Pakse Urban Environmental Improvement Project Land Acquisition and Compensation Plan

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1 Pakse Urban Environmental Improvement Project Land Acquisition and Compensation Plan Department of Public Works and Transport (DPWT) in Champasack province and Pakse Urban Development Administration Authority (UDAA) Updated on 12 March 2012 Prepared with assistance from ADB TA 7567-LAO i

2 Table of Contents Map Pakse Villages... vi Abbreviations and Equivalents... vii Executive Summary I Background II Subproject Description III Scope of LAR A. Project Eligibility B. Measures to Minimize Land Acquisition and negative Impacts C. Land Acquisition and Losses LAR impacts per sub-project Land Acquisition Loss of Houses or Structures Loss of Crops and Trees Disruption of Businesses D Socio-Economic Profile Socio-Economic Profile of Subproject Area Socio-Economic Profile of Affected People Vulnerable APs Severely Affected APs IV Policy Framework and Entitlements A. Policy Framework B. Project Principles C. Eligibility for Compensation and Other Assistance D. Voluntary Land Contribution E. Entitlement Matrix V Compensation, Relocation and Rehabilitation Arrangements A. Compensation Arrangements Permanent Land Acquisition Temporary Land Acquisition Voluntary Land Contributions Affected Structures and Houses Disruption of Businesses Affected Crops and Trees AP Preferences and Concerns for Compensation and Resettlement B. Relocation Strategies ii

3 C. Rehabilitation Allowances D. Gender Arrangements E. Due Diligence during the DMS VI Information Disclosure, Consultation and Grievance Redress A. LACP Information Dissemination and Consultations B. Information Disclosure C. Grievance Redress VII Resettlement Costs A. Source of Resettlement Funds B. Compensation and Allowance Rates C. Resettlement Costs VIII Institutional Arrangements IX Monitoring A. Internal Monitoring for the Subproject B. External Monitoring of AHs X Implementation Schedule A. For Feasibility Study B. Resettlement Steps Scheduling from start of Project implementation to Construction 46 Attachment 1: Village Impacts Pakse... 1 Attachment 2: Cost Recovery Survey... 2 Attachment 3: IOL Pakse... 1 Attachment 4: Consultations with Stakeholders PUEIP in Pakse... 1 Attachment 5: Voluntary Contribution Consent Declaration... 1 Attachment 6: Declaration for Affected Persons... 2 Attachment 7: Form for Consultation with no longer APs... 1 Attachment 8: Receipt of Compensation Payment for Affected Persons... 1 Attachment 9: PUEIP Screening Form... 1 Attachment 10: PUEIP Public Information Booklet... 4 Attachment 11b Population of Villages under the Project in Phonthong District... 3 Attachment 11c Population of Village under the Project in Bachiang and Xanasouboun Districts... 4 Attachment 12: Terms of Reference PIAC... 1 BACKGROUND AND INTRODUCTION... 2 A. BACKGROUND... 2 Part 1: Resettlement... 3 Part 2: Independent External Monitor... 3 iii

4 C. THE CONSULTANT... 3 TERMS OF REFERENCE... 4 A. Part 1: Resettlement... 4 B. Part 2: Independent External Monitor... 6 Objectives... 6 Tasks... 7 Methodology... 7 STAFFING INPUTS... 8 Table 1 Resettlement Consultants' Input... 8 Table 2 Independent External Monitor Input... 9 IMPLEMENTATION SCHEDULE... 9 REPORTS FACILITIES AND EQUIPMENT iv

5 v Note: An additional 3 villages in Baichang district have been included in the Project area (Ban Lomsack, Ban Xaysavang, and Ban Nongnamkhao).

6 vi Map Pakse Villages

7 Abbreviations and Equivalents ADB Asian Development Bank AFD Agence Francaise de Developpement AH Affected Household AIEC Average Incremental Economic Cost AIFC Average Incremental Financial Cost AP Affected Persons ASEAN Association of South East Asian Nations BME Benefit Monitoring and Evaluation BNP Branch Nam Papa BPO Business Promotions Office BTC Belgian Technical Cooperation CAP Community Actions and Participation CAT Community Action Team CBO Community-based Organisation CDIA Cities Development Initiative for Asia CDM Clean Development Mechanism CEDAW Convention of the Elimination of all forms of Discrimination against CEI Women Community Environmental Improvements CEO Chief Executive Officer CER Carbon Emission Reduction CIPP Community Information and Participation Program CDP Capacity Development Program CPI Committee for Planning and Investment CPS Country Partnership Strategy CSP Country Strategy and Program CUEI City-wide Urban Environmental Improvements DAFEO District Agriculture and Forestry Extension Office DCTPC Department of Communication, Transport, Post and Construction DGPS Differential Global Positioning System DHUP Department of Housing and Urban Planning DI Ductile Iron DIP Department of Investment and Planning DLSW Department of Labor and Social Welfare DMS Detailed Measurement survey DN Pipe Nominal Diameter (in mm) DNA Designated National Authority DOE Designated Operational Entity DoS Department of Statistics DPACS Department of Public Administration and Civil Service (of the Prime DPRA Development Project Responsible Agency DPWT Department of Public Works and Transport DRC District Resettlement Committee DUPH Department of Urban Planning and Housing EA Executing Agency EARF Environmental Assessment and Review Framework EB Executive Board ECC Environmental Compliance Certificate vii

8 EDL Electricity Du Laos EDS Economic Development Scheme EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EL Enterprise Law EMP Environmental Management Plan EOCC Economic Opportunity Cost of Capital EPL Environmental Protection Law ESIA Environmental and Social Impact Assessment FIRR Financial Internal Rate of Return FS Feasibility Study GAP Gender Action Plan GDP Gross Domestic Product GHG Greenhouse Gas GIS Geographic Information System GOL Government of Lao PDR The Government Government of Lao PDR Government GPOBA Global Program of Outputs Based Aid GRID Gender Resource Information and Development Centre GS Galvanized Steel HH Households HRD Human Resource Development ICB International competitive bidding IEC Information, Education and Communication IEE Initial Environmental Examination IEM Independent External Monitoring IMA Independent Monitoring Agent IOL Inventory of losses IPS Improved PNP Sustainability IPSIA Initial Poverty and Social Impact Assessment JICA Japanese International Cooperation Agency KOICA Korean Aid Agency Lao PDR Lao People's Democratic Republic LAR Land Acquisition and Resettlement LACF (P) Land acquisition and compensation framework (plan) LACR Land Acquisition, Compensation and Resettlement Principles LECS Lao Expenditure and Consumption Survey LFNC Lao Front for National Reconstruction LMB Lower Mekong Basin LURC Land Use Rights Certificate LWU Lao Women s Union M. Muang MAF Ministry of Agriculture and Forestry masl mean average sea level M&E Monitoring and Evaluation MDGs Millennium Development Goals MEM Ministry of Energy and Mining MIS Management Information System MOH Ministry of Health viii

9 MOIC MPI MPWT MRC MSW MUEIP Nam Saat NBCA NCB NCRWSSP NDF NGO NGPES NORAD NPL NPNL NPV NTU NWTTI OHUP OOE OOH OPWT O&M PA PAFO PCU PDR PE PIA PIAC PIB PIR PM PMIU PN PNP PPIAF PPP PPME PPSC PPTA PRA PRC the Project PSA PSC PSP PTI Ministry of Industry and Commerce Ministry of Planning and Investment Ministry of Public Works and Transport Mekong River Commission Municipal Solid Waste Medium-term Urban Environmental Infrastructure Programme The National Center of Environmental Health and Water Supply Nam Ha National Biodiversity Conservation Area National competitive bidding Northern and Central Regions Water Supply and Sanitation Sector Project Nordic Development Fund Non-Government organisation National Growth and Poverty Elimination Strategy Norwegian Agency for Development Cooperation Nam Papa Lao Nam Papa Nakhonluang Nam Papa Vientiane Nephelometric Turbidity Units National Waterworks Technical Training Center (Thailand) Office of Housing and Urban Planning (of DPWT at provincial level) Office of Education Office of Health Office of Public Works and Transport Operation and Maintenance Provincial Authorities Provincial Agriculture and Forestry Office Project Coordination Unit People s Democratic Republic Polyethylene Project Implementation Assistance Project Implementation Assistance Consultant Public Information Booklet Poverty Impact Ratio Prime Minister Project Management Implementation Unit Pipe Pressure Class Provincial Nam Papa Public-Private Infrastructure Advisory Facility Public Private Partnership Project Performance Monitoring and Evaluation Provincial Project Steering Committee Project Preparation Technical Assistance Participatory Rapid Appraisal Provincial Resettlement Committee Pakse Urban Environmental Improvement Project Water Supply and Sanitation Poverty and Sector Social Project Analysis Project Steering Committee Private Sector Participation Public Works and Transport Institute ix

10 PUEIP Pakse Urban Environmental Improvement Project PVC Polyvinyl Chloride PWREO Provincial Water Resources and Environment Office RC Resettlement Committee RCS Replacement Cost Survey RF Resettlement Framework ROW Right of Way RP Resettlement Plan RPA Rapid Poverty Assessment SDC Swiss Agency for Development and Cooperation SES Socio-Economic Survey SGIA Second Generation Imprest Account SIP Sector Investment Plan SME Small-medium Enterprise SOE State Owned Enterprise SSIP Small Scale Independent Provider STEA [Former] Science and Technology Environment Agency STDP Small Towns Development Sector Project STUDP Secondary Towns Urban Development Project SWM Solid Waste Management TA Technical Assistance TOR Terms of Reference TDG Tariff Determination Guidelines UDAA Urban Development Administration Authority UFW Unaccounted-for-water VEI Village Environmental Improvements VIP Ventilated improved latrine VRC Village Resettlement Committee VWC Village Working Committee WACC Weighted Average Cost of Capital WASA Water Supply Authority WATSAN Water and Sanitation Unit WB World Bank WFP World Food Program WREA Water Resources and Environmental Agency (created 23 July 2007) WSARC Water Supply Authority Regulatory Committee WSD Water Supply Division WSIP Water Supply Investment Plan WSP-EAP Water and Sanitation Program for East Asia and the Pacific WSTP Water Supply Tariff Policy WtE Waste to Energy WTTC Waterworks Technical Training Center (Lao PDR) UNITS ha Lpcd L/s m Hectare Liters per capita per day Liters per second Meter x

11 m2 mg/l mm m 3 /day sqm square meter Milligrams per Liter Millimeter Cubic meters per day square meter xi

12 12

13 Executive Summary A. Background 1. The Pakse Urban Environmental Improvement Project (PUEIP) will build on the Government s policy (from the National Growth and Poverty Eradication Strategy (NGPES), the Government's Sixth National Socio-Economic Development Plan (NSEDP6) for and the Urban Sector Strategy and Investment Plan for under preparation) and on the ADB s current work in the sector (ADB's Country Strategy and Program (CSP) for Lao PDR ). Based on the Government s request, the proposed Project was included in ADB s CSP during the CSP midterm review conducted in August The Project's expected impact is the development of Pakse District as a regional economic and tourism center. This will further promote economic ties with the neighboring countries of Cambodia, Thailand, and Viet Nam. The outcome of the Project will be improved urban environment in Pakse. This will be achieved through urban and environmental infrastructure improvement and stronger urban management capacity. The project area will include 42 villages in Pakse District, 3 villages in Bachiang District, and 13 villages in Phontong District on the western side of the Mekong River whereby infrastructural works will focus on Pakse District and some minor works in Phonthong District. The Project will also include the landfill site in 1 village in Xanasomboun district. 3. The Project was prepared with project preparation technical assistance from ADB (TA 5767-LAO), and pre-feasibility study funded by the City Development Initiative for Asia (CDIA), which was completed in June 2010 (Asian Development Bank TA 6293-REG). The TA aims to develop the Project suitable for ADB financing in terms of technical, financial, economic, institutional, sector policy, legal, and safeguard contexts, in conjunction with the country partnership strategy (CPS), operational experience, and lessons from evaluations of previous ADB-supported projects in the sector. 4. The Ministry of Public Works and Transport will be the executing agency (EA), and the Department of the Public Works and Transport Champasack and Pakse Urban Development Administration Authority are the implementing agencies.. 5. An urban development strategy and a flood protection and storm water drainage strategy were prepared under the TA. The former strategy aims to guide the overall future urban growth while the latter will support the sustainable development of urban areas by reducing flood risks. 6. A Land Acquisition and Compensation Framework for PUEIP has been prepared by the PPTA for PUEIP in compliance with the PUEIP policies and procedures under the laws and decrees of the Government of Lao (GoL) People s Democratic Republic (PDR) and Asian Development Bank s (ADB s) Safeguard Policy statement (2009). The current Land Acquisition and Compensation Plan (LACP) is based on the LACF and describes expected LAR impacts of the proposed works under the City-wide Urban Environmental Improvements component of PUEIP. B. Planned Civil Works 7. Based on the review of existing conditions of urban infrastructure, a long-list of potential project outputs was developed. From those, based on discussions with the Government, ADB and TA, the following four Project components were decided on: (i) Citywide Urban Environmental Improvements, (ii) Community Urban Environmental Improvements, (iii) Institutional Strengthening and, (iv) Project Management Support. 8. Under the City-wide Urban Environmental Improvements (CUEI) component physical works on landfill rehabilitation and possible expansion, drainage improvements and 13

14 riverbank erosion protection will be carried out in 11 villages in Pakse according to the proposed design. 1 The current LACP is covering LAR impacts under this component. C. Land Acquisition and Resettlement Impacts 9. The LAR impacts under the City-wide Urban Environmental Improvements component in Pakse are insignificant, or ADB category B. Therefore, the sub-projects under this component of the Project are judged to be eligible 2 as there is only 1 AH (3 APs) who will be affected due to riverbank erosion protection works at the Xedon. The LACP is based on an assessment of the land acquisition and resettlement (LAR) impacts as part of preparation for the Pakse Urban Environmental Improvement Project (PUEIP) between January 2011 and June 2011 under ADB TA 7567-LAO. However, the impacts will be updated as per DMS during the detailed design. 10. The following LAR impacts are expected from the physical works that will be carried out under the City-wide Urban Environmental Improvements component of PUEIP: (i) Improvements of drainage Houay Boung Oudom, construct pump station, rehabilitate outlet channel and protect retention pond of 4,500 m2 adjacent to pump station, 580 m of secondary drains and 280 of primary drain: 3 AHs foreseen who will need restoration of access ramps Hong Phaktop flap gate, construct pumping station, flap gate, construct pumping station, 200 m of primary drain, 200 m of secondary drain along roadside, 350 m of access roads, 0.25 ha of demarcated and protected retention area: 2 AHs with impacts to their ponds and 19 AHs who will lose some of their residential land. Houay Ban Kea pumping station, rehabilitate outlet channel, 995 m of primary drain, 500 m of secondary drain and 505 m of improving access road and protection of existing flood retention area of 2,000 m2 adjacent to pumping station: no households are foreseen to have any loss except for 625 m2 of crop loss in wet season on public land. Drainage channels for Ban Kea area, 1,100m of primary drain and 400m of secondary drain mostly following existing drainage path: an estimated 53 AHs will permanently loose part of the house (less than 40% of total surface of house), minor strips of land and some trees and crops (1,161 m2 rice land) Houay Non Maixak extension of 1,750m of improvement and extension of existing primary drain, establishment of 2.5 ha of retention area: an estimated 21 AHs will permanently loose part of the house (less than 40% of total surface of house 3 ), chicken pens, minor strips of land and some fruit trees and vegetables Houay Wat Chin, 750 m of secondary drain along an existing road easement, 250 m of new access road, protection of existing flood retention area of 1.7 Ha adjacent to pumping station: 8 AHs will lose a part of land, structural damage and trees. 1 Yai Tha Hai, Kea, Tha Hin Neua, Phonsaath, Phabath, Thaluang, Houay Poune, Sanamxay, Souan Savanh, Phonsavanh, Phoumouang 2 LAR must be insignificant to meet Project eligibility 3 This is a criteria based on experience in other projects in Laos where civil works could damage a large part of a house without being recognized as 'severely affected'. It was discussed with an ADB Team in June 2009 and agreed upon as addition to the ADB criteria 14

15 Houay Deua and Houay Phonkoung, demarcation and protection of 3 ha of retention area: no AH as land is public scrub land Sanamxay and Houay Bang Yo catchment - drainage easements, 4,365 m of primary drain, 3,800 m of secondary drain, improvement of 1,500 m access roads, retention ponds with a total surface of 4.5 Ha: an estimated 51 AHs will permanently loose part of the house (less than 40% of total surface of house), fences, latrine pits, verandas over the existing drainage, minor strips of land or concrete access bridges to the house. 1 AH might have to relocate a small business that is located over a drain. Public land of the village will be taken in 5 locations in the catchment area. 11. In order to permit drainage improvement, 1 shop will have to relocate. However, the shop owner knew that this would happen as the shop was build over the existing drain. The shop will not be permitted to return to their present locations. Another 2 AHs are affected temporarily during the civil works only and will be able to have the damage repaired after construction Households will be permanently affected by partial loss of land and structure but both impacts are minimal in scope. Also 7 shops will be temporarily disrupted by the civil works. (ii) Riverbank erosion protection Xedon Right Side - Russian Bridge to French Bridge: 1,245 m: an estimated 16 AHs (89 APs) will be affected. Xedon Left Side - from French Bridge to Phabath Village: 980 m: an estimated 20 AHs (129 APs) will be affected including one AH (3 APs) who will have to relocate. Xedon Left Side at Wat Ban Kea: 800 m: an estimated 12 AHs (66 APs) will be affected. 13. In order to permit riverbank erosion protection works 1 household (3 APs) will have to relocate. The house will be permanently relocated and the AP will not be permitted to return to the present locations. The house is located on public land. Another 46 AHs (283 APs) are affected temporarily during the civil works only and will be able to have the damage repaired after construction. 1 Business will have to close permanently and relocate (but this is not the primary source of income). The other AHs will experience permanent partial loss of land, part of the house and structures. A few people will lose trees or crops Business will have to close permanently and relocate. D. Severely Affected APs 15. Under the CUEI component in Pakse 1 AHs (3 APs) are severely affected because they will have to relocate and rebuild their shop in new locations. One other household will have to relocate the shop but has agriculture and fishing as it s primary source of income and is therefore not severely affected. 16. However, the LAR impacts will be updated and a detailed measurement survey will be conducted when the detailed design is available. E. Policy Framework 17. The LACF (according to Lao PDR's terminology) (Resettlement Framework, RF, in ADB terminology) is developed from the laws and decrees of the Government of Lao (GoL) People s Democratic Republic (PDR) and Asian Development Bank s (ADB s) relevant 15

16 policies and guidelines. The latest being ADB's new Safeguard Policy Statement (June 2009, approved by ADB Board July 2009) and the Lao Government's Decree on Environmental Assessment (EA), February 2010 (112/PM). Provisions and principles adopted in the LACF supplement the provisions of relevant decrees currently in force in Lao PDR wherever a gap exists. The current LACP (Resettlement Plan, RP, in ADB terminology) fully complies with all criteria and contents of the LACF. F. Information Dissemination and Consultations 18. To date, dissemination and consultation activities have occurred as an integral part of the preparation of the LACP. APs are notified and consulted in advance about land acquisition, compensation and resettlement activities for the subproject, including among others: (i) public meetings, (ii) distribution of PIB, (iii) preparing official lists of eligible APs and their entitlements, (iv) compensation rates and amounts, (v) and, other matters such as the grievance redress mechanism. 19. Further public consultation and participation will be conducted in the form of: (i) onsite informal discussions with affected residents; (ii) key informant interviews; (iii) affected persons survey, with questions relevant to resettlement impacts of physical works and to the calculation of compensation; (iv) focus group discussions, integrating social and resettlement issues; and (v) disclosure of the draft LACP and especially the IOL for comments/reactions. 20. During implementation of PUEIP all AHs will participate in detailed measurements and discussions about the expected impacts because of physical works. They will be given the chance to negotiate and agree to the proposed compensation based on the estimated impacts. G. Land Acquisition and Resettlement Costs 21. Based on the IOL conducted during the PPTA for PUEIP, the estimated cost of LAR for the CUEI is 727,113,200 kip (90,889 US$) for riverbank erosion protection works and 15,759,887,220 kip (1,969,986 US $) for drainage improvements which includes (i) the base LAR costs; (ii) allowances for severely affected and vulnerable APs; and, (iii) contingencies of 10% reserve fund. H. Institutional Arrangements 22. The Ministry of Public Works and Transport (MPWT) will be the executing agency (EA), responsible for preparation and implementation of the Project. The Champassak Department of Public Works and Transport (DPWT) and the Pakse Urban Development Administration Authority (UDAA) will be the implementing agencies. A Project Coordination Unit (PCU) will be established in the Department of Housing and Urban Planning in MPWT. The Project Management and Implementation Unit (PMIU), comprising of staff from both DPWT and UDAA, will be housed in UDAA. A Project Steering Committee (PSC) will be established at the Champassak provincial level, with the vice provincial governor as chair and the district chief of Pakse district as vice chair. 23. The PUEIP LACF sets out detailed information on the institutional arrangements for the preparation and implementation of land acquisition, compensation and resettlement for the Project. 24. The PMIU has overall responsibility for activities related to land acquisition and compensation of APs. The scope of these activities includes (i) conducting the AP census, DMS and due diligence following detailed engineering design; (ii) assessing losses, AP entitlements and requirements for compensation and rehabilitation assistance, including 16

17 updating the Entitlement Matrix as required; (iii) consulting with all APs to inform them about the subproject impacts, their entitlements, compensation rates, rehabilitation assistance and procedures and schedules for implementation of the LACP; (iv) assisting the work of resettlement committees; (v) internal monitoring and regular reporting on land acquisition, compensation and resettlement activities; and, in collaboration with other PMIU staff, (vi) ensuring coordination of land acquisition activities and civil works. I. Monitoring 25. The Sub-project will have internal and external monitoring activities. 26. The scope of internal monitoring to be carried out by the PMIU assesses (i) compliance with the PUEIP resettlement policies and procedures and (ii) the availability and efficient use of personnel, material and financial resources; and, identifies the need for (iii) remedial actions to correct any problems that arise. 27. The Independent External Monitoring is responsible for monitoring; and, to assess whether AHs are able to restore their living conditions, livelihoods and incomes to presubproject levels and, if not, to recommend remedial actions to assist AHs. I Background 28. The Pakse Urban Environmental Improvement Project (PUEIP) will build on the Government s policy (from the National Growth and Poverty Eradication Strategy (NGPES), the Government's Sixth National Socio-Economic Development Plan (NSEDP6) for and the Urban Sector Strategy and Investment Plan for under preparation) and on the ADB s current work in the sector (ADB's Country Strategy and Program (CSP) for Lao PDR ). Based on the Government s request, the proposed Project was included in ADB s CSP during the CSP midterm review conducted in August The Project's expected impact is the development of Pakse District as a regional economic and tourism center. This will further promote economic ties with the neighboring countries of Cambodia, Thailand, and Viet Nam. The outcome of the Project will be improved urban environment in Pakse. This will be achieved through urban and environmental infrastructure improvement and stronger urban management capacity. The project area will include 42 villages in Pakse District, one village to the east in Bachiang District, and 13 villages of Phontong District on the western side of the Mekong River whereby infrastructural works will focus on Pakse District and some minor works in Phonthong District. The Project will also include the landfill site in 1 village in Xanasomboun district. 30. The ADB-funded project preparatory TA has been developed following the prefeasibility study funded by the City Development Initiative for Asia (CDIA) which was completed in June 2010 (Asian Development Bank TA 6293-REG). The TA aims to develop the Project suitable for ADB financing in terms of technical, financial, economic, institutional, sector policy, legal, and safeguard contexts, in conjunction with the country partnership strategy (CPS), operational experience, and lessons from evaluations of previous ADBsupported projects in the sector. 31. An urban development strategy and a flood protection and storm water drainage strategy were prepared under the TA. The former strategy aims to guide the overall future urban growth while the latter will support the sustainable development of urban areas by reducing flood risks. 32. A PUEIP Land Acquisition and Compensation Framework (LACF) has been prepared by the PPTA for PUEIP in compliance with the PUEIP policies and procedures under the laws and decrees of the Government of Lao (GoL) People s Democratic Republic (PDR) and Asian Development Bank s (ADB s) Safeguard Policy Statement (SPS). 17

18 33. The LACF (i) identifies the legal and policy frameworks of the Lao Government and appropriate ADB guidelines; (ii) sets out procedures and policies on LAR to guide mitigation of impacts during project implementation; (iii) identifies an IOL and (iv) includes an estimated budget for implementing the compensation plan. 34. The current LACP is based on the assessment of the land acquisition and resettlement (LAR) impacts in compliance with the LACF as part of preparation for the Pakse Urban Environmental Improvement Project (PUEIP) between January 2011 and June 2011 under ADB TA 7567-LAO. II Subproject Description 35. Based on the review of existing conditions of urban infrastructure, a long-list of potential project outputs was developed. From those, based on discussions with the Government, ADB and TA, the following four Project components were decided on: (i) Citywide Urban Environmental Improvements, (ii) Community Urban Environmental Improvements, (iii) Institutional Strengthening including Community Awareness Raising and, (iv) Project Management Support. These components include the following sub-projects: (i) City-wide Urban Environmental Improvements include: a. new drains in the main catchment areas, protection of retention areas, flapgates and pumps b. riverbank erosion protection on Xedon c. upgrading of existing landfill site (and possible expansion if required which will be identified during the project implementation) and improvement of collection services (ii) Community Urban Environmental Improvements: a. CEI programme focusing mainly access and drainage; this includes a fund for community-driven infrastructure upgrading in villages (access roads, footpaths, tertiary drainage etc.) b. household sanitation (iii) Institutional Strengthening a. Capacity building in urban planning and management b. Environmental improvement behavior change (iv) Project Management Support 36. Improvements of drainage under the City-wide Urban Environmental Improvements component includes: Houay Boung Oudom, construct pump station, rehabilitate outlet channel and protect retention pond of 4,500 m2 adjacent to pump station, 580 m of secondary drains and 280 of primary drain Hong Phaktop flap gate, construct pumping station, 200 m of primary drain, 200 m of secondary drain along roadside, 350 m of access roads, 0.25 ha of demarcated and protected retention area Houay Ban Kea pumping station, rehabilitate outlet channel, 995 m of primary drain, 500 m of secondary drain and 505 m of improving access road and protection of existing flood retention area of 2,000 m2 adjacent to pumping station 18

19 Drainage channels for Ban Kea area: 1,100m of primary drain and 400m of secondary drain mostly following existing drainage paths Houay Non Maixak extension of 1,750m of the existing primary drain provided under STUDP to the top of the catchment, establishment of retention area of 2.5 ha Houay Wat Chin, pumping station, 750 m of secondary drain along an existing road easement, 250 m of new access road, protection of existing flood retention area of 1.7 Ha adjacent to pumping station Houay Deua and Houay Phonkoung, demarcation and protection of 3 ha of retention area Sanamxay and Houay Bang Yo catchment - drainage easements, 4,365 m of primary drain, 3,800 m of secondary drain, improvement of 1,500 m access roads, retention ponds with a total surface of 4.5 Ha 37. Riverbank erosion protection under the City-wide Urban Environmental Improvements component includes: mainly revetment with gabions on very steep slopes: Xedon Right Side - Russian Bridge to French Bridge, 1,245 m Xedon Left Side - from French Bridge to Phabath Village, 980 m Xedon Left Side at Wat Ban Kea, 800 m 38. Physical works will be carried out in 11 villages in Pakse according to the proposed design 4 and 1 village in Xanasomboun district (Ban Houaxai, which is the location of the landfill site). III Scope of LAR A. Project Eligibility 39. The policy for the PUEIP is that a sub-project is eligible if, in addition to other criteria, the land acquisition and resettlement impacts are not significant 5. The LAR impacts for the proposed CUEI component are insignificant, or ADB category B, as there is only 1 AHs (3 APs) who are severely affected. One due to riverbank erosion protection works at the Xedon and one for drainage improvement. Therefore, the sub-projects under the CUEI component are judged to be eligible and a Land Acquisition and Compensation Plan (LACP) has been prepared. While the update of the LACP during detailed design will cover any change in project design for Output 1, the LARF covers Output 2 and any unforeseen infrastructure development during project implementation (e.g., new drains or expansion of landfill) 40. The Pakse Land Acquisition and Resettlement Screening Form is included in Attachment 10. It is based on data collected by the PPTA of the PUEIP during the first inventory of losses (IOL). Village-level impacts for Pakse are in Attachment The purpose of this LACP is to ensure that the livelihoods of all displaced persons are improved or at least restored to the pre-project levels and the standards of living of the displaced poor and other vulnerable groups are improved... Public Information Booklets have been distributed during the PPTA phase. However, it will be updated and distributed to all the displaced persons in a timely manner after updating the LACP. 4 Yai Tha Hai, Kea, Tha Hin Neua, Phonsaath, Phabath, Thaluang, Houay Poune, Sanamxay, Souan Savanh, Phoumouang, 5 Phonsavanh Significant meaning more than 200 APs severely affected (relocation, loss of 10% productive assets, and where assets are affected only partially but the remaining assets are rendered un-viable for continued use and relocation might necessary for that reason (the latter from the Guidelines on Resettlement Compensation (WREA, March 2010) 19

20 B. Measures to Minimize Land Acquisition and negative Impacts 42. The measures taken to minimize land acquisition required for the sub-projects include: (i) establishment of retention areas will be at public land as much as possible; all proposed retention areas are vacant, low-lying, already prone to flooding and without any existing buildings on them, (ii) the drainage channels are located in the right-of-way of roads as much as possible, (iii) riverbank erosion protection works will be only on the steep slopes where there is no construction, (iv) access to the riverbank slopes during the riverbank erosion works will be through public areas without any temporary disruption to any of the existing residential or commercial structures (e.g., small businesses) on the riverbank, and (v) agricultural activities, mostly growing rice during the wet season and vegetables during the dry season, will be permitted to be continued after protection works are done. The civil works will begin after the harvest is completed. 43. The riverbank erosion protection works will be designed and constructed to enable the cultivation of riverside gardens and to maintain convenient river access for villagers to boats, cattle, gardens and other facilities at the river s edge. Villagers will be consulted during the planning, design and construction of the protection works to ensure that sufficient and appropriate access is provided during construction and after construction has been completed. Particular attention will be given to the number of access points and the height and width of concrete steps on the slopes of the protection works. C. Land Acquisition and Losses LAR impacts per sub-project 44. LAR impacts are expected from the physical works under the City-wide Urban Environmental Improvements component. The physical works that will be carried out under this component of PUEIP are (i) improvements of drainage, and (ii) riverbank erosion protection. They will have the following LAR impacts. (i) Improvements of drainage: Houay Boung Oudom: 3 AHs foreseen who will need restoration of access ramps Hong Phaktop: 2 AHs with impacts to their ponds and 19 AHs who will lose some of their residential land. Houay Ban Kea: no APs foreseen except for the temporary loss of 625m2 of wet season rice land (on public land). The people will be allowed to harvest the rice before the civil works begin. Drainage channels for Ban Kea: an estimated 53 AHs will have partial loss of the structure (less than 40% of total surface of house), minor strips of land and some trees and crops (1,161 m2 rice land) Houay Non Maixak: an estimated 21 AHs will permanently have partial loss of the house (less than 40% of total surface of house), chicken pens, minor strips of land and some fruit trees and vegetables. Access bridges and ramps will be temporarily removed. Houay Wat Chin: 8 AHs will lose some loss of land, structural damage and trees. Houay Deua and Houay Phonkoung: no AH as land is public scrub land Sanamxay and Houay Bang Yo catchment: an estimated 51 AHs will permanently lose part of the house (less than 40% of total surface of house), fences, latrine pits, verandas over the existing drainage, minor strips of land or concrete access bridges to the house. 1 AH will have to relocate a small business for drainage 20

21 improvement which is an extension of the house that is built on the public land over the drainage. However, the small business is currently not functional and it will be reassessed during the detailed measurement survey. 45. In order to permit the rehabilitation and reconstruction of the existing primary and secondary drains and protection of the other retention areas 2 households are affected temporarily during the civil works and will be able to have the damage repaired after construction. The shops and houses are located on public and private land. 46. Although most affected households will be permanently affected by loss of land and structure the impacts are minimal in scope. 12 shops will be temporarily disrupted by the civil works and 1 shop will have to move on their own land (from a position on the existing drainage). (ii) Riverbank erosion protection consists mainly of revetment with gabions on very steep slopes at: Xedon Right Side - Russian Bridge to French Bridge: an estimated 16 AHs (89 APs) Xedon Left Side - from French Bridge to Phabath Village: an estimated 20 AHs (129 APs) including one AH (3 AP) who will have to relocate. Xedon Left Side at Wat Ban Kea: an estimated 12 AHs (66 APs) will be affected. 47. In order to permit riverbank erosion protection works 1 household (3 APs) will have to relocate. The house will be permanently relocated and the AP will not be permitted to return to the present locations. The house is located on public land. Another 46 AHs (283 APs) are affected temporarily during the civil works only and will be able to have the damage repaired after construction. 1 Business will have to close permanently and relocate (but this is not the primary source of income). The other AHs will experience permanent loss of partial land, part of the house and structures. A few people will lose trees or crops Land Acquisition 48. The extent of land acquisition for the sub-projects under the City-wide Urban Environmental Improvements component of PUEIP is summarized as follows. 49. Drainage improvements will use 21,124 m2 of privately owned land, (8,796m2 of agricultural land and 12,328 residential) and 1,000 m2 of public land. All other land will be in the right-of-way in front of shops and houses. 50. Riverbank erosion protection works will require permanently 414 m2 of private land and 1,527 m2 of public land (75m2 of village community land and 1,452 m2 government land (including 554m2 land used for vegetable production). Table 1 gives an overview of all land to be acquired for the Project. 21

22 Table 1: Summary of Land Acquisition Construction Total Works Private LandPrivate Land Public Land Public Land Area (m2)length (m) No. AH Area (m2) No. AH Area (m2) No. AH Riverbank Erosion Protection Xedon Left Bank, French Bridge to Phabath Village Xedon Left Bank at Wat Ban Kea Xedon Right Bank, Russian 1, Subtotal 3, , Drainage in Catchments Houay Boung Oudom 4, Hong Phaktop 2, , Houay Ban Kea 2,000 2, , Houay Non Maixak 25,000 1, , Houay Wat Chin 17,000 1, Houay Bang Yo and Sanamxay 45,000 9, , Subtotal 96,000 16, , ,000 7 Total 19, , , Source: IOL by PMIU and TA of PPTA PUEIP, June Loss of Houses or Structures 51. The extent of loss of houses or structures for the sub-projects under the City-wide Urban Environmental Improvements component of PUEIP is summarized as follows. 52. The structure of theto be relocated houses is brick wall with tiled roof. One structure is 162 m2; the other is 50 m2. In the IOL (Attachment 3) detailed measurements of all lost materials are given. 53. Around 123 households will have part of their house (mostly kitchen or toilet part) or verandas/balconies broken to make drainage improvements and to riverbank erosion protection works Access bridges and ramps will have to be temporarily removed because of the drainage construction. If the authorities would decide that construction on top of the drainage should be avoided after drainage improvements, the damage will be permanent and not repairable Privately laid drainage pipes, culverts and water supply pipes will have to be removed because of the drainage construction. 22

23 3.3.4 Loss of Crops and Trees 56. The extent of loss of crops and trees for the sub-projects under the City-wide Urban Environmental Improvements component of PUEIP is summarized as follows. 57. Around 14 fruit trees of 5 households and 554m2 of vegetable fields of 3 households will be lost due to the riverbank erosion protection works and 271 fruit trees of 37 households and 1,530m2 8796m2 of agricultural land due to drainage improvements. The precise impact will be determined during the detailed measurement survey (DMS) based on the staking of land that will be acquired Disruption of Businesses 58. The extent of loss of business or income for the sub-projects under the City-wide Urban Environmental Improvements component of PUEIP is summarized as follows business will have to be relocated. This shop serves coffee at the riverbank. The income averages 8 million Kip/month (with a profit around 10%) but is not the primarysource of income for the household. 60. Approximately 13 businesses may be temporarily disrupted during drainage improvement works. The shops sell a variety of clothing, ceremonial items, household goods, dry products and food and drinks. Mostly they are not the principal source of household income for the owners. Most business structures are located close to the road in the possible alignment of the drainage. Many of those business entrance areas have dirt or cement floors which would have to be dug up for the drainage. In most cases the drainage would be in the right-of-way and not use any private land. Even if this land is not owned by the business but in the RoW, this could disrupt business activities for a short period for each business depending on the works (drainage works might take 10 days whereas riverbank erosion control might take up to three months). The income of these business varies from 12 million to as low as 900,000 kip per month, depending on the type of business (with a profit of around 10%). 61. Table 2 below gives a summary of affected households. The list of all APs and their affected assets is in the IOL in Attachment 3. Table 2: Affected Households and Persons in Pakse Impact Affected Households Perm Temp Total Households and APs Major Impacts Business HH HHs HHs HHs APs % FHH % HHs APs FHH Erosion Protection % 4 9% Drainage % 21 12% Total % 25 11% community hall affected; 8 infrastructural works on community land * 10 Lao-Viet including 1 severely affected Source: IOL by PMIU and TA of PPTA PUEIP, June 2011 D Socio-Economic Profile 62. Socio-economic profiles have been prepared for the subproject area and for APs, including data on key indicators related to land acquisition and resettlement impacts. The 23

24 sources of data on socio-economic conditions are the results of the social survey conducted during the preparation for the Project under the CDIA project and during preparation of the subproject Feasibility Study (FS) between February and June The socio-economic conditions of APs were surveyed during the fieldwork for preparation of the current LACP Socio-Economic Profile of Subproject Area 63. Pakse is the capital of Champasack Province in southern Lao PDR, and the country's third largest town. The district has 42 villages with 12,580 households with a population of 77,331 of whom 40,243 are women. As Lao PDR is a land-locked country, Pakse has been developed as an economic growth center with strong economic ties with the neighboring countries. Pakse is located along National Road 13, the country's main transportation highway, and the Mekong River, and 30 km east of the Lao Thai border town of Chong Mek and 60 km east of Ubon Ratchatani, Thailand's southeastern regional hub. The construction of the Lao Nippon Bridge over the Mekong River at Pakse in 2001 provided a new direct road link between Pakse and Thailand. This triggered a significant increase in commercial activities in and around the city. The road connecting Saravan (180 km east of Pakse) to Viet Nam is currently under construction. 64. The villages in Pakse District are grouped into five Kum Bans and one group of 13 large villages in the central urban area. Population figures of the villages under the project are as shown Attachment 11a. 65. Pakse District as a whole is not classified among the 72 poorest districts in Lao PDR. Based on the poverty criteria used by the provincial government 6 Pakse district had no poor households in However, the district authorities recognise that Pakse would not be free of poor households if the Government s new criteria on poverty line issued of October 2009 would be applied. The Statistics Department has developed questionnaires for collection of household level income and is in the process of conducting data collection and processing. 66. The Geography of Poverty and Inequality in the Lao PDR Report7 supported by SDC reveals that the poverty rate in Pakse ranges from 10 to 30 percent. This analysis was based on the data from the Lao Expenditure and Consumption Survey No.3 (LECS3)8 and the population Census of 2005 and the poverty line set at 116,663 Kip/person/day. 67. Poor households identified by the PUEIP PPTA are based on the Decree No. 285/PM issued on 13 October 2009 relating to poverty and development criteria for This decree provides a definition as well as criteria to identify poverty and development at the household, village and district levels. Poverty is defined as the lack of basic needs for a daily active healthy life such as lack of food to provide 2,100 kilo calorie per person per day, lack of necessary clothes, no permanent dwelling, cannot afford medical expenses, cannot afford basic education, and do not have access to the networks of basic infrastructure services. The poverty line is set at 180,000 Kip per person per month for rural areas and 240,000 in urban areas. As Pakse is an urban district this report is based on the poverty line of 240,000 Kip per person per month. 68. The estimation of the poor households by the PPTA is based on the new poverty line mentioned above (Kip 240,000 per person per month) and an average household size of 5 persons. The assumption is that poor households would have more or less the same level of income as their expenditure. Thus poor households are considered to be those households with a monthly expenditure of less than Kip 1,200,000, representing about 34.5 percent of the total number in the sample (662 households). This finding is close to the findings in the Poor households are households with an income of less than 250,000 and 450,000 Kip/month for the upland and lowland area respectively. The Geography of Poverty and Inequality in Lao PDR, Swiss national Centre of Competence in Research, and International Food Policy Research Centre, 2008 Lao Expenditure and Consumption Survey No3, Committee for Planning and Cooperation, Govt of Lao PDR,

25 Geography of Poverty and Inequality in the Lao PDR showing that the poor households in Pakse are between the range of 10 to 30 percent. 69. The majority of the poorest households (9 percent of the total sample of 662 households) with an expenditure below 450,000 Kip live in the sub-urban villages. However, most of the poor (25.5 percent of the total samples) with the expenditure between 500,000 to 1,200,000 Kip can be found in the urban villages. The average and the better off households with monthly expenditure between 1,200,001 and 4,800,000 or above are concentrated in the urban villages. 70. The data obtained from the district offices of Phonthong and Bachiang during the PPTA revealed almost 4% of the households in the study villages of Phonthong live under the poverty line and there is no poor household in the study village of Bachiang. The household survey amongst potentially affected households in Pakse in 2011 revealed that poor households represent 16% of the sample households and amongst them 50% are amongst the poorest with a monthly household income of less than 100,000 kip per person. They are the landless who moved to the area within the past 5 to 10 years to search for employment in town. Populations in Phonthong and Bachiang districts will not be affected by resettlement activities emerging as a result of output 1 civil works under PUEIP. 71. Phonthong District is located on the western side of Mekong River opposite Pakse. The district has a border with Thailand. This district is one of the main rice producing districts of Champasack Province. The district has 17 villages with 4,402 households with a population of 25,078 of whom 12,720 are women. Population figures of the villages under the project are as shown in Attachment 11b. 72. Bachiang District is located adjacent to Pakse on the southern side. This district is an important area for agricultural produce, most notably coffee, tea, fruit trees and recently rubber plantations. This district also has some major tourist attractions. The district has 12 villages with 3,420 households with a population of 20,134 of whom 9,751 are women. Population figures of the one village under the project are as shown in Attachment 11c. 73. The majority (app. 95%) of the ethnic groups in Pakse, Phonthong and Bachiang districts are Tai Kadai (the Lao speaking group) with the minority of the Mon-Khmer ethnic group who migrated from the southern districts of Champasack or other southern provinces of Lao PDR and some foreign migrants (Vietnamese and Chinese). Most of the Mon-Khmer ethnic group live in Bachiang District. In the villages where there might have been ethnic minority groups in the past, they are now well integrated with or married to the Lao ethic group and ethnic group is no longer declared (by the people themselves) Socio-Economic Profile of Affected People 74. Basic socio-economic information about the AP households who are permanently affected is summarized below: The members of the 1 severely affected household (that requires relocation) have a total of 3 persons. Other permanently affected households who are subjected to partial loss and are not severely affected will not require any relocation count to 940 persons for drainage works and 283 persons for riverbank erosion protection works. 1 of the severely affected household is female headed. Amongst other permanently affected households, there are 24 female headed ones. Most permanently affected AP households belong to Lao ethnic group. 7 Of them are from Vietnamese descent APsAll members of permanently affected AP households speak Lao. Among the permanently affected APs, 3 are involved in agriculture, 1 has a small coffee shop, some are labourers, others recycle garbage. However, every household supplement their income with fishing. 25

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