Subproject: Cau Khai drainage system Yen Dinh district, Thanh Hoa province

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized RP299 vol. 3 Ministry of Agriculture and Rural Development The World Bank Natural Disaster Risk Management Project (NDRMP) Cr. 4114-VN Resettlement action plan (RAP) Subproject: Cau Khai drainage system Yen Dinh district, Thanh Hoa province Thanh Hoa PMU, 1

TABLE OF CONTENTS DEFINITION OF TERMS... 3 ABBREVIATION... 5 1. INTRODUCTION... 6 1.1 PROJECT... 6 1.2 SUBPROJECT RESETTLEMENT PLAN... 6 1.3 INTRODUCTION OF SUBPROJECT... 6 1.4 SCOPE OF IMPACTS CAUSED BY LAND ACQUISITION... 7 2. SOCIOECONOMIC INFORMATION OF PAHS... 8 2.1 PAH SAMPLES OF PAH... 8 2.2 ETHNICS... 8 2.3 EDUCATION, HEALTHCARE AND INCOME... 8 2.4 LAND-USE RIGHTS, HOUSE AND ASSET OWNERSHIPS... 9 2.5 VULNERABLE GROUP... 9 3. SCOPE OF LAND TO BE ACQUIRED AND RESETTLEMENT... 10 3.1 PROJECT AFFECTED HOUSEHOLDS (PAHS)... 10 3.2. AFFECTED LAND... 10 3.3. HOUSES, WORKS, ARCHITECTURAL STRUCTURES TO BE AFFECTED... 11 3.4 TREES, CROP TO BE AFFECTED... 12 4. LEGAL FRAMEWORK... 13 4.1 LAW AND LEGISLATION ON LAND ACQUISITION IN VIETNAM... 13 4.2. WB POLICY ON INVOLUNTARY RESETTLEMENT... 14 5. RESETTLEMENT MAIN PRINCIPLES AND POLICY OF THE PROJECT... 15 5.1. MAIN PRINCIPLES... 15 5.2. PROJECT POLICY... 15 6. ELIGIBILITY AND ENTITLEMENTS... 16 6.1. ELIGIBILITY... 16 6.2. CATEGORIES OF PAPS... 17 6.3. PROJECT IMPACTS AND ENTITLEMENTS... 18 6.4. ENTITLEMENT... 19 7. PUBLIC CONSULTATION AND COMPLAINTS AND GRIEVANCES... 22 7.1. RP PREPARATION... 22 7.2. APPEAL MECHANISM... 24 8. IMPLEMENTATION PROCEDURES... 25 8.1. SURVEY ON REPLACEMENT COST... 25 8.2 DETAILED MEASUREMENT AND SURVEY (DMS)... 25 8.3 COMPENSATION PAYMENT PROCESS... 25 8.4. COMPENSATION PAYMENT PROCEDURES, RESPONSIBILITIES OF STAKEHOLDERS... 26 9. IMPLEMENTATION ORGANIZATION... 27 9.1. THE CENTRAL PROJECT OFFICE (CPO)... 27 9.2. PROVINCIAL IMPLEMENTATION UNIT (PMU)... 27 9.3. SUBPROJECT OFFICES (SPO)... 27 9.4. PROVINCIAL LEVEL... 27 9.5. DISTRICT LEVEL... 28 9.6. COMMUNE LEVEL... 28 10. MONITORING AND EVALUATION... 29 Thanh Hoa PMU 1

10.1. INTERNAL MONITORING... 29 10.2. EXTERNAL MONITORING... 29 11. IMPLEMENTATION TIMETABLE... 30 12. COST ESTIMATE... 30 13. APPENDIX... 32 13.1 REPORT ON REPLACEMENT COST SURVEY... 32 13.2 PAHS AND COMPENSATION DATABASE... 37 Thanh Hoa PMU 2

Definition of terms 1. is a time-bound action plan with budget setting out resettlement strategy, objectives, actions, responsibilities, monitoring and evaluation. 2. Affected Person (AP) indicates any juridical person being as it may be an individual, a household, a firm or a private or public who, on account of the execution of the Project, or any of its components or sub-projects or parts thereof would have their: (i) right, title or interest in any house, land (including residential, agricultural and grazing land) or any other fixed or moveable asset acquired or possessed, in full or in part, permanently or temporarily; or (ii) business, occupation, work, place of residence or habitat adversely affected; or (iii) living conditions adversely affected. 3. Severely Affected Person for this Project is defined as a person who will (a) lose more than 20 percent of total agriculture/aquaculture land holding, and/or (b) relocate and/or lose remainder of land is not econ omic value will be classified as complete loss, and/or (c) lose more than 20 percent of total income sources due to the project. 4. Land Acquisition means the process whereby a land user is forced by an agency to alienate all or part of the land s/he owns or has the ownership to the ownership of this agency for the public purposes and is satisfactorily compensated. 5. Replacement Cost means the cost of replacing lost assets and incomes, including cost of transactions. If land, it means the cost of buying a replacement land near the lost land with equal productive potential and same or better legal status, including transaction costs. If structures, the replacement cost is the current fair market price of building materials and require labor cost without depreciation or deductions for salvaged building material or other transaction cost. Market prices will be used for crops, trees and other commodities. 6. Resettlement Effects mean all negative situations directly caused by the Project/subproject, including loss of land, property, income generation opportunity, and cultural assets. 7. Relocation means the physical relocation of an AP from her/his pre-project place of residence. 8. Rehabilitation means the process to restore income earning capacity, production levels and living standards in a long term. Rehabilitation measures are presented in list of entitlements and are deemed to be an integral part of the entitlement for compensation. 9. Compensation means payment in cash or in kind to replace losses of land, housing, income and other assets caused by a project. 10. Significant resettlement effect for each subproject means: 200 people or more will experience resettlement effects; 100 people or more who are experiencing resettlement effects are indigenous people or vulnerable as defined in the policy, for example, female-headed households, those living close to, on or below the poverty line, isolated communities, including people with no legal status or wandering; or Thanh Hoa PMU 3

50 people or more will experience resettlement effects and are vulnerable, for example hunters or gatherers. Thanh Hoa PMU 4

Abbreviation CPO CPC CRC DMS DRC MARD NGO PAP PMO PIU PMU PSC RP PPC PRC WB Central Project Office Commune People s Committee Commune Resettlement Committee Detailed Measurement and Survey District Resettlement Committee Ministry of Agriculture and Rural Development Non-Government Organization Project Affected People Project Management Organization of CPO Provincial Subproject Implementation Unit Project Management Unit Project Steering Committee Resettlement Plan Provincial People s Committee Provincial Resettlement Committee World Bank Thanh Hoa PMU 5

1. Introduction 1.1 Project The Natural disaster risk management Project (NDRMP), was implemented on 17 provinces in Viet Nam, include: Thanh Ho, NghÖ An, Hµ TÜnh, Qu ng B nh, Qu ng TrÞ, Thõa Thiªn HuÕ, Qu ng Nam, Qu ng Ng i, B nh Þnh, Kh nh Hoµ, Phó Yªn, B nh ThuËn, Ninh ThuËn, Long An, ång Th p, An Giang, BÕn Tre and take part in project by Ministry: of Agriculture and rural deveplopmet, of transportation, of Finance, of Natural resources and environment, of Fisheries. The Project use budget s the World Bank and International Development association (IDA). The estimate total cost about $109 million, of which the IDA credit would finance $86 million, grant of PHRD, JSDF, AusAiD is $19.5 million; the counter part of Viet Nam GOV is $12.04 million. Project Objectives support Government of Viet Nam to make a comprehensive risk management framework for natural disaster prevention: (i) Protect life and property of community in the vulnerable areas prone to natural risks; (ii) Improve effects of post-disasters rehabilitation and reconstruction; (iii) Improve capacity of coordination and management of natural disaster mitigation at all levels; Project scope: The project has 4 components (1) Component A: Prevention and mitigation investment; (2) Component B: Community based disaster risk management; (3) Component C: Post-disaster reconstruction support; (4) Component D: Project management and institutional strengthening. 1.2 Subproject resettlement plan The resettlement action plan is a time-bound action plan which formulates strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation of resettlement and land acquisition for the entire subproject. The compensation and support policies in the RAP are prepared based on the resettlement and land acquisition framework which was approved by GoV and WB. The RAP for this Subproject is prepared based on database of the detailed measurements and surveys which was carried out after the approval of the technical design and drawing construction. Compensation unit prices for assets to be affected in this RAP are the outputs of the survey on replacement prices carried out by Thanh Hoa PMU in November 2007. In future, in the construction phase, any potential impacts shall be updated and supplementarily compensated. The RAP formulation was consulted with PAPs via meetings with individual villages and communes. The RAP was also disseminated to PAPs in the subproject area. 1.3 Introduction of Subproject Subproject in geographical position: 19 0 57-20 0 02 of Northern latitude, and 105 0 33-105 0 40 eastern longitude. Project area: Contain 12 communes in Yen Dinh district, Thanh Hoa Northerly, include: Dinh Tang, Dinh Tuong, Dinh Lien, Dinh Long, Yen Thai, Yen Phong, Yen Truong, Yen Bai, Yen Hung, Yen Ninh, Yen Lac communes and Quan Thanh Hoa PMU 6

Lao town. The design task is drained for 4,303 ha area of which 3,464 ha agriculture land. Other task is improving of ecologic environment and water resource of irrigation on dry season. The main work item: headwork is the pumping station, the canal system; The pumping station include: pump house, suction basin, discharge basin, sluice under Cau Chay dike, old Cau Khai sluice, operation house. Drainage canal system which total length 16,277 m through 8 communes and Quan Lao town in project area. Subproject objectives is: (1) Safeguard drainage to protect life and property, the crop of people in project area. (2) Improvement of environment sanitation, prevention of disease; (3) Increasing of operation and maintain the engines and equipment and low cost; (4) Ensure transportation needs in Yen Dinh, appropriate with socioeconomic developmet policy of Yen Dinh district. 1.4 Scope of impacts caused by land acquisition In August to November 2007, Thanh Hoa PMU coordinated with DRCs in Yen Dinh to carry out the socioeconomic survey and inventory assets of HHs in the areas to be affected by the subproject. There are 10 communes and wards are affected by the subproject, namely: Yen Ninh, Yen Bai, Yen Hung, Yen Phu, Yen Lac, Dinh Tang, Dinh Tuong, Dinh Lien, Dinh Long, Quan Lao town. There are 386 Project affected households (PAHs) and 1626 PAHs, of which 03 PAHs have to relocate; and 383 PAHs are marginaly affected. Total land area to be occupied: 89,151.4 m 2, comprising of: - Residential land: 316.7 m 2 - Lake and pond land: 11,006.0 m 2 - Agricultural land: 77,829.0 m 2 In addition, for constructing the works, the Subproject needs to temporarily acquire 23,646 m 2 in the works right-of-way. All assets associated on the temporary land acquired shall be compensated with replacement costs. There are 03 PAHs are affected with their house must move to main house in village. In addition, the subproject also affects to some works, architectural structures such as kitchen, animal sheds, fences, yards, etc. and trees and crop. Thanh Hoa PMU 7

2. Socioeconomic information of PAHs 2.1 PAH Samples of PAH Survey samples were carried out with 100% of PAHs. The main purpose is to build up a database for observing, monitoring, and evaluating impacts of the subproject to living standards and production capacity of PAPs as well as to identify socioeconomic issues related. The survey was carried out by Thanh Hoa PMU in coordination with Yen Dinh DRC from August to November 2007. The data collected was processed with MS Excel software. Table 2.1. Number of PAHs in district/commune No Commune/town Number of PAHs Numbef of PAPs Surveyed PAHs Number of PAHs Numbef of PAPs 1 Þnh Long 93 377 93 377 2 Þnh Liªn 92 421 92 421 3 Þnh T ng 26 104 26 104 4 Þnh T êng 35 130 35 130 5 Yªn B i 15 58 15 58 6 Yªn L¹c 5 22 5 22 7 Yªn Hïng 40 186 40 186 8 Yªn Phó 14 76 14 76 9 Yªn Ninh 56 216 56 216 10 Qu n Lµo town 10 36 10 36 Total 386 1626 386 1626 On average, each PAH has 4.21 persons. Age range of PAPs are catergorised as below: - Below 1 year old: 3.32 % - From 1 to below 6 years old: 9.37 % - From 7 to 15 years old: 15.13 % - From 15 to 30 years old: 16.68 % - From 30 to 40 years old: 17.81 % - From 40 to 60 years old: 28.73 % - Over 60 years old: 8.97 %. The survey results also indicate that the proportion of female PAPs makes up 47.64 %, and of male PAPs is 52.36 %. 2.2 Ethnics The survey results indicate that 100% of PAPs are Kinh. 2.3 Education, healthcare and income The socioeconomic survey indicates that 100% of PAH owners are literate, of which 8.6% of PAH owners are qualified at Primary level, 65.27% qualified at Secondary level and 20.83% qualified at Tertiary and 5.30% qualified at higher education level. Primary schools and junior high schools are in all communes. On average, each commune has Thanh Hoa PMU 8

1 primary school and 1 secondary school. Each village has 1 kindergarten, 1 pre-school and 100% of school age enrol to school. With regard to healthcare, each commune has one clinic with 01 doctor and 3-4 nurses. On the other hand, to the health examination and cure, the commune healthcare also to hold propaganda on community health protection, environmental sanitation, maternity and children protection, healthcare and family planning. Water sources for daily use and drinking of PAHs are mainly from well water, rainwater. 100% PAHs use electricity from the national grid. The socioeocnomic survey indicates that most of PAPs live on agircultural sector, making up 98%. Non-agricultural jobs make only a small proportion. Averaged income per PAP is 415,000 VND/month. Table 2.3 Categories of PAHs per income (HH) Unit: household Well-off Better-off Poor No Commune PAHs Numbers Numbers Numbers Rate Rate Rate of HHs of HHs of HHs 1 Þnh Long 93 7 7,53% 81 87% 5 5% 2 Þnh Liªn 92 12 13,04% 70 76% 10 11% 3 Þnh T ng 26 1 3,85% 22 85% 3 12% 4 Þnh T êng 35 4 11,43% 26 74% 5 14% 5 Yªn B i 15 5 33,33% 8 53% 2 13% 6 Yªn L¹c 5 0 0,00% 4 80% 1 20% 7 Yªn Hïng 40 7 17,50% 27 68% 6 15% 8 Yªn Phó 14 3 21,43% 9 64% 2 14% 9 Yªn Ninh 56 5 8,93% 40 71% 11 20% 10 Qu n Lµo town 10 6 60,00% 3 30% 1 10% Total 386 50 290 46 13,43% Thus, PAHs in poverty line make up 13.43% (according to Decision No. 170/2005/QD- TTg) and better-off and well-off PAHs make up 86.57%. 2.4 Land-use rights, house and asset ownerships Land-use rights: 100% of PAHs are legal for land-use. Agricultural land and residential land are all granted with Land-use rights certificates. 2.5 Vulnerable group Vulnerable PAHs are poor PAHs, social policy and welfare subjected PAHs same as martyrs and wounded soldiers, head of a household is women, the handicapped are identified in above part. This group of PAHs enjoys many preferential policies of the province such as loans for production, free-of-charge health examination and treatment, etc. Exceptionally that the poor HHs have to relocate shall be entitled to an allowance of 1,000,000 VND/HH. Thanh Hoa PMU 9

3. Scope of land to be acquired and resettlement 3. 1 Project affected households (PAHs) There are 386 HHs to be affected by the subproject. Of which 03 PAHs have to relocate and 383 PAHs are marginaly affected with cultivated land, tree, crop, and 0 PAHs are affected with their business premise. Table 3.1. Number of PAHs in commune No Commune PAHs Relocation PAHs Severe PAHs (>20% of landholdings are affected) PAHs with business premise affected 1 Þnh Long 93 0 0 0 2 Þnh Liªn 92 0 0 0 3 Þnh T ng 26 0 0 0 4 Þnh T êng 35 0 0 0 5 Yªn B i 15 0 0 0 6 Yªn L¹c 5 3 0 0 7 Yªn Hïng 40 0 0 0 8 Yªn Phó 14 0 0 0 9 Yªn Ninh 56 0 0 0 10 Qu n Lµo town 10 0 0 0 3.2. Affected Land Total 386 3 0 0 Land to be affected by the Cau Khai drainage system, Yen Dinh district totals 89,151.4 m 2, in which agricultural land is dominated with 77,829 m 2 (87.3%); then public land covers were managed by CPC: 51,677 m 2 (57.97%); lakes and ponds area:11,006 m 2 (12.35%); and a small area of residential land: 316.7 m 2 (0.36%). PAHs of whom more than 20% of their total landholdings is affected are entitled to job training allowance at a rate of 1,500,000 VND/ labourer. Table 3.2 Summary of affected land in commune. Unit: m 2 No. Commune Residential land Lakes and Ponds Agricultural land Public land Temporarily land Total area 1 Þnh Long 0 1511 14829 4848.4 1715.1 16340 2 Þnh Liªn 61.5 0 8 269.4 10108 8330.91 3 Þnh T ng 0 0 14130 14098 7980 14130.2 4 Þnh T êng 0 0 5961 465 0 5961 5 Yªn B i 0 0 1466.3 900 895.2 1466.3 6 Yªn L¹c 0 9495 23743 23743 33238 Thanh Hoa PMU 10

7 Yªn Hïng 0 0 8731.4 7622.5 772.2 8731.4 8 Yªn Phó 0 0 567.5 2175.8 567.5 9 Yªn Ninh 255.2 0 0 0 255.2 10 Qu n Lµo town 0 0 130.9 0 0 130.9 Total 316.7 11006 79160 51677 23646 89151.4 In addition, for constructing the works, the Subproject needs to temporarily acquire 23,646 m 2. These lands are in the works right-of-way, it will not be compensation. All assets associated on the temporary land acquired shall be compensated with replacement costs. When the project is completed, these lands shall be returned in preproject conditions. No. Commune Temporarily land (m2) Number of household 1 Þnh Long 1715.1 21 2 Þnh Liªn 10108 88 3 Þnh T ng 7980 1 4 Þnh T êng 0 0 5 Yªn B i 895.2 8 6 Yªn L¹c 0 0 7 Yªn Hïng 772.2 21 8 Yªn Phó 2175.8 14 9 Yªn Ninh 0 0 10 Qu n Lµo town 0 0 Total 23646 153 3.3. Houses, Works, Architectural structures to be affected 3.3.1 Houses There are only 03 HHs to be affected by the subproject in Yen Lac commune at the Hon Eo zone. These houses are grade 4 house, tile and concrete roof. Total area of PAHs is 90.76 m 2 03 HHs had got main house in the village near Hon Eo zone. These houses were built to guard and to cultivate easily. Thus, Theirs only move the assets, furnitures. In addition, there is a temporary house, small straw hut on the canal line direction will break down when the construction start building. These PAHs all have main houses in the village. There aren t HHs affected with their business premise. Table 3.3.1 Summary on Houses to be affected No. Type of house Unit Quantity 1 High-rise m 2 0 2 Plat roof m 2 0 3 Grade 4 house m 2 90,76 4 Small straw hut m 2 88,0 Thanh Hoa PMU 11

3.3.2 Works, Architectural structures The subproject also affects to some works and architectural structures (mainly auxiliary works) including kitchen, animal sheds, water-tanks, dry-yards, etc. Table 3.3.2. Works, architectural structures to be affected No. Type of works Unit Quantity 1 Concrete yard m 2 23,95 2 Brick yard m 2 34.48 3 Osin pump Piece 01 4 Drilled well well 01 5 Brick foundation m 2 35,5 6 Concrete pipes (Dia. 80) Piece 2,0 3.4 Trees, crop to be affected The subproject shall affect to some trees, crops, mainly crops such as maize, groundnut, mulberry. Timber trees (eucalyptus, bead-tree, nacre tree, bamboo etc.) and fruit-trees (banana, jack-fruit, longan, grape-fruit, etc.) are also affected but in a small amount. Table 3.4 List of trees and crops to be affected No. Trees, crops Unit Amount 1 Bead-tree Tree 703 2 Ironwood Tree 184 3 Eucalyptus Tree 1849 4 Nacre-tree Tree 355 5 Bamboo Tree 4432 6 Big bamboo Tree 340 7 Keo tree Tree 121 8 Aloe wood tree Tree 7 9 Longan Tree 52 10 Thieu litchi Tree 66 11 Jujubetree Tree 2 12 Papaw tree Tree 42 13 Banana Tree 1882 14 Coconut Tree 37 15 Mango, Sapodila Tree 14 16 Other fruit tree Tree 98 17 Cassava Tree 400 18 Monordica Tree 60 19 Bred grass m 2 450 20 Firewood tree Tree 18 Thanh Hoa PMU 12

4. Legal framework Project policy framework and entitlements are based on legal documents of the Government of Vietnam, mainly Law on Land in 2003, Decree 181/2004/ND-CP dated October 29 th 2004 on execution of Law on Land, Decree 197/2004/ND-CP dated December 3 rd 2004 on compensation, allowance and resettlement when State appropriates land; Circular 116/TT-BTC by Ministry of Finance guiding to execute Governmental Decree 197/2004/ND-CP, Decree 87/1994/ND-CP, and WB Guidelines on Involuntary Resettlement (OP 4.12) issued December 2001, updated and issued on March 2007, The Development Credit Agreement No. Cr. 4114-VN dated 2 nd March 2006. The promulgation of Decree 197/2004/ND-CP dated December 3 rd 2004, Government of Vietnam has a decree on resettlement similar to principles of WB involuntary resettlement policy. However, in case if any discrepancy between Vietnam legal regulations and WB policy, the terms and principles specified in the Project resettlement framework shall govern. 4.1 Law and legislation on land acquisition in Vietnam The 2003 Land Law (26 th November) is a comprehensive land administration law, superseding the earlier 1993 version. The Land Law gives people access to land through land-user rights, which are similar to private ownership. Some of the important issues that are relevant to land usage, acquisition, and resettlement, are summarized as below: a. The State reserves the right to allocate land and determine its usage. b. Families and individuals who have been allocated land have the right to exchange their land for another piece; transfer their right to use land to another party; and rent, bequeath, or use their land as collateral. c. The People s Councils at all levels are responsible for executing the determination, monitoring of the management and use of land use in their localities; the People s Committees at all levels are responsible for managing land issues in their domains, as provided for by laws. d. The State reserves the right to expropriate land when truly necessary, in cases of national defense or security or national and public interested, the land user will be compensated for loss of possessions. Being an infrastructure project that serves national and public interest, as defined in the GOVN s Decree No. 197/2004/ND-CP of December 3 rd 2004, the Law on Land provides the basis for ROW acquisition. e. Before land is expropriated, the user must be informed of the reason for expropriation, time schedule, plan for resettlement, and options for compensation. There are a substantial number of other laws, regulations, and decrees are relevant to land acquisition and resettlement, the most important of these are as follows: a. The Constitution of the Socialist Republic of Vietnam, 15 th April 1992; b. The Land Law, Government of Vietnam, 14 th July 1993, amended on November 26 th 2003; Thanh Hoa PMU 13

c. Decree No.181/2004/ND-CP, Government of Vietnam, 29 th October 2004, regulation on execution of Land Law; d. Decree No.188/2004/ND-CP, Government of Vietnam,16 th November 2004, regulation on how to determine prices of land and price framework for land categories; e. Decree No. 197/2004/ND-CP, Government of Vietnam,3 rd December 2004, regulation on compensation, allowances and resettlement for losses when state recovers land; f. Circular No. 116/2004/TT-BTC, 7 th December 2004, Ministry of Finance, regulation on executing Decree No. 197/2004/ND-CP, 3 rd December 2004 of Government of Vietnam. g. Decree No. 17/2006/ND-CP, Government of Vietnam, 27 th January 2006, modified and amended some articles in Decree guidance to implement Land law 2003 and Decree no. 187/2004/ND-CP; h. Decree No.123/2007/ND-CP, Government of Vietnam, 27 th July 2007, on modified and amended some articles in Decree No.188/2004/ND-CP, Government of Vietnam,16 th November 2004, regulation on how to determine prices of land and price framework for land categories, i. Decree No. 84/2007/ND-CP dated May 25 th 2007 on certification right of using land, acquisition land, right of using land and regulation, procedure of compensation and appeal mechanism. j. Decision No. 815/QD-UBND dated 24 th March 2006 by Thanh Hoa PPC on approval compensation, resettlement plan Cau Khai drainage system, Yen Dinh district, Thanh Hoa province. 4.2. WB policy on involuntary resettlement The objective of the WB policy on involuntary resettlement is to avoid or minimize any adverse impacts to PAPs, support and help find new residential place for PAHs who loss land and assets as well as who are directly affected to their life due to land acquisition and other temporary construction activities. Such efforts aim at making sure that PAHs can maintain their living conditions equal to or better than the pre-project conditions. The main objectives and principles on this policy are: a. Involuntary resettlement should be avoided if possible. b. If it is impossible to avoid involuntary resettlement, it should be minimized via all possible design options of the project. c. Relocation PAHs must be compensated and supported in order to make sure that their socioeconomic conditions in general shall be better or at least equal to pre-project conditions. d. PAPs should be sufficiently informed and consulted about resettlement and compensation options. e. The existing social and cultural institutions of the resettles and host community should be supported and used to the extent possible, and the resettles should be integrated in socioeconomic life of the host community. Thanh Hoa PMU 14

f. Lack of legal rights on land of PAHs groups will not affect the eligibility to compensation for land. Special attention should be given to the vulnerable group, i.e. indigenous, ethnic minorities headed HHs, etc. Appropriate support should be given to them to improve their conditions. g. Involuntary resettlement should be acknowledged and implemented as an integral part of the project. h. All costs related to resettlement and compensation will be reflected in the cost and benefit of the project. 5. resettlement main principles and policy of the project 5.1. Main principles Main principles of the Project are: a. Involuntary relocation and loss of land, structures and other assets and incomes should be avoided or minimized by exploring all viable options. b. All affected persons (PAPs) are entitled to be compensated for their lost assets, incomes and businesses at replacement cost and provided with rehabilitation measures sufficient to assist them to improve or at least maintain their preproject living standards, incomes and productive capacity. c. Compensation for affected assets shall be provided at replacement cost. d. Lack of legal rights to the assets lost will not bar the affected persons from entitlement to such compensation and rehabilitation measures. e. In the case of population relocation, efforts shall be made so that the existing social and cultural institutions of the resettles and host community should be maintained to the extent possible. f. Preparation of RAP (as part of subproject preparation) and its implementation is to be carried out with participation and consultation of affected people. g. Schedule and budget for resettlement planning (including socio-economic survey/ census) and implementation must be incorporated into those of each subproject and the overall Project. h. Payment of compensation of affected assets and relocation if any must be completed prior to the start of civil works of a subproject. Rehabilitation measures must be ready but not compulsory to be finished during this period because these activities are in long-term manner. i. Compensation for ethnic minorities, female headed-households, families with disabled, and other vulnerable families will be carried out with respect for their cultural values and specific needs. 5.2. Project Policy In order to implement the above principles, the following policies shall be applied: (i) Involuntary relocation and loss of land, structures and other assets and incomes should be avoided or minimized by exploring all viable options. Thanh Hoa PMU 15

(ii) All affected persons (PAPs) are entitled to be compensated for their lost assets, incomes and businesses at replacement cost and provided with rehabilitation measures sufficient to assist them to improve or at least maintain their preproject living standards, incomes and productive capacity. (iii) Lack of legal rights to the assets lost will not bar the affected persons from entitlement to such compensation and rehabilitation measures. (iv) Compensation for affected assets shall be provided at replacement cost. (v) In the case of population relocation, efforts shall be made so that the existing social and cultural institutions of the resettles and host community should be maintained to the extent possible. (vi) Preparation of the RAP (as part of subproject preparation) and its implementation is to be carried out with participation and consultation of affected people. (vii) Schedule and budget for resettlement planning (including socio-economic survey/ census) and implementation must be incorporated into those of each subproject and the overall Project. (viii) Payment of compensation of affected assets and relocation if any must be completed prior to the start of civil works of each bidding package of the subproject. (ix) Compensation for ethnic minorities, female headed-households, families with disabled, and other vulnerable families will be carried out with respect for their cultural values and specific needs. 6. Eligibility and entitlements 6.1. Eligibility i. Eligible date for entitlement/project cut-off date is determined as the date of completion of detailed measurement and survey for lands and assets of PAHs in the project area. The detailed measurement and survey of the subproject started on December 1 st 2007 and ended on January 31 st 2007. The date January 31 st 2007 is determined to be the subproject cut-off date. Any encroachment to the project area after the cut-off date shall not be eligible to receive any compensation or allowances in all types. ii. Lack of legal rights will not affect the eligibility to compensation for land, structure, crops, and income losses. All PAPs are eligible for rehabilitation assistance. iii. For flood protection subprojects, it is agreed that: a. Where the toe of the dyke will be shifted as a result of dyke strengthening, or upgrading land acquisition for the new right of way will not be required by the Department of Dyke Management and Flood Control (DDMFC), and boundary markers will not be shifted until the time of expiry of current land use right certificates (LURC). Farmers will be allowed to continue the current land use, while temporary disruption due to construction activities will have to be compensated. Existing structures within the area between the current and future markers will not be removed unless it is considered necessary due to Thanh Hoa PMU 16

safety and technical reasons. No new structures will be allowed to be built within the area between the current and future markers. b. Communities and commune officials will be fully informed of this arrangement, so that the communities can enforce this restricted use of land and that a shift in markers will be considered when the new LURC is issued. 6.2. Categories of PAPs ii. iii. i. Based on the previous experience of similar projects in Vietnam, the following categories of affected persons are broadly envisaged: a. Farmers with permanent land use rights ( legal and legalizable user) losing agriculture land: This category includes (a) legal land users, (those with the land use right certificates (LURC) and (b) legalizable land users, (those who are waiting for the LURC to be approved by the district authority but have documents to prove as such). They are all entitled to full compensation at replacement cost and rehabilitation assistance. b. Farmers with temporary or leased land use rights losing agriculture land: Temporary land users are those who occupy land temporarily allocated to them for a period of time by the commune with the written permission. They pay taxes on their crops but do not pay any user fees. They are not legalizable. Leased land users are those in possession of land leased from the commune authorities on the basis of a signed contract and who pay the user fee and land taxes. Both temporary and leased land users also include those using the land on the legally prohibited area but with a written permission from communes or other relevant local authorities. They will be entitled to cash compensation for standing crops at market prices; AND cash compensation for the lost net income from the affected land for the remaining leased/assigned period AND rehabilitation assistance. c. Farmers whose aquaculture land is affected: All the above categories and entitlements on agricultural land will apply to aquaculture land as well. d. Farmers whose trees, standing crops, and fish stocks are affected: All of them will be compensated at full market prices regardless of the legal status of land use rights. e. People losing part of their residential or commercial land. f. People losing all of their residential or commercial land due to relocation. Each of these categories will be further categorized into three types, based on the legal status of land use rights: a. Those with permanent land use rights: this includes those who have the legal and legalisable land use rights, as in agricultural land. They are entitled to full compensation. People losing all of their residential or commercial structure and relocating. Each of the above two categories will be further categorized into the following: (a) Those with legal right to build structures (legal owners): This include (i) those with written permission or a building permit in urban areas and those with legal right to use residential/commercial land; (ii) those in the process of Thanh Hoa PMU 17

obtaining the permission to LURC (in rural area) and a building permit (in urban area) that can be validated; and (iii) those obtain one of the above between the date of census an the implementation date of subproject, issued by provincial or district authorities. They are entitled to full compensation at replacement cost of their structure without depreciation. In the partially affected case, compensation will be made for the affected part and an additional cash payment will be made for repairs to the remaining part. (b) Tenants: Tenants who will not be able to continue to live under the present agreement with the owners due to the Project impact will receive 6 months rent allowance in cash and assistance from local authorities in finding new rental accommodation. (c) Non-legal owner of structures: In this Project, compensation at 100% replacement cost of their structures without depreciation will be provided. v. People losing all or part of their business or other non-agricultural income generation opportunities: This category includes (a) business owners (legal or non-legal) and (b) hired laborers who work on wages, commission, or salary. They will be entitled to the full compensation for the loss of business earnings (net profit) and labour costs, depending on the duration of loss and type of business (up to six months); and rehabilitation assistance. 6.3. Project impacts and entitlements Entitlements of each PAH depend on the level of losses and type of losses. (a) (b) (c) (d) (e) (f) Loss of agricultural and aquaculture land: This will be categorized into temporary loss (less than one year) and permanent loss. Permanent loss will be categorized into marginal loss (defined as those PAPs with losses equal to or less than 20% of total landholdings) and severe loss (defined as those PAPs with losses more than 20% of total landholdings). PAPs with severe loss (i.e. severely affected persons) will receive additional rehabilitation package. Loss of residential or commercial land: This will be categorized into (a) loss of land without structures built thereon; (b) loss of land with structures built thereon; and (c) loss of land with relocation. Loss of residential or commercial structures: This will be categorized into partial loss and total loss due to relocation. If remainder of land is not economic value will be classified as complete loss. PAPs who will lose which remainder of land is not economic value and/or be relocating will be the severely affected persons who will receive additional rehabilitation package. Loss of standing crops, trees, and fish crops. Loss of public or community infrastructure and other assets: This would include schools, markets, graves, religious symbols or sites, community fishponds, community forest, community grazing land, irrigation, paths, water supply lines and facilities, communication lines, and other assets. Loss that requires rehabilitation assistance (allowances): All PAPs are entitles to some kind of rehabilitation assistance. Those PAPs who are Thanh Hoa PMU 18

6.4. Entitlement severely impacted and/or vulnerable PAPs will be entitled to special assistance for rehabilitation of income and livelihood. Compensation, entitlements, and rehabilitation allowances on the above type of loss/impact and categories of PAPs are presented in the Entitlement Matrix (Table 6.4). Table 6.4. Entitlement Matrix Type of Impact Level of Impact Entitled Persons 1. Agricultural land (including fishponds) Temporarily affected agricultural land Permanently affected agricultural land Loss of use of the land for a period less then one year Less than or equivalent to 20% of total landholdings affected More than 20% of total landholding affected User with permanent right (legal and legalizable) User with lease or temporary right Compensation Policy - No compensation for land (if returned to original user). - Cash compensation for loss of standing crops and trees at market prices, AND - Compensation for loss of net income from subsequent crops that cannot be planted. - No compensation for land. - Cash compensation for loss of standing crops and trees at market prices; AND - Compensation for loss of net income from subsequent crops that cannot be planted within the remaining lease/assigned period Non-legal user - No compensation for land (if returned to original user). - Cash compensation for loss of standing crops and trees at market prices User with permanent right (legal and legalizable) User with lease or temporary right (nonlegalizable) User with permanent right (legal and legalizable) - Cash compensation for loss of standing crops and trees at market prices, AND - Cash compensation for acquired land at full replacement cost. - Cash compensation for loss of standing crops and trees at market prices, AND - Cash compensation for loss of net income for the remaining leased/assigned period. - Cash compensation for loss of standing crops and trees at market prices, AND - Rehabilitation package (see Item 5 below), AND - Full entitlement to land of equal area and productivity acceptable to PAPs in the same or surrounding communes, OR - Cash compensation for acquired land at full replacement cost. Implementation There are no HHs There are no HHs Thanh Hoa PMU 19

Type of Impact 2. Residential land Permanently affected Level of Impact With no structures built thereon With structures built thereon with remaining land not sufficient to reorganize (<100 m 2 in rural, <40 m 2 in urban) 3. Residential structures 4. Trees/ standing crops/ fish crops Completely Affected (to be relocated) Severely Affected (> 50% of main structure) Entitled Persons User with lease or temporary right (nonlegalizable) Compensation Policy - Cash compensation for loss of standing crops and trees at market prices, AND - Rehabilitation package (see Item 5 below), AND - Land for land compensation of equivalent productive capacity at a location acceptable to the AP and on a similar lease/assigned basis, OR - Cash compensation for lost income from the affected land for the remaining lease/assigned period Non-legal user - Cash compensation for loss of standing crops and trees at market prices; AND - Rehabilitation package (See Item 5 below). User with permanent right (legal and legalizable) - Cash compensation for the affected land at full replacement cost, OR - Land for land compensation of similar size at a location acceptable to the AP. Implementation Non-legal user - There are no HHs User with permanent right (legal and legalizable) - Cash compensation for the lost land at full replacement cost; AND - Assistance from District/ Commune Resettlement Committee to locate possible plots for relocation; AND - Rehabilitation package (see Item 5 below). Note: AP with small shops which require relocating will receive cash compensation for 6 months net income of respective activity (see Item 5 below). Legal owner - Compensation at full replacement cost in material, cash, or a combination of both, AND - Rehabilitation package (see Item 5 below), AND - Assistance in finding a new site and house construction. All owners and tenants - PAPs may choose to relocate and be treated as completely affected, OR to rebuild on the same site and be treated as partially affected - Either case, rehabilitation package (see Item 5) Owner - Cash compensation for loss of trees and standing crops at market prices Threre are 3 HHs who will be moved to their main houses Compensation for trees calculated on the basis of type, age, and productive value of affected trees. Thanh Hoa PMU 20

Type of Impact 5. Rehabilitation/ Assistance Level of Impact Additional support Materials transport allowance Transition subsistence allowance Special allowance for poor HHs have to relocate Entitled Compensation Policy Persons All eligible PAPs - Provincial and District Resettlement Committees will seek to provide additional assistance to PAPs by facilitating access to credit and agricultural extension. - Proposals for RDS by affected communities will be given priority. Relocating AP - All relocating PAPs are entitled to (households) assistance from District Resettlement Committees to transport household effects, salvaged and new building materials to Resettlement Sites. Relocating - Cash compensation for moving Relocating AP, AP loss which remainder of land is not economic value, AP with > 20% of total agricultural landholding affected, and AP with > 20% of income affected Vulnerable PAPs expenses - Subsistence allowance during transition period for each household member, depending on the level of impact, valued at 30 kg of rice/month (max. 6 months). Assistance of maximum VND 1,000,000 per household for transportation of assets, furnitures Implementation DPC/CPC support humans to transport At the time of compensation, allowances will be adjusted to account for inflation. Thanh Hoa PMU 21

7. Public consultation and complaints and grievances Information dissemination to PAPs as well as consultation with their opinions and contributions and other relevant agencies helps reduce risk of delay in the subproject, allows to design RPs and rehabilitation plan as a comprehensive development program which meets the demands and expectations of PAPs. 7.1. RAP preparation 7.1.1 Preparation and distribution of Project Information Brochures (PIB) Project information brochures (PIB) was prepared by CPO in accordance with Project Policy frameworks and sent to all PMUs and PAPs. PIB was also used in the public information dissemination campaigns. In the PIB, the following contents are clearly presented: - Project brief; - Type of impacts to assets of PAHs; - Policy and basic entitlements; - Implementation schedule. Time to distribute PIBs and number of PIB copies distributed are presented in the table below. Table 7.1.1 Number of PIBs distributed to PAHs and Communes No Commune Number of PAHs Number of PIB copies Distribution time 1 Þnh Long 93 12 September 10 th 2007 2 Þnh Liªn 92 12 September 10 th 2007 3 Þnh T ng 26 12 September 10 th 2007 4 Þnh T êng 35 12 September 10 th 2007 5 Yªn B i 15 12 September 10 th 2007 6 Yªn L¹c 5 10 September 10 th 2007 7 Yªn Hïng 40 10 September 10 th 2007 8 Yªn Phó 14 10 September 10 th 2007 9 Yªn Ninh 56 12 September 10 th 2007 10 Qu n Lµo town 10 10 September 10 th 2007 Total 386 112 7.1.2 PAH consultation In addition to the distribution of PIB to PAHs and their communities, public meetings were also carried out in each commune. Meeting participations were: PMU staffs, DRCs, CRCs, and all PAHs. In addition, other social organizations also participated in the public meetings, such as Fatherland Front, Women s Union, Farmers Association, Youth s Union, etc. Thanh Hoa PMU 22

Meeting contents are specific issues in the project such as dissemination of compensation policy, support measures; PAP consultation about compensation unit prices for assets to be affected, project implementation schedule; information of price application, entitlements, grievance mechanism and complaints. Summary of number of meetings organized and main subjects. Table 7.1.2 Number of meetings with PAHs in commune No Commune Number of meetings, public consultations in each commune Number of PAHs participated 1 Þnh Long 2 12 2 Þnh Liªn 2 12 3 Þnh T ng 2 12 4 Þnh T êng 2 12 5 Yªn B i 2 12 6 Yªn L¹c 2 10 7 Yªn Hïng 2 10 8 Yªn Phó 2 10 9 Yªn Ninh 2 12 10 Qu n Lµo town 2 10 Total 20 112 Main subjects of meeting - Introduction of subproject. - Dissemination of subprojet resettlement and compensation framework - Consultation with PAHs about compensation unit prices - Subproject implementation plan - Dissemination of complaint, appeal mechanism and procedures at different levels 7.1.3 RAP Dissemination Upon the completion of this RP, the RAP shall be distributed to PAHs in the subproject area by providing each resettlement committee one copy and each commune one two copies, depending on the number of PAHs in each commune. Table 7.1.3 Number of RPs distributed to commune No Commune Number of copies 1 Þnh Long 2 2 Þnh Liªn 2 3 Þnh T ng 2 4 Þnh T êng 2 5 Yªn B i 2 6 Yªn L¹c 2 7 Yªn Hïng 2 8 Yªn Phó 2 9 Yªn Ninh 2 10 Qu n Lµo town 2 Total 18 Thanh Hoa PMU 23

7.1.4. RAP announcement on WB Website The RAP of this subproject and its appendixes and tables attached shall be published on location and VDIC in Ha noi and Inforshop at Washington. 7.2. Appeal mechanism To ensure that affected people have avenues for redressing their grievances related to any aspect of land acquisition, income loss, relocation, compensation, and rehabilitation assistance, the following appeal mechanism by the PAPs will be ensured: Level 1: An AP addresses a complaint/grievance to the Commune People s Committee, a meeting will be held between the AP and the chairman of the CPC (with representatives from PMU and PRC present as observers). Level 2: If the CPC cannot address the AP s concerns to his/her satisfaction within two weeks from the receipt of the complaint/grievance, the complaint/grievance can be raised to the District People s Committee. Level 3: If the DPC cannot address the AP s concerns to his/her satisfaction within two weeks from the receipt of the complaint/grievance, the complaint/grievance can be addressed to the local preliminary court. PAP shall be exempted from all administrative and legal charges incurred during the appeal. Regardless with no presentation of CPO/SPO/PMU in the People s Committee, it is a task of CPO/SPO/PMU to cooperate with the PCs in principle of publicity and information supply, if requested. Thanh Hoa PMU 24

8. Implementation procedures 8.1. Survey on replacement cost Objective of the survey on replacement cost is to confirm compensation prices for land, assets, crops and trees, and other losses such as income loss in which aims to ensure PAHs to be compensated responsively to market prices. The survey on replacement costs was undertaken in accordance with the Project policy framework. Resettlement and compensation Project Consultant prepared forms and questionnaires for replacement cost and trained PMU to carry out survey in December 2007. Determination of replacement cost is based on collected information and data from site surveys of which special attention was given to data collected from PAHs and Non- PAHs. In addition, survey team also collected information and data from relevant sectors and agencies, social organizations and local governments. Survey results on replacement cost in this Subproject was submitted to CPO and WB (refer to Appendix). The survey results indicate that proposed compensation unit prices for land, assets, crops and trees for PAHs are satisfactory, suitable with actual value of each type of assets. 8.2. Detailed measurement and survey (DMS) Upon the availability of detailed designs for construction (approved by DARD), PMU coordinated with DRCs to carry out detailed measurement and survey for land and other assets in area to be acquired by the Project. Survey members comprised of: PMU staffs, DRCs members, and representatives of CPCs in the subproject area. DRCs informed PAHs about the DMS agenda so PAHs headers could be present to witness the DMS. After completion of DMS, PAHs headers signed on DMS minutes to verify areas and types of their land, assets to be affected by the subproject, and PAHs kept one copy of minutes. In case, PAHs did not agree with DMS results, they could make complaints, appeals as provided for by the appeal mechanism. In case, PAH header was not present (though they had been informed), the Subproject requested local government to verify and sign on the DMS minutes. 8.3. Compensation payment process After the completion of DMS for all PAHs in the alignment and after the issuance of PPC Decision for approving the set of compensation unit price for the Project, DRCs and PMU had applied the compensation unit prices for PAHs and completed the RP. The RP, after being approved by PPC would be sent by PMU to CPO and MARD for review and approval, and fund for compensation allocated to pay PAHs accordingly. In this Subproject, once compensation plan is approved by PPC and RAP approved by WB, PMU and RCs can proceed with compensation payment to PAHs. Thanh Hoa PMU 25

8.4. Compensation payment procedures, responsibilities of stakeholders DARD and PRC, DRCs, CRCs shall: a. Inform PAHs with compensation payment schedule at least 02 weeks in advance; b. Prepare a list of PAHs, their entitlements and total compensation amount; c. Prepare 03 sets of compensation documents and support documents (to distribute to PAHs, DARD + PRC, and CPO); d. Prepare and update regularly computer-based database on list of PAHs, including date of compensation delivery; e. Submit weekly progress report to CPO, attach with list and receipt with signature from PAHs for CPO to track the payment process properly. PAHs shall: a. Bring with necessary documents (LURCs, ID, other verification papers, etc.). b. If PAH can not receive compensation as scheduled, s/he has to inform to RDC/CDC immediately or authorize in writing to other person to receive compensation amount on his/her behalf. PAH can also suggest DARD, DRC/CDC to arrange other date to pay their compensation. c. Carefully check papers and documents related to the payment and request DARD or RCs at relevant level to clarify/explain, if necessary. d. PAH is not satisfied with the compensation amount, or any disagreement between PAH and DARD or RCs, they can take an appeal to relevant authorities. e. If PAH agrees with compensation amount, they shall sign on papers verifying to receive sufficient amount. f. be given a copy of compensation and payment document. g. Undertaken to remove from areas to be affected in time as specified by the Project in order to give land to project for construction. Thanh Hoa PMU 26