RESETTLEMENT AND ETHNIC MINORITYDEVELOPMENT PLANTRANSMISSION LINE COMPONENT – TRUNG SON HYDROPOWER PROJECT

CHAPTER II THE PROJECT’S IMPACTSAnticipated impacts of the subproject and scope of investigation The subproject’s affected area Mai Chau 110kV Substation Mai Chau 110kV substation is ex

VIETNAM ELECTRICITY TRUNGSON HYDROPOWER COMPANY LIMITED

RESETTLEMENT AND ETHNIC MINORITY

DEVELOPMENT PLAN

TRANSMISSION LINE COMPONENT –

TRUNG SON HYDROPOWER PROJECT

Ha Noi, January 2013

RP857 v7

ABBREVIATIONS

AH Affected Household

CLDF Center for Land Development Fund

CPC Commune People’s Committee

DARD Department of Agriculture and Rural Development

DCRB District Compensation and Resettlement Board

DMS Detailed Measurement Survey

DOC Department of Construction

DOF Department of Finance

DONRE Department of Natural Resources and Environment

DP/AP Displaced Persons/Affected People

DPC District People’s Committee

EMA External Monitoring Agency

GOV Government of Viet Nam

IOL Inventory of Losses

LURC Land Use Right Certificate

MOLISA Ministry of Labour, Invalids and Social Affairs

MONRE Ministry of Natural Resources and Environment

MOF Ministry of Finance

PIB Public Information Brochure

PMU/ PMB Project Management Unit/ Board

RAP Resettlement Action Plan

SES Socioeconomic Survey

TA Technical Assistance

TOR Terms of Reference

TSHPP Trung Son Hydropower Project

VND Viet Nam Dong

DEFINITION OF TERMS

Displaced Persons (DPs) include a person or many people, households, agents or organizations,individuals who are verified by their collected primary information during each inventory andresettlement plans (RPs), based on surveys and documents and impacted or potentially impacteddirectly on their socio-economy condition by the project implementation, due to the followings:

(a) Mandatory land acquisition which leads to:

 Relocation or loss of residential place;

 Loss of properties or approach ability to properties; or

 Loss of income sources or facilities for earn a living, regardless whether DPs have

to be relocated to other residential place; or

(b) Were involuntarily limited to approach to preserving and legally assigning locations, causing

adverse impacts on their livelihodd

Generally, “DPs” are all of affected people mentioned above

Compensation is the process of payment in cash or in kind to DPs who lose partially or totally theirasset value due to the project The compensation also includes valuation and return in cash or in kindfor financial and material loss due to the project impacts

Cut-off date is the last day of the survey when all of the DPs are inventoried After the cut-off date, nomore DP will be put into the inventory of DP The inventory listed all possible DPs, including theirprimary information People who relocated their residential or business locations into the Right of wayafter the cut-off date will be not compensated following this policy framework

Restoration is assistance for severely DPs due to loss totally or huge part of their production materials,income, jobs or other way to earn their livings, in order to supplement the compensation payment foracquired properties to improve or at least restore their income and living standard as before the projectimplementation

A concept is used to calculate the compensation amount for an asset and involves using currentmarket value plus the transaction costs, which may include taxes, fees, transportation, labor, etc Themarket value is determined by the PMU confirmed by local authorities in consultation with the PAP.The methods of estimation of prevailing market value should evolve over time to achieve goodpractice (Footnote 11, OP 4.12)

Resettlement mentions all methods done by the project to mitigate any and all of adverse socialimpacts of the project on DPs, including the compensation for lost assets and income as well asprovision of other benefits, assistance for restoration of income and resettlement, when necessary

vii) Right of way (ROW)

In this policy framework, the Right of way (ROW) is determined as ROW along the electric line, with itswidth, length and height regulated by Decree 106/2005/ND-CP dated on 17 August 2005 on relatedvoltage Safeguard for high voltage system is amended by Decree 81/2009/ND-CP on 12 October2009

They are those who might suffer disproportionally from adverse project impacts and/or be less able toaccess the project benefits and compensation including livelihood restoration and assets

compensations, when compared to the rest of PAP Vulnerable peoples include people who, by virtue

of gender, ethnicity, age, physical or mental disability, economic disadvantage or social status, may bemore heavily affected by economic or physical displacement than others and who may be more limitedthan the population at large in their ability to claim or take advantage of resettlement assistance andrelated development benefits Vulnerable people can be an entire group (like an ethnic minoritycommunity), or individual households (HHs)

The DPs who have no legal status are those use land and houses but have no legal use rights; andindividuals or groups who own business stores located in the project areas but have no officialregistration and will be affected adversely due to the relocation

The DPs who have no legal status but have legal rights according to Vietnamese law and verified bycommune People’s Committees (CPCs) will receive the compensation, as long as their propertieswhich are affected by the project are inventoried in the project population survey which is implementedprior to the cut-off date published

The DPs who have no legal status and no legal rights according to Vietnamese law but verified byCPCs will be assisted instead of compensated in order to achieve the policy objectives, as long astheir properties which are affected by the project are inventoried in the project population survey which

is implemented prior to the cut-off date published

Land use as well as house and other property attached to land right certificate are issued by the state authorities to land users so as to protect their legal rights and benefits

TABLE OF CONTENTS

ABBREVIATIONS 1

DEFINITION OF TERMS 2

CHAPTER I PROJECT BACKGROUND5

1.1 Introduction to Trung Son Hydropower Project 5

1.2 Mai Chau 110 kV substation and 35kV power line Subproject 5

1.2.1 Legal rationale for the subproject 5

1.2.2 Objectives of the Subproject 6

1.2.3 Components of the Subproject 6

CHAPTER III SOCIO-ECONOMIC SURVEY 11 3.1 Socio-economic Survey 11

3.2 Socio-economic status in the project area 13

3.3 Socio-economic survey results of the project affected households 17

3.3.1 Household size 18

3.3.2 Population structure by age 18

3.3.3 Household occupational structure 19

3.3.4 Educational level 20

3.3.5 Vulnerable group 21

3.3.6 Living standards 22

3.3.7 Income 22

3.4 Impacts of the subproject 24

CHAPTER IV LEGAL FRAMEWORK (FOR LAND AND ETHNIC MINORITY) 34 4.1 Policies of the Government of Vietnam 34

4.2 World Bank’s Policy on Involuntary Resettlement and Indigenous Peoples 37

4.3 Comparison between Government of Vietnam and World Bank Approaches 37

CHAPTER V CONSULTATION AND INFORMATION DISCLOSURE 40 5.1 The need and Purposes 40

5.2 Consultation during preparation of Resettlement Action Plan and Ethnic Minority Development Plan 42 CHAPTER VI COMPENSATION, SUPPORT AND LIVELIHOOD RESTORATION47 6.1 Compensation 47

6.1.1 Compensation and Resettlement Objectives 47

6.1.2 The Compensation and Resettlement Principles 48

6.1.3 Project Displaced Person(s) DPs 49

6.1.4 Eligibility 49

6.1.5 Cut-off date 49

6.1.6 Project entitlement matrix 50

6.2 Support and income restoration 61 CHAPTER VII ETHNIC MINORITY DEVELOPMENT PLAN AND GENDER STRATEGY 67

CHAPTER VIII IMPLEMENTATION ARRANGEMENTS 69

CHAPTER IX BUDGET ESTIMATE 75

APPENDIX 76

CHAPTER I.

PROJECT BACKGROUND

Trung Son hydropower project will be constructed on the Ma River, in the territory of Trung Soncommune, Quan Hoa district, Thanh Hoa province The proposed project aims to provide least-costelectric power to support Vietnam’s further economic development and improvement of livingstandards through the development of hydropower resources in an environmentally sustainable andsocially responsible manner The proposed project will provide support for EVN’s development of one

of the country’s medium-sized hydropower development projects The goal is to provide a “goodpractice” case of sustainable hydropower development in this core part of Vietnam’s power sector.Trung Son Hydropower project with its installed capacity of 260 MW and mean annual energy of 1018GWh is a multipurpose project, providing both power generation and flood control benefits Theproposed dam is about 40km downstream from Lao PDR, with the reservoir tail about 10km from theborder The roller compacted concrete dam will be 84,5 m high and have a crest length of 513 meters.Full supply level is 160 meters The total reservoir volume will be about 348.50 million m3 including aflood control volume of about 112 million m3 It will cover an area of about 13.13 km2, inundatingmixed forest and agricultural land

The project will consist of the following four components:

 Dam construction This will include the construction of the main dam, including the spillway,intake gate, penstock, power house and discharge channel, supply and installation of theelectromechanical and hydro-mechanical equipment Auxiliary investments including theaccess road and bridges, internal roads and construction camp will be included in thiscomponent, as will consulting services for supervision of construction

 Construction of power lines, one from the switchyard to the connection point into the existingHoa Binh – Nho Quan 220kV system and a 110/35kV line from the area of Mai Chau to theconstruction site

 Impact mitigation and compensation, which will include the implementation of resettlement,livelihoods restoration, ethnic minorities, environment management and public healthmanagement plans

 Technical assistance to support preparation of further hydropower projects and improvement ofcapacity to meet best international practice for hydropower development

Total costs are estimated at $412million, of which about $2.9 million is for environmental management(in addition to remediation requirements placed on construction contractors) and $35.1 million forresettlement and restoration of peoples’ livelihoods Vietnam Electricity officially received a loan of

$330 million from International Bank of Reconstruction and Development (IBRD)

1.2.1 Legal rationale for the subproject

 Decision by the Prime Minister approving the National Power Development Planning in the

2006 to 2015 period with prospect to 2025 numbered 110/2007/QD-TTg dated July 18 2007(TSDVI)

 Decision No 5638/QD-BCT dated October 22 2008 by the Ministry of Industry and Tradeapproving adjustment of “Power Development Planning of Hoa Binh in the 2006 to 2010 periodwith prospect to 2015”

 Document No 328/DTDL-QHCP dated September 26 2008 by the Power RegulationDepartment on “Adjustment of Power Development Planning of Hoa Binh”

 Decision No 880/QD-EVN dated August 24 2010 by the Electricity of Vietnam on “approvingthe adjustment of investment project for Mai Chau 110kV substation and 35kV power linesupplying electricity for construction of Trung Son Hydropower Plant”

 Document No 552/TDTS-P4 dated November 24 2010 by Trung Son Hydropower ProjectManagement Board on “technical design dossier, construction draw of power supply forconstruction of Trung Son hydropower plant component”

 Document No 1538/EVN-DT dated May 9 2011 by the Electricity of Vietnam on “adjustinginformation solution for Mai Chau 110kV substation”

 Document No 180/TDTS-P4 dated May 18 2011 by Trung Son Hydropower ProjectManagement Board on “technical design dossier of Mai Chau 110kV substation and power linesupplying electricity for the construction of Trung Son Hydropower Plant”

 Document No 1733/EVN NPC-KT dated May 27 2011 by the Northern Power Company on

“supplying construction power for Trung Son Hydropower Project in Hoa Binh Province”

 Document No 392/TDTS-P4 dated September 26 2011 by Trung Son HPPCo on “adjusteddesign dossier of Mai Chau 110kV substation and power line”

 Decision No 93/QD-TDTS dated November 8 2011 by Trung Son HPPCo on “approvingtechnical design and cost estimates of the component Mai Chau 110kV substation and 35kVpower line supplying construction electricity for Trung Son Hydropower Plant”

 Survey documents by PECC4

 Current standards and regulations

1.2.2 Objectives of the Subproject

The investment in construction of "Mai Chau 110kV Substation and 35 kV power line supplyingconstruction power for Trung Son Hydropower Plant" aims to meet the additional load demands in thearea, supply power for the construction loads at the construction site of Trung Son Hydropower Plantduring the construction period and resettlement sites

1.2.3 Components of the Subproject

Mai Chau 110kV substation and 35kV power line subproject consists of the following 02 components:

 Component 1: Mai Chau 110kV substation and branch

 Component 2: 35kV power line supplying construction electricity for Trung Son HydropowerPlant

CHAPTER II THE PROJECT’S IMPACTS

Anticipated impacts of the subproject and scope of investigation

The subproject’s affected area

Mai Chau 110kV Substation

Mai Chau 110kV substation is expected to build on one-crop rice-growing field and rain fed cropgrowing land of Tong Dau Commune, Mai Chau District, Hoa Binh Province

The North: bounded by one-crop rice field

The South: bounded by rice field and 100m from Tong Dau Primary School

The East : bounded by National Highway No 15

The West: bounded by rice field and approximately 100m from Hoa Binh-Moc Chau 110kV TL

and Mai Chau- Hoa Binh 35kV power line

Area to be acquired for the works on the total site of the substation as follows:

Table 1 Land area required for the substation

Total land area for the substation (including talus) In which: 8.336,0m 2

- Land area required for operation house and access road to the

house (including talus)

1.000,0 m2

- Land area required for the substation and access road to the

substation (including talus)

7.336,0m2

35kV Power Line

The 35kV power line traverses Tong Dau Commune, Mai Chau Town, Chieng Chau, Mai Ha, Van Maiand Mai Hich communes in Mai Chau District (Hoa Binh Province) and Phu Thanh Commune in QuanHoa District (Thanh Hoa Province)

Mai Chau- Trung Son HPP 35kV power line under the component “Supplying power for

construction of Trung Son HPP” is studied with one alignment option 1 and is agreed by Mai ChauDPC of Hoa Binh Province and Quan Hoa DPC of Thanh Hoa Province The alignment is mainly alongwith the National Highway 15 and construction road of the hydropower plant with the main features asshown in the table below:

Table 2 Main features

1

Starting point

35kV control cabinet at 110/35/22kV Mai Chau substation

2

DZ 35kV (REII) supplying power for Ban Uon substation, Phu Thanh, Quan Hoa

No 285/UBND-CN dated March 9 2009 and Quan Hoa District People’s Committee

The alignment is divided into 2 sections which can be described in details as follows:

- Section 1: From starting point – G26 15.396m long

Starting from 110/30kV Mai Chau substation expected to build in Tong Dau Commune, Mai ChauDistrict, Hoa Binh Province The alignment intersects Mai Chau-Hoa Binh 35kV TL and Hoa Binh- MocChau 110kV TL The line goes along with the National Highway 15 on its right side with the averagedistance from 250 to 500m and many lock angles to avoid the residential areas to G16 The linepasses through the terrain which is relatively flat with productive land for growing rice, mixed with fruit-trees and hills growing “luong” bamboo The line traverses Tong Dau Commune, Mai Chau Town,Chieng Chau Commune, Mai Ha and Van Mai and Mai Hich communes in Mai Chau District, Hoa BinhProvince

- Section 2: From G26 – tower No 59 DZ 35kV (REII) supplying power for Ban Uon substation, Phu Thanh Commune, Quan Hoa District: 4.031m long

From G26, the line turns left and goes along with the inter-commune road on its right side to Trung Sonhydropower plant with the average distance from 100 to 300m The line passes through the terrainwhich is quite complex with many high mountains and hills, canyons and land for growing “luong”bamboo mixed with thickets From G37, the line turns lock angle and links to 35kV line of REII Project

in Quan Hoa District, Thanh Hoa Province The line goes through Van Mai and Mai Hich communes(Mai Chau District, Hoa Binh Province) and Phu Thanh Commune (Quan Hoa District, Thanh HoaProvince)

Anticipated impacts of the subproject

Impacts on land acquisition:

 Permanent land acquisition relates to land area of electric poles of line 35kV and site of MaiChau 110kV substation

o Total permanent land area of line 35kV: 3,513.41 m2

o Total permanent land area of Mai Chau 110kV substation: 8,336.0m 2

 Temporary land acquisition will be required for erection of towers and stringing of conductors.Temporary affected land area most likely depends on implementation plan and campingarrangement of the implementation unit ROW of the line is 3m; temporary occupied land area

is estimated to be approximately 58 ha during 1-2 weeks

These generally will be relatively minor in terms of impacts on household land areas and livelihoods

Impacts on ethnic minority communities (Ems): Except for the impacts identified, the power line will

pass through the region where (EMs) live, with the majority of the Thai people and a small part ofMuong, Hmong, Dao and Kinh groups The impacts of the power line on the minority community aretemporary, because it only causes a small impact on some of the households, which is not adverse tothe entire community, as well as their culture On the other hand, the 35 kV line will deliver power tothe households along the route, including the ethnic minority households in the area so there is apositive impact in the socio-economic development of these ethnic minority communities

Impacts on other structures: the subproject does not cause impacts on structures for the national

defense and economic purposes, historical monuments, cultural, dykes, etc

Impacts on the environment: the line is designed in the scope to minimize the permanently acquired

land area Some parts pass through the planted forest area; therefore, during construction period,there will be certain impacts on the environment and socio-economic activities

 Survey, IOL and consultations were carried out for households temporarily affected on land inthe Right Of Way of the 35kV line, with the width of the ROW of 3m, measured from the center

to the two sides of the line

CHAPTER III SOCIO-ECONOMIC SURVEY3.1 Socio-economic Survey

A socioeconomic survey in order to collect socioeconomic information related to the project affectedpeople The socioeconomic survey was conducted by the Development Research and ConsultancyCentre (DRCC) and the data collected through the survey will serve:

 To design income restoration and livelihoods improvement program;

 As the database to compare the living standards of the households losing land before andafter compensation delivery and resettlement (to be used for the monitoring and evaluationlater in the RP implementation phase)

Survey method

 Use of terrain map, actual land use map of the affected communes (scale: 1/50.000) andplanimetric map of 110kV substation, 35kV power line coupled with field surveys to identifymagnitude of losses on land, crops and affected households;

 Use of questionnaire to collect statistical information on socio-economic conditions of thecommune for accurate assessment of the actual socio-economic status of the communes interms of population and ethnics;

 Use of socio-economic survey questionnaire at households level; carry out survey on 30% ofthe affected households to grasp the actual socio-economic status of the PAPs;

 Use of detailed questionnaire at household level; questionnaire is carried out in 100% of thehouseholds affected by construction of the project to assess the magnitude of impacts on thehouseholds;

 Carry out consultation, combined with field works with staffs of the communes, towns andvillages to inspect the field to identify the level of impacts on infrastructures and publicstructures;

 Conduct in-depth interviews with village elders and leaders, and people who are main source

of information to understand the customs, traditions and spiritual sites and sources oflivelihoods for ethnic minority communities;

 Conduct group discussion with EM households to understand opinions of EM communitieswith regard to the subprojects;

 Conduct community meetings with affected and non-affected households to discloseinformation on the subproject and to find out opinions of the community with regard to theconstruction of subprojects;

 Carry out consultations with staffs of the commune and district-level authority to assesslivelihood restoration potential for affected households in case there is potential impacts onseverely affected households;

 Processing of data: IOL data is handled using Excel; SPSS is used to analyze socio-economicdata and quanlitative data is summarized using methods of Nvivo programs;

Survey content

Socio-economic survey

Consultants collected the following information:

 Socio-economic information in the locality;

 The demographic information on the population, especially of the affected households;

 Brief description of Ems: Population and information on the culture, society, economic andrelevant institutions; identification of the affected EM groups classified or not as category IP byWorld Bank and whether or not it is necessary to apply IP policies of WB;

 Land system and legal status;

 Social development trend and matters of concern within affected households;

 Identification of affected households that need special attention and support

Survey, IOL conducted along the power line

(i) Survey of losses on residential land and assets on residential land and land of other types on the same plot as residential land, which belong to the same owner

Based on survey for construction of the line, identification of affected households, survey conducted foreach household includes the following information:

 Number of households whose residential and garden land is affected by construction of thepower line;

 Area of affected land;

 Type and area of affected house;

 Structures on land (kitchen, storage and auxiliary works etc.);

 Types and quantities of trees in the area of residential and garden land;

 Types of assets on land;

Results of survey are indicated in the questionnaire for each household For affected households thathave to relocate, pictures of household heads and their houses should be included

(ii) Survey on losses of assets on land along the power line.

Survey is conducted along the power line with borders identified as 3 m from the center on each side

to be replanted Rice and crops can only be planted 0.5 m away from the tower foundation

 Inventory of losses for trees on acquired land: survey is carried out for the type, quantity andage of each tree for perennial trees and type and area of each tree for annual trees

 Inventory of losses for assets on land: survey is carried out for different types of camps, otherauxiliary works serving for domestic activities and production activities of the people etc

 Inventory is conducted for other losses as well

Consultation with relevant parties and in-depth interview

 Consultations with local district authority’s offices:

o Office of Ethnicities;

o Office of Agriculture;

o Office of Labour, Invalids and Social Affairs;

o Women’s Union, Fatherland Front;

 Consultation and community meeting:

o Consultation is carried out with affected households including EM people (since themajority of PAPs are of ethnic minority);

o Consultation/community meeting is carried out with affected and non-affectedhouseholds;

3.2 Socio-economic status in the project area

3.2.1 Project area

The 110kV substation and 35kV TL are built in the area of Mai Chau District, Hoa Binh Province and acommune of Quan Hoa District, Thanh Hoa Province The project area includes the following:

Table 3 List of communes in the project area

Temporary land acquisition area

Source: Detailed design of 35kV transmission line and Mai Chau 110kV substation- PECC4

The subproject construction will affect permanent and temporary land acquisition With the totalpermanent land acquisition area is 11,849.41 m2 for both 110kV station and line 35 kV, the impacts onland is generally considered as minor

Temporary affected land area with ROW is 3 m wide will impact on about over 58 ha of land duringstringing of conductor However, the affected period is short, so these impacts on livelihood are notsignificant

Route of the line and substation will be constructed on site of 7 communes in 2 districts of 2 provinces,which are Thanh Hoa and Hoa Binh This area is living place of Ems with the main affected peoplegroup is Thai There are 249 affected EM households This number divides into communes andethnics as follows:

Table 4 Population and Ethnicity in the project area

Source: Statistical data provided by CPCs

Among 7 affected communes, in 5 of them, 100% of affected households are EMs Socio-economicbackground of the affected communes and EM group will be shown in details as follows

3.2.2 Population- Ethnic Composition

The population in 6 communes of Mai Chau District is 20,975 persons of 5,210 households The ratio

of males to females is relatively equal The majority in 6 communes in the project area belongs to Thaiethnic group with the population of 16,076 persons, accounting for 76.64% of the total population of 6communes Kinh ethnic group is the second highest in the area with 3,776 persons, making up 18% ofthe total population, followed by Muong ethnic group with 1,056 persons The rest is 62 personsbelonging to other groups including Tay, Chinese, Dao and Mong

Table 5 Population and ethnicity in the project area

The communes in the project area have per capita income levels lower than the national poverty line(VND 400,000/person/month) in the 2011-2015 period According to the data provided by the CPCs,the living standards of the communes are shown in the table 6 below

Table 6 Living standards in the project communes

capita income Rich HH (%)

average HH (%)

Source: Statistical data provided by CPCs

Apart from Mai Chau Town with the smallest poverty incidence of 3.7%, the other communes in theproject area have relatively high poor household rates, from 8.7% (Tong Dau) to 12.1% (Chieng Chau)

to the highest of 31.4% in Mai Ha Commune

It is notable that the percentages of households with the average standard of living in the communesare quite high, approximately 50% of total households in these communes As the national poverty line

is built upon the principle of ensuring minimum energy, the households with average living standard,which is approximately around the poverty line, are also those who are at high risk of falling back intopoverty if they have to suffer any adverse effects in life

Source: Statistical data provided by CPCs

The table above shows that the number of households engaged in agricultural and forestry production

in the communes account for a large proportion, which does not commensurate with the economicvalues in these communes That is agricultural products do not have high value

Main crops in agriculture are wet rice and maize and in forestry are “luong” bamboo and bead-trees.Small and individual industry activities are mainly to serve daily life and partly due to contributions ofthe handicraft products including brocade and bamboo and rattan weaving products to serve tourism.Services activities do not develop strongly and mainly occur in Mai Chau Town where have tourismdevelopment and a number of small businesses and services to serve people living in the mountainousvillages

3.2.5 Healthcare services, education and energy

All communes have solid or semi-solid clinics with sufficient staff 4 communes, namely Tong Dau, MaiHich, Mai Ha and Chieng Chau, have doctors at the commune clinics Primary and secondary schoolsare available in all communes and town; however, no commune has high school

All communes are able to access to the national grid However, clean water is still a difficulty to people

Secondary High school

Dug well, drilled well, river, spring, lake

Source: Statistical data provided by CPCs

Except for Chieng Chau Commune with 672 out of 861 households have access to tap water; people

in other communes still have to use water from drilled and dug wells or surface water including river,spring, lake, pond and rain water for their domestic and production activities

3.2.6 Thai community in Mai Chau

Thai people in Mai Chau in general as well as Thai community living in 5 communes and one townmentioned above belong to White Thai (Thai Trang- Tay Khao) group who migrated from Muong HuocPuoc Kha (Bac Ha- Lao Cai) since the XIVth century Due to the proximity to Muong people, Thaipeople are affected in some cultural elements of Muong people, which are shown in their houses,costume and funeral ceremony Regarding spiritual culture, some ceremonies still keep Thai traditionalelements

husbandry such as cattle, pigs and chickens to serve their daily needs and as sacrifices for theceremonies like funerals or weddings, etc Some households also keep fishes

Handicraft is developing, particularly brocade weaving Some products are quite sophisticated such asblankets and headgears which are preferred by the domestic as well as foreign tourists Since 1992,the villages such as Lac Village, Pom Coong Village (and Van Village later) began to establish TourismVillages in form of community-based management, which operate quite effectively

Currently, a number of families in the above-mentioned Thai villages also open small grocery stores athome Some people are engaged in brocade business (for example Ms Mai in Van Village) quitesuccessfully

Some jobs newly appear such as employees (porters, bricklayer), motorbike taxi drivers

Thai people live in stilt houses (with 5 compartments, 2 lean-tos and 2 stairs with many windows).Their stilt houses are affected and learn from the stilt house structure of Muong people Thai women inMai Chau also wear costumes with many elements from Muong group

Before, Thai people only ate sticky rice; today, in many areas, Thai people have changed to eat glutinous rice Some delicious dishes can be mentioned are grilled fish, sour fish, sour pork, boiledpork on banana leaf In the cuisine of Thai people in Mai Chau, there are elements from Muongcuisine, including the type of square and wooden tray

Thai people in Mai Chau often gather and live in villages Leaders of the village are head (tạo bản) and

deputy-head of the village and a person responsible for ceremonies called Chắm bản Each village has

many families; in some villages, Ha family is the majority The Thai families in Mai Chau includeHa/KHa, Vi, Luong, Ngan and Quang Aristocratic family name is Ha Cong

Before, Thai people in Mai Chau worshiped village ghosts and district ghosts Each village and districthad its own temple which was worshipped in August annually according to the Lunar Calendar Theworship ceremony of district ghost was then followed by the worship of village ghost After 1954,village and district ghost worships are no longer maintained Nowadays, they only worship house

ghosts (phi hườn) and the father; that means after their father died, the sons have to set up altar in

their house

Thai people in Mai Chau have their own writing in Pili-Sanskrit system Contents of the ancient booksare often related to migration history, family annals or customs and traditions However, nowadays, the

number of people able to read and write Thai is very small 3.3 Socio-economic survey results of

the project affected households Socio-economic survey results show that 288 households are

directly affected by land acquisition and construction of 35kV TL and Mai Chai 110kV substationsubproject These impacts include impacts caused by permanent land acquisition for the construction

of tower foundations of the 35kV TL and Mai Chau 110kV substation

Apart from the impacts caused by permanent land acquisition, there are impacts related toconstruction activities and temporary impacts on land and crops during the construction period Theseimpacts are evaluated as insignificant and short-term on the income and livelihoods of the DPs

As the number of affected households who are ethnic minority people account for the majority (249households out of 288 households), this section also describes the socio-economic status of the EMaffected households

3.3.1 Household size

288 households are affected by the subproject implementation in which 249 households are ethnicminority

Table 9 Number of affected households and affected EM ones

No. Province/ District/

Commune

Number of HHs

Number of people

Number of EM AHs

Number of EM people

Source: Survey Data

A total of 1,656 people are affected from 288 affected households, in which the number of ethnicminority people is 1,433 people from 249 households In Mai Hich Commune, only one out of 21households is ethnic minority According to the survey data, the household sizes of the communes arenot different, about 5 persons/ household

3.3.2 Population structure by age

Socio-economic survey is carried out with 30% of the PAPs, or equivalent to 108 householdsparticipated in the survey The total number of PAPs from these households is 621 Most of them arefrom 18 to 60, accounting for 75.6% (470 people) of the total PAPs In this age group, the number of

EM people is 419, occupying 77% of the total EM PAPs

Table10 Population structure by age group

No. Province/ District/

Above

Source: Survey Data.

The number of children who are in kindergarten age is 25, accounting for 4% Particularly, regarding

EM groups, the number of EM children in kindergarten age only makes up 3.3% of the total EMpopulation The number of children in school-age is 59 (making up 9.5%) while the correspondingfigure of the EM group is 8.8% The similar percentages are shown in the number of people out ofworking age, 67 people (more than 60), which are 10.7% and 10.8% for the EM group

3.3.3 Household occupational structure

Most of the PAPs are engaged in agriculture, accounting for 74.5% Out of the total people in the

working age, approximately 100% of the PAHs’ members are involved in agriculturalproduction

Table 11 Occupations of the PAPs by commune

2.1.1 Phu Thanh 12 - - - 12

Source: Survey Data

The number of people involved in other non-agricultural activities such as running small stores,

workers, motorbike taxi drivers, etc., is small By age group, people engaged in such activities are

mainly in 18 to 30 group The majority of people engaged in agriculture sector (75.5%) are above 31

3.3.4 Educational level

The table below shows the educational level of the PAPs participated in the SES

Table 12 Educational level of the PAPs

Source: Survey Data

0.2% of the surveyed PAPs are illiterate, mainly in Tong Dau Commune 17% of the members of the

PAHs have finished primary school while 41.3% have finished secondary school and are in high

school The number of people who have not graduated from high school (but no longer pursuing

education) is 8.3% Meanwhile, the percent of people graduated from high school is 33.3% Only 3.2%

and 2.4% of the surveyed obtained vocational training and university level The educational level inthese communes is not as high as the average level of the country

3.3.5 Vulnerable group

There are total 19 vulnerable households, including 5 ones having women as leader, 3 ones havingdisabled people and 11 poor ones having below 400,000VND/person/month (according to the povertyline established by MOLISA) There are no household having only single elderly in the householdgroup affected by the subproject construction

Table 13 Vulnerable households

No. Province/ District/

Commune

headed The disabled Poor HHs

Woman-Ethnic minority

Single elderly

-Source: Survey Data

The number of single mothers’ households is 5 including 2 households in Tong Dau commune, 2households in Van Mai commune and 1 household in Mai Hai commune

Disabled households: there are 3 disabled households identified in the total of 288 PAHs In which, 2households are in Van Mai and 1 household in Mai Ha commune

11 poor households are in 2 communes, namely Mai Ha (2 households) and Van Mai (9 households).All of these households are EM in Thai group Among these households, there is one household whichnot only is the poor but also having women as a household leader Poor households who have incomelower than 2 million VND/month account for 30%; rate of households having low income from 2 to 3million VND/month is 50% and female leader of a poor households having approximately 2-3 millionVND They are both famers and causes of poverty is facing difficulties such as lacking labours,employments’ sickness and other risks

All of the 11 poor households are affected on under 10% of their agricultural land

3.3.6 Living standards

The table above shows that 11 households among the PAHs are classified as poor All 11 householdsbelong to Thai ethnic group in 2 communes, namely Van Mai and Mai Hich

According to the statistical data provided by the CPCs, the average incomes of the communesfluctuate from VND 250,000 to 330,000/person/month, which is lower than the poverty line established

by the MOLISA for the 2011 to 2015 period

Table 14 Changes in living standards of the households (in the last 3 years)

No. Province/ District/

Source: Survey Data

In the last 3 years, the living standards of people in the project communes are being enhanced,especially most strongly in Mai Chau Town as 66.7% of the surveyed PAPs said that their livingconditions were getting better than before However, surveyed people in two communes, Chieng Chauand Mai Ha, believed that their living standards were worse Nevertheless, the figures in these twocommunes show differences; only 6.7% in Chieng Chau commune while up to 22.2% of the people inMai Ha commune share the opinion

Source: Survey Data.

Considering the household incomes shows that among 108 PAHs in the survey samples, 16households have income lower than VND 2 million/household/month, which is considered as theincome of the poor households; therefore, compared to the data of the households who have “poorcards”, the number of households whose income is below the poverty line is higher It is remarkablethat among 16 poor households, one household is woman-headed

With the monthly income level from 2 to 3 million dong of a household, on average, the monthly percapita income is from VND 500,000 to 750,000 If near-poor households are those who have incomelevel 125% higher than the poverty line, these 36 households are considered as just above the povertyline, which means that if such households encounter any adverse impact such as natural disasters,flood, land loss, crop loss, etc., they will easily fall back into poverty

The remaining households have income level from 3 to 6 million dong/month In general, thesehouseholds are regarded as middle-income to high-income households in the mountainouscommunes As for these households, their livelihood capacity is more sustainable

(ii) Clean water

Table 16 Water sources of the PAHs

No. Province/ District/

Source: Survey Data.

Although some households in Chieng Chau commune have access to clean water, the remaininghouseholds among the surveyed PAHs do not have clean water to use Water used for domestic andproduction purposes is from dug wells, rivers and lakes

3.4 Impacts of the subproject

(i) Impacts on land

The implementation of the subproject will affect 69,286.8 m2 of land of 288 households, of which45,211.2m2 of land belongs to 249 EM households

Table 17 Scope of land acquisition and summary of impacts

No Total PAHs and affected land area Total EM PAHs and their affected land area

Source: Survey Data.

Among the impacts on land, it is notable that there is no impact on residential land Correspondingly,there are not any impacts regarding material relocation due to the subproject construction The totalarea of rice-growing and rain crop-growing land to be affected is 10,734.2 m2 including 10,691.6 m2 in

6 communes of Mai Chau and 42.6 m2 in Quan Hoa All of the affected land for growing annual cropsbelongs to ethnic minority people

Table 18 Details of impacts on land

Annual crop growing land

Garde

n land

Forestry land

Aquacult ure land

Public land

Total affected land area (m²)

Source: Survey Data.

Among 69.286,8 m2 of permanent and temporary affected land of 288 PAHs, affected garden landsmainly belong to PAHs in Tong Dau and Van Mai communes with the total area of 563.7m2 All ofthese PAHs are ethnic minority

Forestry land is the most affected type of land with 57,988.9 m2 and mainly distributed in 3 communes,namely Tong Dau (8.3 m2), Van Mai (42,732 m2) and Mai Hich (15,247.8 m2) The area of affectedforestry land belong to EM PAPs with LURCs is 33,913.4 m2 including 8.3 m2 in Tong Dau commune,33,412 m2 in Van Mai and 493.1 m2 Mai Hich commune Details of permanent land acquisition of EMhouseholds are presented in table 19

Table 19 Details of permanently affected land of EM households due to the construction of 110kV substationand tower foundations (m2)

No. Province/ District/

Commune

Resid ential land

Annual crop growing land

Garden land

Forestry land

Aquac ulture land

The table 19 above shows the details of land acquisition by type of land in each commune required forthe project components including 110kV substation, access road, houses of staff and towerfoundations The total area of land types to be acquired from 249 EM affected household is 10,786.5m2 (including 10,734.2 m2 of annual crop-growing land, 44m2 of garden land and 8.3m2 of forestryland) The main impacts are on annual crop land, and mostly in Tong Dau commune due to landacquisition to construct the 110kV substation The least impacts are in Phu Thanh commune of ThanhHoa with only 42.6m2 of land to be acquired

Table 20 Details of temporarily affected land by ROW

No. Province/ District/

Commune

Resid ential land

Annual crop growing land

Garden land

Forestry land

Aquacul ture land

Public land Total (m2)

Source: Survey Data

The Table 20 shows the land acquisition of 58,500.3 m2 in the ROW including 57,980.6 m2 of forestryland and 519.7 m2 of garden land Land acquired for ROW is mainly forestry land in Van Mai and MaiHich communes, in which 42,732.8 m2 are in Van Mai and 15,247.8 m2 are in Mai Hich commune.This area is calculated by width of ROW which is 3m and length of the line which is 19,456km.Although the affected area is large, level of impacts is not much, because time of temporary landoccupy is only maximum 2 weeks for stringing the conductor

Table 21 Affected productive land

PAHs

Affected productive land area of the EM

PAHs

Source: Survey Data.

Impacts caused by land acquisition are evaluated as insignificant as the figures show that compared tothe total number of the affected households, only 24 households are affected more than 10% of theirlandholdings including 20 EM PAHs in Tong Dau Commune (13 HHs), Mai Ha commune (1 HH) andVan Mai (6 HHs)

Among the households losing more than 10% of land area, 20 households lose from 10% to 30% and

4 households lose more than 30% of their landholdings

(ii) Land use right

Types of lands affected by the subproject are mainly annual crop growing land, garden land andforestry land According to PAC PC, land user right certificate was issued to the households at the end

of the 90s Although some households currently have yet had LURC, they have sufficient claims for(eligible to) the granting of LURCs

The two tables below show the status of LURCs for different types of land of the PAHs by commune

Table 22 Legal status on land of the surveyed PAHs

-Source: Survey Data.

Table 22 shows that 100% of PAHs having LURCs (247 households, including 189 households havingLURCs for rice crop land and 58 households having LURCs for forest land) or not having LURCs butcan require (fully eligible to) the granting of LURC (41 households, including 10 ones who have yet hadLURC for rice crop land, 25 ones who have yet had LURC for forest land and 6 ones who have yet hadLURC for garden land) According to survey result, the households confirmed that although they haveyet had LURCs for these land types, they have sufficient claims for (eligible to) the granting of LURCs

Table 23 Legal status on land of EM PAHs

-Source: Survey Data.

Table 23 shows that status of having LURC of EM PAHs is the same as general status of thesubproject 10 EM households have yet had LURC for rice crop land, 10 ones have yet had LURC forforest land and 6 one have yet had LURC for garden land However, the households have resettledhere since before 1993 and they inform that they have sufficient claims for (eligible to) the granting ofLURCs for these land types

(iii) Impacts on standing trees and crops

Land acquisition and construction activities will affect 10,740 m2 of land for growing annual crops,including 10,734 m2 of rice growing land and 6m2 of maize land of 1 household in Van Mai Commune Table 24 Impacts on land for growing rain crops

No. Province/ District/

-Source: Survey Data.

In Mai Hich Commune, there is no impact on rice growing land In the remaining 6 communes, 199households are affected on their rice growing land with an area of 10,734 m2 Most of the affected ricegrowing area is two-crop land of local people

Types of affected trees include bead trees, “luong” bamboo, longan and mango Among 7 communes,only Tong Dau, Van Mai and Mai Hich are affected on these trees

Table 25 Impacts on trees

No. Province/ District/

“Luong”

bamboo

Chukrasia tabularis

Source: Survey Data.

90 households are affected on their trees due to the subproject implementation, including 52,400

“luong” bamboo trees, 7,830 bead trees and 880 Chukrasia tabularis trees to be cut down Thesetypes of trees have high economic value to people in the project area

Such affected trees are mainly in Van Mai Commune as 100% of the affected bead-trees belong to 10households in this commune, 33,650 “luong” bamboos are owned by 41 households and 50% of theaffected Chukrasia tabularis trees (lat) belong to 6 households in Van Mai

Impacts on fruit trees (longan and mango) are quite significant as the number of affected trees is quiteconsiderable on the average of each household Specifically, 1,070 mango trees are affectedbelonging to only 3 households in Van Mai commune and out of the total of 639 affected longan trees,

up to 615 trees are owned by 5 households in Van Mai

Summary of impacts caused by the construction of Mai Chau 100kV substation and 35kV TL is asfollows:

Table 26 Summary of impacts

-Source: Survey Data.

CHAPTER IV.

LEGAL FRAMEWORK (FOR LAND AND ETHNIC MINORITY)

4.1 Policies of the Government of Vietnam

4.1.1 Policies of the Government of Vietnam (Gov) on land acquisition

This part presents legal framework and policies of GoV and policies of World Bank (WB) regardingland acquisition, compensation as well as resettlement and compares between two approaches Due

to differences between policies of WB and legal framework of Vietnam, the project needs to exemptsome certain articles of GoV’s circulars and regulations in terms of compensation, assistance andresettlement According to that, plan of compensation, assistance and resettlement will beimplemented by the project’s policies

 Law on land 2003 issued on 26/11/2003 by Vietnam Assembly stated that “people who areacquired their land will be compensated by land for the same use; if there is no land forcompensation, they will be compensated by value of land use right at the time issuingdecisions on land acquisition PC of provinces and central cities will edit and implementresettlement projects prior to land acquisition and compensation for houses and residentialland for people who are acquired land and relocated their residential places Resettlementlocations need to have same or better development conditions than those of old residentialplaces If there are no resettlement areas, the people who are acquired land will becompensated in cash and prioritized to buy or rent houses owned by the State, in cases ofurban areas; and will be compensated by residential land, in cases of rural areas In casesland acquisition from households and/or individuals which are in direct production process, butthere is no compensating land for continuing production, besides compensation in cash, thepeople who are acquired land will be assisted to stabilize their lives by being trained to changetheir production and/or business methods via assignment of new jobs” (Article 42)

 Law on complaints and denunciations are approved on 2 December 1998 by NationalAssembly

are approved on 15 June 2004

 Decree 181/2004/ND-CP of the Government of Vietnam issued on October 29, 2004 guidingthe implementation of the Land Law 2003

 Decree 84/2007/ND-CP of the Government of Vietnam dated May 25th 2007 on revision ofissuing LURC, land acquisition, implementation of land use right, procedure for compensation,resettlement when land acquired by State and grievance redress

 Decree 197/2004/ND-CP issued on December 3, 2004 on compensation, support andresettlement when land is recovered by the State and is supplemented by the Decree No.17/2006/ND-CP

 Decree 60/CP issued on 5 July 1994 by the Government of Vietnam regulating land ownershipright and land use right in urban areas;

 Decree 61/CP issued on 15 July 1994 by the Government of Vietnam regarding regulations onpurchase houses

 Decree 188/2004/ND-CP of the Government of Vietnam issued on November 16, 2004 onmethods to determine land prices and assorted land price brackets This decree stated clearlymaximum and minimum prices of different land types and categories all over the country.These land prices were established to serve the Government’s land acquisition, tax onchanging land use right, renting the state’s land and for national as well as public objectives.Decree 123/2007/ND-CP dated July 27, 2007 on revision and supplementation of someregulations in decree 188/2004/ND-CP.

 Decree No 69/2009/ND-CP dated August 13, 2009 by the Government additionally providingfor land use planning, land prices, land recovery, compensation, support and resettlement incase of land acquisition, determination of land price, issuing land, renting land, and additionalrequirements relating to land use right

 Decree No 106/2005/ND-CP dated August 17, 2005 by the Government of Vietnam regulatingprotection and safety of high voltage system as well as verify necessary Right of way to ensurethe safety Certain articles of this decree, which are mainly to increase safe distance from thehigh voltage lines, are amended by Decree 81/2009/ND-CP dated on 12 October 2009

 Decree No 53/2005/ND-CP dated April 19 2005 by the Government of Vietnam detailing andguiding the implementation of the Law on Complaints and Denunciations and the Lawamending and supplementing a number of articles of the Law on Complaints andDenunciations

 Decision No 52/2012/QD-TTg dated on 16 November 2012 on policy supporting and resolvingjobs and vocational training for labours whose agriculture land is acquired

 Circular No 114/2004//TT-BTC dated on 26 November 2004 by Ministry of Finance issuingguideline to implement Decree 188 This circular edited details of the methods (which aredirect comparison method and collection method) regarding evaluation of price of different landtypes and categories in different areas/regions to ensure the placement price

 Circular No 14/2009/TT-BTNMT dated October 1, 2009 by the Ministry of Natural Resourcesand Environment detailing the compensation, support and resettlement and order of andprocedures for land recovery, allocation and lease

Other decisions and policy framework applied for making this policy framework include the followings:

 Decision No 2192/QD-NLDK dated on 30 June 2005 by Ministry of Industry on approval ofpolicy framework of compensation for resettlement, policy framework of ethnic minoritydevelopment plan and framework guiding environmental evaluation of Second transmissionand distribution project

 Policy framework of compensation, assistance for resettlement and life recovery for DPs ofTrung Son hydropower project

4.1.2 Policies of the Government of Vietnam on Ethnic minorities

For ethnic minorities, the Vietnamese Government's policies are built based on the respect andequality among ethnic groups, solidarity and mutual assistance among different ethnic groups Theapplication of socio-economic policies for each region, each group taking into account the needs ofethnic minorities is a requirement Socio-economic Development Plan and Socio-economicDevelopment Strategy in Vietnam give special attention to the ethnic minorities The major programs

for the ethnic minorities can be listed are the Program 135 (Infrastructure in poor and remote areas),Program 134 (Eliminating temporary houses) Besides, there are also policies on education andhealthcare for ethnic minority people.

 Resolution No 30a/2008/NQ-CP of government, dated 27 Dec 2008 on support program for rapidand sustainable poverty reduction for 61 poorest districts

 Decree No.70/2001/ND-CP: all documents registering family assets and land use rights must be inthe names of both husband and wife

 Decree No 82/2010/ND-CP dated July 20 2010 by the Government on teaching and learning ofethnic minority languages in schools and regular educational centers

 Decision No 42/2012/QD-TTg dated October 8 2012 by the Prime Minister on giving support tounits, organizations using employees who are ethnic minority people in the mountainousregions, especially difficult areas

 Decision No 52/2012/QD-TTg dated August 18 2010 by the Prime Minister on using legalassistance policy to raise the awareness and understanding of law of the poor and ethnic minorities

in the poor districts in the 2011 to 2020 period

 Decision No 112/2007/QD-TTg of the Prime Minister dated July 20 2007 by the Prime Minister onthe policy supporting services to improve the people's life, and legal support to increase the legalawareness under the program 135 phase II

 Decision No 33/2007/QD-TTg dated March 05 2007 by the Prime Minister on Supporting ethnicminority people in settlement and sedentary farming in the 2007 to 2010 period

 Decision No 01/2007/QD-UBDT dated 31-May-2007 of the Ethnic Minorities Committee on therecognition of communes, districts in the mountainous areas

 Decision No 05/2007/QD-UBDT dated 06-September-2007 of the Ethnic Minorities Committee onits acceptance for three regions of ethnic minorities and mountainous areas based on developmentstatus

 Decision No 18/2011/QD-TTg dated March 18 2011 by the Prime Minister on policies on theprestigious people in the ethnic minority groups

 Decision No 06/2007/QD-UBDT dated 12-January-2007 of the Ethnic Minorities Committee on thestrategy of media for the program 135-phase 2

 Joint Circular No 05/2011/TTLT-UBDT-BTC by the Committee for Ethnic Minority Affairs datedDecember 16 2011 guiding the implementation of the Decision No 18/2011/QD-TTg onpolicies for the prestigious people in the ethnic minority groups

 Circular No 06 dated 20-September-2007 of the Ethnic Minorities Committee guidance on theassistance for services, improved livelihood of people, technical assistance for improving theknowledge on the laws according the decision 112/2007/QD-TTg

4.2 World Bank’s Policy on Involuntary Resettlement (OP 4.12) and Indigenous Peoples (OP 4.10)

4.2.1 Involuntary Resettlement (OP 4.12)

The primary objective of the World Bank policy is to explore all alternatives to avoid or at leastminimize involuntary resettlement Where resettlement is unavoidable, the living standards ofdisplaced persons should be restored or improved relative to those conditions that prevailed prior tothe Project The policy applies to the taking of land and other assets when land acquisition results inthe loss of shelter, the loss of all or part of productive assets, or access to them, and the loss ofincome sources or other means of livelihood

Policy on Indigenous Peoples (OP 4.10)

The objectives of the World Bank Policy on Indigenous Peoples aim to:

 To ensure that the ethnic groups adapt to the meaningful opportunities to participate indesigning project activities that have impacts on them;

 To ensure that the opportunities for those ethnic groups have taken into account culturallyappropriate benefits; and

 To ensure that any adverse impact caused by the project is avoided or otherwise minimized For purposes of this policy, the term “Indigenous Peoples” is used in a generic sense to refer to adistinct, vulnerable, social and cultural group possessing the following characteristics in varyingdegrees:

(a) self-identification as members of a distinct indigenous cultural group and recognition ofthis identity by others;

(b) collective attachment to geographically distinct habitats or ancestral territories in theproject area and to the natural resources in these habitats and territories;

(c) customary cultural, economic, social, or political institutions that are separate from those

of the dominant society and culture; and

(d) an indigenous language, often different from the official language of the country or region

OP 4.10 requires a “free, prior, and informed” consultation with the ethnic minorities that might beaffected and establishes assistances for the project affected communities

4.3 Comparison between Government of Vietnam and World Bank Approaches

There are a number of ways in which the approaches of the Vietnam Government – either in policy orpractice – are compatible with World Bank guidelines The most important compatibilities are:

 Vietnam has a process whereby most people without legal land rights may meet conditions oflegalization and receive compensation for losses

 Permanent residents are provided with options that include relocation to an improved site, orcash, or a combination of the two

 Resettlement sites offer not only improved infrastructure and services but represent a higherstandard of living

 Allowances are provided to help the DPs in the transition period and there is an institutionalstructure through which people are informed, can negotiate compensation, and can appeal

 Differences between the approaches and measures that need to be addressed within theprogram also exist However, in this context, procedures exist within national and Citygovernments that allow the granting of waivers of domestic law on specific projects that may

be in conflict with that of the funding agency

 On the issue of land tenure and the legal right to compensation, the Government and WorldBank approaches are compatible The government has its own process in place whereby landoccupied without legal documentation can be legalized; this land, however, is compensated for

at a rate equal to 100% of land price minus the taxes and fee for land use right registrationfrom 15 October 1993 (Articles No.42, 49 and 50 of the Land Law 2003)

Required Waivers

In order to meet the requirements of the World Bank OP 4.12 on Involuntary Resettlement a number ofarticles in various Vietnamese laws and regulations which do not ensure compensation at replacementcost or set eligibility provisions which do not extend the right to rehabilitation and or assistance tohouseholds without proper land paper, will be waived

The articles of law and regulations that will be waived are mentioned below:

Eligibility to Compensation and or assistance – Decree 197

Article 7 of Decree 197 of 2004 (Cases where land is recovered without compensation) stipulates thatany person whose land is recovered and who has not met one of the conditions of Article 8 of thisDecree, or who has violated the plan, or who violates the protecting corridor work, or who illegallyoccupies land shall not receive compensation when the state recovers the land In case of necessity,the Provincial People’s Committee shall consider and decide on a case-by-case basis

Article 29 of Decree 197: DPs losing more than 30% of productive land will be entitled to livingstabilization and training/job creation assistance

To ensure that the objectives of this resettlement policy are met, a special decision of the Governmentwaiving Article 7, 18, 20, 29 of Decree 197 and article 24 of Decree 69 is needed to permit assistanceand rehabilitation measures for illegal users of land as proposed in the policy This was represented inDecision on approval of the project’s policy framework in Decision No 1856/TTg-KTN dated on 15October 2010

Price of Land for Calculation of Compensation

Article 9 of Decree 197: The compensation rates for land shall be determined by the PPC for the type

of land which has been used for at the time of land acquisition

To ensure that the objectives of the project resettlement policy are met, unit price for landcompensation established by the Project Provincial/City People’s Committees will be adjusted to meetthe replacement costs on the 1st of January every year according to the law

Assistance Policy for DPs who Rent State-owned dwelling houses – Decree 197

Article 21 of Decree 197/2004/ND-CP states that DPs who rent State-owned dwelling houses shall beprovided with monetary supports equal to 60% of the land value and 60% of the value of currentlyrented houses; in cases where there are no resettlement houses are to be arranged for them

To ensure that the objectives of the policy are met, a special decision of the Government of Vietnamregarding waiver of Article 21 of Decree 197/2004/ND-CP is needed to permit assistance andrehabilitation measures for DPs who share State-owned dwelling houses as proposed in this policy Article 2 of Decree 188/2004/ND-CP states that the land price shall be defined by the provincialPeople’s Committees and/or cities directly under the central government To ensure that the objectives

of the project resettlement policy are met, unit prices for land compensation established by the projectrelated provincial/city People’s Committees shall be adjusted to meet the replacement costs

Item 5, Article 2 of Decree No.131/2006/NĐ-CP dated November 9, 2006 issuing Regulations onmanagement and usage of Official Development Assistance (ODA) stipulates “Conform to regulationsunder Vietnamese Law and international treaties on ODA of which the Socialist Republic of Vietnam is

a member In case an international treaty on ODA where the Socialist Republic of Vietnam is amember has contrary regulations to those of Vietnamese Law, the international treaty shall prevail”