VIE: Power Transmission Investment Program, Tranche 1 Song May-Uyen Hung Transmission Line

Social Monitoring Report 5 th Independent Monitoring Report January April 2016 VIE: Power Transmission Investment Program, Tranche 1 Song May-Uyen Hung Transmission Line Prepared by the Southern Vietnam Power Projects Management Board for the National Power Transmission Corporation and the Asian Development Bank. This social monitoring report 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. 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.

SEMI ANNUAL REPORT INDEPENDENT MONITORING FOR RESETTLEMENT Project Number: 42039 034 Period: January- April 2016 POWER TRANSMISSION INVESTMENT PROGRAM, TRANCHE 1 220KV SONG MAY-UYEN HUNG TRANSMISSION LINE

TABLE OF CONTENT ABBREVIATIONS...5 1. INTRODUCTION...6 1.1. Project Background... 6 1.2. Project Impacts... 8 1.3. Project Progress... 8 1.4. Assignment of the Consultant... 9 1.4.1. Objectives... 9 1.4.2. Methodology... 9 1.5. The findings of previous report... 9 2. DOCUMENT REVIEW...10 2.1. Project Document... 10 2.2. Legal basis for entitlement... 11 2.2.1. Asian Development Bank Policy... 11 2.2.2. Regulations of Vietnam Government on Resettlement... 11 3. FINDINGS...12 3.1. Consultation, Participation and Information Disclosure... 12 3.1.1. Consultation and Participation... 12 3.1.2. Information Disclosure... 12 3.2. Compensation Plans... 13 3.2.1. Preparation of Compensation Plans... 13 3.2.2. Compensation Prices for Affected Assets... 14 3.2.3. Assistant and Allowance... 16 3.3. Compensation Payment... 17 Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 3

3.4. Grievance Redress Mechanism... 18 3.5. Operational Cooperation... 23 3.6. Compensation Payment... 23 4. GAP BETWEEN IMPLEMENTATION AND RP...23 4.1. Public participation and Information Disclosure... 23 4.2. Compensation Plans... 23 5. CONCLUSION AND RECOMMENDATION...24 5.1. Conclusion... 24 5.2. Recommendation... 24 6. ANNEX...25 6.1. Annex 1: List of people met and interviewed... 25 6.2. Annex 2: List of interviewed AP... 25 6.3. Annex 3 :Minutes between contractor and AHs... 26 6.4. Annex 4: List of reviewed document... 29 Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 4

ABBREVIATIONS ADB AHs APs CPC CLRD CARB DMS DP DPC DOLISA EVN GOV Asian Development Bank Affected Household Affected Persons Commune People s Committee Center for Land Resource Development Compensation, Assistance and Resettlement Board Detailed Measurement and Survey Displaced Persons District People s Committees Department of Labour, Invalids and Social Affairs Electricity of Vietnam Government of Vietnam G1; G2 Turning angle 1; turning angle 2 IOL LURC NPT PPC ROW PRCs RP Inventory of Losses Land Use Right Certificates National Power Transmission Corporation Provincial People s Committee Right of Way Provincial Compensation Assistance and Resettlement Committee/ Provincial Resettlement Committee Resettlement Plan PECC3 Power Engineering Consulting J.S Company 3 PMU T/L SPPMB SPS SCR Project Management Unit Transmission Line Southern Power Project Management Board Safeguard Policy Statement Safeguard Consultant for Resettlement Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 5

1. INTRODUCTION 1.1. Project Background 1. The Socialist Republic of Viet Nam has received a loan from the Asian Development Bank (ADB) for the implementation of the Power Transmission Investment Program, Tranche 1. Part of the proceeds of the loan will be applied for the construction of the (i) 220 kv Song May - Uyen Hung transmission line and (ii) 220 kv Phu My 2 Industrial Zone substation. The National Power Transmission Corporation (NPT) is the executing agency and the Southern Power Project Management Board (SPPMP) is the implementing agency for the two subprojects. 2. The 220kV Song May - Uyen Hung transmission line, with the length of 21.68 km starting at existing 500kV Song May substation located at at Bac Son commune, Trang Bom district, Dong Nai province to Uyen Hung 220kV substation at Uyen Hung commune, Tan Uyen town, Binh Duong province. Figure 1. Location of the subproject Table 1.1. Scope of Song May - Uyen Hung 220kV transmission line Project component Length (m) Starting point Ending point No of towers Dong Nai province 6,940 500kV Song May substation G28 32 Binh Duong province 14,740 G28 220kV Uyen Hung substation 38 Total 21,680 70 Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 6

Figure 2. T/L Alignment 3. Due to the current arrangement of the administrative boundaries of Binh Duong province, the project is passed through 3 districts namely Trang Bom, Vinh Cuu, Bac Tan Uyen (former Tan Uyen district) and Tan Uyen town (former Uyen Hung town). The details of project area presented in Table 1-2. Table 1-2. Project affected area Province District Commune No of foundations No of AHs No of affected institution Dong Nai Trang Bom Bac Son 4 7 1 Vinh Cuu Tan An 28 110 2 Binh Duong Bac Tan Uyen Thuong Tan 9 41 4 Tan My 26 50 1 Tan Uyen town Uyen Hung 3-1 1 Total 70 209 8 1 The Tan Uyen department of forest protection who is also the same intitution affected in Tan My Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 7

1.2. Project Impacts 4. Results of Detailed Measurement Survey (DMS) showed that the implementation of the project will cause restriction of land use and land acquisition in 5 communes, of which 2 communes belong to Dong Nai province, namely Bac Son (Trang Bom district), Tan An (Vinh Cuu district) and other 3 communes in Binh Duong province as Thuong Tan, Tan My (Bac Tan Uyen district) and Uyen Hung (Tan Uyen town). 5. The DMS has been carried out since August 2013 showing that a total of 209 AHs and 08 institutions are affected by the implementation of the 220kV Song May-Uyen Hung Transmission Line project. Of which 92 AHs and 05 institution in Binh Duong province and 117 AHs and 03 institutions belonging to Dong Nai province were surveyed. Details as below: Starting in Trang Bom district at the 500kV Song May substation, the transmission line will pass through the Bac Son commune in Trang Bom district, Dong Nai province. There are 7 households and one institution that affected at this section. At the Vinh Cuu district, the route runs in parallel with connection line of 220kV Tri An-Long Binh transmission line. The route goes through the Tan An commune in Vinh Cuu district, Dong Nai province. The route passes the rice paddy field, Acacia auriculiformis and rubber tree plantations. The route of the transmission line from G5B to G6 passes in parallel with the 500kV Phu My-Song May transmission line. It then passes area of Acacia auriculiformis, rice land, the 200kV Tri An- Hoc Mon transmission line, and 110kV Tri An-Tan Hoa transmission line. Totally, there are 110 households and 2 institutions affected at this section. At Bac Tan Uyen district area, the transmission line from G6 to G7 towers run in parallel with the new 500kV Song May - Tan Dinh transmission Line. The route then passes Thuong Tan and Tan My communes in Bac Tan Uyen district, Binh Duong province. The route will pass the area of Acacia auriculiformis, rice land, and rubber trees. From G7 to G9, the route goes through rubber trees and indigo trees but will not affect houses at this section. From G9 to G12, the ROW will run parallel with the existing 500kV Pleiku-Tan Dinh transmission line and cross rubber tree and cajuput plantations. There are 91 affected household and 4 affected institutions identified at this section. At Tan Uyen town, from G12 to the connection line to the 220kV Uyen Hung substation, the route will cross the DH411 road and some Acacia auriculiformis trees. 6. During subproject implementation, land temporarily impacted by temporary access of vehicles that will transport the pre-fabricated steels, equipment, cables and utilities as well as construction materials in the work areas. 1.3. Project Progress 7. The construction of 220kV Song May-Uyen Hung transmission line was completed construction work and put into operation since December 26, 2014. 8. Though the transmission line has been into operation but compensation and assistance activities have not been completed yet. However, the SPPMB has transferred all required compensation and assistance cost to the CLRD to help them to make the payment for the AHs in the timely manner. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 8

9. During the operation, the SPPMB has been undertaking the checking the ROW where is possible risk of tree falling during the project operation. In addition to that, SPMB has also checked in some sites where need to establish the protective barrier for power tower and transmission line at junction area (intersect other transmission lines) if AHs agreed. 1.4. Assignment of the Consultant 1.4.1. Objectives 10. The main objective of the consulting service is to ensure that people affected by the construction of the two subprojects receive the full entitlements, assistance and benefits in accordance with the approved resettlement plans. Whether it is necessary to draw out experiences and make adjustments in project implementation process. It is acquired to have information response channel on implementation of RP. Beside reports made by internal monitoring of PMU, it is always required by the Donor (ADB) to have a different objective information channel which is independent with the report. It is independent monitoring report, prepared by an external monitoring agency and do not belong to PMU. 11. To do the above general objective, the SPPMB has signed contract No 03/2013/SPMB-TVCN to engage an Independent Monitoring Consultant for Resettlement (Consultant) on November 26 2013. The consultant is required on an intermittent basis over a period of 2.5 to 3 years (covering preconstruction, construction, and post-construction phase) in every 6 months. 12. In this fifth monitoring mission, there are number of specific objectives: - To collect (updated) data regarding the Project s impacts; - To supervise such activities as compensation, assistance, site clearance - To check compensation documents and collect data on DMS, compensation option preparation for uncompensated items/components - To monitor and evaluate internal monitoring data 1.4.2. Methodology 13. Similar to the previous monitoring mission, the consultant has studied the internal reports of SPPMB and DMS dossiers to clarify the accuracy of random sample selection in land acquisition and compensation; all relevant mitigation measures; conduct compensation based on specific principles of project. Simultaneously, assessing the relevant data archiving system with the providing requirements. 14. Randomly monitor and assess on site to evaluate the compliance on the fields of RPs: adequate census and inventory of entire affected properties in RP preparation process, accurately calculate all benefits and compensation allowances based on replacement cost, awareness of affected people on objectives of project. All impacts, compensation policies, entitlements of affected people, promulgate grievance procedure and procedure to redress all appeals timely and properly (if any), undertakes compensation payment appropriately. At local area, the consultant has conducted effectively consultation of stakeholders to learn the progress and shortcomings of the implementation of the compensation process in the project areas. 1.5. The findings of previous report 15. During the previous monitoring report, following findings were identified: Project information has been widely disclosed during the consultation meeting (the project's policy, and entitlements, schedule of compensation and site clearance, grievances redress Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 9

mechanism) and officially displayed on the Notice Board of the CPC of Bac Son, Tan An, Tan My, Thuong Tan and Uyen Hung (Result of detailed measurement survey). The DCARBs of Trang Bom, Vinh Cuu, Bac Tan Uyen have complied with the mechanism of information disclosure specified in the Resettlement Plan (RP). At the time of previous monitoring, the updated RPs was disclosed by SPMB as recommended by the consultant. However, the feedback letters from CPCs need to be provided accordingly. In addition to that, it has not yet seen the disclosure of updated RP in ADB website. DMS were carried out in a public and propitious way. As monitored, most of the affected HHs were involved in the DMS process of their affected assets, some HHs considered that the DMS results miss counted their trees The DCARB has acknowledged these complaints and verification is being sought for further compensation if these complaints are true, subject to verification results by the DCARB. Preparation of compensation plans of the project was based on legal document of ADB and Viet Nam. The CP for all AHs have been accomplished. The compensation cost might be slightly different from the RP since the delay of the implementation. At the monitoring time, 41/41 AHs and 4/4 institutions in Thuong Tan commune, Bac Tan Uyen district have been compensated. For the Tan My commune, Bac Tan Uyen district, 43/50 AHs and 1/1 institution have been compensated. In Bac Son commune, Trang Bom district, Dong Nai province, 7/7AHs and 1/1 institution have been compensated. In Vinh Cuu district of Dong Nai province, 102/110 AHs have been compensated. Grievance redress mechanism is in place and worked rather effectively. Most of complaints have been addressed right at the first level of CPC and second level of district. SPPMB has actively participated in the grievance redress process. Through interviewing with the affected household, it was noted that most of the affected persons have rather satisfied with the result of the grievance redress 2. DOCUMENT REVIEW 2.1. Project Document 16. During the previous monitoring time, the consultant has collected and reviewed all project documents like loan agreement, project agreement as well as ADB SPS 2009. 17. Importantly, legal documents related to land acquisition of project have also been reviewed in detail. Particularly, the consultant has collected and reviewed the documents of prepared and issued by the Vietnam government, the Dong Nai, Binh Duong province, as well as Trang Bom, Vinh Cuu, Bac Tan Uyen an Tan Uyen town on the compensation, allowance and resettlement during this monitoring time. 18. In addition, the consultant has collected and reviewed all letters/dossier issued by SPPMB as well as other stakeholders. Please see the annex 5 for the some typical of documents which were collected and reviewed. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 10

2.2. Legal basis for entitlement 19. Principles and objectives of Resettlement and Compensation of the project are defined in accordance with Vietnamese laws and SPS 2009. Vietnamese legislation and ADB policies have been adapted to fit the specific conditions of the project as defined below: - Compensation and assistance will be based on the principle of replacement cost at the time of implementation - Residential and agricultural land for replacement should be close to the previous places as much as possible and be suitable to displaced persons. - Meaningful consultation will be carried out with the displaced persons and concerned groups and ensure participation from planning up to implementation. The comments and suggestions of the APs and communities will be taken into account. - The RP will be disclosed to APs in a form and language(s) understandable to them - Resettlement identification, planning and management will ensure that gender concerns are incorporated. - Special measures will be incorporated in the resettlement plan to protect socially and economically vulnerable groups such as households headed by women, children, disabled, the elderly, landless and people living below the generally accepted poverty line. - Cut-off date is the date of completing DMS for which land and/or assets affected by the Project are inventoried. The cut-off date was the date for land acquisition announcement: January 21, 2013 in Binh Duong province and April 27, 2010 in Dong Nai province. 2.2.1. Asian Development Bank Policy 20. 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, such as the 220kV Song May- Uyen Hung T/L 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 pre-project levels by compensating for lost assets at replacement costs and by providing, as necessary, various forms of support 2.2.2. Regulations of Vietnam Government on Resettlement 21. Current decisions of Dong Nai province: - Decision No.26/2012/QD-UBND dated April 3, 2012 of Dong Nai PPC on procedures of compensation, assistance and resettlement upon land acquisition in Dong Nai. - Decision No.12/2012/QD-UBND dated February 23, 2012 of Dong Nai PPC on compensation unit price allowance for assets upon land acquisition in Dong Nai. - Decision No.14/2012/QD-UBND dated February 24, 2012 of Dong Nai PPC on compensation unit price for house upon land acquisition by the State. - Decision No.76/2012/QD-UBND dated December 19, 2012 of Dong Nai PPC on land price in Dong Nai province 2013. - Decision No.75/2013/QD-UBND dated December 20, 2013 of Dong Nai PPC on land price in Dong Nai province 2014. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 11

22. Current decisions of Binh Duong province: - Decision No.87/2009/QD-UBND dated December 21, 2009 of Binh Duong PPC on procedures of compensation, assistance and resettlement upon land acquisition in Binh Duong. - Decision No.1837/2013/QD-UBND dated July 25, 2013 of Binh Duong PPC on compensation rate, allowance, and support on land and other assets upon site clearance for the project of Song May-Uyen Hung. - Decision No.58/2011/QD-UBND dated December 19, 2011 of Binh Duong PPC on compensation unit price for house, structure, tree, and crop upon land acquisition by the State. - Decision No.12/2012/QD-UBND dated April 6, 2012 of Binh Duong PPC amending Decision No.58/2011/QD-UBND on compensation unit price for house, structure, tree, and crop upon land acquisition by the State. 3. FINDINGS 3.1. Consultation, Participation and Information Disclosure 3.1.1. Consultation and Participation 23. According the result of the monitoring visits, public consultation has been carried out to provide information on the project, impacts and mitigation measures as well as implementation arrangements. The participation of women has been actively encouraged. All information has been provided in both written and oral form accessible to the APs. Community meetings were also organized in the Commune People Committee (CPC) of commune offices where all affected households including women and vulnerable groups were invited to participate and were encouraged to raise their opinions on the projects and their proposals for minimizing negative social and environmental impacts. 24. It was also noted that during the process of compensation implementation since last three monitoring missions, DCARBs have continued to comply with the requirement of community consultation. Particularly, series of consultation meetings with the APs were held prior to detailed measure surveys of affected assets, prior to submission of compensation plans to PPCs for approval, and after approval of the compensation plans during the grievance redress process. 3.1.2. Information Disclosure 25. As also noted in the previous monitoring reports, It was realized that the disclosure of project information at affected communes in Trang Bom, Vinh Cuu district, Dong Nai province and Bac Tan Uyen district, Tan Uyen town, Binh Duong province has been conducted by the DCARBs. 26. Disclosure of the RP and PID has been carried out prior to the submission to ADB for review and approval. 27. At the time of previous monitoring, the updated RPs was disclosed by SPMB at the subproject area. However, the feedback letters from CPCs need to be provided accordingly. In addition to that, it has not yet seen the disclosure of updated RP in ADB website. 28. It was acknowledged that the compliance of mechanism of information disclosure and community consultation specified in the Resettlement Plan (RP). Particularly, consultation meetings with the APs were held prior to detailed measure surveys of affected assets, prior to submission of compensation plans to PPCs for approval, and after approval of the compensation plans. Each AHs was provided with a draft compensation plan for their affected assets which stated clearly quantities of affected assets, compensation prices for each type of assets, and compensation amounts and allowances for Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 12

their HHs so that they could verify and cross-check with their actual affected assets. On that basis, the HHs would give their comments on agreement with such draft compensation plans or queries and concerns to the DCARB for review, modification, and supplementation. 3.2. Compensation Plans 29. Preparation of compensation plans of the project was based on legal documents mentioned above. Table 3.2. Compensation Plan Subproject Province District/town Compensation plan 220kV Song May- Uyen Hung transmission line Dong Nai Trang Bom Decision No.2709/QD-UBND approved by Dong Nai PPC dated 27/08/2013 Vinh Cuu Decision No.902/QD-UBND approved by Dong Nai PPC dated 03/04/2014 Decision No.147/QD-UBND approved by Dong Nai PPC dated 15/01/2014 Decision No.444/QD-UBND approved by Dong Nai PPC dated 20/02/2014 Decision No.730/QD-UBND approved by Dong Nai PPC dated 19/03/2014 Decision No.1087/QD-UBND approved by Dong Nai PPC dated 18/04/2014 Decision No.1176/QD-UBND issued by Dong Nai PPC dated 26/04/2014 Decision No.1568/QD-UBND approved by Dong Nai PPC dated 29/05/2014 Decision No.2059/QD-UBND approved by Dong Nai PPC dated 30/06/2014 Decision No.2060/QD-UBND approved by Dong Nai PPC dated 30/06/2014 Decision No.986/QD-UBND approved by Dong Nai PPC dated 1/04/2016 Decision No.1305/QD-UBND approved by Dong Nai PPC dated 5/05/2016 Binh Duong Bac Tan Uyen Decision No.1460/QD-UBND approved by Bac Tan Uyen DPC dated 06/10/2014 to amend and supplement the Decision No.843/QD-UBND approved by Bac Tan Uyen DPC dated 28/7/2014 Tan Uyen town Decision No.3137/QD-UBND approved by Tan Uyen DPC dated 23/7/2014 3.2.1. Preparation of Compensation Plans 30. As mentioned on the updated RP, total cost for RP implementation includes cost for compensation, allowance, and resettlement, cost for DCARB and DoNRE as followed. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 13

Table 3.3. Total cost of RP implementation No Item Binh Duong (VND) Dong Nai (VND) I COMPENSATION & ALLOWANCE COST 1 Compensation for land 589,518,000 4,178,579,600 2 Compensation for tree/crop 1,148,046,000 645,050,000 3 Allowance for land impacted by ROW 20,306,236,800 Added in item (1) 4 Allowance for houses/structures affected by ROW 1,902,885,855 880,753,280 5 Assistant for job changing and creation 2,080,125,000 238,428,500 6 Bonus for site clearance on time 0 446,000,000 II COST FOR DLFDCs, DoNREs 520,536,233 200,508,322 III EXTERNAL MONITORING 316,940,000 TOTAL (I+II+III) 33,453,607,590 Approximate US$ 1,583,978 (exchange rate US$ 1 = 21,120 VND) Source: the updated RP, 2014 31. During preparation of the compensation plans, the DCARBs complied with procedures of preparation and public announcement of compensation plans as stipulated in the RP. Details are as below: Consulting with the AHs about the draft compensation, assistance, and resettlement plans: the DCARB sent each AH a copy of the compensation plan for their family together with a comment card so that they could check and comment. The DCARB posted the draft compensation plans at CPCs offices for people s information and comments. Receiving comments, queries, and grievances from people and the AHs. Reviewing and redressing grievances. Finalizing the compensation plans upon acknowledgement and supplementation of people s comments, completing necessary procedures to submit these plans to competent authorities for appraisal and approval. 32. During the compensation implementation, the Compensation plans were amended and supplemented based on the verification of complaints received from the AHs. As of monitoring time, the compensation plans for all AH have been prepared and approved by the PPC of Dong Nai and Binh Duong. On the contrary with previous monitoring time, the supplementary CPs of two AHs has also been prepared and approved. 3.2.2. Compensation Prices for Affected Assets 33. Compensation cost of the project is based on project policy, DMS data and, current decisions of Dong Nai and Binh Duong PPC. The cut-off date was the date for land acquisition announcement: January 21, 2013 in Binh Duong province and April 27, 2010 in Dong Nai province. 34. Land replacement prices were updated during the DMS process and submitted to Binh Duong PPC for review and approval. In this regard, the Binh Duong PPC has enacted the Decision No.1837/2013/QD-UBND dated July 25, 2013 on compensation rate, allowance, and support on land and other assets in the event of site clearance for the project of Song May-Uyen Hung. Dong Nai PPC Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 14

has also enacted the Decision No.12/2012/QD-UBND dated February 23, 2012 of Dong Nai PPC on compensation unit price allowance for assets in the event of land recovery in Dong Nai. 35. In view of typical style of transmission line project, which only acquire the limited area of land for foundation only, the land area under the ROW will not be acquired. As a result, there are few AHs having residential land affected by the project. For permanently affected residential and agriculture land (for the construction of tower foundation) in Binh Duong, it was observed that the compensation unit costs have been surveyed and prepared separately for the Song May-Uyen Hung that were much higher than those applied for other projects in the province. The compensation unit costs were applied the PPC compensation rate in Dong Nai province (above mentioned decision). 36. For forestland (under the management of Tan Uyen Forest Ranger Department), it has not to compensate for the forestland but SPPMB (Letter No 3462/AMN-DB dated 30/5/14) has contributed to provincial Forest Protection and Development Fund to reforest the acquired forest area. 37. Compensation for non-land assets: Houses, structures, crops, trees, and other assets under the ROW of transmission line which are affected and resulting in limitation of the usage of assets. According to Decree No.14/2014/NĐ-CP, all their houses/structures could be existed in ROW if meeting fully stipulated conditions (roofs and surrounding walls are made of fire-proof materials, metal structures are earthed according to regulations on earth connection techniques, etc.). In Binh Duong province, the compensation for non-land assets were applied by the Decision No 58/2011/QD-UBND dated 19/12/2011 on compensation rate, allowance, and assistance of assets, fruit, crop and the Decision No 12/2012/QD-UBND dated 6/4/12 on amendment of the Decision No 58/2011/QD-UBND. The compensation rate for non-land assets has followed the PPC compensation cost unit in Dong Nai province (Decision No.12/2012/QD-UBND dated February 23, 2012 of Dong Nai PPC on compensation unit price allowance for assets in Dong Nai). 38. Table 3.4 and 3.5 show the total compensation amount mentioned on the approved CPs. District Commune No of AH Table 3.4. Total compensation in Dong Nai province No of Affected institution Compensation (VND) Land (compensation and assistance) Crop, tree Structure Trang Bom Bac Son 7 1 622,002,180 33,861,900 371,847,000 216,293,280 Vinh Cuu Tan An 40 1 6,943,529,100 5,197,310,100 341,759,000 1,404,460,000 Total 7,565,531,280 District Bac Tan Uyen Commune Table 3.6. Total compensation in Binh Duong province No of AH No of Affected institution Compensation (VND) Land Crop, tree Structure Thuong Tan 7 1 1,945,353,580 123,024,000 507,966,600 1,314,362,980 Tan My 12 1 1,556,546,375 332,154,000 635,879,500 588,512,875 663,900,000 663,900,000 Tan Uyen town Uyen Hung 1 275,935,000 275,935,000 Total 19 2 2 3,844,224,955 455,178,000 2,083,581,100 1,902,875,855 2 Affected institution in Tan My commune is also the affected one in Uyen Hung ward, Tan Uyen town (Tan Uyen Forest Department) Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 15

39. Application of the replacement cost in Binh Duong has met expectations of most of the AHs. The monitoring result show that most of the AHs agreed with the compensation prices...however, there are some HHs considered the compensation prices of land, houses, and architectural structures as low and did not agree with land compensation prices. The application the PPC compensation rate in Dong Nai may be slightly lower than the market price. However, the full package of compensation and allowances could make houses/structures with better conditions. 40. During this monitoring time, the supplementary CPs have been prepared for those whose tree area would be cleared due to the potential risk of falling into the safety corridor (9 households) 3.2.3. Assistant and Allowance 41. In addition to compensation for affected land and assets, AHs were also subject to assistance and allowances as specified in the RP. 42. Apart from the compensation for residential land, allowance for restriction of land use is equal to 80% and 70% of compensation rate for residential land in Binh Duong and Dong Nai province, respectively. For house/structure under ROW, allowance was paid by 70% of its compensation rate for the restriction of house/structure use. For houses/structures in which 70% areas are affected under the ROW would be paid as those of affected 100% area. And for house/structures are made of inflammable material, 100% of its value will be supported for the improvement of these structures. 43. Apart from the compensation for agricultural land, AHs also receive allowance approximately 50% and 70% as value of compensation for residential land in Binh Duong and Dong Nai province respectively. For AHs whose agriculture land under the ROW, the allowance was paid by 80% of its compensation rate for the limitation land use. 44. For the forest land area, no compensation was entitled because this is the public forest production area and under the management of Tan Uyen Forest Management Board. However, SPMB has been transferred the required cost to the Forest Development and Protection Fund for replacement plantation by the SPMB followed the relevant regulation, the transferred cost for replacement plantation was VND 155,200,632. 45. The bonus for timely land handover was also applied in the subproject area. Table 3.6. Total assistance in Dong Nai province District Commune No of AH No of Affected institution Total assistance (VND) Other assistance Bonus for site clearance Trang Bom Bac Son 7 1 38,000,000 38,000,000 Vinh Cuu Tan An 109 2 1,087,861,500 Total 116 3 1,125,861,500 604,340,500 483,521,000 District Commune Table 3.7. Total assistance in Binh Duong province No of AH No of Affected institution Total assistance Land under the ROW Adjacent agriculture land Bac Tan Uyen Thuong Tan 40 3 6,337,016,350 5,760,847,600 576,168,750 Tan My 50 1 15,449,376,150 14,044,931,400 1,404,444,750 Tan Uyen town Uyen Hung Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 16

Total 90 4 21,786,392,500 19,805,779,000 1,980,613,500 46. Construction contractor has also supported to AH for the temporary impacts, which are acceptable to AHs during construction time. In addition to that, during this monitoring time, it was observed that additional trees located along and adjacent to the ROW were cut to ensure there would be no risk of tree falling into the ROW. These tree area has been compensated for the AHs. 3.3. Compensation Payment 47. After Bac Tan Uyen district and Tan Uyen town approved the compensation, allowance, and resettlement plans, the SPPMB and CLFD of Bac Tan Uyen and Tan Uyen town has implemented the compensation to the AHs. Similar to the last monitoring time, 41/41 AHs and 4/4 institutions in Thuong Tan commune, Bac Tan Uyen district have been compensated. For the Tan My commune, Bac Tan Uyen district, 46/50 AHs and 1/1 institution have been compensated. It was due to the fact that some HHs were not appeared (Han Vinh Quang, Han Thanh Son, Han Manh Hung). As reported by CLRD of Bac Tan Uyen, these HHs have transferred the land use right to other HHs (Doan Quang Tu, Nguyen Van Dung, Doan Quang Canh). It was also learnt that these HHs have not been received compensation payment yet due to complexity of procedure of their legal land use right. For 1 left AH of Pham Thi Thu Thuy has not still agreed on the origin of the acquired land in which the her LURC has been withdraw by the PPC previously. 48. Also in Binh Duong province, during last monitoring time, the land area of foundations of 3 position (66, 65,64) as well as the associated ROW in Uyen Hung commune, Tan Uyen town which under the management of Tan Uyen Forest Management Department have been acquired. In this regard, series of effort has been put to persuade the MARD, Finance department of Binh Duong PPC to agree on the compensation plan and reforestation plan in the view that the circular No 24/2013/TT-BNNPTNT require the project owner to reforest the acquired forest land area during project implementation. 49. In Trang Bom district, Dong Nai province, 7/7AHs and 1/1 institution have been compensated. 50. At this monitoring time, in Vinh Cuu district of Dong Nai province, 109/109 AHs and 2/2 institutions have been compensated. As reported, AHs of Nguyen Xuan Phuong and Vu Van Dong who has not been fully received compensation in the previous period, was get compensation payment by the end of this monitoring time. 51. It was observed that prior to compensation payment the CLFD, SPPMB and the CPCs held meetings with the APs to disseminate the compensation payment schedule, including time and venues at the project communes, documents that the AHs should take with them when receiving compensation payment, procedures of receiving payment, and receipt of compensation. 52. Generally, SPPMU, and CLFD of Bac Tan Uyen, Tan Uyen, Trang Bom, Vinh Cuu districts have cooperated closely with the CPCs of the affected communes and the district State Treasury in implementing compensation payment for the AHs promptly, safely, and effectively. 53. It was also observed that under the subproject progress pressure, the contractor/sppmb have put a lot of effort in the way that they have paid in advance to the AHs instead of waiting for the compensation plan to be approved; The due diligence then was conducted and found that the commencement of civil work prior to compensation payment has helped accelerate the handover of land to the contractor for construction. At this point of time, all AH has received the compensation payment in accordance with the approved CPs.(Please see the annex 3 for the commitments have been agreed and signed between contractor and AHs) 54.. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 17

55. 56. Particular, the SPPMB has transferred all required compensation and assistance cost to the CLRDs to help them to make the payment for the AHs in the timely manner. However, the internal payment process has been taking a while. 3.4. Grievance Redress Mechanism 57. The grievance redress mechanism was in place to address questions and complaints on the land acquisition, compensation and resettlement in a timely manner. All affected persons have been made aware of their rights and complaint procedures. Affected persons may lodge their complaints relating to any aspects of land acquisition and resettlement entitlement, prices, payment or procedures for resettlement and income restoration programs etc. Their complaints may be made orally or in writing. The People Committees at all levels will be responsible for receiving and resolving complaints in the level order. Grievances redress mechanism will be implemented in three levels of CPC, DPC and PPC. Beside, the AP could also send directly their complaints to the SPPMB and SPPMB has replied in document in relevant queries. Please see Figure 3 for the Grievance Redress Mechanism. 58. The disclosure of the DMS result and draft compensation plan has allowed the AHs to have the opportunity for raising complaints/queries if any. 59. According to the interview with the AHs, the most common grievances and concerns are about imprecise determination of land locations, compensation for structures on land, origin of land. In addition to that, there were some queries on the health effect of magnetic field when the transmission line will be put into operation Court Cooperation Direct, lead and feedback Binh Duong and Dong Nai PPC SPPMB Trang Bom, Vinh Cuu and Bac Tan Uyen DPC DCARBs Independent Consultant Bac Son, Tan An, Thuong Tan AHs and Tan My CPC Figure 3. Grievance Redress Mechanism 60. All above grievance and complaint were received, reviewed, and processed by SPPMB, the DCARB of Bac Tan Uyen, Trang Bom and Vinh Cuu district and the SPPMB. All above grievance has been Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 18

redressed by promptly responding in paper; even some community meetings were organized at the CPCs s office. At the monitoring time, there are some typical cases as followed table of 3.9 61. In general, the current grievance redress mechanism is in place and worked rather effectively. Most of complaints have been addressed right at the first level of CPC and second level of district. SPPMB has actively participated in the grievance redress process. Through interviewing with the affected households, it was noted that most of the affected persons have rather satisfied with the result of the grievance redress. These results have reflected the right and benefit of the affected households. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 19

Table 3.9. Grievance Redress No AH comment Grievance Redress Status Dong Nai province Trang Bom district, Bac Son commune 1 Nguyen Viet Thiep has not received the money due to disagreement on origin of the land. The DCARB, CLFD and SPPMB has invited the AH two times to receive the compensation payment. The PPC has verified and confirmed that, the land should be owned by the South-East Paper Company and not by the AH. SPPMB, CPC of Bac Son, representatives of Song May hamlet have met with Mr Thiep to encourage him to receive the compensation payment The consultation meeting has been organized to encourage Mr Thiep to receive the money. As a result, Mr Thiep has received the payment. Resolved Vinh Cuu district, Tan An commune 2 Nguyen Canh Ha, Nguyen Thi Kim Lien has requested the compensation the swiftlets raising house. 3 Vu Van Dong has complained the miscount the acquired land The compensation plan has been supplemented the compensation and awaiting the PPC s verification of the compensation rate as requested by SPPMB However, the land was handed over to the contractor in advance as the SPPMB has sent the letter to Mr Ha to commit to process the payment right after to compensation plan was approved. The compensation plan has been revised by DCARB and CLFD of Vinh Cuu The compensation rate has been increased from 40% to 70% as expected of Mr Nguyen Canh Ha. As a result, Nguyen Canh Ha has received the payment during this period. Resolved The additional 63.7 square meter has been identified. The supplementary compensation plan was prepared. The compensation cost has been paid to Mr Dong. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 20

4 Nguyen Xuan Phuong has complained the uncounted assistance for house rehabilitation by fire proof material 5 Nguyen Minh Giam has complained the wrong assistance of house/structure The compensation plan has been revised by DCARB and CLFD of Vinh Cuu DCARB and CLFD of Vinh Cuu have revised the compensation plan, the fish pond has been compensated by 70% (instead of only 60%) Resolved. The additional 199 square meter of land is verified and the supplementary compensation plan is under prepared. The supplementary CP for Vu Van Dong was prepared and approved. The compensation cost has been paid to Mr Phuong Resolved. The price of pre-engineering steel building has been increased by 70% of compensation payment that is instead of 40% as previous compensation plan. Resolved. Binh Duong province Bac Tan Uyen district, Thuong Tan commune 6 Vo Van Trung has requested the miscounted rubber tree due to the changed foundation location DCARB and CLFD of Vinh Cuu have revised the compensation plan Resolved Bac Tan Uyen district, Tan My commune 7 Nguyen Van Nhin has complained on the fact that the acquired land for the foundation has not been compensation, only assistance has been DCARB, CLFD of Vinh Cuu and Tan My CPC has reviewed and supplemented the non-compensated land. Resolved Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 21

provided 8 Pham Thi Thu Thuy has complained the acquired land was not compensated 9 5 HHs have not received compensation (2.1 billion dong). The reason is dispute in terms of land origins among the households and Tan Uyen Forest Protection Unit. 10 During field visit, it was observed that tree that is adjacent to and along the ROW would be possible to fall into the ROW and the safety condition could not be fully met. CLFD has worked with Tan My CPC, District Department of Natural Resource and Environment to review the case and found that acquired land was not entitled due to the fact that the LURC awarded for Ms Thuy was withdraw because of wrong functional bodies. CLFD has consulted with Ms Thuy to receive the assistance for acquired land and promise to compensate the land right after LURC will be rewarded for Ms Thuy. As reported by CLRD of Bac Tan Uyen, these HHs of Han Vinh Quang, Han Thanh Son, Han Manh Hung have transferred the land use right to other HHs (Doan Quang Tu, Nguyen Van Dung, Doan Quang Canh). Currently Bac Tan Uyen DPC and Bac Tan Uyen Forest Protection Unit are resolving forest allocation contracts in order to complete compensation procedures. It should be carefully taken into account to ensure no risk if the tree falling into the ROW. In this regard, there are additional tree (not counted in RP and CPs) would be cut to meet the safety condition and that should be compensated to the AHs. Though Ms Thuy has not received the payment, she has still allowed the construction in her land. It is also recommended that, SPPMB, CLFD and Bac Tan Uyen DPC and SCR may want to further work with her to encourage her to receive payment for the acquired land and structure land (rubber tree). SPMB with support of SRC to coordinate with Bac Tan Uyen Forest Protection Unit to accelerate contract transfer process to pay compensation and conduct meeting with AHs to address the issue soon. It is learnt that SPMB transferred compensation budget to Bac Tan Uyen LFDC already. The supplementary CP for 9 households has been approved Resolved Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 22

3.5. Operational Cooperation 62. In general, the cooperation of all stakeholders including SPPMB, DCARBs, CPCs, SCR were undertaken smoothly and effectively. SPPMB has assigned staff to participate in the DCARBs. Therefore, the information sharing and cooperation between the SPPMB and DCARBs have been closely maintained during the past time. SPPMB has submitted periodically reports to the DPCs of Trang Bom, Vinh Cuu, Bac Tan Uyen on the implementation progress, shortcomings of the compensation implementation and request for their further coordination and action to speed up the process. 3.6. Compensation Payment 63. The budget for implementation of the RP of 220kV Song May-Uyen Hung Transmission line project is allocated by NPT/SPMB. The NPT/SPMB has transferred budget of compensation, allowance, and other support to DCARBs for carrying on the compensation payment. DCARBs/CLRDs are responsible for delivering payment directly to AHs with respect to affected land, structures, crops and trees. However, due to the delay of the preparation of the compensation plan, the compensation cost is different with those in the RP. A full RP s cost will be updated after compensation plan approved. 64. Due to the subproject progress pressure, SPPMB and the contractor have put greatly effort by paying in advance to the AHs instead of waiting for the compensation plan to be approved; this has helped the timely handover land to the contractor. The commitments have been agreed and signed between contractor and AHs. (Please see the annex 3). At this point of time, most of AHs have received the payment (excluding Pham Thi Thu Thuy, ) despite the fact that SPPMB has transferred all budget of compensation, allowance to CLRDs for their further payment to AHs. 4. GAP BETWEEN IMPLEMENTATION AND RP 4.1. Public participation and Information Disclosure 65. It was acknowledged that the DCARBs of Trang Bom, Vinh Cuu, Dong Nai province, and DCARBs of Bac Tan Uyen district, Tan Uyen town Binh Duong province, has rather complied with the mechanism of information disclosure and community consultation specified in the Resettlement Plan (RP). The updated RP should be uploaded on ADB s website and confirmation letter from CPC should be collected 66. The previous monitoring found that due to short time of information consultation, people did not have much time for discussion and explanation of their concerned issues relating to compensation and resettlement policies. To resolve this, the recommendation from previous monitoring report has asked SPPMB to further disclose the project information and more dialogue with AHs. Taken the recommendation into consideration, more dialogue with the affected household have been organized (Pham Thi Thu Thuy, Nguyen Thi Nguyet, Vu Van Dong, Hoang Minh Giam, Nguyen Xuan Phuong) 4.2. Compensation Plans 67. It was observed that due to the complicated compensation issues, the internal verification and approval procedure, the complicated transaction of land and particular the changes of administration boundary of Bac Tan Uyen district and Tan Uyen town (former Tan Uyen district and Uyen Hung town respectively), the compensation plans were prepared rather late compared to the construction Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 23

progress. Due to the long period time of implementation of compensation process, there were number of AHs have transferred the LURS to other people. 68. The compensation cost might be slightly different from the RP since the delay of the implementation. In addition to that, compensation for non-land assets is established by the PPC s compensation rate that may slightly lower than the market price. However, the full package of compensation and allowances may bring the advantage to the AHs. 5. CONCLUSION AND RECOMMENDATION 5.1. Conclusion 69. In general, the implementation of compensation and resettlement for 220Kv Song May-Uyen Hung T/L subproject in Binh Duong and Dong Nai province has complied with the agreed RP. Information disclosure and community consultation were carried out adequately, in an open and democratic manner. The DMSs of affected assets was implemented with the AHs participation. The compensation plans were prepared on the basis of the policies and the APs entitlements stated in the RP. The compensation plans were sent to the APs for comments prior to submission to the relevant authorities for approval. Compensation was paid publicly with witness of relating parties. Payment procedures were simple, time and venues of compensation payment were informed to each AH. 70. There have been grievance and complaint (determination of land origins and land categorization, miscounted land area as well as some additional assistance request) has been record and processed. However, because of complexity of land origins and deficiencies of land management, complexity of the internal verification and approval process resulting in delayed preparation of compensation plan as well as the compensation payment. At time of the monitoring mission, most of complaints of AHs raised have been resolved basically. Some complicated cases are under resolving actively by responsible agencies. 5.2. Recommendation 71. To ensure the APs entitlements, it is recommended that the SPPMB and the DCARBs to resolve the outstanding issues presented in this report and answers should be sent to the APs as soon as possible. 72. Even the compensation plans have been approved and compensation payment has been being accomplished, the dialogue with AP should be continued. Particularly as any complaint/queries will be raised by AHs. The confirmation letters from these CPCs should be provided accordingly even the fact that SPPMB has confirmed to disclose in project area. It is recommended that the compensation payment should be finalized for the remaining AHs as soon as possible to help the AH could stabilize their lives. More dialogue with Pham Thi Thu Thuy is highly recommended. More effort should also be paid to identify the origin of land of 5 HHs as mentioned above. 73. Even though the SPPMB has transferred all budget of compensation, allowance to CLRDs for their payment to AHs, SPPMB should continue to closely work with DCARB/CLRD to process the compensation payment for the remaining small number of AH. 74. The pending complaints should be resolved by the DCARB, DPC, local authorities with the closely involved by SPPMB, PECC3 and SCR. 75. In view that the subproject has been energized by this end of the year, it is meaningful if there is an awareness raising campaign that could inform the local people on the impact of electromagnetic field as well as the importance of safety protection of ROW during operation. Semi-Annual Report Independent Monitoring for Resettlement -04/2016 Page 24