Lao PDR: Urban Environmental Improvement Project

Transcription

1 Resettlement Framework (Draft) Project No April 2012 Lao PDR: Urban Environmental Improvement Project Prepared by Department of Public Works and Transport in Champasak province and Pakse Urban Development Administration Authority for the Asian Development Bank. This resettlement framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. The final resettlement framework will be uploaded upon ADB Board approval of the project.

2 CURRENCY EQUIVALENTS (as of 11 April 2012) Currency Unit kip (KN) KN1.00 = $ $1.00 = KN7,990 ABBREVIATIONS ADB AFD AH AIEC AIFC AP ASEAN BME BNP BPO BTC CAP CAT CBO CDIA CDM CEDAW CEI CEO CER CIPP CDP CPI CPS CSP CUEI DAFEO DCTPC DGPS DHUP DI DIP DLSW DMS DN DNA DOE DoS DPACS DPRA DPWT Asian Development Bank Agence Francaise de Developpement Affected Household Average Incremental Economic Cost Average Incremental Financial Cost Affected Persons Association of South East Asian Nations Benefit Monitoring and Evaluation Branch Nam Papa Business Promotions Office Belgian Technical Cooperation Community Actions and Participation Community Action Team Community-based Organisation Cities Development Initiative for Asia Clean Development Mechanism Convention of the Elimination of all forms of Discrimination against Community Environmental Improvements Chief Executive Officer Carbon Emission Reduction Community Information and Participation Program Capacity Development Program Committee for Planning and Investment Country Partnership Strategy Country Strategy and Program City-wide Urban Environmental Improvements District Agriculture and Forestry Extension Office Department of Communication, Transport, Post and Construction Differential Global Positioning System Department of Housing and Urban Planning Ductile Iron Department of Investment and Planning Department of Labor and Social Welfare Detailed Measurement survey Pipe Nominal Diameter (in mm) Designated National Authority Designated Operational Entity Department of Statistics Department of Public Administration and Civil Service (of the Prime Development Project Responsible Agency Department of Public Works and Transport i

3 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 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 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 ii

4 MAF masl M&E MDGs MEM MIS MOH 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 Ministry of Agriculture and Forestry mean average sea level Monitoring and Evaluation Millennium Development Goals Ministry of Energy and Mining Management Information System Ministry of Health 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 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 iii

5 PRA Participatory Rapid Appraisal PRC Provincial Resettlement Committee the Project Pakse Urban Environmental Improvement Project Water Supply and PSA Poverty and Social Analysis PSC Project Steering Committee PSP Private Sector Participation PTI Public Works and Transport Institute 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) iv

6 WEIGHTS AND MEASURES ha Lpcd L/s m m2 mg/l mm m 3 /day sqm Hectare Liters per capita per day Liters per second Meter square meter Milligrams per Liter Millimeter Cubic meters per day square meter NOTES (i) (ii) The fiscal year (FY) of the Government of the Lao People s Democratic Republic ends on 30 September. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2012 ends on 30 September In this report, "$" refers to US dollars unless otherwise stated. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. v

7 Pakse Urban Environmental Improvement Project Land Acquisition And Compensation Framework Department of Public Works and Transport (DPWT) in Champasack province and Pakse Urban Development Administration Authority (UDAA) Updated and Endorsed on 18 March 2012 Prepared with assistance from ADB TA 7567-LAO vi

8 Map Pakse Villages... x Note: This does not include the villages in Phonthong, Bachiang and Xanasomboun districts of Greater Pakse Urban Area.... xi Abbreviations and Equivalents... xii Executive Summary... 1 I Background... 4 II Subproject Description... 5 III Scope of LAR... 7 A. Project Eligibility... 7 B. Measures to Minimize Land Acquisition and negative Impacts... 7 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... 8 D Socio-Economic Profile Socio-Economic Profile of Subproject Area 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 C. Rehabilitation Allowances vii

9 D. Minority Ethnic Group and 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 Table 4: PUEIP Grievance Redress Procedures...25 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 28 Attachment 1: Village Impacts Attachment 2: Cost Recovery Survey Attachment 3: IOL Attachment 4: Consultations with Stakeholders PUEIP in Pakse Attachment 5: Voluntary Contribution Consent Declaration Attachment 6: Declaration for Affected Persons Attachment 7: Form for Consultation with no longer APs Attachment 8: Receipt of Compensation Payment for Affected Persons Attachment 10: PUEIP Public Information Booklet Attachment 11a Population of Villages under the Project in Pakse District Attachment 11b Population of Villages under the Project in Phonthong District Attachment 11c Population of Village under the Project in Bachiang and Xanasouboun and Districts Attachment 12 Terms of Reference PMIS BACKGROUND AND INTRODUCTION A. BACKGROUND Part 1: Resettlement viii

10 Part 2: Independent External Monitor C. THE CONSULTANT TERMS OF REFERENCE A. Part 1: Resettlement B. Part 2: Independent External Monitor Objectives Tasks Methodology STAFFING INPUTS Table 1 Resettlement Consultants' Input Table 2 Independent External Monitor Input IMPLEMENTATION SCHEDULE REPORTS FACILITIES AND EQUIPMENT Attachment 13 Outline CEI Process ix

11 Note: An additional 3 villages in Bachiang district have been included in the Project area (Ban Lomsack, Ban Xaysavang, and Ban Nongnamkhao). x

12 Map Pakse Villages Note: This does not include the villages in Phonthong, Bachiang and Xanasomboun districts of Greater Pakse Urban Area. xi

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

14 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 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 xiii

15 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 Nordic Development Fund Non-Government organization 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 Poverty and Social Analysis Project Steering Committee Private Sector Participation Public Works and Transport Institute xiv

16 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 xv

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

18 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 7567-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 in Champasack province 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) 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 drainage improvements and riverbank erosion protection will be carried out in 11 villages in Pakse according to the proposed design 1. Under the Community Urban 1 Yai Tha Hai, Kea, Tha Hin Neua, Phonsaath, Phabath, Thaluang, Houay Poune, Sanamxay, Souan Savanh, Phonsavanh, Phoumouang 1

19 Environmental Improvements (CEI) component minor civil works will be carried out in a selection of villages in Pakse District, Phonthong District and Bachiang District. An LACP covering LAR impacts under the CUEI component has been prepared and can be used as an example LACP for sub-projects under the Community Urban Environmental Improvements component that have LAR impacts. 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) C. Land Acquisition and Resettlement Impacts 9. In the event that LAR impacts of a sub-project are insignificant 2, or ADB category B, this sub-project of the Project is judged to be eligible 3 for inclusion in the Project. An LACP is required for each sub-project in which civil works are proposed with a scope that is larger than can be covered by voluntary contributions. An LACP is based on an assessment of the land acquisition and resettlement (LAR) impacts as part of preparation for the sub-project. 10. LAR impacts could be expected from the following physical works that will be carried out under the CUEI and CEI component of PUEIP: (i) Improvements of drainage through: Expansion of landfill to an additional cell (adjacent to the existing landfill) (ii) Improvements of drainage through: construction of pump stations rehabilitation of outlet channels demarcation and protection of retention ponds installation of flap gates construction of primary drains construction of secondary drains (iii) (iv) Riverbank erosion protection through: installment of revetment with gabions on very steep slope Community driven village improvements through: construction of tertiary drains and access roads construction of solid waste transfer areas 11. The impacts of these physical works will be mainly loss of minor strips of land and some trees and crops, chicken pens, latrine pits, fences, verandas over the existing drainage and other small parts of the house. 12. In very few cases there might be the need for relocation but for the civil works under the CUEI this was estimated to be the case for 1 household only. For the CEI component one of the criteria for selection of a sub-project will be that there is no relocation required. 2 3 Insignificant: less than 200 APs severely affected; severely affected: relocated, 10% or more of productive assets taken, more than 40% of the surface of the house damaged LAR must be insignificant to meet Project eligibility 2

20 D. Severely Affected APs 13. Under the CUEI component, (1) is severely affected due to the riverbank erosion protection works. It is uncertain at the moment, whether the existing landfill site will need to be expanded into another cell of about 3.7 hectares. Under the CEI component sub-projects for which relocations are required will not be included and it is highly unlikely that there will be AHs who will be severely affected in another way (10% of assets taken or more than 40% of the house damaged). E. Policy Framework 14. 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 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 LACP (Resettlement Plan, RP, in ADB terminology) for the CUEI component fully complies with all criteria and contents of the LACF. F. Information Dissemination and Consultations 15. To date, dissemination and consultation activities have occurred as an integral part of the preparation of the LACP for the CUEI component. In the event that an LACP is required for the landfill expansion and the sub-projects under the CEI component the same process as described below will be followed. APs are notified 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. 16. 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. 17. 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 18. Based on the IOL conducted during the preparation of the sub-projects, the estimated cost of LAR for the sub-project will be determined. This cost includes (i) the base LAR costs; (ii) allowances for severely affected and vulnerable APs; and, (iii) contingencies of 10% reserve fund. 3

21 H. Institutional Arrangements 19. The Ministry of Public Works and Transport (MPWT) will be the executing agency (EA), responsible for preparation and implementation of the Project. The Champassak Provincial 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. 20. 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. 21. 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 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 an 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 22. The sub-projects that have LAR impacts and activities will have internal and external monitoring activities. 23. 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. 24. An 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 25. 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 4

22 project area will include 42 villages in Pakse District, four villages 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. 27. 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. 28. 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. 29. 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 2010) along with relevant policies and guidelines. 30. 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. 31. In the event an LACP is needed for a sub-project 4, the LACP is based on an assessment of the land acquisition and resettlement (LAR) impacts as part of preparation for the sub-project. II Subproject Description 32. 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: - construction of primary and secondary drains in the main catchment areas, demarcation and protection of retention areas, flap-gates and pumps - riverbank erosion protection with the installment of revetment with gabions on very steep slopes on the Xedon river - possible upgrading and expansion of existing landfill site and improvement of collection services 4 An LACP is required for each sub-project in which civil works are proposed with a scope that is larger than can be covered by voluntary contributions under the conditions set out in the section on voluntary contributions below. 5

23 (ii) Community Urban Environmental Improvements: - focusing mainly road access and drainage, and improved solid waste collection; this includes a fund for community-driven infrastructure upgrading in villages - household sanitation (iii) Institutional Strengthening including Community Awareness Raising - Capacity building in urban planning and management - Environmental improvement behavior change (iv) Project Management Support 33. A more precise description of physical works per sub-project should be given in the LACPs for the different sub-projects detailing location, scope and nature of works. 34. Physical works under the CUEI component will be carried out in 11 villages in Pakse according to the proposed design 5 and 1 village in Xanasomboun district (Ban Houaxai, which is the location of the landfill site). 35. Villages eligible for inclusion in the CEI component will be selected according to criteria agreed upon by all stakeholders during the implementation of PUEIP. Initial criteria s developed by the PPTA are as follows: (i) Village willingness to participate (i.e., 90% or more of the village agrees to participate) (ii) Proximity to existing or proposed primary or secondary infrastructure network (iii) Linkage with works proposed under Output 1, City-wide Environmental Improvements (iv) Incidence of poverty (at least 40% of the proposed beneficiaries are poor according to participatory village wealth ranking) (v) Poor condition of village drainage (vi) Incidence of flooding due to storm-water (vii) Poor condition of village sanitation facilities (viii) Incidence of ad-hoc solid waste disposal in the village (ix) Poor coverage of solid waste collection in the village An IR/IP screening will be conducted for each sub-project during detailed design and particularly during the selection process for the CEI village component. However, under the CEI component, if verified and confirmed that any of the remaining 10% village households do not agree to participate for exchange of land for the project benefits, they will be triggered by Involuntary resettlement and an LACP will be prepared for the sub project guided by the LACF. 36. Included villages could be all or some of the 46 villages in Pakse District, 13 villages in Phontong District and 4 villages in Bachiang District. The allocated funds per village will be on a per capita basis, ranging from $30 to $35 per capita. The cost sharing is 80% by the project, 10% by the government and 10% by the beneficiaries. 37. Once the villages are selected a process of village consultation and participation will start to determine the nature and scope of sub-projects and who will be the beneficiaries. This participatory process of preparation and decision-making is described in an outline of the CEI process in Attachment Yai Tha Hai, Kea, Tha Hin Neua, Phonsaath, Phabath, Thaluang, Houay Poune, Sanamxay, Souan Savanh, Phoumouang, Phonsavanh 6

24 38. Although sub-projects that lead to relocations will not be permitted and villagers could choose to pay part or all their 10% contribution requirement in-kind (meaning in land), there might still be cases where LAR impacts exceed the voluntary contributions in which case the procedure for LAR will have to be started to determine the exact extent of the impacts and agree on a fair compensation plan. III Scope of LAR A. Project Eligibility 39. The policy for the PUEIP is that sub-projects are eligible if, in addition to other criteria, the land acquisition and resettlement impacts are not significant 6. E.g., the LAR impacts for the sub-projects under the proposed CUEI component are insignificant, or ADB category B, as there is only 1 AHs (3 APs) who are severely affected. For a Category B, a Land Acquisition and Compensation Plan (LACP) has to be prepared. 40. In the Land Acquisition and Resettlement Screening Form it is determined per subproject if the sub-project is B or C (C meaning no LAR impacts at all and no requirement for a LACP). 40. The purpose of the LACF/LACPs is to ensure that all affected people (APs) will be compensated at replacement cost for their losses, and provided with rehabilitation measures so they are at least as well off as they would have been in the absence of the Project. Public Information Booklets have been distributed during the PPTA phase. B. Measures to Minimize Land Acquisition and negative Impacts 41. 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 of the produce is completed. 42. 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. 43. For the CEI component, the land acquisition is minimized as the physical works are minor that include improvements on access roads, tertiary drainage and other infrastructure focusing on improving solid waste management. 6 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) 7

25 C. Land Acquisition and Losses LAR impacts per sub-project 44. LAR impacts will be mainly expected from the physical works under city-wide Urban Environmental Improvements component. The related physical works that will be carried out under this component of PUEIP are (i) rehabilitation and possible expansion of the landfill site; (ii) improvements of drainage, and (iii) riverbank erosion protection. The LAR impacts and compensation measures have been described in the LACP for the CUEI component. The LACP prepared will be updated following detailed design. In case the landfill is expanded and requires additional land to be acquired (approximately 3.7 hectares), a separate LACP will be prepared governed and guided by the principles in this LACF. 45. The impacts of these physical works will be mainly loss of minor strips of land and some trees and crops, chicken pens, latrine pits, fences, verandas over the existing drainage and other small parts of the house. 46. Physical works of the CEI component may involve minor land acquisition and some trees, crops, fences, verandas and other small parts of houses. Improvements may include access roads, tertiary drainage and other infrastructure focusing on improving solid waste management. This will be decided upon during the community environmental participatory activities at the beginning of the implementation of PUEIP. As these improvements are demand-driven, the exact scope and land requirements will not be known until implementation. 47. LAR impacts per village in the sub-project can be given in the form in Attachment Land Acquisition 48. The extent of land acquisition for the sub-projects can be summarized per subproject and per type of work (e.g., drainage and small access roads). 49. The different types of land to be acquired for the sub-projects is documented. Land can be private (land title, land certificate, user agreement and paying tax) or government land. The latter can be public or village land. Land types are also distinguished by use (residential, commercial, agricultural (flat) land, garden land (for trees and crops on mountain slopes) Loss of Houses or Structures 50. The extent of loss of houses or structures for the sub-projects for which an LACP is prepared can be summarized here Loss of Crops and Trees 51. The extent of loss of crops and trees for the sub-projects for which an LACP is prepared can be summarized here Disruption of Businesses 52. The extent of loss of business or income for the sub-projects for which an LACP is prepared can be summarized here.. The list of all APs per sub-project and their affected assets is in the IOL in Attachment 3. 8

26 D Socio-Economic Profile 53. Socio-economic profiles have been prepared for the Project area and for the APs under the CUEI component, including data on key indicators related to land acquisition and resettlement impacts. The 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 PPTA. For sub-projects under the CEI component that are categorized as Category B for LAR, a census and basic socio-economic survey of 30% of the APs and 100% of all affected APs has to be conducted Socio-Economic Profile of Subproject Area 54. 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. 55. 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. 56. 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 7 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. 57. The Geography of Poverty and Inequality in the Lao PDR Report8 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)9 and the population Census of 2005 and the poverty line set at 116,663 Kip/person/day. 58. 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 7 Poor households are households with an income of less than 250,000 and 450,000 Kip/month for the upland and lowland area respectively. 8 The Geography of Poverty and Inequality in Lao PDR, Swiss national Centre of Competence in Research, and International Food Policy Research Centre, Lao Expenditure and Consumption Survey No3, Committee for Planning and Cooperation, Govt of Lao PDR,

27 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. 59. 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 35.4 percent of the total number in the sample (662 households). This finding is close to the findings in the 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. 60. 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. 61. 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. 62. 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. 63. 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. 64. Mon Khmer population in Pakse district (Pattana and Chatsan villages) do not selfidentify as separate ethnic minority population. Bachiang district (Hoa Sea village) and Phonthong district are populated by majority Tai Kadai Lao speaking group, confirming IP categorization C.Socio-Economic Survey will collect the information from a smaple of 10% of affected households and 20% of severely affected households, disaggregated by gender and ethnicity. The purpose of the survey is to provide a baseline data on households to assess resettlement impacts and to be sure that the proposed entitlements are appropriate and to be used for resettlement monitoring. 65. Basic data to be collected includes: Household head: Name, sex, age, livelihood or occupation, income, education and ethnicity: Household members: number, livelihood or occupation, school age children, school attendance, literacy disaggregated by gender: 10