004/ND-CP, Decree 181/2004/ND-CP, etc and Circulars No.1 16/2004/TT-BTC, No.1 14/2004/TT-BTC. In order to ensure the objectives of project resettlement policies, the compensation land unit price is established as per Decision No.19/2005/QD-UB dated 07/2/2005 issued by Quang Ngai Provincial People's Committee concerning the regulations on compensation, assistance and resettlement when the State takes back the land; Decision No.31/2005/QD-UB dated 07/3/2005 issued by Quang Ngai Provincial People's Committee concerning the regulations on land price of all types, road classifying, regions of agricultural land in Quang Ngai province and will be adjusted so as to comply with the replacement costs. In addition, when applying the compensation policies, it is necessary to comply with regulations stated in Decree 17/2001/ND-CP dated 4/5/2001 concerning the guidelines on ODA capital management. Item 4, Article 2 of this Decree stipulates that "in case the international agreements on ODA have been signed between GOV and sponsor stipulate different contents, then that international agreements will be followed". FS on Doc Soi - Quang Ngai 220kV transmission line 24

25 CHAPTER 3 ENTITLEMENT POLICY 3.1 DEFINITION OF ELIGIBILITY AND LIMITATION TO ELIGIBILITY Project Affected Persons (PAPs) including people confirmed by data collected from the survey and investigation process as follows: - PAPs have houses which are partially or totally affected (temporarily or permanently) by the project. - PAPs with partial or total impacted residental land or agriculture land by the project, temporarily or permanently. - PAPs with businesses and related income which are partially or totally affected (temporarily or permanently) by the project. - PAPs have crops (annual and perennial) and trees which are partially or totally affected by the project. - Encroachers who settled into the proposed affected area after the cut-off date (25/5/2004) will have no entitlement to compensation and resettlement. They will be required to demolish their structure and cut the trees or harvest their crops for land clearance to the project. In the case necessary, they will be forced to be removed out of the proposed project area. Nevertheless, they do not have to pay any fine or sanction. 3.2 RESETTLEMENT AND COMPENSATION PRINCIPLES The compensation and resettlement plan is established based on fundamental principles, i.e conforming to laws, decrees, policies regulated by Vietnamese Government and WB's guidelines consisting of: 1. Acquisition of land and other assets, and resettlement of people will be minimized as much as possible. 2. All PAP's residing, working, doing business or cultivating land in right of way (ROW) of transmission line (T/L), surrounding areas of tower foundation, the substation areas, in the service roads under the project as of the date of the baseline surveys are entitled to be provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre- FS on Doc Soi - Quang Ngai 220kV transmission line 25

26 project living standards, income earning capacity and production levels. Lack of legal rights to the assets lost should not bar the PAP from entitlement to such rehabilitation measures. 3. The rehabilitation measures to be provided are: (i) compensation at replacement cost, without deduction for depreciation or salvage materials for houses and other structures; (ii) agricultural land for land of equal productive capacity acceptable to the PAPs or in cash at replacement cost according to PAP's choice; (iii) replacement of residential/premise land of equal size acceptable to the PAP or in cash at replacement cost according to PAP's choice; and (iv) transfer and subsistence allowances. 4. Location of resettlement and relocation should be as close as possible to existing residential area of PAPs. 5. The resettlement transition period will be minimized and the rehabilitation means will be provided to the PAPs not over one month prior to the expected start-up date of works in the respective Project site. 6. Plans for acquisition of land and other assets and provision of rehabilitation measures will be carried out in consultation with the PAPs, to ensure minimal disturbance. Entitlements will be provided to PAPs not over one month prior to the expected start-up date of works in the respective Project site. 7. The standard of life, the infrastructure of community must be maintained or improved better than their prior place. 8. Financial and physical resources for resettlement and rehabilitation will be made available and as where and when required. 9. Institutional arrangements will ensure effective and timely design, planning, consultation and implementation of RAP Effective and timely supervision, monitoring and evaluation of the implementation of RAP will be carried out. 3.3 ELIGIBILITY TO COMPENSATION ENTITLEMENT Legitimate PAPs are all the affected households and institutions included in the inventory with or without legal title included in the RAP inventory or able to FS on Doc Soi - Quang Ngai 220kV transmission line 26

27 demonstrate with other means that prior to RAP cut-off date they owned, rented or used land, and properties associated with land as defined in 3.1 item. 3.4 ENTITLEMENT POLICY PAP's will be entitled to the following types of rehabilitation and assistance measures as per the policy framework OD 4.30: * PAP's losing agricultural land and crops (i) The general mechanism for compensation of lost agricultural land will be through provision of "land for land" arrangements of equal productive capacity, satisfactory to the PAP. However, if the PAP prefers to receive cash compensation then the following applies: - if the portion of the land to be lost represents 25% or less than 25% of the total area of the landholding, and the remaining land is still a viable economic holding, cash compensation, at full replacement cost, may be provided to the PAP; or - if more than 25% of a villager's agricultural land is acquired and the remaining holding is not viable then the Project will acquire the entire landholding and provide cash compensation at full replacement cost. (ii) PAP's will be compensated for the loss of standing crops and fruit or industrial trees at market price. Productive trees will be compensated at replacement cost. Fruit trees will be compensated for the remaining harvests. (iii) PAP's whose land is temporarily taken by the works under the each sub-project will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructure. Land will be rehabilitated after the project construction by PMB. * PAP's losing residential land and house/structure (i) The mechanism for compensating loss of residential land and structures will be: (1) the provision of replacement residential land FS on Doc Soi - Quang Ngai 220kV transmission line 27

28 (house site and garden) of equivalent size, satisfactory to the PAP or cash compensation at replacement cost according to PAPs' options; and (2) cash compensation reflecting full replacement cost of the house/structures, without deduction for depreciation or salvage materials or compensate in kind according to PAPs' options. (ii) If residential land is only partially being affected by the Project and the remaining areas are not sufficient for reorganizing PAPs' then at the request of the PAP, the entire residential land will be acquired at full replacement cost. (iii) If house/other structure is only partially being affected by the Project and the remaining areas are not convenient to using, the house/ structure will be acquired at full replacement cost, without depreciation. * PAP's will also be provided compensation at full replacement cost, without deduction for depreciation and salvage materials for any other fixed assets affected in part or in total by the project, such as tombs and water wells, etc. Pursuant to Decree 197/2004/ND-CP issued by the GOV concerning compensation, resettlement support for recovered land by GOV, then PAPs will be supported as follows: - As per Article 27: Transportation allowance Households getting land recovered by GOV must relocate within the province, city are entitled to a maximum of 3 million VND, relocating out of the province are entitled to a maximum of 5 million VND. The level of allowance in details will be regulated by the Provincial People's Committee. Entities getting fully conditions to be compensated on land and assets when being recovered, however they must change the location then they will be supported completely the actual displacement cost, dismantling and installation. People who are recovered the residential land, having no other residential place then within time waiting for rehabilitating the new place, will be arranged in the temporary houses or supported with money for house renting; the time and the support level in details are regulated by Provincial PC in accordance with the local reality. FS on Doc Soi - Quang Ngai 220kV transmission line 28

29 - As per Article 28: Restoration allowance Households, people directly make agricultural production, when being recovered more than 30% area of assigned agricultural land, will be supported for stabilizing the life within 3 months without relocation and within 6 months with relocation; in case relocate in areas with difficult or especially difficult socio-economical conditions then the support time is maximum of 12 months. The support level in cash for one person per month equivalent to 30 kg of rice calculated as per the average price in local region. When the GOV recovers land of economical entities, registered business households and causes business pausing, the maximum support level is 30% of an annual income after tax, according to the average income of three subsequent years before confirmed by the tax agency. The support level in details is regulated by Provincial PC in accordance with the local reality. Furthermore, PAPs are also entitled to other assistances as follows: - As per Article 29: Support for changing the career and creating employment. - As per Article 30: Support for the hirer not belonging to the state ownership Households, people who are renting houses not belonging to the state ownership, when being recovered the land by GOV and must dismantle the house and relocate then will be supported with the displacement cost equivalent to the level regulated at Item I Article 27 of this Decree. Pursuant to the local reality condition, the Provincial PC regulates the support level to stabilize their life and production. - As per Article 31: Support level when recovering the public land of communes, wards or towns.! - Other support such as beside the support regulated in Articles 27, 28, 29, 30- and 31 of Decree 197/2004/ND-CP, pursuant to the local actual situation, the Chairman of Provincial PC decides the other support measures to ensure the life and production stabilization for people who were recovered the land; in special cases, this will be submitted to the Prime Minister for decision. FS on Doc Soi - Quang Ngai 220kV transmission line 29

30 Type of subsidy Forms of subsidy and bonus for PAPs Amount - Displacement subsidy Maximum of VND 3,000,000 for inside province and VND 5,000,000 for outside province. Supporting for the whole cost for dismantling, installation. Supporting the house-renting money (regulated by the Provincial PC) - Subsidy for life and production 30 kg of rice/month/person within 3 stabilization months if not displacing; within 6 months if displacing the accommodation and within 12 months if displacing to the difficult accommodation. Supporting 30% of the income in one year if affecting to the business. - Subsidy for changing career and The impacted household losing over 30% creating the employment area of the agricultural production land will be supported for changing career. - Other subsidy levels Due to the decision of the Chairman of Provincial PC. 3.5 IMPACTED CATEGORIES By the nature of the project impacts as described above and based on the survey of the PAPs the impacted categories are classified into 7 categories. Categorv 1: Temporary acquisition of productive land in ROW. Category 2: Temporary acquisition of residential land and garden land in ROW without houses or structures in ROW. Category 3: Temporary impact on residential and garden land. Partial house/building within ROW (the impacted area is less than 25% but not affect to the common structure. Residential and garden land outside of ROW is sufficient for reorganizing (over 60m 2 in urban area and 1 OOm 2 in rural area). Category 4: Temporary impact on residential and garden land. Impact more than 25% or less than 25% of total house/building area and impact to the common FS on Doc Soi - Quang Ngai 220kV transmission line 30

31 structure. Land outside of ROW is sufficient for re-organizing (over 60m 2 in urban area and 100m 2 in rural area). Categorv 5: Temporary impact on residential or garden land in ROW. House/structure is partially or totally affected. Land outside of ROW is not sufficient for re-organizing (less than 60m 2 in urban area and loom 2 in rural area). Category 6: Permanent land acquisition for tower foundation. Category 7: PAP impacted on business or other services Refer to Appendix 1 for details of impacted categories. FS on Doc Soi - Quang Ngai 220kV transmission line 31

32 CHAPTER 4 SOCIO-ECONOMIC CONDITION OF PROJECT AREA & PROJECT IMPACTS 4.1. Socio-economic condition of project area The natural land surface of Quang Ngai province is 51,352km 2, the population counted to December 31, 2002 is of 1,244,814 people. For administrative organization, there are 180 communes (wards, townlets), 13 districts and 01 town in the whole province. Quang Ngai town is the political, socio-economical center of the province. Transport: the National Road IA of 98km length runs from North to South of the province together with traffic roads disposed evenly on the whole province, connecting areas of materials, industrial zones, plane with the mountainous area serving the transport, exchange goods between province with other regions in the whole country. There is system of sea ports such as Dung Quat and Sa Ky, especially Dung Quat deep water port, sooner and later, will be one of the important gates to the sea of areas of the Central, Western Highlands provinces, Laos and Cambodia via the National Road 24. Infrastructure: In the future, Quang Ngai province will have Van Tuong city, industrial zones such as Tinh Phong, Dung Quat contiguous with Chu Lai open economical zone, etc... Land use situation ofproject districts Total natural area of project districts is 148,266.8 ha in which agricultural land area is of 62,976.6 ha; forestry land area is of 24,136.7 ha; special use land area is of 15,141.6 ha; residential land area is of 3,969.3 ha; area of land not yet used is of 41,748.0 ha and rear & grow land area of ha. Total land area of project districts is summarized at table 4.1. FS on Doc Soi - Quang Ngai 220kV transmission line 32

33 Table 4.1: Total land area of project districts No. Place-name Total (ha) 1 Binh Son district 46, Son Tinh district 34, Tu Nghia district 22, Nghia Hanh district 23, Mo Duc district 21,223.0 TOTAL 148,266.8 Source: Statistical yearbook of project province and districts in 2002 Population ofproject districts Total population of project districts in 2002 is 778,752 people, in which 377,640 males and 401,112 females. Population in the labor age of these districts gets high percentage and this is the labor potential and the advantage of district industrial zones. So it is necessary to have plan on training and development in the future. Table 4.2: Current population situation of project districts No. Place-name Total Sex (people) Male Female 1 Binh Son district 176,286 84,525 91,761 2 Son Tinh district 191,335 93,166 98,169 3 Tu Nghia district 175,105 85,797 89,308 4 Nghia Hanh district 96,308 46,784 49,524 5 Mo Duc district 139,718 67,368 72,350 TOTAL 778, , ,112 Source: Statistical yearbook of project province and districts in 2002 FS on Doc Soi - Quang Ngai 220kV transmission line 33

34 Main characteristics of major economical sectors: + Agriculture, forestry and fish-breeding: Life of people in these productive sectors has much good change, agricultural production value increases compared with the last year, and economical mechanism of agriculture and countryside has right direction transfer (i.e decreasing agricultural rate, increasing rate of forestry, fishbreeding and rear & grow). Development direction of agriculture and countryside economical mechanism: rapidly put technological science advances into agricultural and forestry production (rehabilitation and upgrading the existing water reservancy system, apply technological science in selecting breed for crop plants and rearing animals, put machines into production, etc...). Especially in catching fishes and rear & grow aquatic product, it needs investment in purchasing off-shore ships and boats and apply strictly to process of rear & grow aquatic product as per industrial direction. + Industrial sector: the province has paid attention to develop some advantageous industrial sector such as: the industry of processing agriculture, forestry, aquiculture related to development of material zone, high development of construction material industry beside many preferential policies for enterprises investing capital in industrial zones. The development direction in few years is to give priority to depth investment, renovation of technology equipment, increase quality and decrease cost price of products. 4.2 PROJECT IMPACTS Project impact categories Inventory of project impacts is implemented by PECC4 with coordination and assistance of project local authorities. The ROW for line route is defined according to Decree 106/2005/ND-CP dated 17/8/2005 of the Government concerning the detailed regulations and implementation guideline of some articles in the Law on Electricity pertaining to the safe protection of high voltage power grid. The survey work focuses on: FS on Doc Soi - Quang Ngai 220kV transmission line 34