NUI PHAO MINING PROJECT DAI TU DISTRICT THAI NGUYEN PROVINCE RESETTLEMENT ACTION PLAN

Transcription

1 The Provincial People s Committee of Thai Nguyen Nui Phao Mining Joint Venture Company NUI PHAO MINING PROJECT DAI TU DISTRICT THAI NGUYEN PROVINCE RESETTLEMENT ACTION PLAN Prepared by Nui Phao Mining Joint Venture Company Limited (Nuiphaovica) July, 2006

2 TABLE OF CONTENTS CHAPTER 1. INTRODUCTION Background Nui Phao Mining Joint Venture Company Project Description Scope of this Document Time Frame for Construction and Operation of the Project...8 CHAPTER 2. LEGAL FRAMEWORK, POLICIES AND ENTITLEMENTS Legal and Administrative Framework Land Law of the Vietnamese Government (2003) Decree 197/2004/ND-CP on Compensation, Assistance and Resettlement International Best Practice Operational Directive OP 4.12: Involuntary Resettlement Operational Directive OD 4.10: Indigenous People Operational Policy Note 11.03: Cultural Property Equator Principles Comparison of Internal, National and International Practices Corporate Policies of Nuiphaovica Project Compensation and Resettlement Policies Compensation and Resettlement Objectives Project Affected Persons and Organisations (PAPs) Land and Asset Acquisition Principles Eligibility Eligibility of Project Affected Persons Eligibility Register Entitlements...30 CHAPTER 3. SOCIO-ECONOMIC CONDITIONS Methodology of the Socio-Economic Baseline Studies Regional Socio-Economic Conditions An Overview Thai Nguyen Province Dai Tu District General Conditions Socio-Economic Conditions at the Project Area Settlement History Demography Education Language Occupations and Livelihoods Natural Resource Use Health Issues Infrastructure and Services Land Use Agriculture and Forestry Income and Expenditure Gender issues Socioeconomic Conditions at the Relocation Sites...63 Nuiphaovica, Vietnam Page i

3 3.4.1 Demography Education Occupations and Livelihoods Other Conditions Businesses in the Project Area Ethnic Minority Groups a Specific Socio-Economic Assessment Overview of Ethnic Minorities Conditions General Conclusions and Recommendations...74 CHAPTER 4. CENSUS AND INVENTORY OF LAND ACQUISITION IMPACTS Census and Inventory Process Efforts to Minimise Land Acquisition and Resettlement Summary of Impacts Project Affected Communities Project Affected Households Land, Structures and People Impacts of Land Acquisition in the Operational Area (445 ha) Impacts of Land Acquisition at Proposed Relocation Sites Affected Institutions and Public Infrastructure Impacts on Affected Businesses Accuracy of the Census and Inventory and Follow up Steps Detailed Measurement Survey...87 CHAPTER 5. IMPACTS ON VULNERABLE GROUPS AND SPECIAL PROGRAMS Vulnerability in the Project Affected Areas Ethnic Minorities Poor Families Women and Women Headed Households Elderly, Infirm, and Disabled Impacts on Vulnerable Groups Consultation with Local Authorities and Local Unions and Associations Activities and Programs to Assist Vulnerable Groups...95 CHAPTER 6. ORGANISATIONAL ARRANGEMENTS Nuiphaovica Thai Nguyen Provincial People s Committee (TNPPC) Key Provincial Departments The Compensation Oversight Board (COB) and Provincial Advisory Team Dai Tu District People s Committee (DTDPC) Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) Commune People s Committees Project Affected Persons (PAPs) Key Responsibilities Staff Resources CHAPTER 7. RELOCATION SITES AND REPLACEMENT OF PUBLIC WORKS Summary of Relocation Site Requirements and Impacts Resettlement and Relocation Site Principles Process of Seeking and Approving the Relocation Sites Agricultural/Productive Land Loss and Potential of Replacement Land Consultation and Participation for Proposed Relocation Sites Relocation Site Selection Nuiphaovica, Vietnam Page ii

4 7.7 Residential Plots Allocation of Residential Plots Affordability Analysis on Purchasing Plots at Relocation Sites Site Planning and Development Nam Song Cong Relocation Site Xom Trai Relocation Site Hung Son No.3 Relocation Site Hung Son No.2 Relocation Site Khe Thuy Tinh Relocation Site Long Lanh and Khe Vey Agricultural Sites (reserved) Army Facilities Relocation Site (Tan Lap site) Re-Arrangement of Households along New Segment of Road No Detailed Design and Construction Progress Housing and Design Company Built Housing Self-Built House Construction Land Use Right Certificates and Building Ownership Process of Compensation, Site Development and Allocation of Plots Implementation Details for Relocation Site Development Realignment and Replacement of Public Works and Affected Assets Environmental and Other Conditions at Relocation Sites Background Environmental Impact Assessment Key Monitoring Parameters Treatment Facilities Key Results of EIAs Completed to Date Risk Assessment Summary Cost of Relocation Site Development CHAPTER 8. ECONOMIC AND LIVELIHOOD RESTORATION MEASURES Background Summary of Key Economic Activities and Associated Impacts Eligibility and Entitlements for Restoration Programs Consultation and Identifying Potential Activities and Program Initial Proposed Program Options for Economic Restoration Detailed Planning for Economic Restoration Activities Land-Based Programs and Initiatives Re-Establishment of Agricultural Activities Agricultural Extension and Related Programs Employment and Procurement Opportunities Skills Enhancement and Training Activities Assistance for Small and Medium Enterprises Off-Farm Income Generation Activities Garment Manufacturing Programs for Handicraft Manufacturing Money Management Cost of Economic and Livelihood Restoration Programs CHAPTER 9. CONSULTATION AND PARTICIPATION Objectives Public Consultation and Disclosure Plan Nuiphaovica, Vietnam Page iii

5 9.3 Resettlement Action Plan Development Consultation Phase I: During Surveys for the Interim Resettlement Action Plan Phase II: For final RAP (November 2004 to April, 2005) Consultation with vulnerable groups (with local authorities and unions) Consultation for seeking replacement land and approving relocation sites Replacement of public works, affected assets of institutions Ongoing Compensation and Resettlement Activities Project Brochures and Information Booklets Other Consultation and Disclosure Mechanisms CHAPTER 10. COMPLAINTS SETTLING Disclosure of Complaints Procedures CHAPTER 11. MONITORING AND EVALUATION Objectives Internal Monitoring Monitoring Methodology and Process Indicators and Information Management Monitoring Reports Independent Evaluation Evaluation Methodology and Process Auditors Evaluation Reports CHAPTER 12. IMPLEMENTATION AND SCHEDULE Procedures of Compensation and Relocation Procedure of Compensation Procedure of Resettlement to New Relocation Sites Procedure of Self-Relocation CHAPTER 13. COSTS AND BUDGET Overview Legal Basis Calculation of Costs and Compensation Detailed Cost Estimate Contingency Allowance Nuiphaovica, Vietnam Page iv

6 LIST OF TABLES Table 2.1 Table 2.2 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Table 3.8 Table 3.9 Table 3.10 Table 3.11 Table 3.12 Table 3.13 Table 3.14 Table 3.15 Table 3.16 Table 3.17 Table 3.18 Table 3.19 Table 3.20 Table 3.21 Table 3.22 The Main Differences between the OP 4.12 on Involuntary Resettlement and National Resettlement Policies and Legislation Entitlement Matrix for the Different Affected Categories Number of Households Surveyed in the Affected Villages and Proposed Relocation Sites Key Characteristics of the Four Communes in the Project Area Periods of Settlement Size of Surveyed Households Age Distribution of the Surveyed Population Marital Status of Households Ethnicity (Unit = person) Religious Affiliations Education Levels Attained Main Occupations Secondary Occupations Domestic Water Resources Common Diseases Causes of Diseases According to Respondents Treatment of Diseases Public and Private Health Care Services Sources of Electricity Land Use in the Project Area Economic Activities of Households in Project Communes Monthly Income Per Capita Annual Household Income and Main Activities Annual Average Expenditure Nuiphaovica, Vietnam Page v

7 LIST OF TABLES (Cont.) Table 3.23 Table 3.24 Table 3.25 Table 3.26 Table 3.27 Table 3.28 Table 3.29 Table 3.30 Table 3.31 Table 3.32 Table 3.33 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 4.6 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 6.1 Borrowing and Loan Status of Households in the Project Area Male and Female Headed Households Period of Settlement in Dai Tu District Age Distribution of Surveyed Population Education and Training Levels Main and Secondary Occupation of Interviewed Household Heads Common Disease Frequency Average Income Per Capita per Month of Interviewed Households Average Expenses of 46 Interviewed Households Borrowing and Loan Status of Households at Relocation Sites Key Information and Comparison of Ethnic Minorities versus the Total Population Summary of Project Impacts due to Land Acquisition Households and their Assets in the Operational Area by Sector Summary of Households and their Assets in the Operational Area Impacts on Land by Administrative Units (Communes) Land Acquisition Impacts by Proposed Relocation Sites, New Site for Army Facilities and New Cemeteries Affected Public Works and Collective Assets Vulnerable Groups Affected by the Project Operational Area Vulnerable Groups Affected by Relocation Sites Meetings with Key Stakeholders for Affected Vulnerable Group Issues Financial and Other Assistance for the Vulnerable Families Initial Proposed Special Assistance Programs for Vulnerable Groups Key Activities and Responsible Organisations Nuiphaovica, Vietnam Page vi

8 LIST OF TABLES (Cont.) Table 6.2 Table 7.1 Table 7.2 Table 7.3 Table 7.4 Table 7.5 Table 7.6 Table 7.7 Table 7.8 Table 7.9 Table 7.10 Table 7.11 Table 7.12 Table 7.13 Table 8.1 Table 8.2 Table 8.3 Table 8.4 Table 8.5 Table 8.6 Table 8.7 Table 8.8 Table 8.9 Staffing and Working Facilities for Resettlement Action Plan Implementation Potential Sites Surveyed for Relocation Meetings and Site Visits Concerning Replacement of Land Residential Land Compensation Preferences Agricultural Land Compensation Preferences of Affected Households Affected Households Choice of Relocation Sites Residential Plots Available at the Selected Sites for Relocation Common basic characteristics of different house designs Estimated pricing matrix for different housing options offered House Construction Preferences Schedule for Nam Song Cong Site 500 Standard Plots At 125 m2 Each, Market Centre, and a Workshop for Handicraft Manufacturing In Hung Son 2 Schedule for Hung Son 3 (roughly 112 standard plots of 300 m2 each) and Xom Trai (around 200 plots of 300 m2 each) Schedules for Khe Thuy Tinh (around 80 standard plots of 400 m2 each and Hung Son 2 (roughly 125 standard plots of 300 m2 each) Public Works and Social Services to be Compensated/Reconstructed Land Use Status in the Main Project Affected Communes Impact on Productive Land in the Project Affected Area and at the Proposed Relocation Sites Affected Land in the Project Operational Area (by sectors) Monthly Income per Head in the Project Area Options for Off-Farm Activities and Affected Households Choices Preference for Other Kinds of Assistance Results of Second Round of Consultation (In Order of Preference) The Proposed Programs for Economic Restoration/Rehabilitation Main Activities and Responsibility for a Pilot Handicrafts Program for 250 people Nuiphaovica, Vietnam Page vii

9 LIST OF TABLES (Cont.) Table 8.10 Table 9.1 Table 9.2 Main Activities and Responsibilities for a Pilot Program for 18 People Meetings with key stakeholders for the development phase of the compensation and resettlement program Second round of compensation and resettlement consultation and disclosure Table 9.3 Summary of compensation and resettlement public meetings to the end 2005 Table 9.4 Summary of compensation and resettlement public meetings, to date 2006 Table 11.1 Table 12.1 Table 13.1 Table 13.2 Table 13.3 Table 13.4 Table 13.5 Monitoring aspects and indicator areas Schedule for Resettlement Action Plan Preparation and Implementation Unit Prices for Houses (by Class) Unit Price Examples for Miscellaneous Assets Unit Prices for Residential and Garden Land Unit Prices for Agricultural Land, Crops and Trees Summary of the Cost Estimate for the Nuiphaovica Resettlement Program Nuiphaovica, Vietnam Page viii

10 LIST OF FIGURES Figure 1.1 Figure 1.2 Figure 6.1 Figure 7.1 Figure 7.2 Figure 7.3 Project Location Map Project Operational Area Institutional Chart Example of Proposed House Designs at Relocation Sites Relocation Site Development Process Compensation Process and Transfer to Relocation Sites Nuiphaovica, Vietnam Page ix

11 LIST OF ANNEXES Annex A Annex B Annex C Annex D Annex E Example Consultation Questionnaire Poster on Economic Restoration Programs Compensation Payment Procedure Leaflet Complaints Action Form Complaints Procedure Poster Nuiphaovica, Vietnam Page x

12 ABBREVIATIONS AND ACRONYMS BARD BOC COB CPC C&R CWG DONRE DOF DOC DARD DDPC DDCARC F/S GOV HH IRAP Nuiphaovica NGOs MARD MOI MONRE MPI LURC PAP RAP Bank for Agriculture and Rural Development Building Ownership Certificate Compensation Oversight Board Commune People s Committee Compensation and Resettlement Commune Working Group Department of Natural Resources and Environment Department of Finance Department of Construction Department of Agriculture and Rural Development Dai Tu District People s Committee Dai Tu District Compensation, Assistance and Resettlement Committee Feasibility Study Government of Vietnam Household Interim Resettlement Action Plan Nui Phao Joint Venture Company Non-governmental Organisations Ministry of Agriculture and Rural Development Ministry of Industry Ministry of Natural Resources and Environment Ministry of Planning and Investment Land Use Right Certificate Project Affected Person Resettlement Action Plan Nuiphaovica, Vietnam Page xi

13 ABBREVIATIONS AND ACRONYMS (Cont.) RIB SEBS TNPPC TOR VND USD WU Resettlement Information Booklet Socio-Economic Baseline Survey Thai Nguyen Provincial People s Committee Terms of Reference Vietnamese Dong United States Dollar Women s Union Nuiphaovica, Vietnam Page xii

14 REFERENCES Aker Kvaerner E&C Ltd Nui Phao Project Final Feasibility Study. Prepared for Nui Phao Mining Joint Venture Company. Development Research and Consultancy Centre (DRCC). October Nui Phao Mining Project Study On Ethnic Minorities. Prepared for Nui Phao Mining Joint Venture Company Limited. Havers, L and Giancarlo, C Draft. Nuiphao Gender Study: Ensuring Sustainability of Livelihoods in Rural Vietnam. Mount Royal College. Calgary, Alberta. Nuiphaovica Nui Phao Tungsten, Fluoride, Bismuth, Copper and Gold Mining Project Environmental Impact Assessment Report. Prepared in conjunction with the Centre for Industrial Environment (CIE) and based on various Knight Piésold reports. Nuiphaovica Nui Phao Mining Project Public Consultation and Disclosure Plan. Prepared for Nui Phao Mining Joint Venture Company Limited. Knight Piésold Nui Phao Mining Project ESIA/ESAP Environmental and Social Impact Assessment (Volume II). Prepared for Nui Phao Mining Joint Venture Company Limited. Knight Piésold Nui Phao Mining Project ESIA/ESAP Environmental and Social Action Plan (Volume III). Prepared for Nui Phao Mining Joint Venture Company Limited. Nuiphaovica, Vietnam Page xiii

15 DEFINITION OF KEY TERMS Census Is a data collection technique for recording enumeration of all Project Affected Persons and their assets through a household questionnaire, detailed survey and cadastral map review. The census objectives are: To prepare a complete inventory of affected households and their assets as a basis for compensation; To identify non-entitled persons; and To minimise the impact of a later influx of outsiders to the Project area. Compensation Compensation includes the process of financial or material reimbursement for Project Affected Persons who lose partial or absolute value of their assets as a result of the Project. Compensation also includes the valuation and reimbursement in monetary terms or in kind of financial and physical losses as a result of impacts of the Project. Complaint Procedures Procedures that set out the time frame and mechanism for the resolution of complaints from affected people concerning compensation and resettlement issues. Grievance redresses can be provided through informally-constituted local committees with representation from key stakeholder groups. Grievances can also be addressed through formal channels, with unresolved grievances being dealt with at progressively higher levels between the government and Company. Cut-off Date The cut-off date is the date which the local authorities have officially announced, and informed the affected people of the proposed Project and its land take area and requested people not to build new houses or plant perennial trees. After the cut-off date, no other affected persons or households will be included in the inventory, which lists all potential affected persons and households, and their associated baseline information. People who move residences or business assets into the area after the cut-off date are not entitled to compensation under this policy framework. The cut -off date for the Project is May 12, Compensation is based on the land and assets confirmed and calculated at the time compensation is to be paid and therefore, affected households that have made adjustments according to their lifecycles in the period after the cut-off date will be compensated accordingly for such assets. Nuiphaovica, Vietnam Page xiv

16 Household (HH) Household (HH) is defined as the number of people living in one structure. Involuntary Resettlement Involuntary resettlement is associated with a development project which results in unavoidable resettlement where the people affected have no option but to rebuild their lives, income and asset bases elsewhere. Land Use Right Certificated (LURC) A Land Use Right Certificate (LURC) is similar to a title granted to people/households to legalise their use of the lands and/or houses they occupy. Operational Area The operational area is the area to be used for all operational sectors such as the open pit, plant site, tailings storage facilities, settling pond, disposal sites etc. and includes a buffer zone needed for safety reasons with respect to the operations and the environment. The total operational area for the Project is currently 445 ha. The operational area is made up of six operational sectors, which relate to different components of the mine facilities and buffer zones and associated construction phase scheduling. Project Affected Ethnic Minority People Ethnic People are defined as people who belong to a minority tribal group affected in part or in total (temporarily or permanently) by the Project due to acquisition of their land, dwellings, disturbance of their place of work, and other Project-related adverse impacts. Project Affected Persons (PAP) Project Affected Persons (PAP) include the person or persons, household, organisation, private or public institution identified by the baseline information collected for this Resettlement Action Plan (RAP) who, on account of execution of the Project, have experienced or would experience direct economic and social impacts caused by: The involuntary taking of land, resulting in: o Relocation or loss of shelter; o Loss of assets or access to assets; or Or o Loss of income source or means of livelihood, whether or not such person must move to another location. The involuntary restriction of access to legally designated parks and protected areas, adversely impacting the livelihood of such person. Nuiphaovica, Vietnam Page xv

17 Rehabilitation (and Restoration) Rehabilitation means providing assistance to Project Affected Persons, due to the substantial or entire loss of productive assets, income, employment or sources of living, through supplementing the compensation paid to acquire assets in order to improve, or at least achieve full restoration of living standards to pre-project levels. Replacement Cost With regard to land and structures," Replacement Cost" is defined as follows: a) For agriculture land: it is the pre-project or pre-displacement (whichever is higher), market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. b) For residential land and land in urban areas: it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in vicinity of the affected land, plus the coast of any registration and transfer taxes. c) For houses and other structures, it is the market cost of the materials needed to build a replacement structure with an area and quantity similar to or better than those existing structures, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labour and contractor fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the Project deducted from the valuation of an affected asset. d) Crops, trees and other perennials based on current market value: (i) (ii) Compensation for annual crops is equivalent to the production over the last three years multiplied by the market price for agricultural products at the time of the calculation of the compensation; and Compensation for trees includes total investment costs plus production costs from the time of its planting to the expropriation. In case this cost cannot be determined, the compensation will be calculated on the basis of the type, age and productive value. e) Other assets (i.e. income, cultural, aesthetic) based on replacement cost or cost mitigating measures. For example, compensation for the movement of graves includes all expenditures for exhumation, movement and reconstruction to its original state. Nuiphaovica, Vietnam Page xvi

18 Resettlement Resettlement refers to all measures taken by the Project to mitigate any and all adverse social impacts of a Project on the affected people, including compensation for lost assets and income and provision of other entitlements, income rehabilitation assistance and relocation, as needed. Socio-Economic Baseline Survey The Socio-Economic Baseline Survey was carried out in order to prepare a profile of the affected people and surrounding communities and to prepare this Resettlement Action Plan. Households in the Project area were surveyed through a household questionnaire and/or interview process. The survey results have been used to: Assess income, identify productive activities, and plan for income restoration; Develop relocation options, compensation packages and entitlement policies; and Develop the social preparation phase for vulnerable groups. Vulnerable People (or Groups) Vulnerable groups include those distinct groups of people who might suffer disproportionately or face the risk of being marginalised by the effects of resettlement, and specifically include: a) Poor families, identified as including: (1) Veteran households who receive regular social welfare payments; (2) Households that fall under the Ministry of Invalids and Social Affairs (MOLISA) poverty standards and national survey results; and (3) Households without security of tenure or with tenure status, or poor existing house; b) Ethnic minorities; c) Mentally and physically handicapped people or people in poor physical health; and d) Infants, children and women headed households. Nuiphaovica, Vietnam Page xvii

19 EXECUTIVE SUMMARY 1. Introduction The Nui Phao Tungsten, Flourite, Bismuth, Copper and Gold Mining Project (the Nui Phao Mining Project) is a proposed open pit polymetallic mining project and mineral processing operation in northern Vietnam. The Project is located within the Dai Tu district of Thai Nguyen province. The site is approximately 80 km northwest of the capital Hanoi and about 150 km south of Vietnam s northern border with China. Nuiphaovica plans to commence development activities in early 2007 in anticipation of ramping up to full-scale mining operations in late As such, there has been a significant amount of planning and engineering accomplished to date. The Final Feasibility Study was completed in July 2005 (Aker Kvaerner, 2005). The development of the Resettlement Action Plan was initiated by Nuiphaovica in 2003 and an interim Resettlement Action Plan was prepared in October 2004 through extensive consultation with local and regional stakeholders. A final Resettlement Action Plan was subsequently completed by Nuiphaovica and approved by the Thai Nguyen authorities in September This Resettlement Action Plan is a result of updates made in mid 2006 to the approved documentation to demonstrate Nuiphaovica s commitment to presenting an integrated assessment of compensation and resettlement impacts, risks, proposed mitigation measures and action plans to both national and international standards. It has been prepared to address World Bank Group in conformance with the Extractive Industries Review process. The Project will be owned and operated by Nui Phao Mining Joint Venture Company Ltd (Nuiphaovica). There are three parties to the Company: Tiberon Minerals Limited (Tiberon), Canada, and two provincial Vietnamese partners, Thai Nguyen Mineral Company (TNMC), a state owned company, and Thai Nguyen Export-Import Investment Company (INTRACO), a private Vietnamese company. Tiberon has the majority ownership and is the lead investor in Nuiphaovica. 2. Project Description The Nui Phao Mining Project will be an open pit mine producing tungsten and fluorspar concentrate as primary products with copper concentrate together with a gold credit as a secondary product. A bismuth concentrate will be produced as a minor product. The Project is a conventional open pit mining and bulk flotation mineral processing circuit. Major Project components include: An open pit mine; Waste rock disposal facilities; Nuiphaovica, Vietnam Page xviii

20 Modern mine plant and facilities, including a crushing plant, grinding, thickening, flotation, and gravity recovery; A tailings storage facility (TSF) with water management ponds; and Ancillary facilities, including buffer zones, haul roads, accommodation facilities, and mine services, as well as relocation sites households affected by land acquisition. The area required for the mine site and ancillary facilities is the operational area which is made up of six operational sectors and is approximately 445 ha. The remaining area required for Project development relates to relocation sites and replacement land for households affected by land acquisition. Approximately 56 ha has been designated for residential relocation sites. Those presently living on these lands will be required to relocate in order to develop the mine. The Thai Nguyen province notified potentially affected residents in May 2004 that it intends to acquire land under the provisions of Government of Vietnam Decree 197/2004 ND-CP on compensation, assistance and resettlement. The Project will contribute to the economy of Dai Tu district by developing and operating a tungsten/fluorspar mine in the district. Expected benefits will include direct and indirect employment opportunities, international recognition of Vietnam as having a world class metallic mineral deposit, and investment in the local area, district and wider province. 3. Scope and Objectives of This Document The purpose of the Resettlement Action Plan is to: Identify and measure the impact of the Project on the people who live and work on land in the project and the surrounding areas; Present policies to deal equitably with the Project Affected Persons (PAPs); Develop compensation, relocation and rehabilitation measures that will enable the affected people to re-establish their lives on an equal or preferably better-than-before basis; Prepare a detailed cost estimate of all measures required to achieve the successful implementation of the compensation and resettlement program; Identify the responsibilities of the various parties that are to implement the plan; and Provide an opportunity for affected households and other stakeholders to be consulted on the plans and provide meaningful input into the design of the overall program. The Resettlement Action Plan has been prepared jointly by the staff of the Nuiphaovica and the Dai Tu district authorities under the direction of the Compensation Oversight Board which was established by the Thai Nguyen province. Nuiphaovica, Vietnam Page xix

21 4. Legal Framework, Policies and Entitlements Institutional and Legal Framework This Resettlement Action Plan is based on the relevant laws of Vietnam, the policies of Nuiphaovica and relevant international standards and guidelines on involuntary resettlement. There is a mandated process for land recovery that is determined by the State and through which the land acquisition for the Project will be achieved. Responsibility for administering this process in Vietnam on behalf of the State lies with the provincial authority. The Project falls within the Thai Nguyen province and therefore the land acquisition process for the Project will be administered by the Thai Nguyen Provincial People s Committee, the highest administrative unit within the province. The key legal instruments of the State regarding land acquisition and associated compensation, assistance and resettlement include: the Land Law (2003) of the Vietnamese Government which describes laws relating to land ownership, tenure and transfer; and Decree 197/2004/ND-CP of December 03, 2004 on compensation, assistance and resettlement when land is recovered by the State. Relevant provincial policies on compensation, assistance and resettlement are also in place and supplement the State level decrees, circulars and decisions. There is no private land ownership in Vietnam as specified by the Land Law (2003) and land is the property of the people as a whole and is managed by the State. Legal rights to use the land are represented through a land use right certificate known as a red book. While individuals and business entities do not officially own the land, land use certificates can be bought and sold as if they were the land title. Nuiphaovica s compensation and resettlement program is designed to meet Vietnamese legislation but is also guided by the provisions of international standards, particularly the World Bank Group policy on involuntary resettlement OP 4.12, and therefore, all differences identified for this Project are bridged by the Company s compensation and resettlement policies. Nuiphaovica s compensation and resettlement policies include provision for compensation at replacement cost and also for providing financial and technical assistance to affected people to support economic and livelihood restoration. Project Resettlement Policies The Project resettlement policies were developed by Nuiphaovica from May to June, 2004 and approved by Thai Nguyen Provincial People s Committee on March 22, This policy framework is based on Vietnamese regulations, and international requirements on involuntary resettlement including World Bank Group policy OP The principal objectives of the Project resettlement policies are to ensure that all Project Affected Persons will be compensated for their losses and provided with rehabilitation measures to assist Nuiphaovica, Vietnam Page xx

22 them to at least restore or otherwise improve their living standards to pre-project and income earning ability. Every effort is made by the Company and local authorities to minimise resettlement, displacement and use of productive land. Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs. Sufficient investment resources will be provided to enable Project Affected Persons to share in Project benefits. They are to be meaningfully consulted and will have opportunities to participate in planning and implementing the compensation and resettlement program. The compensation measures to be provided by Nuiphaovica include in both cash and/or in kind compensation for houses and other structures at full replacement costs acceptable to affected households. Eligibility and Entitlements Those eligible for compensation, relocation and/or rehabilitation assistance include: All those living in the Project operational area; All those not living in the Project operational area, but with land or other assets in the area; All those living and/or working land at the relocation site areas; and All those otherwise adversely affected by the Project. In order to be eligible under the above, persons must occupy the land prior to May 12, 2004 (which was the Cut-Off Date designated and notified to the people by the province). Lack of legal rights or documentation will not bar affected people from eligibility or entitlements. The basis for establishing eligibility is the socio-economic baseline survey and in particular the detailed measurement survey initiated in 2004 and to be formally updated and confirmed during the resettlement program implementation. The detailed measurement survey for calculation of compensation packages and to initiate the land recovery process began in November 2005 and is ongoing. The Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) will maintain an eligibility register which will be managed on an ongoing basis to take account of births and deaths, changes in ownership status and other relevant lifestyle changes of affected households. The entitlements to those who are eligible are summarised as follows: Compensation for houses on the basis of full replacement value. Compensation for lost agricultural land in cash based on the market value or land for land with the same productive capacity; Nuiphaovica, Vietnam Page xxi

23 Compensation for lost crops and trees; Residential house plot in a fully-serviced relocation site and cash where applicable for the balance of the value of their existing property; Cash allowances to cover the transition period; Vulnerable groups to receive special assistance; Income and livelihood restoration measures for those whose productive land and/or business is severely affected; and Skills training for those who wish to participate in vocational training opportunities. An entitlement package will be prepared for each household, and opportunity will be provided to discuss its adequacy and negotiate on a range of options relating to relocation site choice, economic and livelihood restoration assistance and compensation mode. Community infrastructure and public works will be replaced to an as-before or higher standard, or alternatively cash compensation will be paid at replacement cost without deduction for depreciation to owners. 5. Project Impacts Measures to Minimise Land Acquisition Considerable efforts have been made by Nuiphaovica and local authorities in order to minimise land acquisition and socially adverse impacts including: Limiting the operational area to only 445 ha (from a total investment license of over 920 ha) of which only about 305 ha will be acquired for the operation; Farming is expected to be able to continue on the remaining approximately 140 ha of land that will be acquired by the Project as the residents have to be moved purely for safety reasons; Minimising the public works, land and assets of institutions to be affected, including efforts not to have to relocate tea processing plants, gas stations and a forestry enterprise office etc; Proposing relocation sites in predominantly agricultural areas of low productivity; and Developing three new cemeteries on public land or a small parcel of land acquired from individuals. With these efforts the total number of affected households has been reduced from 1,556 households to 1,153 households. Nuiphaovica, Vietnam Page xxii

24 Impacts to Land, Structures and People Presently, the area of the proposed mine is by and large used for agriculture. Many farm dwellings are located near the lands that are being worked. The main impact of the Project is on the people that now inhabit the area. The communes of Ha Thuong, Hung Son and Tan Linh are partially affected by the mine footprint, known as the operational area. The commune of Ha Thuong is most severely affected, followed by Hung Son and then Tan Linh. Phuc Linh commune is located downstream of the operational area and may be affected as a result of neighbouring Project activities. The communes of Ha Thuong, Hung Son, Tien Hoi, Cat Ne and Quan Chu are affected by proposed relocation sites and/or replacement agricultural land. It is noted that the proposed relocation site of Xom Trai is located in Bin Thuan commune, however at the time of writing it is unlikely that this site will be developed due to lack of interest from affected households. Affected households can be classified as resident households including those whose residential land and structures are affected and non-resident households that are affected by agricultural land loss only but are not physically displaced. According to the census and inventory undertaken in the third quarter of 2004, there are 1,153 households who will be affected by the 445 ha of the Project operational area. The number of persons living in these households is 4,276 persons, or on average 3.7 persons per household. Since some of the households only have land in the area, the number of households that need to be physically relocated is somewhat smaller at 793 households, with 2,942 persons. The total area of land to be acquired for five feasible residential relocation sites, including a site for economic restoration activities is about 56 ha. The number of households affected by the acquisition of these relocation sites is 637 households with a population of 2,600 persons, of which 83 households with 331 people will lose both their land and house, while the balance will lose agricultural land only. Almost all the land of the relocation sites is agricultural land, for which compensation will be paid on the same basis as for the land acquired for the project operations. The number of households to be affected by the land acquisition for the re-establishment of cemeteries (in Ha Thuong commune) and the army facility site (in Cat Ne commune) is 120 households with 588 people, and of these only 8 households will have their buildings affected. Thus, there are a total number of 1,910 households affected with a population of 7,464 persons, of which 884 households have to be physically relocated to, or re-arrange their houses at the relocation sites. Considering the portion of productive land loss to total area of holding by affected households, only those affected people occupying agricultural land in the operational area and in the proposed relocation sites are considered severely affected. The agricultural land acquired for the operational Nuiphaovica, Vietnam Page xxiii

25 area plus the five relocation sites is about 347 ha, and on average this is 0.21 ha per household. The total number of households affected by loss of productive land is 1,026 households. About 15 percent of the affected population is non-kinh (ethnic minorities); and there is one Catholic community in Ha Thuong commune. There are also other vulnerable groups that will be affected such as poor families, ethnic minorities and women headed households. Public works and social infrastructure will also be affected, including: A segment of National Road No. 37 (2.64 km); A segment of railway to Nui Hong coal mining deposit and associated controlling house (2.7 km); A segment of 35 kv (2.5 km) and 0.4 kv transmission lines (6.64 km) and 03 substations; A segment of TELECOM lines (overhead and underground: 5.2 km and 3.5 km respectively); Army storage/facilities (K10 under management of KV3); INTRACO (private business) land and other assets; Markets, village cultural halls, schools, and a prayer house of the Catholic community; Cemeteries; and Farm irrigation systems (9.3 km). These public works will be compensated in cash to the community or replaced in kind to previous or better service levels, in close cooperation with the local authorities and communities. Thirtyseven affected households run small businesses, generally along the National Road No. 37 that will be realigned. These businesses are small retail outlets selling drinks and snacks and are usually one of a number of sources of household income for these families. 6. Organisational Arrangements Nuiphaovica has assembled a team of compensation and resettlement specialists to prepare and implement this Resettlement Action Plan. Nuipahovica staff work closely with local officials, consultants and affected people and other stakeholders. The compensation and resettlement team and other relevant Nuiphaovica staff will continue until the Resettlement Action Plan has been fully implemented and the resettlement program is considered complete. The Thai Nguyen Provincial People s Committee has established the Compensation Oversight Board (COB), which is an advisory team of senior officials, and the Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) to specifically oversee and implement the compensation and resettlement program for the Nui Phao Mining Project. These Nuiphaovica, Vietnam Page xxiv

26 bodies include members of key departments such as the Department of Natural Resources and Environment (DONRE), Department of Agriculture and Rural Development (DARD), Department of Construction (DOC), Department of Finance (DOF), religious boards, the Provincial Newspaper, Thai Nguyen Broadcasting, Nuiphaovica and others. Commune Working Groups have also been formed in the three main affected communes of Ha Thuong, Hung Son and Tan Linh, to help with the preparation and implementation of the Resettlement Action Plan. These working groups participate in key activities such as detailed measurement surveys, and include representatives of affected households and organisations, to ensure that they are directly involved in the implementation and monitoring process. Nuiphaovica is committed to providing support to the various agencies and committees set up at commune, district and provincial levels. As such, the Company ensures that guidance is provided to its partners and the capacity available to develop and implement the compensation and resettlement program to meet both national and international requirements. 7. Relocation Site Development and Replacement Land With the active participation of local government and affected households a number of feasible relocation sites have been identified that can accommodate the affected people and their requirements. Potential replacement land has also been identified by the Company and local authorities (although far from existing lands) to offer to affected people should they wish to choose land for land compensation. After various surveys, site visits, public meetings and debates, the following sites were selected for relocation/replacement options: Site #1 Nam Song Cong (residential site); Site #2 Hung Son 2 (market centre and other economic restoration activities); Site #3 Hung Son 3 (residential site); Site #4 Xom Trai (residential site); Site #5 Khe Thuy Tinh (residential site, with limited agricultural land available); Site #6 Long Lanh (agricultural land); Site #7 Khe Vey (agricultural land); and Site #8 Army facilities relocation site. There are four proposed residential relocation sites, one site for economic restoration activities and three other sites (two for agricultural land and one site for the relocation of the army facilities). There is also a small site for resettlement of the cemetery areas in Ha Thuong commune. Households have a choice of which site they prefer and to date, while not all affected people have given their preference, those that have, mostly indicate a preference for the more Nuiphaovica, Vietnam Page xxv

27 urban site of Nam Song Cong. A number of the sites including Nam Song Cong are situated close to Dai Tu town, and this is intended to assist those households who wish to make the transition from a predominantly rural, agricultural environment to a somewhat more urbanised environment and livelihood. Typically, groups of households will wish to move to the same site, to preserve social and economic networks, and Nuiphaovica will make every effort to accommodate requests to move families, social and other groups together. Those with houses now situated at relocation sites that will be required to re-arrange their residences will be allocated plots on the same site. The relocation sites will be provided with the entire required infrastructure according to local standards. For each relocation site Nuiphaovica will provide housing, green space and community facilities. Both water and waste treatment facilities which meet local and international standards will be provided to ensure a safe water supply and minimal impact on the environment. Nuiphaovica will assess each relocation site and replacement agricultural land options to ensure that site conditions are suitable for residential and/or agricultural development from an environmental and social standpoint. Plot sizes will be no less than 125 m 2 for the Nam Song Cong site and no less than 300 m 2 for the remaining sites. All plots will be provided with survey, construction permit and joint title to husband and wife. The fees for certificates and permits will be paid by the Company. Relocation plots will be made available at no cost to households who are vacating a plot with a value equal to or less than the cost of providing the infrastructure at the new site. Those whose previous plot is valued higher will receive the difference in cash. According to an initial affordability analysis and comparison of expected compensation packages, all affected households will be able to purchase plots at relocation sites. The engineering and design of the relocation sites will commence immediately following government approval of each site. Commencement of works at the Nam Song Cong site is scheduled for July 2006, with a number of other sites to follow shortly thereafter. Affected households who are eligible and choose to move to a designated relocation site have the option to build their own house or to purchase a house that will be built by Nuiphaovica s approved construction teams. Nuiphaovica has developed a series of proposed house designs to be built at the different relocation sites. The housing options offered by Nuiphaovica represent a range of different house types and costs to suit different plot sizes, family sizes and budgets of affected families. Nonetheless, the vast majority of households wish to construct their own house with the compensation they receive for their previous house. Where families do opt to construct their own houses they will still be able to use the house designs developed by Nuiphaovica and other relevant support (if they choose) that would be offered to households who opt for Company built houses. To ensure that affected families construct their houses and move in a timely manner, compensation in cash for their buildings and other assets will be disbursed in instalments based on the progress of construction of their new house. Nuiphaovica, Vietnam Page xxvi

28 Households will also be given the opportunity to self-relocate to a site of their choice. Some may wish to make arrangements with family members living in the vicinity, for instance the elderly. Others may wish to construct a new house on land they purchase elsewhere. Self-relocating households will be given a special allowance, as their actions will reduce the cost of developing relocation sites. 8. Economic and Livelihood Restoration Measures Economic restoration is a critical element of resettlement, including for the Nui Phao Mining Project. It is more challenging than the provision of relocation plots and the payment of compensation for lost land. Most of the affected people will be losing their agricultural land and their income generating potential will be impacted. While in most cases their holdings are small, the land nonetheless provides basic income and food security. Efforts have been made to identify replacement agricultural land close to the affected areas, but these have met with limited success. Agricultural land is available in Cat Ne and Tan Linh communes, but they are far from the existing places of land and therefore, affected households tend to prefer cash compensation rather than in-kind land for land replacement. The reality in Vietnam is that replacement agricultural land is almost impossible to find or secure. Consequently, other means of generating household income have to be established. The local population of the area is looking forward to employment at the mine. Nuiphaovica is committed to employing suitable persons of both genders according to the labour force requirements, and will train those who have shown aptitude via pre-screening. The estimated local labour requirements for the mine will be approximately persons. A large proportion of this labour force could be supplied by the affected households and Nuiphaovica has a preferential employment policy that gives priority to those eligible people affected by land acquisition and resettlement. In addition to direct employment opportunities, there will be numerous opportunities to provide products and services to the mine. Many of these can be provided by small businesses and the Resettlement Action Plan proposes that such business opportunities be developed by the affected population and has made budget allowances for this. A new market is proposed for Dai Tu town where about 100 stallholders could ply their trade. This would be ideally suited to women and young people and training in running a stall would be provided as well as credit for start-up expenses. In addition to the market centre a handicraft workshop is proposed at the site and pilot programs for toothpick manufacturing have already been implemented with a number of affected people. A piliot program for handicraft manufacturing is scheduled for about 250 people during late 2006 to coincide with development of the site. Wage labour opportunities in nursing, tire repairs, mechanical services, electrical services, driving, information technology and other skilled and semi-skilled professions have also been identified as potential economic restoration options. The diversification of non-farm income generating activities as well as agricultural growth in the area is necessary to ensure food security, especially for vulnerable relocated people and is important to the enhancement of rural livelihoods and community resiliency. As such, the Nuiphaovica, Vietnam Page xxvii

29 Company has initiated a range of land-based programs including a pilot program for 30 people to improve tea production, and an animal husbandry program has also been identified for implementation, which is of particular interest to elderly and other vulnerable affected persons who may be less able to access other opportunities. Vocational training will be central to wage labour opportunities, agricultural intensification programs and other activities developed for economic restoration. Training will be provided for those who are interested to learn new skills or upgrade their existing skills. Nuiphaovica seeks to work with training partners who can offer an actual employment or business opportunity after vocational training is completed. Nuiphaovica also requires its relevant partners to provide guarantees of supervision and ongoing support for affected people that participate in the various courses and programs. To accordance with the objectives of the resettlement policies, assistance for livelihood restoration and improvement will be offered to all affected families and employment opportunities will be offered to severely affected households. For older members of the labour force, who are less likely to embrace new skills or secure future prospects and for whom the above measures may not be sufficient, additional assistance will be required. The Company has specifically identified potentially vulnerable groups and has adopted a practice of special assistance and programs (additional cash and in-kind support) for dealing with vulnerable people. For the younger members of the labour force, the new economic development of the area, stimulated by the operation of the mine, should provide many opportunities for employment. As part of the monitoring of the resettlement program, family income will be assessed to determine the effect of their new situation after land acquisition and/or resettlement. Nuiphaovica considers that the resettlement program is not completed until household income has been restored to previous levels or higher. If the desired outcome materialises only in part, additional measures will be proposed to enhance income earning opportunities and livelihood restoration. 9. Consultation and Disclosure Public Participation and Consultation The Resettlement Action Plan has been developed in close consultation with local authorities, local unions and affected people in order to maximise their participation in resettlement planning and implementation. Local authorities, unions, and about 1,100 affected people have been consulted through various channels. Initially consultations were carried out in two phases: (i) for the Project resettlement policies and interim Resettlement Action Plan (from July to September 2004); and (ii) for the final Resettlement Action Plan (from November, 2004 to end of March, 2005). After many meetings, surveys and associated events, stakeholders have provided feedback on the draft Project resettlement policies, proposed relocation sites, compensation payment mechanisms, compensation unit rates, and proposed programs of employment generation as well as gender Nuiphaovica, Vietnam Page xxviii

30 issues and special assistance for vulnerable groups. Their feedback is integrated into the policies and procedures set out in the Resettlement Action Plan. Consultation with affected households and other stakeholders is ongoing and will continue throughout the entire period of resettlement program implementation. Nuiphaovica staff engages with affected households and local authorities on a daily basis and consults on a broad range of issues. In doing so, the Company has built sound relationships with its host communities and particularly those people who will be directly affected by land acquisition. The Company s policy for its consultation and disclosure efforts is based on building trust and facilitating an open exchange of information among stakeholders. To facilitate ongoing consultation and disclosure on resettlement and other topics, a number of key mechanisms and activities have been established by the Nuiphaovica. A Project Information Centre has been established in Dai Tu town which contains up to date Project information and key resettlement and compensation documents and is accessible to affected people and other stakeholders every day during the week. The Project Information Centre also acts as a repository for stakeholder feedback and is the central point for receiving and managing community complaints. Local information corners have also been created in affected villages in order to bring Project information directly to affected people. A frequently asked questions system allows affected people and other stakeholders to raise questions directly with the Company and to obtain a timely response. To date a number of compensation and resettlement questions and concerns have been raised by affected people and responses have been provided and widely disseminated by Nuiphaovica. A local information network group has also been set up and this group is made up predominantly of people affected by land acquisition. The local information network group forms part of Nuiphaovica s community liaison team and is designed to provide a grassroots approach to information dissemination and local stakeholder involvement. Information Disclosure Beginning in late 2005 the Company initiated a comprehensive information campaign to build on existing information dissemination activities. The Company has subsequently provided an extensive array of materials to affected people, including but not limited to: A Resettlement Information Booklet (including a summary of compensation and resettlement issues) that was prepared and distributed to all affected households during late 2006; Posters and leaflets depicting proposed housing options and designs and relocation site development proposals; A compensation payment procedure and details on compensation unit rates prepared and disseminated in the first quarter of 2006; and Nuiphaovica, Vietnam Page xxix

31 Numerous posters and leaflets on economic restoration activities and options, results of pilot programs and ongoing lessons learned. A series of other brochures, leaflets and posters on compensation and resettlement issues and other topics has also been distributed and the information campaign is regularly supported with new materials. The Project resettlement policies were distributed to all affected communes and villages in late March, A full interim Resettlement Action Plan was sent to the heads of the Compensation Oversight Board and Dai Tu District Compensation, Assistance and Resettlement Committee and a summary was also sent to each member for their review and comments. The compensation unit costs were also publicised at the local government offices of each affected commune. The final approved Vietnamese Resettlement Action Plan was also made available at the offices of Nuiphaovica in Hanoi and Dai Tu town, the Thai Nguyen Department of Natural Resources and Environment, the Dai Tu district and all host communes in late Subsequent addendums and updates, including this updated Resettlement Action Plan will be made available in relevant format and arenas. Specifically, this Resettlement Action Plan will be made available at the World Bank InfoShop and also on the Tiberon Minerals Limited website. 10. Complaints Settling Nuiphaovica is committed to addressing stakeholder concerns, complaints and grievances regarding resettlement. During implementation of the compensation and resettlement program complaints and grievances will be dealt with according to the approved steps agreed between the relevant commune, district and provincial authorities and Nuiphaovica. Complaint settling is managed by Nuiphaovica and will follow the established Company complaints system which adheres to these agreed steps. Complaints procedures including complaint action forms and instructions have been widely disseminated within local communities and are available to the general public at the Project Information Centre in Dai Tu town and at other locations. Nuiphaovica has initiated a complaints documentation and management system that records complaints and enables them to be tracked and resolved in a timely manner. Complaints are managed by the community liaison team and a complaints officer has been designated. Affected people and other stakeholders who have complaints will be treated fairly and quickly at all levels. No administrative fees will be charged to process their complaints. 11. Monitoring and Evaluation The implementation of the Resettlement Action Plan will be internally supervised and monitored by the Nuiphaovica resettlement team, as well as the Dai Tu District Compensation, Assistance and Resettlement Committee and the appointed members of the Commune People s Working Committees. The resettlement program will be monitored regularly with reports and Nuiphaovica, Vietnam Page xxx

32 recommendations set in motion and made publicly available as relevant. Nuiphaovica is committed to providing quarterly monitoring reports during program implementation. Outstanding issues will where necessary be brought to the attention of Nuiphaovica senior management and the local authorities of Dai Tu district and Thai Nguyen province, in order to make sure that policies and procedures set forth in this plan and under Vietnamese and international requirements are adhered to. Monitoring will be based on indicators of change relevant to compensation and resettlement and will be based as much as possible on participation with affected households and communities. The Company has a well established database of baseline and other information and this will be expanded and used as a monitoring tool as the program is implemented. An independent evaluation process has also been established and involves external auditors who will review and monitor implementation of the Resettlement Action Plan. Emphasis of the external evaluation will be on the livelihoods of affected people after resettlement. Terms of Reference have been established for the evaluation process and review will occur at least twice a year during implementation and then once a year after operations begin for a minimum of two years. Evaluation reports will be completed by the independent evaluation team and will be made publicly available as relevant. 12. Implementation Schedule The Resettlement Action Plan will be implemented in close association with the civil works which will be carried out in the six operational sectors. Development of relocation sites commenced in 2005 including the detailed planning and engineering activities. The development of the relocation sites will be the critical path because many plots have to be ready early to receive 224 affected households from the first two operational sectors. The affected households will be relocated from the second half of 2006 onwards to about the end of Those relocating on schedule will receive a special bonus. Under the Project resettlement policies and the Land Law (2003), households cannot be required to vacate their land and home until compensation has been paid in full and a relocation site is ready to receive them. Payment of compensation has commenced as the Resettlement Action Plan has been formally approved by the Provincial People s Committee and Nuiphaovica. Nuiphaovica aims to make advanced compensation payments to affected households in order to ensure that any disruption to income and economic well-being is minimised. The development of economic restoration opportunities need to be executed concurrently with compensation payments, land acquisition and actual resettlement to ensure that gaps in household income generation are avoided after the loss of agricultural land and other assets. A series of economic restoration programs, training and associated activities have been in progress since April 2005 and a number of successful pilot programs are now in place. Development and implementation of economic and livelihood restoration activities will continue throughout the Nuiphaovica, Vietnam Page xxxi

33 resettlement program implementation phase and continue as necessary into post relocation, expected by early Costs and Budget The total cost for developing and implementing the Resettlement Action Plan is estimated to be VND 413,502,796,189 which is equivalent to US$26.75 million 1 (including a 3.15 million contingency for unforeseen expenditures). This cost estimate includes the replacement cost of compensation for land and structures, economic rehabilitation measures, relocation site development, transition period allowances. Resettlement costs account for approximately 15 percent of the total Project costs. The compensation and resettlement program costs in US dollars by broad categories are as follows: Boundary demarcation and detailed measurement surveys 0.06 million Compensation for residential land 6.92 million Compensation for agricultural land 3.56 million Compensation for houses and other fixed assets 3.86 million Compensation for crops, fruit trees and other trees 1.47 million Acquisition and development of relocation sites 3.40 million Replacement of public infrastructure and cemeteries 0.58 million Economic rehabilitation/restoration programs 2.37 million Transition allowances and special assistance programs 1.20 million Local government management (excl. of Nuiphaovica costs) 0.18 million Contingency costs 3.15 million Total million Additionally, a cost of US$ 2.57 million has been estimated for the relocation of the military depot currently located within the Project area. The cost estimate of land and assets to be compensated in 2006 and 2007 have been calculated using the unit price which was issued in late These unit costs are being updated by the provincial authorities and as such, a contingency of 15 percent has been applied to the compensation package. In addition, a 10 percent contingency has also been applied to remaining items of the compensation and resettlement budget to allow for potential unforeseen expenditures. 1 Based on an exchange rate of VND 15,800 per USD. Nuiphaovica, Vietnam Page xxxii

34 14. Conclusions The Resettlement Action Plan for the Nui Phao Mining Project will evolve over the period of implementation and in spite of a great deal of planning not everything can be known at this time. Careful surveys have been conducted to determine the affect on the population concerned. Relocation sites have been identified and screened and the first two sites are being planned. Policies to deal fairly and equitably with the population involved have been adopted by the province and Nuiphaovica. The commune leaders and residents have been in consultation since the start of resettlement planning. Cost estimates have been prepared and institutional arrangements are in place. Nonetheless, the efforts required to compensate, relocate and rehabilitate the affected population should not be underestimated. Experience has shown that resettlement is always difficult, timeconsuming, and stressful to the participants. The Nui Phao Mining Project will not be an exception in this regard. Through the resettlement planning process and early implementation efforts, Nuiphaovica has built sound relationships with the affected population, local, district and regional authorities and other stakeholders. The Company aims to build on these relationships and the affected population will continue to be meaningfully consulted and have opportunities to provide input throughout the entire period of implementation. This Resettlement Action Plan was prepared on the basis of the census and inventory of the affected households and organisations in late The final number of the affected people, organisations and their affected assets will only be fixed when the affected areas are clearly marked on the ground. Therefore, the actual number of affected persons and organisations and their affected land and assets may change slightly when the final Detail Measurement Survey for each sub-compensation plan and area is completed. Nuiphaovica, Vietnam Page xxxiii

35 CHAPTER 1. INTRODUCTION 1.1 Background The Nui Phao Tungsten, Flourite, Bismuth, Copper and Gold Mining Project (the Nui Phao Mining Project or the Project) is a proposed open pit polymetallic mining project and mineral processing operation in northern Vietnam. The Project is located within the Dai Tu district of Thai Nguyen province. The site is approximately 80 km northwest of the capital Hanoi and about 150 km south of Vietnam s northern border with China. Figure 1.1 shows the approximate Project location of the site in Vietnam. Nuiphaovica plans to commence development activities in early 2007 in anticipation of ramping up to full-scale mining operations in late As such, there has been a significant amount of planning and engineering accomplished to date. Activities included in that planning were the commencement of environmental and social baseline studies by Knight Piésold in 2001 (Knight Piésold, 2002) and the development of a preliminary environmental impact assessment in The Knight Piésold assessment established the basis for another environmental impact assessment document that was prepared by the Vietnam Centre for Industrial Environment (Nuiphaovica, 2004), which was submitted to the Vietnamese government in 2004 and approved in February This approval allowed the issuance of the Mining License by the Ministry of Natural Resources and Environment in June The Mining License gives Nuiphaovica the right to mine the mineral resources at Nui Phao. Nuiphaovica retained Aker Kvaerner in 2004 to develop a feasibility study to define the economic viability of the Project based on the ongoing planning, engineering, and environmental efforts. Inherent to the feasibility study process are the inevitable changes, updates, and improvements to the engineering designs and plans. The Final Feasibility Study was completed in July 2005 (Aker Kvaerner, 2005). At the same time, development of a Resettlement Action Plan (RAP) was initiated by Nuiphaovica in 2003 and an interim Resettlement Action Plan was prepared in October 2004 through extensive consultation with local and regional stakeholders. A final Resettlement Action Plan was subsequently completed by Nuiphaovica and approved by the Thai Nguyen authorities in September With favourable feasibility study results and a valid Mining License, Nuiphaovica sought financing for the Project in the international lending community and is seeking investment risk guarantees from the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group. The engineering and planning modifications that have occurred as the Project evolved and the participation by new Project lenders and insurers resulted in the need to update the environmental and social impact assessment and associated documentation that was approved by the Vietnamese government. This Resettlement Action Plan is a result of updates made to the approved documentation in mid 2006 to demonstrate Nuiphaovica s commitment to presenting an integrated assessment of Nuiphaovica, Vietnam Page 1

36 compensation and resettlement impacts, risks, proposed mitigation measures and action plans to both national and international standards. It has been prepared to address World Bank Group policies in conformance with the Extractive Industries Review process. 1.2 Nui Phao Mining Joint Venture Company The Nui Phao Mining Project (the Project) will be owned and operated by the Nui Phao Mining Joint Venture Company (Nuiphaovica). The Nui Phao Mining Joint Venture Company is established pursuant to an investment license no. 2377/GP-BKH from the Ministry of Planning and Investment (MPI), dated February 3, The parties to the joint venture Company are: Tiberon Minerals Ltd. (Canada) and two provincial Vietnamese partners: Thai Nguyen Mineral Company (TNMC), a state owned company, and Thai Nguyen Export-Import Investment Company (INTRACO), a private Vietnamese Company. Tiberon has the majority ownership and is the major investor in the joint venture. Tiberon Minerals Limited is engaged in the business of exploration and mining of minerals in Canada and Vietnam. Funds for project development and exploration are raised through equity issuances of company shares in accordance with stock exchange and security regulations. The Thai Nguyen Export-Import & Investment Company (INTRACO) is a limited liability company with over two members. Its business registration certificate was granted on 10 th July 2003 by the Thai Nguyen Department of Planning and Investment (DPI). The Thai Nguyen Mineral Company is involved primarily in the mineral mining and concentration business. It is a state owned company registered in Thai Nguyen province and under the management of the Industrial Department of Thai Nguyen province. Business Certificate No was granted on April 11, 1997 by the Thai Nguyen Department of Investment and Planning. Nuiphaovica is registered in Thai Nguyen province with offices located near the mine site in Dai Tu tow which is within Dai Tu district in Thai Nguyen province. Nuiphaovica, Vietnam Page 2

37 Figure 1.1 Project Location Map Nuiphaovica, Vietnam Page 3

38 1.3 Project Description The Nui Phao Mining Project will be an open pit mine producing tungsten and fluorspar concentrate as primary products with copper concentrate together with a gold credit as a secondary product. A bismuth concentrate will be produced as a minor product. The Project is a conventional open pit mining and bulk flotation mineral processing circuit. Major Project components include: An open pit mine; Waste rock disposal facilities; Modern mine plant and facilities, including a crushing plant, grinding, thickening, flotation, and gravity recovery; A tailings storage facility (TSF) with water management ponds; and Ancillary facilities, including buffer zones, haul roads, accommodation facilities, and mine services, as well as relocation sites households affected by land acquisition. The area required for the mine site and ancillary facilities is known as the operational area, consisting of 445 ha and made up of six operational sectors. The remaining area required for Project development relates to the relocation sites for households affected by land acquisition. Figure 1.2 shows the operational area, the main site components and the proposed relocation sites. The Project area extends within the following communes in Dai Tu district: Ha Thuong Hung Son; and Tan Linh. Phuc Linh commune is immediately downstream of the Project and adjacent to some of the facilities. In addition to the operational area required, there will be approximately five residential relocation sites, including a market centre, agricultural and other areas (e.g. for cemetery reestablishment and an army facility relocation site) within the district to accommodate those households and public infrastructure required to move due to development of the mine. The proposed relocation sites are located in Ha Thuong, Hung Son, Tien Hoi, Cat Ne and Quan Chu communes. Key stakeholders include the residents and businesses of these communes, local unions and associations and local, district and regional authorities. Nuiphaovica, Vietnam Page 4

39 Some of the benefits expected from the Project include: It will be recognised that Vietnam contains a world class metallic mineral deposit; Vietnam will be recognised internationally as a leading supplier of tungsten and fluorspar; The Nui Phao Mining Project has attracted a large international audience and its success will demonstrate to international mining companies that large-scale mining can be done in Vietnam; More than 80% of the products will be exported to international markets; Mining and metallurgical universities will be exposed to advanced and new technologies, benefiting education, training, and employment; Downstream processing and spin-off industries related to the mine will be developed; The Project will bring much needed sustainable economic development to one of the poorer and remote regions of North Vietnam; The Project will be recognised as the largest Canadian investment to date in Vietnam; Direct employment of approximately 450 Vietnamese people, mostly members of Project affected families; Indirect employment generation and business opportunities for other local people; Socio-economic development independent of the region and a contribution to Thai Nguyen province; Project multipliers such as physical infrastructure and social services; Potential to improve and expand the region s social, educational, and commercial base to assist the workforce and their families; Creation of opportunities for local businesses during Project construction and during the sixteen years of production; and Management of existing environmental contamination and wastes within the Project area. Nuiphaovica, Vietnam Page 5

40 Figure 1.2 Project Operational Area Nuiphaovica, Vietnam Page 6

41 1.4 Scope of this Document This Resettlement Action Plan (this Plan) was specifically developed to demonstrate Nuiphaovica s commitment to presenting and managing land acquisition and resettlement impacts for the Nui Phao Mining Project. It includes commitments to engage affected communities through effective public consultation and disclosure, and to manage and monitor implementation of the resettlement program during relocation activities and for a reasonable time after economic and livelihood restoration activities commence. This Plan has been developed by Nuiphaovica with support provided by independent and international consultants. The compensation and resettlement program process was initiated in 2003 and has been developed and updated to incorporate ongoing Project development activities and changing local and national circumstances. Whilst the Resettlement Action Plan is considered a standalone document it is also included as part of Nuiphaovica s Environmental and Social Action Plan as it acts as a discipline specific action plan that takes the general plans presented for environmental and social management and mitigation a step further by defining specific procedures, actions, and monitoring needed to accomplish resettlement, compensation and associated tasks required by the Nui Phao Mining Project. This Plan also defines the purpose, responsibilities, and the operational performance criteria that are needed to monitor the effectiveness of its implementation. The commitments set out in the Resettlement Action Plan are presented as follows: Legal Framework, Policies and Entitlements; Socio-Economic Conditions; Census and Inventory of Land Acquisition Impacts; Impacts on Vulnerable Groups and Special Programs; Organisational Arrangements; Relocation Site Development and Replacement of Public Works; Economic and Livelihood Restoration Measures; Consultation and Participation; Complaints Settling; Monitoring and Evaluation; Implementation and Schedule; and Costs and Budget. Each of these topics is dicussed in greater detail throughout the remainder of the document. Nuiphaovica, Vietnam Page 7

42 1.5 Time Frame for Construction and Operation of the Project The proposed construction period for development of the Nui Phao Mining Project is approximately 18 months (exclusive of resettlement related construction). Mine site construction is scheduled to start in early An operational period of 16 years is ancitipated for the Project scheduled to begin in late 2008 following successful plant commissioning and tailins dams operations. More economically recoverable mineralisation may be defined during the life of the mine as development and exploration work continues. Any expansion of the ore reserve would extend the life of the mine and associated processing facilities. Nuiphaovica, Vietnam Page 8

43 CHAPTER 2. LEGAL FRAMEWORK, POLICIES AND ENTITLEMENTS 2.1 Legal and Administrative Framework This Resettlement Action Plan is prepared in accordance with the Project resettlement policies and based on the relevant laws of Vietnam, the policies of Nuiphaovica and international standards and guidelines on involuntary resettlement. Key laws, decrees of Government Circulars of line Ministries and policies of the Thai Nguyen province on compensation, assistance and relocation are as follows: The Land Law of the Vietnamese Government, dated November 26, 2003; Decree 181/2004/ND-CP of October 29, 2004 guiding the implementation of the Land Law 2003; Decision No. 153/2004/QD-TTg of the Prime Minister dated August 17, 2004 promulgating the strategy for sustainable development in Vietnam (Vietnam s Agenda 21); Decree 197/2004/ND-CP of December 03, 2004 on compensation, assistance and resettlement when land is recovered by the State; Circular 116/2004/TT-BTC of December 7, 2004 guiding the implementation of Decree 197/2004/ND-CP on compensation, assistance and resettlement; Decree 188/2004/ND-CP of November 16, 2004 on methods of determining land prices and assorted land price brackets; Circular 114/2004/TT-BTC of November 26, 2004 guiding the implementation of Government Decree No. 188/2004/ND-CP on land prices and assorted land price brackets; Decree 198/2004/ND-CP of December 3, 2004 on the collection of land use levies; Decision No. 134/2004/QD-TTg of the Prime Minister on assistance policies to Ethnic Minorities; and Compensation and resettlement policies of Thai Nguyen province namely: o Compensation unit costs for lands (Decision No. 2686/2004/QD-UB dated November 14, 2004); o Compensation units cost for buildings (Decision No. 3234/2004/QD-UB dated February December 24, 2004); and o Compensation units cost for trees and annual crops (Decision No. 2340/QD-UB dated September 26, 2003; Decision No. 728/QD-UB dated April 13, 2004; Nuiphaovica, Vietnam Page 9

44 Decision No. 1290/HD-NN dated October 18, 2003; Official Letter No. 238/VC-NN; Decision No. 701/QD-UB dated July 20, 1998; and Official Letter No. 1036/HD-TCVG on guidance for implementing these decisions 2340/QD-UB). In addition to the national legislation described, a number of key international standards and directives related to resettlement and compensation have been considered for the Project. Specifically, relevant policies and standards are those defined by the World Bank Group and also the Equator Principles which in turn reference these standards: World Bank Group Policies and Directives: o Operational Directive OP 4.12: Involuntary Resettlement; o Operational Directive OD 4.10: Indigenious People; and o Operational Policy Note OPN 11.03: Cultural Properties. Equator Principles: voluntary principles that have been adopted by many private financial institutions to assess and manage environmental and social risk in project financing. The pertinent elements of each of these legal instruments and standards is further described in the following sections together with Nuiphaovica s corporate policies and in particular the compensation and resettlement policies which were developed based on national and international requirements in collaboration with Provincial and local authorities and stakeholders. 2.2 Land Law of the Vietnamese Government (2003) A new Land Law was passed on November 26, 2003 by the XI th National Assembly of the Socialist Republic of Vietnam at its 4 th session. It became affective on July 01, A summary of the articles most relevant to the Project are provided in box 2.1 below. Box 2.1: Key Articles Related to Land Tenure and Transfer Systems under the Land Law Article 5 - Land ownership 1. Land belongs to the entire-people with the State acting as the owner s representative. 2. The State exercises the right to dispose land as follows: a. To decide on land use purposes through deciding on, considering and approving land use plans (hereinafter referred collectively to as land use planning, plans); b. To stipulate land assignment norms and land use duration; c. To decide on land assignment, land lease, land recovery, and to permit the change of Nuiphaovica, Vietnam Page 10

45 land use purposes; and d. To set land prices. 3. The State performs the regulation of benefit sources from land through land-related financial policies as follows: a. Collection of land use levies, and land rents; b. Collection of land use tax, tax on income from land use right transfer; and c. Regulation of land value increases not due to investment by land users. 4. The State assigns land use rights to land users in the form of land assignment, land lease, recognition of land use rights for current stable land users; and prescribes the rights and obligations of land users. Article 6 State management over land 1. The State performs the uniform management of land. 2. The contents of the State management of land include: a. Promulgating legal documents on land management and use and organising the implementation thereof; b. Determining administrative boundaries, compiling and managing the administrative boundary dossiers, drawing administrative maps; c. Surveying measuring, evaluating and categorising land; drawing cadastral maps, land use status quo maps and land use planning maps; d. Managing land use planning and plans; e. Managing the land use assignment, land lease, land recovery, and change of land use purposes; f. Registering land use rights, compiling and managing cadastral dossiers, and granting land use right certificates (LURC); g. Making land statistics and inventories; h. Managing land-related finance; i. Managing and developing the land use right transfer market in the real estate market; j. Managing and supervising the performance of rights and obligations of land users; Nuiphaovica, Vietnam Page 11

46 k. Inspecting and examining the observance of law provisions on land and handling violations of land legislation; l. Settling land disputes; settling complaints and denunciations against violations in land management and use; and m. Managing land-related public service activities. 3. The State adopts policies on investment in the performance of tasks of State management over land, builds up a modern and fully capable land management system, ensuring the effective and efficient management of land. Article 7 The State exercises the right of representing the entire-people-owner of land and performs the uniform State management over land 1. The National Assembly promulgates the Land Law, decides on land use planning and plans for the whole country; and exercises the supreme right to supervise the land management and use nationwide; 2. The Government decides on land use planning and plans of the provinces and centrallyrun cities and the plannings and plans on the use of land for defence and/or security purposes; and exercises the uniform State management over land throughout the country; 3. The Ministry of Natural Resources and Environment (MONRE) is answerable to the Government for the State management over land; 4. The People s Councils of all levels exercise the right to supervise the land management and use in their respective localities; and 5. The People s Committees of all levels exercise the right to represent the land owner and perform the State management over land in their respective localities according to competence prescribed in this Law. Article 8 Rights and responsibilities of the Vietnam Fatherland Front, the Front. Land Ownership There is no private land ownership in Vietnam as specified in the 2003 Land Law (including Decree 181/2004/ND-CP guiding implementation of the land law). Land is the property of the people as a whole and is managed by the government. Legal rights to land use are represented through a land use right certificate known as a red book. Residents of Vietnam can acquire the certificate by purchasing it from other holders or through prolonged and continuous occupation and use of land. Nuiphaovica, Vietnam Page 12

47 A foreign investor or company with foreign invested capital must procure a land use right by formally leasing the land from the State. As such, while individuals and business entities do not officially own the land, there is still a household wealth component on the land because the land use certificates can be bought and sold as if it were the land title. 2.3 Decree 197/2004/ND-CP on Compensation, Assistance and Resettlement Decree 197/2004/ND-CP of December 03, 2004 provides key articles on compensation, assistance and resettlement when land is recovered by the State. A summary of the articles most relevant to the Project are provided in box 2.2 below. Land acquisition for the Project will be achieved through the mandated process for land recovery determined by the State. Box 2.2: Key Articles Related to Compensation, Assistance and Resettlement Article 4 Resettlement of residences Land users scheduled to have their land recovered by the State under the provisions of this Decree must be resettled and compensated in one of the following ways: 1. Compensation with dwelling house; 2. Compensation with new residential land; and 3. Compensation with money for acquiring new residences. Article 6 (Item 2) Persons who have land recovered shall be compensated with new land having the same use purpose; if there is no land for compensation, they shall receive compensation equal to the land use right value at the time of issuance of the recovery decisions; in case of compensation with new land or houses, if there is any difference in value, such difference shall be paid in cash. Article 8 - Conditions for land compensation Persons who have land recovered by the State shall receive compensation if they meet one of the following conditions: 1. People with the land use right certificates according to the provisions of land legislation; 2. People with the land assignment decisions of competent state bodies according to the provisions of land legislation; 3. Households or individuals that are using land in a stable manner, with certifications from the Peoples Committee of communes, wards or townships (hereinafter collectively referred to as commune-level People's Committees) that such land is dispute-free; and Nuiphaovica, Vietnam Page 13

48 4. Population communities that are using land on which exist structures such as communal houses, temples, pagodas, shrines, ancestral worshiping halls or family line worshiping temples and have certifications from the commune-level People's Committees where such exists that such land is used commonly for the communities and dispute-free. Article 9 - Land prices for compensation calculations and remaining expenses invested in land Land prices for compensation calculations are land prices set for the purpose for which the land in question is being used at the time of issuance of land recovery decisions and publicised by the provincial-level People's Committees in accordance with the Government's regulations. Compensation shall not be made according to the price of land set for the new purpose to be shifted to. Cases of delayed compensation are prescribed as follows: If delays in compensation are caused by agencies or organisations responsible for compensation and the land prices at the time of compensation publicised by the provincial-level People's Committees are higher than those at the time of issuance of the recovery decisions, compensation shall be made at the land prices at the time of payment of compensation money; if the land prices at the time of compensation are lower than those at the time of issuance of the recovery decisions, compensation shall be made at the land prices at the time of issuance of the recovery decisions; and For delays in compensation caused by persons who have land recovered, if the land prices at the time of compensation are lower than those at the time of issuance of the recovery decisions, compensation shall be made at the land prices at the time of compensation; if the land prices at the time of compensation are higher than those at the time of issuance of the recovery decisions, compensation shall be made at the land prices at the time of issuance of the recovery decisions. Article 10 - Compensation, assistance for agricultural land of households and individuals Households and individuals using agricultural land to be recovered by the State shall be compensated with land with the same use purpose; if there is no land for compensation, they shall receive monetary compensation calculated at the price of land having the same use purpose as prescribed in Clause 1, Article 9 of this Decree (above). For agricultural land lying intermixed with residential areas, and garden and pond land lying adjacent to residential areas, apart from compensation at the price of agricultural land having the same use purpose, monetary assistance is also provided; the prices for calculation of assistance shall be equal to between 20% and 50% of the prices of adjacent residential land; the specific assistance level shall be decided by the provincial-level People's Committee. Nuiphaovica, Vietnam Page 14

49 Article 13 - Compensation for non-agricultural residential land If users of residential land must be relocated when their land is recovered by the State, they shall receive compensation with new residential land, dwelling houses in resettlement areas or monetary compensation if they so request, as suitable to the local realities. Article 18 - Principles for compensation of property Owners of property attached to land which is recovered by the State shall receive compensation when their property suffers from damage. Owners of property attached to land which is recovered by the State but is not eligible for compensation shall receive compensation or assistance for their property on a case-by-case basis. Houses and other works attached to land, which are built after the land use planning plans are publicised and without permission of competent state bodies, shall not be compensated. Houses and other works attached to land, rebuilt after July 1, 2004 but which at the time of building, run against the land use purpose determined in the approved land use planning plan, shall not be compensated. Article 19 Compensation for houses and works built on land For dwelling houses, works in service of the daily life of households or individuals, compensation equal to the value of the newly built house or works with equivalent technical standards promulgated by the Construction Ministry shall be paid. The value of newly constructed houses or works shall be calculated by multiplying the construction acreage of houses or works by the new construction unit prices, which are prescribed by the provincial-level People's Committees according to the Government's regulations. For houses and other construction works which have been dismantled in part with the remaining part being unusable, compensation shall be paid for the whole houses or works; for houses and other construction works which have been dismantled in part but still exist with the remaining part being usable, compensation shall be paid for the value of the dismantled part and for expenses for repair and improvement of the remaining part up to the technical standards of the houses or works before being dismantled. Article 20 - For houses and other works built on land failing to meet all compensation conditions prescribed in Article 8 of this Decree and, at the time of building, competent State bodies already issued notices banning such buildings, neither compensation nor assistance shall be provided; persons having such illegally built works shall be forced to dismantle such works or bear dismantlement expenses if competent agencies organise the dismantlement. Nuiphaovica, Vietnam Page 15

50 Article 24 - Compensation for cultivated plants and reared animals The level of compensation for annual trees shall be equal to the value of the output of their crop. The value of the output of a crop shall be calculated on the basis of the productivity of the biggest crop in the last three years of the major cultivated tree in the locality and the average price at the time of land recovery. The level of compensation for perennial trees shall be equal to the existing value (exclusive of the land use right value) of the orchard, calculated at the local price at the time of land recovery. Article 27 - Relocation assistance If households must be relocated within a province or city or to another province or city when the State recovers land, they shall each receive a maximum assistance of VND 3,000,000 or VND 5,000,000 respectively; the specific assistance level shall be prescribed by the provincial-level People's Committees. Article 28 - Assistance for life stabilisation and production stabilisation When households or individuals directly engaged in agricultural production have over 30% of their assigned agricultural land areas recovered, they shall receive life stabilisation assistance for 3 months if they must not be relocated and for 6 months if they must be relocated; where they must be relocated to places with difficult or especially difficult socio-economic conditions, they shall receive assistance for 12 months at most. The level of monetary assistance per household member per month shall be equivalent to 30 kg of rice, calculated at the average local price. Article 29 - Assistance for job change and job creation If households or individuals directly engaged in agricultural production have over 30% of their assigned agricultural land areas recovered, they shall receive assistances for job change if they are still within the working age; the specific assistance levels shall be prescribed by the provincial-level. Article 34 - Resettlement arrangements Agencies (or organisations) that are assigned by the provincial-level People's Committees to arrange resettlement must inform every household that will have land recovered and must be relocated of the tentative resettlement arrangement plans and publicly post up these plans at their headquarters, at the offices of the commune-level People's Committees of the localities where the land to be recovered exists and in the resettlement areas 20 days before such resettlement plans are approved by competent State bodies. Nuiphaovica, Vietnam Page 16

51 Article 35 - Compulsory conditions at resettlement areas Before residential land is arranged for households or individuals, comprehensive infrastructure must be built in the resettlement areas to ensure that users have the same or better conditions compared with their old places of residence. Article 36 - Measures to assist production and life in resettlement areas Assistance to be provided may include plant seeds and animal breeds for the first agricultural production crop, agricultural promotion, forestry promotion, plant protection, veterinary services, cultivation, husbandry and professional techniques for production, business, industrial and trading services. Assistance for creating some trades and occupations in resettlement areas, which are suitable to labourers, particularly female labourers should also be provided. Article 37 - Rights and obligations of persons who have land recovered and who must be relocated Rights: Obligations: To register in writing to move to resettlement areas; To be given priority to register the residence status for themselves and other family members who move to new residences and to transfer family members of school age to new schools; To refuse to move to resettlement areas which fail to ensure the conditions already notified and publicly posted up; and To be provided house design models free of charge. To build houses or works according to planning and fulfil other obligations according to law provisions; and To move to resettlement areas according to the deadline set by competent State bodies. 2.4 International Best Practice This updated Resettlement Action Plan has been prepared to disclose the compensation and resettlement impacts, mitigation measures and action plans based on the updated Project information in a format that addresses World Bank Group, including the Multilateral Investment Guarantee Agency (MIGA), policies and conforms to the Extractive Industries Review process. It Nuiphaovica, Vietnam Page 17

52 is noted that the International Finance Corporation (IFC) has adopted new policies on disclosure and sustainability, and these new performance standards on sustainability were promulgated very late in the Nui Phao development programme (30 April 2006). Consequently, the new IFC policies are recognised, but do not establish the basis for conformance for this document Operational Directive OP 4.12: Involuntary Resettlement The World Bank Group operational policy OP 4.12 on Involuntary Resettlement is applied as a safeguard policy and its main provisions include the following: All viable alternative project designs should be explored to avoid or minimise the need for resettlement and when it cannot be avoided, to minimise the scale and impacts of resettlement; Resettlement measures are to be conceived and executed as development activities providing sufficient resources to give the persons displaced the opportunity to share in project benefits. Assistance should be given to the community in their efforts to improve former production levels, income earning capacity and living standards or at least restore them to the levels they would have been without the project; Displaced persons should be: o Compensated at full replacement cost prior to the actual move; o Assisted with relocation; and o Assisted and supported during the transition period. Particular attention should be given to vulnerable groups; Communities should be given opportunities to participate in planning, implementing and monitoring their resettlement; Resettlers should be helped with integration into their host community; Resettlement should be linked to the main project implementation schedule, so that project affected people should be resettled and/or compensated before being affected by construction or other activities; There should be adequate monitoring and evaluation; The project sponsor should be encouraged to offer replacement land. Cash compensation may be appropriate when residual land holdings are economically viable. For households who lose assets and/or income large enough to make the remainder unviable, compensation should be provided as if entire holdings had been taken; and Nuiphaovica, Vietnam Page 18

53 For losses that cannot easily be valued or compensated in monetary terms e.g. access to public services, customers or suppliers, fishing, grazing land or forests, attempts must be made to establish access to equivalent and culturally acceptable resources and earning opportunities. The Nui Phao Mining Project will involve involuntary resettlement and this Resettlement Action Plan has therefore been developed in accordance with Operational Directive OP 4.12: Involuntary Resettlement Operational Directive OD 4.10: Indigenous People The World Bank Group operational directive OD 4.10 on Indigenous People, is applied as a safeguard policy and its main provision is to ensure the protection of traditional rights of indigenous people. Indigenous peoples are defined as social groups with a social and cultural identity distinct from the dominant society that makes them vulnerable to being disadvantaged in the development process. Indigenous peoples can be identified by the presence in varying degrees of the following characteristics: A close attachment to ancestral territories and to the natural resources in these areas; Self-identification and identification by others as members of a distinct cultural group An indigenous language, often different from the national language; Presence of customary social and political institutions; and Primarily subsistence-oriented production. The Directive sets out policy objectives, guidelines for the design and implementation of project provisions and processing and documentation requirements if indigenous people are affected by a project. The Nui Phao Mining Project involves resettlement of ethnic minority groups but after a formal and independent assessment, these ethnic minority people have been determined not to represent indigenous peoples under this described definition. Therefore, Operational Directive OD 4.10: Indigenous People is not triggered by the Project Operational Policy Note 11.03: Cultural Property The Operational Policy on Cultural Property Management (OP 4.11) is in preparation; therefore until it is issued the provisions of Operational Policy Note (OPN) apply. It gives a definition of cultural property as well as policy and procedural guidance. Cultural property is defined as including sites having archaeological (prehistoric), paleontological, historical, religious and unique natural values. Cultural property therefore encompasses both remains left by previous human inhabitants and unique natural features such as canyons and waterfalls. The World Bank s general policy regarding cultural properties is to assist in their preservation and to seek to avoid their elimination. More specifically the Bank declines to finance projects that will significantly damage non-replicable cultural property and will only assist those projects that are sited or Nuiphaovica, Vietnam Page 19

54 designed so as to prevent such damage. The Bank will assist in the protection and enhancement of cultural properties encountered, rather than leaving that to chance. The OPN states that in some cases the project is best relocated in order that sites and structures can be preserved, studied and restored intact in situ. In other cases, structures can be relocated, preserved, studied and restored on alternate sites. Most such projects should include the strengthening of institutions entrusted with safeguarding a nation s cultural patrimony. Deviations from this policy may be justified only where the expected project benefits are great and the loss of or damage to cultural property is judged by competent authorities to be unavoidable, minor or otherwise acceptable. The Nui Phao Mining Project does not involve cultural properties of regional, national or international significance. However, it does involve sites of local significance (e.g. graves and shrines) and therefore Operational Policy Note OPN 11.03: Cultural Properties has been considered in the development of the Resettlement Action Plan. Other World Bank Group Safeguard Policies are applicable to the Project although directly to the compensation and resettlement program. Other policies are relevant to the Project are given in the ESIA/ESAP (Knight Piésold, 2006) Equator Principles The Equator Principles represent an approach by financial institutions to assess and manage environmental and social risk in project financing. The Principles were adopted in June 2003 by ten of the world s leading financial institutions. Currently, some forty-one financial institutions in fourteen countries are reported to have adopted the Principles. The Principles are meant to ensure that projects are socially responsible and have sound environmental management. Adopting institutions undertake not to loan to projects in which the borrower will not, or is unable to, comply with the environmental and social policies and processes outlined in the Principles. Compliance with host country legislation and relevant World Bank Group policies, for projects in middle and low-income countries such as Vietnam is a prerequisite. Public consultation and disclosure requirements are also stipulated Comparison of Internal, National and International Practices The main difference between Vietnamese legislation and World Bank Group policy is that Vietnamese law is asset-oriented, while the World Bank Group policy focuses on both assets as well as livelihood restoration. Asset orientation focuses on compensation for lost assets and not necessarily on restoring displaced people s ability to re-establish or improve their livelihood base. In World Bank Group policy, a project cannot cause affected people to become worse off. They should preferably be better off than they were before displacement. Emphasis, thus, is placed on a combination of compensation and on other kinds of assistance that help people restore incomes and restore or improve their standard of living (such as helping Nuiphaovica, Vietnam Page 20

55 people become competitive for employment or other income opportunities, improving agricultural output or providing access to natural resources like wood or pasture. A summary comparison between national requirements and international standards is shown in table 2.1. Nuiphaovica s compensation and resettlement program is designed to meet Vietnamese legislation and is also guided by the provisions of the World Bank Group policy and therefore, all differences identified for this Project are bridged by the Company s compensation and resettlement policies. In particular, Nuiphaovica s compensation and resettlement policies include provision for compensation at replacement cost (see also Section 2.6.3) and also for providing financial and technical assistance to affected people to support economic and livelihood restoration activities. Nuiphaovica, Vietnam Page 21

56 Table 2.1 The Main Differences between the OP 4.12 on Involuntary Resettlement and National Resettlement Policies and Legislation Item/Topic The World Bank Policy (OP 4.12) Objectives Involuntary Resettlement should be avoided where feasible, or minimised. Resettlement activities should be conceived and executed as sustainable development programs. Displaced Persons should have opportunities to participate in planning and implementing resettlement programs. Displaced persons should be assisted to improve their livelihoods and standards of living or at least to restore them to pre-project levels. Impacts Covers direct economic and social impact cause by (i) taking land and other assets; and (ii) restriction of access to designated park and protected areas. It is not required to cover indirect social or economic impacts, but it is good practice for the borrower to undertake social assessment and implementation measures to minimise adverse impacts, particularly Compensation and participation upon poor and vulnerable groups. Ensure that Displace Persons (DP) are: Informed about their options and right pertaining to resettlement. Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives. Provided with timely and relevant information to host communities receiving resettlers. National Policies (Land Law 2003 and draft new Decree on Compensation and Resettlement). Offered the Project Affected People with allowances and subsidies and request a special assistance for the poor and vulnerable groups and standards of resettlement site, but not clearly stated on the requirement of the livelihood restoration and improvement. Covered only for direct impact by taking land and other assets. Does not require other social and economic impacts to be considered. Request that Displaced Persons are: Informed before the land recovered at least 90 days for the agricultural land and 180 days for the non-agricultural days. Informed about resettlement sites within 20 days such as location, number of plots available, cost of plots, new house, areas of agricultural land to be allocated to DPs etc. Nuiphaovica, Vietnam Page 22

57 Item/Topic The World Bank Policy (OP 4.12) Costs and compensation Paid at full replacement cost for lost assets. Particular attention to the needs of vulnerable groups (those below poverty line, the elderly, women and children and ethnic minorities etc.) Recovery of land and other assets do not take place until compensation is paid. National Policies (Land Law 2003 and draft new Decree on Compensation and Resettlement). Compensation only for buildings of households and individuals. Permit deduction of depreciation for affected buildings of non-households and individuals (Article 27 of New Decree-Draft on Compensation and Resettlement). Compensation for land with the cost of land use right at the compensation time. But in the case Displaced Persons are liable to the state financially the compensation shall be reduced by cash amount of liability (Item 5 of Article 42 of land law and item 5 of Article 11 of New Decree-Draft). Eligibility for compensation and benefits Monitoring and evaluation Displaced Persons must occupy the project areas prior to a cut-off date. The absence of legal title to land or other assets is not, in itself, a bar to compensation for lost assets or other resettlement assistance. Internal monitoring and external evaluation are required. Only special consideration for landless displaced persons (item 2 of Article 21 of New Decree-Draft). Other vulnerable groups not specified. Resettlement sites have to be constructed prior to land recovery. Classified by different categories depend on the legal status and benchmarks of time (eg. prior and after to October 15, 1993 and July 01, 2004 etc.,). Permit without compensation for building in some cases (Article 26 and 27 of New Decree-Draft) External evaluation is not required. Nuiphaovica, Vietnam Page 23

58 2.5 Corporate Policies of Nuiphaovica Nuiphaovica has established a corporate vision statement that commits to establishing the Project as a showcase model for mining and mineral processing, operating in a manner which maximises the sustainable benefits for all stakeholders and makes a positive contribution to the development and prosperity of the Vietnamese people through employment and training opportunities. The Company seeks to win global high regard for social and environmental compliance as well as technical, safety, and human resources excellence. Paramount to achieving the company vision is the consistent application of Nuiphaovica Company Values and Policies in all business activities. The Nuiphaovica Company Values and Policies are shown in box 2.3. Box 2.3: The Nuiphaovica Values and Key Company Policies The Nuiphaovica company values are: Complying with all applicable laws of Vietnam and the highest international ethical business standards; Honesty, fairness, and genuine goodwill in all interactions with our host community including District, Provincial, and other Vietnamese stakeholder groups; Utilising the most appropriate technologies for the timely and satisfactory delivery of production commitments to investors and customers; Responsible stewardship of the natural environment in all project sites and the minimisation of adverse impacts in areas of operations; Providing a healthy and safe environment for employees, contractors, and visitors at all project sites; and Creating a corporate culture that supports the development of mutually rewarding employment relationships and achievement of employee professional and personal goals. Nuiphaovica has established some fundamental principles for managing its regulatory, consultation, resettlement, environmental management, health and safety, labour, gender equity, corporate responsibility, capacity building, and community development objectives. In implementing these objectives, Nuiphaovica has established specific policies that clearly define its overall corporate commitments: Community Relations and Development Policy Commits to developing a beneficial partnership with the local community that maximises the sustainable benefits of the Project for all stakeholders; Nuiphaovica, Vietnam Page 24

59 Environment Policy Commits to responsible stewardship of the natural environment in all areas of Project operations and the minimisation of pollution and adverse environmental impacts; Occupational Health and Safety Policy Commits to safeguarding employees, contractors, visitors, and community members against adverse health and safety risks associated with all aspects and phases of Project operations; and Human Resources Policy Commits to creating a work environment that is responsive to employees personal and professional goals, offering fair and equitable employment opportunities and preferential recruitment for qualifying local residents. These policies are presented in the Nuiphaovica ESIA/ESAP documentation (Knight Piésold, 2006) and combine to establish the goals against which Nuiphaovica will measure its environmental, social, health, and safety performance for the Project. 2.6 Project Compensation and Resettlement Policies The Project compensation and resettlement policies were developed by Nuiphaovica in close consultation with key stakeholders. Many meetings and workshops were held to discuss a draft Resettlement Policy framework for the Nui Phao Mining Project. Based on feedback from key stakeholders, Nuiphaovica revised the Project Resettlement Policy documentation and it was then countersigned by Nuiphaovica, and the Departments of Finance, Construction and the Environment and Natural Resources of the Thai Nguyen province. The policy documentation was submitted to the Thai Nguyen Provincial People s Committee (TNPPC) and it was approved on March 22, 2005 (Decision No. 435/QD-UB) Compensation and Resettlement Objectives The key objectives of the Nuiphaovica resettlement policies are: (i) (ii) The Company and the Thai Nguyen People s Committee have agreed to cooperate in dealing with the social impact of the Project in a just and fair manner in accordance with the laws of Vietnam and the policies of the Company; In the technical design of the mining and processing facilities, every effort will be made to minimise resettlement, displacement and the use of productive land. Where it is not feasible to avoid resettlement, resettlement activities will be conceived and executed as sustainable development programs, providing sufficient investment resources to enable Project Affected Persons and Organisations (PAPs) to share in the Project benefits; Nuiphaovica, Vietnam Page 25

60 (iii) (iv) Project Affected Persons and Organisations (see below) should be meaningfully consulted and should have opportunities to participate in planning and implementing the compensation and resettlement programs; and Project Affected Persons and Organisations will be assisted in their efforts to improve their livelihood and standard of living or at least to restore such to pre-displacement levels or to levels prevailing prior to the beginning of Project implementation, whichever is higher Project Affected Persons and Organisations (PAPs) Project Affected Persons and Organisations include the following: a. Persons whose houses and/or property are in part or in total affected by the Project; b. Persons whose agricultural and/or residential land are in part or in total affected (permanently or temporarily) by the Project; c. Persons whose crops (annual or perennial) and trees are affected in part or in total by the Project; d. Persons whose transportation network has been disrupted as a result of the Project; e. Persons at relocation sites and on relocated roads, including those outside the Project Operational Area; and f. Public and private organisations and affected businesses in the operational area and at relocation sites. For specific details on the Project Affected Persons and Organisations for this Nui Phao Mining Project see Section Land and Asset Acquisition Principles The acquisition of land and other assets and resettlement of persons will be minimised as much as possible. All affected people residing, operating, working or cultivating land (or with other productive assets) in the Project Operational Area (the area required to implement the Project) as of May 12, 2004 (the Cut-Off Date ) 2 are entitled to compensation, restoration and rehabilitation measures sufficient to assist them to at least restore or otherwise improve their pre-project living standards, income earning capacity and production levels. Lack of legal rights or documentation will not bar affected people from entitlement to such measures. The compensation measures to be provided by Nuiphaovica include in both cash and/or in kind compensation for houses and other structures at full replacement costs acceptable to all affected 2 12 May 2004 is the Cut-Off Date adopted for the Project. See Definition of Key Terms for further information. Nuiphaovica, Vietnam Page 26

61 households. For the purposes of this Project, the definition of Replacement Cost in OP 4.12 of the World Bank policy on involuntary resettlement is adopted and as shown in box 2.4. Box 2.4: OP 4.12 Definition of Replacement Cost With regard to land and structures, replacement cost is defined as follows: For agricultural land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labour and contractors fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct from resettlement measures to be proved under clauses in OP 4.12, para.6. Specifically, the following compensation and associated provisions will be provided: (i) (ii) (iii) (iv) (v) (vi) Agricultural land-for-land replacement of equal productive capacity acceptable to the affected people will be provided, or cash equivalent at full replacement cost if there is no agricultural land available; Replacement of residential land of equal size acceptable to the affected households, or cash equivalent; Cash compensation for renters, crops, trees and other productive assets lost due to the Project; Cash compensation for grave removal and relocation; Replacement or re-installation of utilities and facilities, such as water metres, sanitation facilities, electricity metres, telephone lines, and road networks; and Cash compensation for relocation of public works and other collective assets or in-kind replacement of structures to equivalent or higher standard. Nuiphaovica, Vietnam Page 27

62 The restoration and rehabilitation measures to be provided include: a. Stabilisation and transport allowances for all affected people temporarily or permanently displaced; b. Resources or other economic and livelihood development programs (such as land development, access to credit, training for non-farm income) to assist the full restoration of income earning capacity of the affected people; c. Employment by the Project for a number of affected people, carefully selected and trained, to satisfy the employee profile and requirements of the Company; d. Small and medium enterprise opportunities to provide selected goods and services to the Project and in support of new business creation as part of economic restoration activities; e. Special cash allowances and other assistance to vulnerable groups; f. Minimising the resettlement transition period; g. The previous level of community infrastructure and social services will be maintained or improved at relocation sites; h. Financial and physical resources for resettlement and rehabilitation will be made available as and when required; i. Comprehensive and accessible complaints management process; and j. Organisational arrangements to ensure effective preparation and implementation of the Resettlement Action Plan. Ongoing monitoring and evaluation of the implementation of this Plan will be carried out in order to ensure that compensation and resettlement activities and tasks will be implemented effectively. 2.7 Eligibility Eligibility of Project Affected Persons PAPs eligible for compensation and rehabilitation will include: a. Those who have formal legal rights to land or other assets; b. Those who initially do not have formal legal rights to land or other assets but have a claim to legal rights based upon the laws of the country, upon the possession of documents such as land tax receipts and residence certificates or upon permission of local authorities to occupy or use the Project affected plots; Nuiphaovica, Vietnam Page 28

63 c. Those who have no recognisable legal right or claim to the land they are occupying; and Persons covered under (a) and (b) are provided compensation for the land they lose, and other assistance. Persons covered under (c) are provided resettlement assistance, in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this Plan. In order to be eligible under (a), (b) or (c) above, persons must occupy the land prior to May 12, 2004, the Cut-Off Date, which is the date by which the mandatory dissemination of Directive No.: 07/2004/CT-UB of the Dai Tu District People s Committee (DTDPC) to all affected communes and wards has been properly completed. Persons who encroach on the areas after the Cut-Off Date are not entitled to compensation or any other form of resettlement assistance, nor will they be entitled to permanent or temporary occupancy in the area. Eligible Persons are classified in box 2.5 below. Box 2.5: Classification of Eligibility A. Operational Area (sectors) A1 A2 A3 All those living in the operational area as of 12 May 2004 (the Cut-Off Date ) and those subsequently born to those living in the operational area. All those not living in the operational area, but owning land or other productive assets in the operational area. All those living in the surrounding area of the affected areas that are adversely affected by the Project. Nuiphaovica conducted a Detailed Measurement Survey in August and September 2004 for residential assets. All those registered as affected households at that time are deemed to have satisfied eligibility criteria A1. The landowners in category A2 will be registered after the boundaries of the operational area have been staked and the Detailed Measurement Survey for those assets can be confirmed. Households and/or landowners that fall into category A3 have been assessed through the Environmental and Social Impact Assessment and any potential impacts on those living in surrounding areas will be minimised in accordance with the Company s Environmental and Social Action Plan. Actual eligibility for compensation or special assistance by the Project will be determined on a case by case basis. B. Relocation Site Areas B1 B2 All those living in the relocation site areas at the time each area is designated by the Provincial and District Governments. All those not living in the relocation sites areas that have lands in the relocation areas. A Detailed Measurement Survey of designated relocation site areas will be conducted according to the Project Implementation Schedule to register eligible and affected persons. Nuiphaovica, Vietnam Page 29

64 Box 2.5 continued Note: A final Detailed Measurement Survey will be completed for all land and assets for both categories A and B in order to confirm and calculate actual compensation packages and other allowances. This process was initiated in November 2005 and is ongoing (see also Section 4.8.1). C. Other Areas All those who consider themselves adversely affected by the construction and operation of the Project facilities, either through loss of land and infrastructure, economic loss or disturbance, or loss of access, are entitled to make a claim in writing to Nuiphaovica and in particular the designated Complaints Officer. D. Community Infrastructure All community infrastructure and public works affected by the Project are eligible; inventories will be provided by the communes and provincial departments Eligibility Register The relocation associated with the Project will be carried out in stages and according to the requirements of the Project Implementation Schedule. Therefore, not all households will need to be relocated in the same year. There will be opportunities for some households to continue working their lands in the operational area after they have been compensated and relocated to new sites, however, these lands may be required at a later stage. Before the actual relocation of affected households takes place, the Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) will verify and update the Eligibility Register in conjunction with Nuiphaovica, to ensure that all persons entitled to compensation under the resettlement program and relevant policies receive their entitlements. The DDCARC will amend the register to reflect the natural growth of the registered households (including children in registered households who may have formed new families after the initial registration). The DDCARC shall register persons who move into the Operational Area and relocation site areas and purchase property which has already been registered as affected property in the name of someone else, provided the buyer and the seller advise the DDCARC of the transfer. The register will be the basis of eligibility for Project Affected Persons to be compensated in accordance with the Project Resettlement Policy and relevant regulations. The register shall be kept at the DDCARC in both electronic and paper format. 2.8 Entitlements The entitlements presented in box 2.6 will be provided to those eligible in the categories stated previously in Section The entitlements described below should be read in conjunction with the classifications of eligibility shown in box 2.5 (above). Nuiphaovica, Vietnam Page 30

65 Box 2.6: Entitlement Policy A1 and B1 Categories 1. Houses (i) (ii) (iii) (iv) (v) (vi) The construction materials that can be salvaged upon dismantling of existing house. Salvaging shall cover limited removal of items like doors, windows, wooden floors etc and there may be restrictions on salvage of house walls and other such items. Transportation of salvaged housing materials and household belongings to the relocation site if requested by household (in this case, no removal allowance is paid under item 6). Compensation for the existing house based on full replacement cost. Upon request: construction of new house for vulnerable households at appropriate size and standard (minimum house area not less than 50 m2) with no compensation for the existing house (a house for house or cash equivalent). Households with 7 or more persons containing two married families or with unmarried sons over 20 years of age, have the option to have two plots allocated, but will only be compensated for the one existing house. Construction and other permits provided at no cost to household (including building ownership documentation). 2. Agricultural Land and Assets on Land Compensation for agricultural land at market value if no replacement land can be offered or the offered land is not acceptable to the household. (i) (ii) (iii) (iv) (v) (vi) Replacement land to be of similar productive capacity; if not, cash adjustments or additional land can be provided. Market value to be determined based on Provincial and District conditions in accordance with the provisions of the Land Law (2003) and acceptable to the household. If 25 percent or more of the household s land is required by the Project and the remaining area is not economically viable, the affected household has the option to sell the entire land to the Project and receive compensation in cash at market value. If less than 25 percent of the land is required the affected person will receive cash compensation at market value for the land required. The replacement value of the land is the market value of the land in the year the compensation is paid. Replacement land will be provided with Land Use Rights Certificate (LURC) at no cost to the household. Compensation will be paid for fruit trees, standing crops lost and any kind of investments on land at the prevailing District market value. Households with land in Sector 6 (the area considered as a safety area) will also be compensated and relocated. After compensation, Nuiphaovica will have the rights for land use; the Company may let households continue using the land for farming. However, Nuiphaovica has the right to reclaim land in this area at any time for its own purpose. Nuiphaovica, Vietnam Page 31

66 3. Residential House Plot in Relocation Site (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) 4. Relocation Site Infrastructure According to the suggestion of the District and relevant Provincial departments, the sites close to Dai Tu will be no less than 125 m 2, while for sites further away from Dai Tu town and therefore in more rural areas, the plot size will be no less than 300 m 2. Land will be provided with a boundary survey permit, and joint title provided to the husband and wife (or equivalent). Plots are to be prepared for house construction (the household is not required to move if the plot and infrastructure are not ready). Infrastructure at relocation sites is to be in place before the households are required to move to site. Every effort will be made to relocate those now living along National Road No. 37 to the new section of National Road No. 37. The allocation of plots will be according to the commune or District Compensation, Assistance and Resettlement Committee approved allocation process and Nuiphaovica policy (see also Section 7.7.1). Site planning for relocation sites should initially attempt to incorporate the existing houses into the new site plan giving these owners first priority to select a new plot. This is related to displaced households at relocation sites who will be rearranged Residential land for land compensation will be provided according to the following rules: If compensation value of original plot is equal or less than the cost of the new plot, the household will receive the new plot at no additional cost to the household; If compensation value of the original plot is higher than the cost of the new plot, the household will receive the new plot at no cost to the household and the difference in cash; The cost of the new plot at the relocation site does not include the cost of earth works and providing community infrastructure (on and off siteinfrastructure) or any social services which are borne by the Company; Some affected families will be allocated more than one plot (depending on the area of original residential land lost and if there are more 7 persons or one family living in one affected household or the household has unmarried sons over 20 years of age); and All households affected by residential land aquisition with or without a building on the land (either in the Project operational area or in the relocation sites) will be entitled to plots at the relocation site or cash compensation at full replacement cost according to their choice. (i) (ii) (iii) Year-round potable water supply, by community piped system if size of site warrants or otherwise well or similar source; Drainage system; Electricity to the house; Nuiphaovica, Vietnam Page 32

67 5. Services (iv) (v) (vi) (vii) (viii) (ix) (i) (ii) (iii) (iv) Road access to house; Telecommunication cable; Elementary school access within 3 km; Health clinic access within 5 km; Site layout to have some open spaces; and Solid waste disposal area. Transportation of household assets to relocation site if requested by household (in which case no moving allowance under item 6 is provided). Health checks of all household members prior to and after the move. Access to community liaison and compensation and resettlement staff for advice. Access to the Nuiphaovica Project Information Centre and designated Complaints Officer for complaints. No fees are to be charged for services described above. 6. Transition and other Cash Allowances (i) (ii) (iii) (iv) (v) Transportation allowance at VND 3 million per household to be relocated within Thai Nguyen Province and VND 5 million per household to be relocated out of Thai Nguyen Province. Timely moving allowance for moving on time of VND 5 million per household. Stabilisation allowance in a transition period of VND 900,000 per person (calculated from VND 150,000 per month for 06 months). Transition allowances may be extended beyond the initial 6 month period but will be determined on a case by case basis. Nuiphaovica will monitor affected households during and after resettlement and any cases of hardship (e.g. inability to re-establish income levels and livelihoods to pre-project levels) will be addressed accordingly. Vulnerable group / special allowances, including: Allowance for veteran households receiving social welfare from the government (as defined by authorities) of VND 1 million; Landless allowance for affected households and those with house values less than 50m2 with a value of VND 10,000,000; Women headed households and poor families as defined by government (those under the Ministry of Labour, Invalids and Social Affairs). See Section 5.4 for further definition of vulnerable groups and assistance proposed to support these groups. 7. Income and Production Measures for those who will lose Agricultural Land as their Main Source of Income (i) Employment opportunities in the construction and operation of the Project for selected qualified and interested persons of both genders and within working age. Nuiphaovica, Vietnam Page 33

68 (ii) (iii) (iv) (v) (vi) Assistance with the development of feasible production, employment and income generating opportunities endorsed by the Province and District; pilot start-up of selected projects. Skills training programs for all persons wishing to receive training; allowance to the person taking the training will be VND 3.0 million, with another VND 2.0 million estimated for the person providing the training and VND 1.0 million for mobilising employment. This equates to a total of VND 6.0 million for an economic and livelihood restoration program of the affected persons choice. Income and social assistance programs for vulnerable households during transition period of VND 5 million per household. Provision of a central market building in Dai Tu for independent stall-holders, and for establishment of other economic restoration activities, such as handicraft manufacturing (this will be built by Nuiphaovica at the Hung Son 2 relocation site). Eligibility for economic restoration for affected households (e.g. how many affected people are eligible) is based on productive land and/or income loss. 8. Self-Relocation (i) (ii) (iii) Those wishing not to move to a relocation site but instead prefer to look after their own physical relocation will receive an additional one-time allowance of VND 40 million per household upon the recommendation of the Dai Tu District Compensation, Assistance and Resettlement Committee, and according to the regulations. These households will not be allocated a plot in a relocation site, but will receive compensation in cash for their affected land and other assets. All provisions as stated above (except those under items 3 and 4) would apply. The additional allowance for self-relocation is provided so that households can invest in physical or social infrastructure and services (e.g. water or electricity conditions) that will not necessarily be available at their new location, and that would normally be provided at Company established relocation sites. A mechanism of payment and assistance to households will be developed to make sure that they can obtain land, build their house and restore their livelihoods. Self-relocation will be also subject to monitoring to ensure the selfrelocation arrangements are adequate. A2 & B2 CATEGORIES 9. Households with Operational Area Agricultural Land or Relocation Site Agricultural Land only (not physically displaced) These households will receive: (i) (ii) (iii) (iv) Cash compensation for the lost land; Compensation will be made under the same conditions for other agricultural land loss (item 2 of A1 and B1); Other applicable and Production assistance and stabilisation allowance (items 6 and 7 of A1 and B1). Nuiphaovica, Vietnam Page 34

69 A3 & C CATEGORIES 10. Other Households These households will receive compensation according to their losses as claimed by them and approved by the Dai Tu District Compensation, Assistance and Resettlement Committee. D CATEGORY Community Infrastructure and Public Works These works will be replaced to an as-before or higher standard. Alternatively, cash compensation will be paid at full replacement cost, without deduction for depreciation to the owners. Entitlements for different affected categories are summarised in table 2.2. Nuiphaovica, Vietnam Page 35

70 Table 2.2 Entitlement Matrix for the Different Affected Categories Affected category Legal status Entitlement policy Implementation measures 1. Houses and other fixed assets All affected persons having certificate of land occupancy and house ownership or, in absence of it, affected persons recognised as stable occupants by the communal authority or simply affected persons included in the inventory. Fully affected houses: The construction materials that can be salvaged upon dismantling of existing house. Transportation of salvaged housing materials to relocation site if requested by household (in which case no moving allowance in cash is paid). Compensation for existing house based on full replacement cost. Construction of new house for vulnerable households at appropriate size and standard (minimum house area not less than 50 m 2 ), with no compensation for existing house involves (house for house). Allowances and subsidies and economic restoration programs. Affected households can opt to construct houses themselves or choose houses built by DDCARC and Nuiphaovica. Other allowances and subsidies will be provided to PAP at least one month prior to displacement. Clearly inform affected households and commune authorities about site development and relocation schedules. Partially affected houses: Cash compensation for repairing affected part of the house. The replacement value of the house and other fixed assets in the year the compensation is paid. 2. Agricultural Land All affected persons having certificate of land occupancy or, in absence of it, affected persons recognised as stable occupants by neighbours, or simply affected persons included in the inventory. Compensation for agricultural land at market value if no replacement land can be offered or the offered land is not acceptable to the household. Replacement land to be of similar productive capacity; if not, cash adjustments or additional land can be provided. If 25 percent or more of the land is required by the Project, the affected person has the option to sell the entire land to the Project and receive compensation in cash at market value. If less than 25 percent of the land is required the affected person will receive cash compensation for the land required at market value. Replacement land will be allocated at least 2 months prior to land clearance for the Project. Land must be ready for farming. Clearly inform affected persons and commune authorities about site development and land allocation schedules and regulations. Nuiphaovica, Vietnam Page 36

71 Affected category Legal status Entitlement policy Implementation measures Replacement land will be provided with Land Use Rights Certificate (LURC) at no cost to the household Compensation for fruit trees, standing crops lost and any kinds of investments on land at District prevailing market prices or replacement costs. Economic and livelihood restoration programs. If compensation in cash for land, the replacement value of the land is the market value of the land in the year the compensation is paid. 3. Residential land All affected persons having certificate of land occupancy or, in absence of it, affected persons recognised as stable occupants by neighbours, or simply affected persons included in the inventory. Fully affected residential land (land for land compensation): For sites close to Dai Tu, the plot size no less than 200 m2, while for sites further away from Dai Tu (more than 3 km), the plot size no less than 300 m2. Land provided with survey, permit, and joint title to husband and wife (or equivalent). Plots to be ready for house construction (household not required to move if plot and infrastructure not ready). Allocation of plots according to commune approved allocation method and Nuiphaovica policies. Site planning for relocation sites should attempt to incorporate the existing houses into the new site plan; alternatively, these owners will have first priority to select a new plot at the relocation site. Land for land compensation, according to these rules: a) If compensation value of old plot is equal or less than area of new plot, household receives new plot at no additional cost. b) If compensation value of old plot is larger than area of new plot, household receives new plot at no cost, and the difference in area in cash at the compensation rate of the old plot. c) The cost of the new plot will be the cost of site development and infrastructure, expressed on per m 2 basis and to be approved by Plot at relocation sites will be ready and households will be compensated in cash or by way of replacement plots and to the extent practical will be made available at least 3 months prior to land clearance for the Project. Other allowances will be paid to affected households at least one month prior to displacement. Clearly inform affected persons and commune authorities about site development and relocation schedules. The replacement value of residential land in the year the compensation is paid. Nuiphaovica, Vietnam Page 37

72 Affected category Legal status Entitlement policy Implementation measures competent authorities of Thai Nguyen. d) There are standard plots with areas no less than 125 m 2 that will be developed for landless affected people or for affected households losing a small area of residential land. Affected households can opt for self relocation and will receive an additional amount of VND 40,000,000 per household. Partially affected on residential land: Cash compensation for affected area at replacement cost. 4. Trees and annual crops All affected persons affected trees and annual crops Compensation at replacement cost for trees. Compensation at market price for annual crops To the extent practical, provide compensation to affected persons at least one month prior to the land clearance for the Project. The replacement or market value of trees, annual crops in the year the compensation is paid. 5. Impacts on business All affected persons who are running their own businesses Replacement measures. Additional assistance to restore the livelihoods through economic restoration programs. Consultation with affected persons, local authorities and unions, associations and NGOs for proposed programs / activities. 6. Temporarily impact on land and business All affected persons occupying land and running businesses Cash compensation for a period of acquiring land and impact on businesses Preparing land as the old status before it is handed over to affected households. 7. Community Infrastructure and Public Works Owners of public works These works will be replaced to an as-before or higher standard. Alternatively, compensation will be paid at full replacement cost, without allowance for depreciation. DDCARC and Nuiphaovica to discuss with owners of public works for the compensation alternatives and coordinate for realignment and reestablishment activities. Nuiphaovica, Vietnam Page 38

73 CHAPTER 3. SOCIO-ECONOMIC CONDITIONS 3.1 Methodology of the Socio-Economic Baseline Studies A comprehensive Socio-Economic Baseline Survey (SEBS) was undertaken to gather social and economic baseline information on the affected population. This survey was carried out from early August, 2004 to approximately the end of September, The socio-economic baseline survey was carried out by Thang Long Infrastructure Development Ltd in conjunction with Nuiphaovica. The SEBS was conducted specifically to provide relevant data and information for development of the resettlement program and prepration of the Resettlement Action Plan. The SEBS had the following primary objectives: To provide a description and assessment of the current and potential socio-economic issues in the study area, including education, occupations, living conditions, food availability, water sources, fuel sources, health and diseases, infrastructure, land use, income sources and expenditure, social infrastructure, gender issues, subdivision of work, etc; To conduct an opinion poll on stakeholders regarding the Nui Phao Mining Project, in particular their attitude and preparedness towards the Project, concerns and preferences regarding their relocation and resettlement and other positive and negative impacts of the Project, and to discover the objective and subjective causes leading to such attitudes, concerns and preferences; and To recommend measures to be taken in order to ensure successful preparation and implementation of the RAP, including complying with Vietnamese and international practices on involuntary resettlement. The SEBS process included the following steps: (i) (ii) (iii) (iv) (v) Consultants and Nuiphaovica drafted questionnaires and discussed them with the DDCARC, commune authorities and then tested them on some of the affected households; Questionnaires were modified based on the comments of the DDCARC and local authorities and through example interviews with affected households; A manual was prepared of proposals for the survey (purpose, methodology, institutional arrangements, expected outcomes, deliverables, time frame etc.); Training of surveyors; Meetings were held with all affected communities to explain the purpose of the survey and requested coordination from local authorities and the affected people; Nuiphaovica, Vietnam Page 39

74 (vi) (vii) Consultants together with the commune working groups carried out surveys under the supervision of Nuiphaovica; and Preparation of a stand-alone report by consultants for Nuiphaovica and the Thai Nguyen authorities. The SEBS adopted qualitative and quantitative methods including: (i) (ii) (iii) (iv) (v) (vi) Review of existing documents; Pre-coded questionnaire surveys (on 1048 households, including 1002 households in and around the operational area in Ha Thuong, Hung Son, Tan Linh and Phuc Linh and 46 households in proposed resettlement areas in Hung Son, Binh Thuan, Tien Hoi and Cat Ne); Interviews with key authorities (28 officials representing various branches of the district and related communes); Focus group discussions in three communes: Ha Thuong, Hung Son and Tan Linh; Data compilation and analysis; and Second interviews to verify information and confirm income ranges by occupation. The number of interviewees in each commune is shown below in table 3.1. Table 3.1 Number of Households Surveyed in the Affected Villages and Proposed Relocation Sites Village / site Number of interviewed affected households Ha Thuong Commune (sub-total) 638 Village no Village no Village no Village no Village no Village no Village no. 7 and 9 17 Hung Son Commune (sub-total) 292 Village no Village no Tan Linh Commune (sub-total) 69 Phuc Linh Commune (sub-total) 03 Proposed relocation sites (sub-total) 46 TOTAL number of interviewees 1,048 Nuiphaovica, Vietnam Page 40

75 The survey of households was conducted by an experienced team together with commune officials under the supervision of Nuiphaovica. The information gathered included: Ethnicity, religion and occupation of members of the household; Skills and education of members of the household; Household income levels and sources of income and expenditure; Health aspects of the household; Social infrastructure available to the affected communities, at resettlement sites and communities receiving relocated settlers Identification of vulnerability issues and groups, including gender and ethnic aspects; Opinions of households as to their needs and wants; and Other general data and information. A stand-alone Socio-Economic Survey Report was prepared in both Vietnamese and English and is available at the offices of Nuiphaovica in Hanoi and Dai Tu District. A summary of key results from this report are summarised in the following sections. In addition to the data and information gathered from the survey, regional statistics and information were also obtained from discussions with relevant authorities, key policy documents, regional statistical reports (particularly the Dai Tu district report of 2003) and economic ethnographic materials. Regional and other information is presented as appropriate to provide context and comparison with the Project area baseline conditions. See the Environmental and Social Impact Assessment (Knight Piésold, 2006), for further details on socio-economic studies conducted for the Project and associated baseline data. 3.2 Regional Socio-Economic Conditions An Overview Thai Nguyen Province The Nui Phao Mining Project is located in the Dai Tu district of Thai Nguyen province, approximately 20 km northeast of Thai Nguyen city (Figure 1.2). Thai Nguyen province is located in the foothills of the Northern Mountains between the wealthier delta provinces surrounding Hanoi and the impoverished and remote provinces of the far north. Rates of growth, poverty levels, and inequality reflect this geographical position. The province has enjoyed a relatively high economic growth rate (8.53 percent in 2004, but still suffers problems of rural poverty. The province s national poverty ranking was 26 out of 61 provinces in Thai Nguyen has nine districts and covers a natural area of km2 which accounts for 1.1% of the whole country. Its population is about 1,061,700 people accounting for 1.35% of Vietnam s population. The population density of people / km2 is nearly 1.3 times the country average. Nuiphaovica, Vietnam Page 41

76 Thai Nguyen is a multi-ethnic province, there are 44 ethnic groups, of these, Kinh people account for 75.2%; Tay 10.2%; Nung 5.2%; San Diu 3.6%; San Chay 2.8%; Dao 2.1% and the remaining 0.9% are of 38 other ethnic groups (see also Section 3.6). The majority of the population in the Thai Nguyen region depend on their own farms for their livelihoods, but farmers are increasingly growing crops for the market. Tea is the most important cash crop in the province, and Thai Nguyen is famous for its tea, exporting both nationally and internationally. In 2001, Thai Nguyen province produced 62,000 tonnes of tea with production objectives for 136,000 tons per year by 2010 ( The largest area of employment growth in Thai Nguyen has been in the private informal sector. Rural areas have seen a shift toward informal wage labour, particularly among men. Small-scale private industries, such as artisanal mining and construction, account for much of the work. Mining is a major industry in the province and generates extensive informal employment through associated processing and extraction activities. Thai Nguyen is considered to have the second largest coal reserves in the country and has four large state-owned coal mines. Iron ore and tin are also major resources for the area ( Dai Tu District Dai Tu district is situated in the northwest of Thai Nguyen province and has a natural area of km 2. According to the district s statistical analysis of 2003, there were 163,637 people and a population density of people/ km 2. The male population is 81,494 and female is 82,647 showing a near 1:1 gender ratio. The district has shown an average population growth of about 10% in recent years. The district has twenty-nine communes, with 95% of the population living in rural areas. Dai Tu has about 10 ethnic groups including Kinh (78.0%), Tay (7.7%), Nung (6.9%), Dao (2%), San Diu (1.9%), Cao Lan, San Chay (2.8%) and others (5.2%). Dai Tu is an agricultural district, where agricultural labour accounts for about 80,231 people; or 94.0% of the total district workforce (85,360 people). Major cereal crops are rice and maize and according to statistical source of 2001, output was 58,648 tons in a total cultivated area of about 13,143 hectares. Average cereal output per capita in 2001 was kg. Tea is the main cash crop with an output in 2001 of 19,169 tonnes on a total cultivated area of 3,249 ha. Major industrial products of Dai Tu include coal, metallic ores, and bricks and in 2001, Dai Tu reportedly exploited of about 1,500 tonnes of coal and 100 tonnes of metallic ores General Conditions Education Dai Tu has achieved universal primary education and illiteracy eradication since However, overall education levels remain relatively low with most people over 30 years not having completed high school. The district now has 35 primary schools, 30 secondary schools and two Nuiphaovica, Vietnam Page 42

77 high schools. All communes have primary and secondary schools. Thai Nguyen city has ten registered universities and trade schools. Communications Basic telephone, mail and newspaper services are available to all communes in the district. In June 2004, the telephone ratio in the district was 1.7 telephones per 100 people. Telephones are well established in Dai Tu town with direct dial and fax availability both nationally and internationally. A mobile phone service is also available. Other services include internet and express mail. Electricity Electricity is provided mainly from the national power grid and managed by the provincial power authority. The electricity system in Dai Tu town is supplied by a 110 kv single power line from Thac Ba Power Plant which located in Yen Bai province. Roads and Transport Roads leading to communes are connected with National Road No. 37 (Thai Nguyen-Dai Tu- Tuyen Quang) and National Road No. 38 (Pho Yen- Cat Ne- Dai Tu- Ban Ngoai- Quang Nap) that cross Dai Tu. Less than 1% of roads in the district are reportedly sealed. Local transportation is mostly via bicycles and motorbikes while the majority of trucking activity is from local mining, light industrial activities and the agricultural sector for materials transport within the district. There is also Quan Trieu-Nui Hong Railway (transporting coal) and other transport networks connecting the district centre to all communes and from Dai Tu district to Thai Nguyen city and to adjacent districts and provinces. Health Care Services The district has a public health care system with three levels: hamlet (or village), commune and district. There are private health clinics and drug vendors that can meet the basic health care needs of people in the district. Services provided include disease prevention and mother and child health care. Thai Nguyen city has seven hospitals and medical facilities are considered adequate for emergency medicine and some major surgeries. Dai Tu town has a hospital with approximately 80 beds and over 80 staff. Facilities are considered limited with no capacity to perform major medical surgeries or urgent care. Nuiphaovica, Vietnam Page 43

78 3.3 Socio-Economic Conditions at the Project Area Socio-economic data was gathered within the four communes where the Project facilities will be established, which are Ha Thuong; Hung Son; Tan Linh; and Phuc Linh 3. The key features of these communes are shown in table 3.2. Table 3.2 Key Characteristics of the Four Communes in the Project Area Criteria Unit Ha Thuong Hung Son Phuc Linh Tan Linh Natural Area Km Average Population Person 5,913 8,820 6,821 5,497 Population Density Person/km The nearest urban area to the Project is Dai Tu town, which is located within Hung Son commune and has a population of 4, Settlement History The majority of the population consists of people who migrated from other provinces; most of them have been living in the Dai Tu district since Between 50 to 70 percent of the current population in the communes migrated to the area since The analysis of the settlement years of households in the Project area is shown in table 3.3. Table 3.3 Periods of Settlement Ha Thuong Hung Son Tan Linh Before % 20.9% 15.9% % 14.4% 1.5% % 31.2% 65.2% 1980-now % 33.6% 17.4% Total Phuc Linh commune is downstream of the Project area and was therefore surveyed accordingly (see Table 3.1). Unless otherwise shown data is presented for the group of surveyed households in all communes. In some cases the socio-economic conditions of the three main communes are highlighted exclusive of Phuc Linh. Nuiphaovica, Vietnam Page 44

79 3.3.2 Demography The demographic structures of studied households are given in table 3.4. The average number of people per household in the communes is four. Table 3.4 Size of Surveyed Households Number of People in HH Ha Thuong Hung Son Tan Linh Phuc Linh 01 person persons persons Over 08 persons Age distribution is shown in table 3.5. Approximately 32% of the population in the area is under 18 years of age. Sixty percent of people are aged between 18 to 60 years, and 8 percent of the population is over 60 years of age. Table 3.5 Age Distribution of the Surveyed Population Age Total Ha Thuong Hung Son Tan Linh Phuc Linh Under (10.0%) 251 (9.93%) 122 (10.14%) 29 (10.14%) 01 (8.33%) From 7 to (21.87%) 569 (22.52%) 249 (20.70%) 59 (20.63%) 04 (33.33%) From 18 to 60 2,430 (60.33%) 1,515 (59.95%) 734 (61.01%) 176 (61.54%) 05 (41.67%) Over (7.80%) 192 (7.60%) 98 (8.15%) 22 (7.69%) 02 (16.67%) Marital status was also analysed and the results are shown in table 3.6. The majority of households (over 87 percent) are headed by married couples. Nuiphaovica, Vietnam Page 45

80 Table 3.6 Marital Status of Households HH status Total Ha Thuong Hung Son Tan Linh Phuc Linh Single 23 (2.3%) Married 875 (87.3%) Divorced 26 (2.6%) Widowed 78 (7.8%) Kinh people are the major ethnic group and account for 85.5% of the total population in the Project area. The remaining population consists of other ethnic groups including Dao, Nung, Xan Chi, Cao Lan, Tay etc. Table 3.7 below shows the statistics on ethnicity in the Project area. Table 3.7 Ethnicity (Unit = person) Ethnicity Total Ha Thuong Hung Son Tan Linh Phuc Linh Kinh 3,445 2,033 1, % 80.5% 94.3% 96.9% 0% Nung % 3.52% 1.16% 0.00% 0% Dao % 0.00% 0.75% 1.40% 0% Xan chi % 0.28% 0.25% 0.35% 0% Cao lan % 11.63% 1.08% 1.40% 100% Tho 0.02% 0.04% 0.00% 0.00% 0% Tay % 4.04% 2.00% 0.00% 0% Others % 0.04% 0.42% 0.00% 0% Total 4,028 2,527 1, This data represents the ethnicity of the sureveyed population and does not necessarily account for all ethnic people living in and around the Project area. Further detailed analysis and discussion on ethnic minority groups in the Project area is provided in Section 3.6. Nuiphaovica, Vietnam Page 46

81 Christians in the Project area number a reported 659 people and are mainly concentrated in Ha Thuong commune. There are 125 Christian households with 518 people in Ha Thuong commune, accounting for 79% of the Christian population; 12 households with 44 people in Tan Linh commune, accounting for 15.38% of the Christian population and 19 households in Hung Son commune with 97 people, accounting for 8.06% of the Christian population. The statistical analysis of people with different religions is shown in table 3.8. Table 3.8 Religious Affiliations Religion Total Ha Thuong Hung Son Tan Linh Phuc Linh Christian % 20.50% 8.06% 15.38% 0% Buddhism % 0.51% 0.50% 2.10% 0% Others % 0% 0% 1.40% 0% None 3,340 1,996 1, % 78.99% 91.44% 81.12% 100% Education All communes have achieved universal primary education and are trying to attain universal secondary education. Schools are in good condition and some secondary schools meet the national standards. Very few children of school going age have to leave school (only about 8.1%); however, overall education levels remain low and most people over 30 years of age only complete primary school or half of secondary school. Commune officials usually complete secondary school and some finished half of their high school education. There are very few trained people working in the locality. The ratio of illiterate people is about 4.94% of the total population. A summary of training qualifications is given in table 3.9. Table 3.9 Education Levels Attained Training Qualification Unit Total Ha Thuong Hung Son Tan Linh Phuc Linh Specialised High School People % 0.87% 6.82% 6.29% 0.00% College People % 0.16% 1.33% 2.80% 0.00% University, Post-graduate People % 0.12% 3.41% 0.70% 0.00% Primary Training Course People % 0.08% 0.91% 0.00% 0.00% Nuiphaovica, Vietnam Page 47

82 Table 3.9 illustrates that the majority of the population has a low level of overall education and a low ratio of the population have a highly skilled qualification. Adaptability to complicated tasks is low and this will be one of the challenges regarding off-farm employment for people in the Project area. All communes have primary and secondary schools. Existing Primary School in Ha Thuong commune Language Vietnamese is the national language of Vietnam and is spoken by the majority of the national population. Each of the 53 ethnic minority groups has their own distinct language or dialect. Ethnic languages are often spoken within local ethnic communities (Ministry of Foreign Affairs, In the Project area all residents speak Vietnamese, including those of ethnic origin Occupations and Livelihoods Most people in the communes are farmers. The main farm crops include rice cultivation, vegetables, tea and short-term commercial crops such as peanuts and beans. Non-agricultural employment consists of trading, services, civil servants and other employment in the private sector. The results of the occupational survey are shown in tables 3.10 and 3.11 below. Nuiphaovica, Vietnam Page 48

83 Table 3.10 Main Occupations Main job Unit Total Ha Thuong Hung Son Tan Linh Farmer People % 72.4% 55.5% 82.6% Handcrafter People % 1.9% 3.1% 2.9% Worker People % 3.6% 5.1% 1.4% State cadre People % 4.4% 6.8% 2.9% Commerce, service, farm People product processing 8.0% 4.70% 16.40% 2.90% Police, Soldier People % 3.30% 1.00% 0.00% Other employment People % 2.50% 4.50% 0.00% Not working but of People working ability 7.3% 7.20% 7.50% 7.20% Table 3.11 Secondary Occupations Second jobs Unit Total Ha Thuong Hung Son Tan Linh Farmer People % 7.8% 31.1% 20.0% Handcrafter People % 2.0% 7.4% 20.0% Worker People % 0.0% 0.8% 0.0% Commerce, service, farm People product processing 51.1% 59.8% 32.8% 36.7% Police, Soldier People % 0.7% 0.8% 3.3% Other employment People % 29.7% 27.0% 20.0% Total People % 100.0% 100.0% 100.0% Other employment categories include those working in mining and mineral processing, small business owners, carpentry, construction and motor-bike taxi. Small scale mining activities are considerable in and around the Project area and inclue tin mining, iron ore and other mineral extraction and brick making. Nearly all households surveyed participate in other employment activities in addition to agriculture, consistent with a national trend towards increasing job Nuiphaovica, Vietnam Page 49

84 creation. For further details on income generation and other economic activities in the wider area see the ESIA/ESAP (Knight Piésold, 2006). Occupations and livelihoods related to agricultural and forestry are further analysed and described in Section on Agriculture and Forestry Natural Resource Use Water Resources for Domestic Consumption Most residents are using hand dug wells (96.2%), whilst the remaining are using water from drilled wells or other resources such as rivers, streams, ponds and lakes. Drilled wells are mostly concentrated in Ha Thuong while there are none in Tan Linh or Phuc Linh communes. Domestic water supply in the area is summarised in table Table 3.12 Domestic Water Resources Water resources Unit Total Ha Thuong Hung Son Tan Linh Phuc Linh Drilled Well Household % 3.0% 0.3% 0.0% 0.0% Dug Well Household % 95.0% 99.0% 95.7% 100.0% Others Household % 2.0% 0.7% 4.3% 0.0% Total Household % 100.0% 100.0% 100.0% 100.0% Water Quality According to environmental baseline studies, surface and ground water resources vary in quality and are often polluted due to naturally occurring arsenic in soils, rudimentary mining activities, sewage and the uncontrolled disposal of fertilisers. For futher details on background environmental and other conditions see the ESIA/ESAP (Knight Piésold, 2006). Fuel Resources The main fuel resources used by residents are firewood and coal. Although many residents along National Road No. 37 and in Dai Tu town use gas and coal, the majority of village people use firewood Health Issues Dai Tu is a mountainous district with a harsh climate. In recent years, the development of the economy and health-care services has significantly helped to improve the health of the local residents. Malnutrition and mortality rates in children under 5 years old have been greatly reduced. An Expanded Program on Immunisation (EPI) and communicable disease prevention Nuiphaovica, Vietnam Page 50

85 programs have helped to establish a good control of diseases such as measles, whooping cough, diphtheria, tetanus, polio, and tuberculosis (TB) amongst children, as well as other diseases such as malaria, goitre, leprosy and other communicable diseases. According to the statistics of Dai Tu health clinics, the most common diseases in recent years are parasitical worms, colds and flu, respiratory infections, digestion diseases, trachoma, stomach and duodenum diseases, liver and gall cancers, child malnutrition, and urinary infections. Social-evil related diseases such as drug addiction, sexually transmitted diseases (STD s) including HIV/AIDS, neural diseases and suicide etc., are also reportedly increasing. The recent increase of traffic accidents is considered to be a major factor affecting the health of the local population. A survey of community health also shows common diseases in the area are skin-related diseases, fungus under the nails and on the skin (increasing three times in the past 10 years), lung disease, headache, neural diseases, cancer and stomach diseases. These diseases are mainly related to environmental pollution caused by pesticides, insecticides and heavy metals in the environment. Further details on this community health study and other human health statistics relevant to the population are provided in the ESIA/ESAP (Knight Piésold, 2006). Tea planting has led to a large demand for plant protection chemicals. There are many pesticidepoisoning cases, and for example many miscarriages in women are attributed to the high content of lead and arsenic in the environment. The common diseases reported in the communes are shown in table Table 3.13 Common Diseases Common Diseases Total Ha Thuong Hung Son Tan Linh Phuc Linh Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Cold, flu Often % % % 1 1.4% 0 0.0% Sometimes % % % % 0 0.0% Total % % % % 0 0.0% Respiratory diseases Often % % % 3 4.3% 0 0.0% Sometimes % % % 3 4.3% 0 0.0% Total % % % 6 8.7% 0 0.0% Digestion diseases Often % % % 3 4.3% 0 0.0% Sometimes % % 9 3.1% 4 5.8% 0 0.0% Total % % % % 0 0.0% Arthritis and Bone-related diseases Often % % % % 0 0.0% Sometimes % % % 6 8.7% 0 0.0% Total % % % % 0 0.0% Skin-related diseases Often % 7 1.1% 6 2.1% 1 1.4% 0 0.0% Sometimes % % 0 0.0% 2 2.9% 0 0.0% Nuiphaovica, Vietnam Page 51

86 Common Diseases Total Ha Thuong Hung Son Tan Linh Phuc Linh Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Total % % 6 2.1% 3 4.3% 0 0.0% Neural Diseases Often % % % % % Sometimes % % % % 0 0.0% Total % % % % % Survey results show people do not clearly understand the cause of disease. When they were asked about the causes of the above diseases, other causes (weather mainly) and don t know answers were the main responses (59% for respiratory diseases and 73% for cold and flu). The results of this question are shown in table Table 3.14 Causes of Diseases According to Respondents Causes of Diseases Polluted Environment Cold, flu Respiratory Digestion Arthritis and Bone-related Skin-related Neural Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio % % % % % % Bad Health % % % % 1 3.4% % Don't know how to % 0 0.0% 1 0.8% 2 1.0% 1 3.4% 1 0.4% prevent diseases Old Age % 7 5.5% % % 1 3.4% % Others % % % % % % Don't know % % % % % % Total Health Care Each commune in the Project area has a communal clinic providing services for primary health care, except for the clinic in Tan Linh, as they have equipment donated by UNICEF and UNFPA and can provide some additional services. While medical facilities are reportedly adequate for many minor health problems, there is a lack of capacity for locally available health services to adequately address many major health issues, due to both limitations of technical capacity and available facilities. The methods for the treatment of diseases are shown in tables 3.15 and 3.16 below. Nuiphaovica, Vietnam Page 52

87 Table 3.15 Treatment of Diseases Health Care Places Cold, flu Respiratory Digestion Arthritis and Bone-related Skin-related Neural Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Self-treatment % % % % % % Commune Clinic % % 7 5.9% % 1 3.4% % District Clinic % % % % % % Provincial/ 3 0.5% % % % % % Center Hospital Others (private % % 7 5.9% % % % doctors) Total Table 3.16 Public and Private Health Care Services Health Care Places Arthritis and Cold, flu Respiratory Digestion Skin-related Neural bone-related Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Q ty Ratio Public Clinics % % % % % % Private Clinics % % 7 8.0% % % % Total % % According to district health officials, about 80% of the population use state health care services (public clinics) available in the communes, districts and province. Households typically use government hospitals and clinics for child delivery, first aid care, health checks, vaccinations, and serious illnesses. Other common sources of health treatment include private doctors, physician assistants, nurses, and herbalists. Existing health care facility in Tan Linh commune Nuiphaovica, Vietnam Page 53

88 3.3.8 Infrastructure and Services Electricity Households with electricity in Ha Thuong were reported at 92.2%; 100% in Hung Son and 98.6% in Tan Linh. The ratio of households using electricity supplied by mining companies which is often more expensive than the state selling price to farmers is 6.7% in Ha Thuong and 1.4% in Tan Linh communes. All households surveyed in Phuc Linh reportedly use electricity supplied from KV3 (the army). Sources of electricity are shown in table 3.17 below. Table 3.17 Sources of Electricity Electricity Supplies Unit Total Ha Thuong Hung Son Tan Linh Phuc Linh Power Grid HH % 92.2% 100.0% 98.6% 0.0% Mining HH Companies 4.4% 6.7% 0.0% 1.4% 0.0% Others HH % 0.0% 0.0% 0.0% 100.0% No answer HH % 1.1% 0.0% 0.0% 0.0% Total HH Transport The Project area lies along National Road No. 37 (a single lane road connecting Dai Tu district and Thai Nguyen city). There is also a private railway mainly used for the transportation of coal running sub-parallel to National Highway No. 37. The access roads to the communes are aggregate roads and roads to villages and residential houses are simple pathways. Travelling to remote communities is difficult, especially in the rainy seasons. Communications The basic communication services which are telephones, mail and newspapers are currently provided to all communes in the district. Many households living along National Road No. 37 have telephone services. Dai Tu town is accessible for express mail services and has mobile phone coverage. Household radios are a common asset and an important source of local information. Loudspeaker systems throughout the area provide government news and announcements to the general public. Irrigation Small dams, pump stations and on-farm canal systems for irrigation to service rice and vegetable cultivation areas have been built and are maintained regularly in Hung Son and Ha Thuong Communes. Nuiphaovica, Vietnam Page 54

89 3.3.9 Land Use The Project area is primarily barren mountains and hills with cultivated rice and subsistence crops of mixed vegetables in the valley bottoms. Approximately half of Ha Thuong commune is currently used for raising forest products and other agricultural purposes, including eucalyptus trees, acacia trees, and tea plantations that dominate the foothills. Flat valley bottoms are primarily used for rice and subsistence crops such as corn, cassava, sweet potato, and spinach. Additional uses include residential housing, small industry including mining, government and public facilities, roads, aquaculture, and livestock grazing lands. Dai Tu town is the nearest urban locale to the Project area. Table 3.18 provides the status of land use in the Dai Tu district according to the Economic Report of Communes in Dai Tu district in Table 3.18 Land Use in the Project Area District / Communes Area (ha) Forest (ha) Cultivated Land Residential Land (ha) (ha) Urban Rural Land for Specific Purposes (ha) Remaining (ha) Dai Tu 57,790 24,960 14, ,881 4,130 12,388 Hung Son 1, none Ha Thuong 1, none Tan Linh 2, none ,042 Phuc Linh 1, none Nuiphaovica, Vietnam Page 55

90 Existing health care facility in Tan Linh commune Nuiphaovica, Vietnam Page 56

91 Specifically within the land acquisition boundary (the operational area), tea cultivation occurs on approximately 40 percent, rice is grown on 11 percent, reforestation and forest products comprise 18.5 percent and residential land cover 15 percent. All other land uses in the area comprise less than 5 percent individually and make up the remainder (ESIA/ESAP, Knight Piésold, 2006). Army Facilities The People s Army of Vietnam has two military sites located within and near the Project area. K10 is located at the head of the proposed tailings facility in Doi Ba valley. It is comprised of approximately 130 ha of agricultural and forested land and extends from Ha Thuong to Tan Thai commune. This area is used primarily for weapons and explosives storage, although food (rice and grain) have also been stored in the area for military use in the event of shortage. It has been maintained as a secretive area but it is known that both weapons and explosives that have become unsafe have been destroyed in the area through burning or explosion. Nuiphaovica has only recently been allowed on the property and a detailed measurement survey of this site is ongoing (see also Section 7.8.7). KV3 is located mainly in Phuc Linh commune northeast of the Project, with in the Lower Thuy Tinh basin and is used as a military camp and training area. This area has not been surveyed as it is beyond the Project area (ESIA/ESAP, Knight Piésold, 2006). The K10 site is under the management of the KV3 unit Agriculture and Forestry Agriculture dominates the economy in the Project area. Most households are engaged in farming with agricultural labourers accounting from 40% to 66% of the total agricultural people. The main cultivated crops consist of tea, rice, maize, banana, cassava, peanuts and beans. People are rearing animals such as chickens, ducks, pigs, buffalos, cows and goats etc. A detailed analysis of farming and forestry activities is given in table Nuiphaovica, Vietnam Page 57

92 Table 3.19 Economic Activities of Households in Project Communes No. Criteria Unit Ha Thuong Hung Son Tan Linh Phuc Linh 1 Number of Agricultural Households Household 1,619 2,137 1,307 1,546 2 Number of Agricultural Labourers Person 2,919 4,220 2,124 4,148 3 Paddy area Ha Average per HH Ha Annual rice productivity ton/ha Annual rice output ton Annual maise area Ha Average per HH Ha Annual maise productivity ton/ha Annual maise output ton Annual sweet potato area Ha Average per HH Ha Annual sweet potato productivity ton/ha Annual sweet potato output ton Annual cassava area Ha Average per HH Ha Annual cassava productivity ton/ha Annual cassava output ton Annual vegetable area Ha Average per HH Ha Annual bean area Ha Annual peanut area Ha Average per HH Ha Tea area Ha Average per HH Ha Annual tea output ton/ha Buffalo Buffalo Pig Pig Number of agricultural enterprises Enterprise No. of labourers working for enterprises Person According to a separate rapid biodiversity assessment undertaken for Nuiphaovica, the Project area vegetation has been severely disturbed in recent decades by artisanal mining, human settlement, fires, and earlier mining exploration activities. Almost all of the original vegetation was cleared in association with these anthropogenic activities. Clearing was conducted to open sites for mining pits as well as for the harvesting of fuel-wood and construction materials (ESIA/ESAP, Knight Piésold, 2006). Reforestation started approximately 10 years ago with national programs such as Programs 327 and 661 for 5 million ha of reforestation, developed in conjunction with the United Nations Nuiphaovica, Vietnam Page 58

93 World Food Programme Reforestation Project. Residents were assisted with seedlings and capital to plant trees covering bare soil and were then offered forest protection contracts Income and Expenditure Income Currently, the economic development in the Project area is mainly based on farming and animal husbandry. It is estimated that the income from tea is roughly 70% of the total income of the local people. Tea from of the Dai Tu district is of high quality and well-known nationwide. Studies and interviews to get information on net income (investment and expenditures for all economic activities) are always difficult, especially in rural areas and survey errors are sometimes unavoidable because respondents might not provide or cannot remember how much they invested and/or spent on each economic activity such as planting and harvesting (seedlings, labour, fertiliser, irrigation etc.). However, tables 3.20 and 3.21 show the results of the income sources reported during the socio-economic baseline survey. Table 3.20 Monthly Income Per Capita Monthly Income Ha Thuong Hung Son Tan Linh Total (million VND) Number of HH Ratio Number of HH Ratio Number of HH Ratio Number of HH < % % % % Ratio % % % % % % % % % % % % > % % 1 1.6% % Average household incomes reportedly range from below US $18 per month to in excess of US $60 per month in Project area. According to Dai Tu district statistics, the average household income is approximately US $324 per year (Dai Tu district, 2003). In contrast, Dai Tu town is primarily non-farming and has a higher average household income of US $372 per year. Nuiphaovica, Vietnam Page 59

94 Table 3.21 Annual Household Income and Main Activities Rice Pig Tea Maise Other plants Fruits Income Sources Ha Thuong Hung Son Tan Linh No. of Households Average Income 3.83 million 2.98 million 2.8 million No. of Households Average Income 7.1 million 9.21 million 2.6 million No. of Households Average Income 13.8 million 23.7 million 11.7 million No. of Households Average Income 2.78 million 0.92 million million No. of Households Average Income 2.36 million 1.81 million 0.85 million No. of Households Average Income 3.64 million 2.38 million 2.14 millions Note: Average income is annual and reported in VND. The results from surveyed households confirm that rice and tea are important sources of income for Ha Thuong and Hung Son communes. Tea and fruit crops were reported as the most significant sources of agricultural income for Tan Linh commune whilst animal husbandary (particularly pigs) was reported as an income source in all communes. Income levels from tea cultivation are clearly the highest in comparison to income levels from other agricultural activities. In general, the months of November through March are typically the most financially difficult months for people in the study area because their overall household income is lower during the dry season and expenses are higher. This period is particularly difficult for women, who lack labour opportunities during the dry season. The highest period of household income is generally June to October due to income from tea and rice harvests. Expenditure The socio-economic survey also recorded different expenditure of households and the main expenses of respondents are shown in table Nuiphaovica, Vietnam Page 60

95 Expenses Table 3.22 Annual Average Expenditure Ha Thuong (VND) Hung Son (VND) Tan Linh (VND) Electricity 556, ,500 1,715,900 Fuel 1,354,000 1,117,000 1,211,000 Meals 10,605,800 11,450,000 8,570,000 Education 1,823,000 2,655,000 1,621,200 Travel 1,213,000 2,638,000 1,018,000 Beverage (tea/ beer/ alcohol) and cigarettes 815,000 1,266, ,900 Securities 626, , ,500 Medical treatment 1,017,600 1,053,000 1,151,300 Marriages and funerals 1,119,000 1,784,000 1,100,000 Monthly expenditures range from approximately US$6.5/month to US$139/month. Food was the most common household expenditure accounting for an average of 50 percent of total expenditures. Other important expenditures are children s tuition fees, farming expenses including pesticides and fertilisers, electricity/gasoline, medicine, and husbandry. Other significant monthly expenditures included club and union membership fees, brick making costs (Phuc Linh), shaker table running costs (Ha Thuong), and small businesses. The highest period for household expenditure is January because weddings are commonly scheduled at this time, and expenses are high during Tet (Vietnamese New Year) celebrations. Loans Dai Tu is a mountainous district and therefore, it is subject to preferential loan policies from the Bank for Social Policy, the Bank for Agriculture and Rural Development (BARD) and other sources of special assistance such as the Central Government who have special schemes for the mountainous region and for ethnic minority people (see also Section 5.1). Most households in the Project area have loans from BARD with an average amount of more than one million VND and an interest rate from 0.75% to 1.15%. The purpose of the loans is often to promote tea production and animal husbandry. Because of the limitation on loans from the Banks, people also borrow money from friends or relatives for economic development purposes. The borrowing and loans status of households is summarised in table Nuiphaovica, Vietnam Page 61

96 Table 3.23 Borrowing and Loan Status of Households in the Project Area Criteria Total Ha Thuong Hung Son Tan Linh Phuc Linh Number % Number % Number % Number % Number % No. of households with loans Main Purposes For living expenses For living facilities Economic development Other Loan Size < 1 million VND million VND million VND million VND Maturity < 1 month months months months > 12 months No time limit Loan Sources Form friends From relatives From Lenders From Women s Union From Farmer Association From BARD From Bank for Social Policy Other Gender issues Women are dominant in most agricultural activities. The Women s Unions and Farmer s Associations have implemented a number of activities to help women who have difficulty in accessing and effectively using loans. Survey results show the ratio of woman headed households is less than one-third from the total interviewed households. The results of this analysis are shown in table Nuiphaovica, Vietnam Page 62

97 Sex Table 3.24 Male and Female Headed Households Total Ha Thuong Hung Son Tan Linh Phuc Linh Number % Number % Number % Number % Number % Male Female Total Leaders of the Women s Union in the communes commented that women would experience more difficulties in relocating to new sites, and especially woman headed households. They recommended some special care and assistance for these families. A gender survey conducted in the area by specialists from the University of Calgary and Mount Royal College (Havers and Giancarlo, 2004) also suggests that because women often work in agricultural areas, their income security is particularly vulnerable to changes in agricultural conditions such as loss of land or land contamination. Women generally rely on agriculture for their income that is limited during dry season. Additionally, women tend to have less access to education and training opportunities. Women of reproductive age, in particular, have been identified as a vulnerable group by government officials due to a high rate of reproductive health problems within this age bracket in the area. 3.4 Socioeconomic Conditions at the Relocation Sites A sample survey of forty-six households from the proposed relocation sites was also conducted as part of the socio-economic baseline survey (see Table 3.1). Residents from Xom Trai (in Binh Thuan commune); Nam Song Cong (in Tien Hoi commune and Hung Son commune); Hung Son no.2 and Hung Son no. 3 (in Hung Son commune); Lang Cam and Khe Thuy Tinh (in Ha Thuong commune); Khe Vay (in Tan Linh commune) and Tan Lap site (in Cat Ne commune) were surveyed and interviewed. Each of these communes is also located in Dai Tu district and therefore the district level data and much of the commune-wide information is relevant to these residents. Nonetheless, specific information drawn from the results of the survey are presented for the relocation site areas to provide context and confirm the overall socio-economic conditions in the area Demography The year of settlement into these areas varies largely among those interviewed, however the majority of households moved to Dai Tu district before the 1950s (more than 50%). The analysis by communes and migration periods is given in table 3.25 below. Nuiphaovica, Vietnam Page 63

98 Table 3.25 Period of Settlement in Dai Tu District Year Total Number of Households Binh Thuan Tien Hoi Hung Son Cat Ne Before After No answer Analysis on distribution of ages is given in table This data shows consistency between the households in the Project area and the proposed relocation sites. Table 3.26 Age Distribution of Surveyed Population Age Unit Total Binh Number % Thuan Tien Hoi Hung Son Cat Ne Under 7 Person Person Person Over 60 Person Total Person Education In general, residents in these areas also have a low education levels, consistent with those in the Project area however, nobody under 18 years of age reportedly leaves school. Results of the analysis are shown in tables 3.27 below. Nuiphaovica, Vietnam Page 64

99 Table 3.27 Education and Training Levels Educational level Total Number % Binh Thuan Tien Hoi Hung Son Cat Ne Illiterate Primary School Secondary School High School Under school age Specialised High School College University, Post-graduate Primary Training Course Some households in Cat Ne are in a remote area from the commune centre. The closest primary and secondary schools are 3 km away and the high school is about 15 km from their homes, thus, it is not easy for their children to continue with high school education. Overall education levels in these communes are considered similar to those of the other communes Occupations and Livelihoods Most people are farmers and very few reported working and earning an income from other sources. There are 38 household heads having a main job in agriculture, three other household heads reported being state cadres, and three were in other employment. Two household heads have no working ability. Among the 46 households, only 14 household heads have second jobs and these jobs include trading, services and agricultural processing (five people), farming (three people), hired jobs (four people) and handicraft (one person) and one person is a commune policeman. The results of the survey on employment and livelihoods for households at relocation sites are shown in table Nuiphaovica, Vietnam Page 65

100 Table 3.28 Main and Secondary Occupation of Interviewed Household Heads Main and Secondary Job of Head of Households 1. Main jobs Farmer Unit Total Binh Thuan Tien Hoi Hung Son Cat Ne Person Handicrafter Person Worker Person State cadre Person Commerce, service, farm product processing Person Police, Soldier Person Other employment Person Not working Person Secondary jobs Farmer Person Handicrafter Person Worker Person Commerce, service, farm product processing Person Police, Soldier Person Other employment Person Farmer is the primary occupation for approximately 80 percent of surveyed households in the relocation site communes, which is consistent with other communes where farming is from approximately 50 percent to over 80 percent likely to be the primary household occupation Other Conditions Water and Fuel Resources All forty-six households use manually dug wells. Two households in Cat Ne and one in Hung Son specifically reported that their well water was turbid and dirty and one household in Binh Thuan commented that their well water was of poor quality. Generally, other residents reported that their well water was pure and of good quality. Water shortages are reportedly rare in these areas except during the dry season. The main fuel resources which local people have been using are firewood and coal. Only a few households can afford to use gas. Nuiphaovica, Vietnam Page 66

101 Diseases and Health Care A breakdown of the most common diseases is shown in table 3.29 below, it shows colds and neural conditions appear to be more frequent than other illnesses. Table 3.29 Common Disease Frequency Common Diseases Frequency Number of People Cold, flu Often 6 Sometimes 8 Total 14 Respiratory diseases Often 1 Sometimes 2 Total 3 Digestion diseases Often 7 Sometimes 0 Total 7 Arthritis and Bone-related diseases Often 4 Sometimes 4 Total 8 Skin-related diseases Often 1 Sometimes 1 Total 2 Neural Diseases Often 2 Sometimes 7 Total 10 The following specific conditions were reported in the communes: Binh Thuan: there were neural diseases, cancers, backache, deaf-and-dumb and deformed children; Tien Hoi: None communicable diseases were reported; Hung Son: Japanese encephalitis, toothache, neural diseases, cancers, B hepatitis, diarrhoea, backache, deformed children and micro-bacteria fevers; and Cat Ne: arthritis, toothache, headache, neural diseases, cancers, malaria, B hepatitis, sore eyes, diarrhea and stomachache. There is a clinic in each commune and there are some villages with a health-care worker. People commented that health-care services are still not very good and need to be improved. Health conditions and health care arrangements are considered similar to those of other communes. Nuiphaovica, Vietnam Page 67

102 Electricity, Road, Communication and Irrigation Networks All surveyed households have electricity and 42 households reportedly get their power supply from the national grid and 4 households in Cat Ne use their own mini hydropower generators located in streams near their houses. Access roads to the centres of communes are aggregate roads and roads to villages are in a poor condition making access difficult in the rainy season, as is similar in other communes. Basic communication services such as telephone, mail and newspapers are currently provided to the commune centres. Among the 46 households interviewed only 6 households in Hung Son commune have telephones. Farm irrigation systems are present in some areas but they do not generally work effectively because of poor management and lack of budget for maintenance. Some low areas along the Cong River are frequently flooded in the rainy seasons. Income and Expenditure The average income for households in Cat Ne commune is VND 206,100 per head per month which is the lowest, while income of households in Hung Son is the highest at approximately VND 439,700 (per head per month). With an average of one to two household members operating in some form of income generating activity these figures are consistent with other communes, although do indicate potentially low incomes in some of the areas. Most interviewed households had loans either for economic development or family expenditures. A summary of income, expenditure and loan data for residents at the proposed relocation sites is shown in tables 3.30, 3.31 and Table 3.30 Average Income Per Capita per Month of Interviewed Households Income Unit Total Cat Ne Tien Hoi Hung Son Binh Thuan Average per capita per month VND 368, , , , ,100 Average higher income group VND 1,000, , , , ,000 Nuiphaovica, Vietnam Page 68

103 Table 3.31 Average Expenses of Interviewed Households Expenses Amount (VND) Electricity bill 470,217 Fuel bill 647,826 Meals 9,732,174 Education fees 1,514,565 Travel fees 756,522 Beverage (tea/ beer/ alcohol) and cigarettes 658,478 Other monthly expenses 307,391 Health care expenses 678,261 Marriages and funerals 1,020,652 Total 15,786,087 Table 3.32 Borrowing and Loan Status of Households at Relocation Sites Details Total Friends Relatives Lenders Women s Union Bank for ARD Bank for Social Policy Number of loans Purposes Living expenses Buying things Production investment Others Others Loan Size < 1 million VND million VND million VND million VND Maturity < 1 month months months months > 12 months No time limit Nuiphaovica, Vietnam Page 69

104 These households are also located within Dai Tu district and therefore subject to preferential loan policies as described previously. From the surveyed households, 34 reported having a loan of one type or another. 3.5 Businesses in the Project Area A number of small businesses are located along National Road No. 37 and thirty-seven businesses were identified within the proposed Project area. These businesses are small retail outlets offering refreshments such as drinks, snacks and some groceries. All 37 families operating these businesses have other income sources, mostly agricultural activities. One commercial business is also located in the Project area. This business was owned by INTRACO but is no longer in operation. INTRACO is a Nuiphaovica joint venture partner (see also Section 1.1). 3.6 Ethnic Minority Groups a Specific Socio-Economic Assessment Nuiphaovica contracted the Development Research and Consultancy Centre (DRCC) an organisation experienced with World Bank policies and social safeguards, to study the Ethnic Minority People in the area to determine if the World Bank policy on Indigenous Peoples (OP 4.10) would be triggered. The DRCC carried out the study in September, 2005 and prepared a stand alone report (DRCC, 2005). According to OP 4.10 on Indigenous Peoples, the term of Indigenous Peoples may be referred to in different countries by such terms as Indigenous Ethnic Minorities ; aboriginals ; hill tribes ; minority nationalities etc. The purpose of the policy is to refer to a distinct, vulnerable, social and cultural group posessing the following characteristics in varying degrees: Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; Collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and An indigenous language, often different from the official language of the country or region. A group that has lost collective attachment to geographically distinct habitats or ancestral territories in the project area because of forced severance remains eligible for coverage under this policy. As such, Policy OP 4.10 will be triggered if: The project will cause adverse effects to Communities of Indigenous Ethnic Minorities (individuals not to be considered); There are Indigenous Ethnic Minorities living in the project areas; and Nuiphaovica, Vietnam Page 70

105 The Indigenous Ethnic Minorities are vulnerable. The DRCC carried out its study by reviewing the documents listed below and conducting a site visit (including meetings and interviews with local people and authorities): Special reports on socioeconomic surveys, and results from the census and inventory which were completed by consultants in 2004 for Nuiphaovica; The Project Resettlement Policy; and The interim and final Resettlement Action Plans. The site visit included meetings with local authorities and local Ethnic Minorities (EM). In-depth interviews were conducted with 30 families including 15 ethnic minority families (05 in Ha Thuong; 05 in Hung Son and 05 in Tan Linh) and 15 Kinh families (05 in Ha Thuong; 05 in Hung Son and 05 in Tan Linh) to compare and analyse similarities and differences. The general conclusions and recommendations of the DRCC are summarised below, together with a socio-economic comparison between ethnic minority groups and the majority population Overview of Ethnic Minorities Conditions The Ethnic Minorities in the Project area include Cao Lan, Tay and Nung people who are mainly concentrated in villages 1, 2, 3, 4, 5, and 6 of Ha Thung commune. A few families are living in Village 1 of Hung Son commune and only two families live in Tan Linh commune. Most ethnic minority families moved from Northern mountainous provinces (eg. Lang Son, Cao Bang, etc.) to the Project area around the 1940 s. The Kinh people moved from the delta regions to Dai Tu district a little later (Cao Lan people moved into the area with Kinh people around 1940 s) other groups such as Tay and Nung recently migrated to Dai Tu district after the 1940 s (from Cao Bang and Lang Son provinces and in fact, they were individually moved to the Project region). The Ethnic Minorities in the Project area live together (integrated) with Kinh people and there is no village housing a single ethnic minority group. Therefore, all the Ethnic Minority People in the Project area can speak fluent Vietnamese, they do not have their scripts and their children study in the same schools as the Kinh pupils and all speak Vietnamese. In fact most young people of ethnic minorities cannot speak their ancestral language. Observations show it is difficult to identify differences between Ethnic minorities and Kinh people in the Project area (both have the same type of housing, clothes, economic activities etc.). The subject ethnic minority groups do not have any collective attachment to geographically distinct habitats or ancestral territories in the Project area. They do not have economic, social or political institutions that are separate from those of the dominant society and culture. They earn their living using the same economic activities as the Kinh people (tea planting, rice growing, Nuiphaovica, Vietnam Page 71

106 husbandry and operating small businesses etc.) and have the same level of income as Kinh people (approximately VND 8.5 million per capita annually). The ratio of households living below the poverty line is low. Close observation of the ethnic minorities living in the Project area reveal they are well developed and their living standards are at the same level as Kinh people. As with Kinh families, the ethnic minorities have been granted Land Use Right Certificates (red book) and on average each family was allocated approximately 1,000m2 of low agricultural land for rice growing, 1,000m2 of hilly land for cash crops and about 500m2 for residential and garden land. The ethnic minorities have access to all the social services of the community such as health care, schools, irrigation systems, markets, community hall etc. and have access to loans from the Government for the purpose of poverty reduction. Ethnic Minority People are often leaders of their commune, for example the commune party leader of Ha Thuong is from an ethnic minority group. The investigation also revealed that the ethnic minority population who complete primary school level is 13.3% (Kinh is 13.3%); who complete secondary school level is 46.7% (Kinh is 60%); and who complete high school level is 6.7% (Kinh is 6.7%). Table 3.33 below provides details of the number of ethnic minority households living in the Project area and at proposed relocation sites and gives a comparison between ethnic minorities and the total population for key socio-economic statistics. This comparison supports the socioeconomic conditions noted in the DRCC study. Nuiphaovica, Vietnam Page 72

107 Table 3.33 Key Information and Comparison of the Ethnic Minorities versus Total Population Item Total Hung Son Ha Thuong Tan Linh Number of Ethnic Minorities affected HH: In the Project area At the proposed relocation sites Average family size EM = 3.61 Total Pop. = 4.02 Number EM with agricultural land Number EM with residential land/building Families with children in primary school Families with children in secondary school Families with children in high school Children stopping schooling EM = 0.9% Total Pop. = 8.1% Average annual income per capita EM = 8,500,000 10,200,000 6,800,000 6,750,000 Total Pop. = 8,400,000 10,270,000 6,600,000 6,680,000 Average agricultural land holding Hectare per HH EM 6,568 4,065 11,780 Total Population 2,560 2,494 2,770 Average residential land holding m 2 EM 1, Total Population Families under the poverty line (MOLISA EM = 9 (8.7%) criteria) Tot. Pop = 65 (5.7%) Families that have a television EM = 101 (98%) 22 (91.6%) 77 (100%) 2 (100%) Tot Pop = 992 (86%). 301 (91.7%) 598 (83.8%) 93 (84.5%) Families that have a motorbike EM = 60 (59.2%) 24 (100%) 36 (46.8%) 0 Tot. Pop = 758 (65.8%) 262 (80%) 414 (58%) 82 (74.5%) Families with electricity EM = 103 (100%) Tot. Pop = 1,153 (100%) Families with domestic water (drilled well, EM = 98 (95%) tube wells etc) Tot. Pop = 1,106 (96%) Notes: EM is Ethnic Minority. Unless otherwise stated data is presented for household/family. Nuiphaovica, Vietnam Page 73

108 3.6.2 General Conclusions and Recommendations The DRCC report made the following general conclusions about ethnic minorities within the Project area and the Nuiphaovica activities and management of related socio-economic issues during the resettlement and relocation process: Nuiphaovica and its consultants have carried out a substantial amount of work on social and environmental screening, consulted with local unions/ngos and local people and different ethnic minority groups, as well as encouraged them to participate in the many different programs and plans; Ethnic Minorities in the Project area are living together with Kinh people and their economic status, educational level, cultural identities etc. as well as physical infrastructure and access to social services are not substantially different to that of the neighbouring Kinh people; As with the majority of people the Ethnic Minorities in the Project area will mainly be affected by land acquisition. Ethnic Minorities will be affected by land acquisition, but individually they will not be affected when it comes to a question of impact on ancestral resourses and ancestral rights; Ethnic Minorities in the Project area are not considered a specific vulnerable group although experience from previous World Bank financed projects in Viet Nam (e.g. Rural Energy No.2; Me Kong Transport Project) shows it is good practice to specifically assess Ethnic Minorities and their particular socio-economic conditions and needs. Nuiphaovica has set out detailed proposals for activities and programs which will be developed during the resettlement program implementation phase for Ethnic Minorities based on consultation with the Women s Union of Dai Tu district, affected communities, ethnic minority groups and other key stakeholders. An amount of VND 750,000,000 has been reserved for Ethnic Minority Development Programs which will be further developed as the Project progresses (see also Section 5.4). Consultation with Ethnic Minority People are documented by Nuiphaovica and in general ethnic minorities expressed their support for the Project but requested assistance from local authorities and the Company to help them quickly restore and improve their livelihoods after relocation. The DRCC recommends that any Ethnic Minority programs continue to be developed based on consultation with, and participation of Ethnic Minorities, local unions and local authorities. It is also suggested that a relevant anthropologist be utilised by Nuiphaovica for the development of such programs. The plans should be monitored and evaluated by an independent monitoring agency. In addition, Nuiphaovica public consultation and disclosure activities should contain specific actions relevant to Ethnic Minorities. Nuiphaovica, Vietnam Page 74

109 The resettlement and compensation program should be implemented in accordance with the policies set forth in this Resettlement Action Plan and should be carefully monitored to make sure that affected Ethnic Minorities as well as other affected persons will not be worse off after relocation. Nuiphaovica, Vietnam Page 75

110 CHAPTER 4. CENSUS AND INVENTORY OF LAND ACQUISITION IMPACTS 4.1 Census and Inventory Process A census and inventory on land acquisition impacts to categorise impacts, determine entitlements and prepare cost estimates and schedules was conducted in August to September 2004 by Mapping Enterprise No.1, who are managed under the Ministry for Agriculture and Rural Development (MARD). The census and inventory was conducted in conjunction with the Socio- Economic Baseline Survey (see Section 3.1). Data for the census and inventory were collected at the household level for the resettlement programme and included details on affected land and assets, household structures and basic socioeconomic status for each household (e.g. household size, age, gender, relationships etc). The census and inventory was conducted by visiting every affected household and administering surveys and individual discussions. The census and inventory was conducted for households with houses and land located in the operational area and at proposed relocation sites and farm fields located in these areas but with people who reside elsewhere. The team performed a cadastral survey of all land in the operational areas and at proposed relocation sites for agricultural land and associated assets. Teams demarcated residential and garden lands in the presence of affected households and recorded the presence and status of any buildings. A separate Census and Inventory Report was prepared by the consultants and this report has been used to compile a database of impacts for each affected household. The database also contains detailed information about affected public works and infrastructure. This database is used as the baseline for the Detailed Measurement Survey which will be completed for all affected households, public infrastructure and other assets to determine final compensation packages, entitlements and eligibility to various allowances and programs (see also Section 4.8). A summary of key results from the census and inventory are summarised in the following sections. 4.2 Efforts to Minimise Land Acquisition and Resettlement Nuiphaovica has minimised the scope of physical and economic displacement associated with the Project through a number of actions, including: Minimising the size of Project components and the distances between them; Minimising buffer zones around Project components without comprising safety and other factors; Restricting the land acquisition boundary to only the area directly required for mine operations; and Encouraging relocation site options located in less populated areas. Nuiphaovica, Vietnam Page 76

111 The Company has an investment license with a total land lease area of ha, however after efforts to minimise land acquisition and other potentially adverse impacts, the Project will only acquire land for the direct operational area required for the mine and facilities which is about 445 ha. Therefore, persons who have land and other assets in the 445 ha operational area will be affected and the residents will have to be relocated to new areas. As a result of a reduced operational area, requirements for land at relocation sites have also been reduced. Farming is likely to be able to be continued on approximately 140 ha of the operational area as only about 305 ha is directly required for the operation. The current land requirement for relocation sites is approximately 56 ha. The amount of land to be acquired has been reduced in several steps during the design of the Project. Initially the area was reduced from ha to 640 ha (calculated in September, 2004) then a further reduction to 593 ha was proposed (calculated in October, 2004). Final design and engineering studies as detailed in the updated Feasibility Study (Aker Kvaerner, 2005) completed in July 2005, has subsequently reduced the operational area to 445 ha. With these efforts, the total number of affected households has been reduced from 1,556 households (with the original land lease area) to 1,153 households (with the new operational area). The number of households who will physically be relocated from the operational area has been reduced from 1,091 to 793 households. 4.3 Summary of Impacts Project Affected Communities The communes of Ha Thuong, Hung Son and Tan Linh are partially affected by the mine footprint, known as the operational area. The commune of Ha Thuong is most severely affected, followed by Hung Son and then Tan Linh. Phuc Linh commune is located downstream of the operational area and may be affected as a result of neighbouring Project activities. The communes of Ha Thuong, Hung Son, Tien Hoi, Cat Ne and Quan Chu are affected by proposed relocation sites. It is noted that the proposed relocation site of Xom Trai (see Section 7.8.2) is located in Bin Thuan commune, however at the time of writing it is unlikely that this site will be developed due to lack of interest from affected households. These communes are all located within Dai Tu district. Figure 1.2 shows the commune boundaries, proposed relocation sites and the Project operational area Project Affected Households The Project will cause impacts not only on physical displacement but also on economic activities and income generation, especially when acquiring productive land for the Project. Land will be acquired for the operational area and for proposed relocation sites. Affected households can therefore be classified as resident households including those whose residential land and structures are affected and non-resident households that are impacted by agricultural land only but are not physically displaced. Nuiphaovica, Vietnam Page 77

112 Resident Households Resident households are those owning houses in the operational area or at relocation sites that were built on or before 12 May 2004 (the Cut-Off Date ). These households will be physically and economically displaced and are eligible for compensation and resettlement assistance. Affected households typically include residential structures, their non-residential annexes, a yard and possibly a garden. These households are also generally affected by loss of associated agricultural land. The majority of resident households that are required to move reside in the operational area. Most of the relocation sites are located on existing agricultural land and those households who do have residences that will be affected at relocation sites will be rearranged within the existing location and will not be required to move to a new area. The total number of affected residential structures is 884. This comprises 793 houses located within the operational area and 91 houses affected at relocation sites. Non-resident Households Non-resident households are those residing outside the operational area or relocation sites but that possess land, usage rights or businesses within these locations. These households are economically displaced by the Project and are eligible for compensation and resettlement assistance. The total number of households affected by loss of productive land only is 1,026 households. Therefore, the total number of households affected by residential land and structures and/or agricultural land loss is 1,910 households with a population of 7,464 persons Land, Structures and People In addition to the impacts on residences and agricultural land, some public works and infrastructure will also be affected by Project development. The different impacts to people, land and structures as they are estimated in May 2006 are summarised in table 4.1. Nuiphaovica, Vietnam Page 78

113 Table 4.1 Summary of Project Impacts due to Land Acquisition Affected Category No. Summary of impacts Total number of households affected by land acquisition (resident and nonresident households) Number of households who are affected by residential land (resident households) Number of households who are affected by agricultural land only (non-resident households) Area of agricultural land impacted by the Project footprint and relocation sites Total area of land impacted for the mine footprint (operational area) Area of land impacted for residential relocation sites Impacted public facilities and infrastructure Impacted prayer house and cemetries 1, 910 households Number of households affected by agricultural and residential land and assets 884 households Number of households that are affected by residential land and will be physically displaced. Note: Of these 884 households only 793 are physically required to move 1,026 households Number of households who own or occupy land in the affected areas but who reside elsewhere 347 ha The current inventory of agricultural / productive land to be acquired for the Project 445 ha Area of land required to develop the Project mine and associated facilities including a safety/buffer zone. 56 ha Area of land that has been identified for development of relocation sites (residential and a site for economic restoration programs). Various 2 cemetries 1 prayer house Local commune and village infrastructure affected by the resettlement programme, e.g. village halls, schools and health clinics etc. A prayer house located in Ha Thuong commune will be impacted by Project development.two cemetries, one in Ha Thuong commune and one in Hung Son commune will also be affected. Number of businesses affected 37 Thirty-seven small roadside businesses will be affected by realignment of a segment of National Road No. 37. Further details on impacts for the operational area and at relocation sites are provided in the following sections. Data is broken down by communes, locations and other key indicators. 4.4 Impacts of Land Acquisition in the Operational Area (445 ha) The total number of affected households in the 445 ha operational area is about 1,153 households with population of 4,276 persons. The number of households that have to be physically relocated is about 793 households with a population of 2,942 persons. Analysis of the census and inventory by each operational sector and administrative unit is shown in the following tables 4.2, 4.3 and 4.4. Nuiphaovica, Vietnam Page 79

114 Table 4.2 Households and their Assets in the Operational Area by Sector Item Ha Thuong Hung Son Tan Linh Total Total number of HH/Head 714 / 2, / 1, / 459 1,153 / 4,276 Sector 1: Realignments of road, rail-way Total number of HH/Head Number of HH affected on residential land with houses to be relocated Total house area (m 2 ) Number of HH with residential land without house on land/head Residential land area (m 2 ) Number of HH affected agricultural land/head Agricultural land area (m 2 ) Number of PAP affected on trees and annual crop Sector 2: Plant site 43/172 30/116 2,149 1/3 25,649 36/138 54,145 43/172 43/173 36/147 3,347 5/18 26,619 31/138 58,829 43/173 not applicable to this sector 86/345 66/263 5,496 6/21 52,268 67/ ,974 86/345 Total number of HH/Head Number of HH affected on residential land with houses to be relocated Total house area (m2) Number of HH with residential land without house on land/head. Residential land area (m2) Number of HH affected agricultural land/head Agricultural land area (m2) Number of PAP affected on trees and annual crop 208/ /476 10,892 31/69 99, / , /664 27/112 10/ /6 10,359 28/120 28,421 27/112 not applicable to this sector 235/ /513 11,811 32/75 110, / , /776 Sector 3: Pit and waste areas Total number of HH/Head Number of HH affected on residential land with houses to be relocated. Total house area (m2) Number of HH with residential land without house on land/head Residential land area (m2) Number of HH affected agricultural land/head Agricultural land area (m2) Number of PAP affected on trees and annual crop 319/1, /934 20,846 21/70 218, /1, , /1,224 19/69 11/ /9 6,372 28/128 38,184 19/69 17/73 13/56 1,297 1/4 25,910 9/41 16,163 17/73 355/1, / ,127 25/83 251, /1, , /1,366 Nuiphaovica, Vietnam Page 80

115 Sector 4: Tailings dams Item Ha Thuong Hung Son Tan Linh Total Total number of HH/Head Number of HH affected on residential land with houses to be relocated Total house area (m2) Number of HH with residential land without house on land/head Residential land area (m2) Number of HH affected agricultural land/head Agricultural land area (m2) Number of PAP affected on trees and annual crop 50/204 19/64 1, ,326 96/ ,478 50/204 not applicable to this sector not applicable to this sector 50/204 19/64 1, ,326 96/ ,478 50/204 Sector 5: Tailings area Total number of HH/Head Number of HH affected on residential land with houses houses to be relocated Total house area (m2) Number of HH with residential land without house on land/head Residential land area (m2) Number of HH affected agricultural land/head Agricultural land area (m2) Number of PAP affected on trees and annual crop 76/260 50/166 4,364 4/7 65, / ,782 76/260 not applicable to this sector not applicable to this sector 76/260 50/166 4,364 4/7 65, / ,782 76/260 Sector 6: Pit extension and safety area Total number of HH/Head Number of HH affected on residential land with houses to be relocated Total house area (m2) Number of HH with residential land without house on land/head. Residential land area (m2) Number of HH affected agricultural land/head Agricultural land area (m2) Number of PAP affected on trees and annual crop 18/68 7/ /11 15,012 29/122 81,658 18/68 240/ /762 20,603 20/42 180, / , /871 93/386 28/114 2, ,053 78/ ,550 93/ /1, /906 23,748 24/53 241, /1,137 1,087, /1,325 Nuiphaovica, Vietnam Page 81

116 Table 4.3 Summary of Households and their Assets in the Operational Area Sector Total PAP (HH) Total head HH affected by residential land (with and without houses on land) Residential land area (m 2 ) HH affected by residential land (with houses on land) House area (m 2 ) HH affected by agricultural land Agricultural land area (m 2 ) , , , , , , , , , , , , , , , , , , , ,087,218 Total 1,153 4, , ,979 1,046 2,927,632 Table 4.4 Impacts on Land by Administrative Units (Communes) Ha Thuong Commune Sector Total Number of Affected HH Total Number of Head Affected Residential Land (m 2 ) Affected Agricultural Land (m 2 ) ,649 54, , , , , , , , , , ,012 81,658 Sub-total (Ha Thuong) 714 2, ,383 1,780,475 Hung Son ,619 58, ,359 28, ,372 38, , ,010 Sub-total (Hung Son) 329 1, , ,444 Tan Linh ,910 16, , ,550 Sub-total (Tan Linh) , ,713 Grand-total 1,153 4, ,335 2,927,632 Nuiphaovica, Vietnam Page 82

117 4.5 Impacts of Land Acquisition at Proposed Relocation Sites The number of households affected by the acquisition of land for the residential relocation sites and the market centre site is 637 households with a population of 2,600 persons, of which 83 households with 331 people will lose land and a house, while the balance will lose agricultural land only. The number of households affected by land acquisition for the new cemeteries and for the army facilities at the Tan Lap site is 120 housesholds with a population of 588 persons, of which and estimated 8 households will have their buildings affected. Land acquisition impacts by proposed relocation sites are summarised in table 4.5. See Section 7.8 for further details on the proposed relocation sites. Nuiphaovica, Vietnam Page 83

118 Table 4.5 Land Acquisition Impacts by Proposed Relocation Sites, New Site For Army Facilities and New Cemeteries Nam Song Cong (Phase 1 & 2) Site Commune Total HH Total Person P1: Hung Son P2: Tien Hoi HH affected on residential land (with houses on land) Residential land area (m 2 ) House area (m 2 ) HH affected on agricultural land Agricultural land area (m 2 ) 224 1, ,328 2, ,661 Xom Trai Binh Thuan ,366 1, ,294 Hung Son 2 Hung Son , ,245 Market Centre and Handicraft Workshop Hung Son ,761 Hung Son 3 Hung Son , ,100 Khe Thuy Tinh Ha Thuong ,837 Tan Lap site for army facilities New cemeteries Cat Ne Quan Chu Ha Thuong Hung Son ,300, ,700 Total 757 3, ,949 5, ,869,598 There are no common property natural resources within the Project area where people can derive their livelihood and sustenance, nor non-title based systems such as fishing, grazing and/or the use of forest areas. Illegal mining operations by individuals will be documented during the Detailed Measurement Survey (see Section 4.8.1) for each sector. Nuiphaovica, Vietnam Page 84

119 4.6 Affected Institutions and Public Infrastructure Public works and social infrastructure will also be affected by Project development. Collective assets and public works which will be affected in the Project operational area are shown in table 4.6 below. So far no pubic works or associated infrastructure is expected to be affected at proposed relocation sites. Table 4.6 Affected Public Works and Collective Assets Details Location Quantity National Road No.37 Sectors 2,3, km Railway to Nui Hong Sectors 2,3,6 2.7 km Power transmission line 35 kv Sectors 2,3,6 2.5 km Power transmission line 0.4 kv Sectors 2,3, km Substations Sectors 2,3,6 03 TELECOM (overhead) Sectors 2,3,6 5.2 km TELECOM (underground) Sectors 2,3,6 3.5 km Intraco asset (private business) Sector 2 - Community hall, village 1-Ha Thuong Sector 2 106m 2 House for hearse cart, village 1-Ha Thuong Sector 2 62 m 2 Cemetery, village 1-Ha Thuong Sector 2 8,597 m 2 Community hall, village 3-Ha Thuong Sector 2 70 m2 Community hall and Primary School, village 4-Ha Thuong Sector m 2 Community hall, Kindergarten, village 2-Ha Thuong Sector 3 88 m 2 Storage building, village 2-Ha Thuong Sector 3 87 m 2 Prayer house, village 2-Ha Thuong Sector m 2 Controlling house of railway, village 2-Ha Thuong Sector 3 61 m 2 Temple, village 5-Ha Thuong Sector 4 90 m 2 Army facility-k10, village 5-Ha Thuong Sector 4 2,973 m 2 Community hall, village 5-Ha Thuong Sector 5 60 m 2 Community hall, village 1-Hung Son Sector m 2 Treo Market, village 1-Hung Son Sector m 2 Cemetery, village 1-Hung Son Sector 6 4,120 m 2 On farm irrigation system Various 9,300 m Nuiphaovica, Vietnam Page 85

120 AffectedCommunity Hall in Hamlet 1 Hung Son commune Affected prayer house Nuiphaovica, Vietnam Page 86

121 Affected Naational Road No. 37 section Affected railway line 4.7 Impacts on Affected Businesses Thirty-seven small businesses are affected in the Project area, and no businesses are impacted by relocation site development. These businesses are all located along National Road No. 37 and are small retail outlets offering refreshments such as drinks, snacks and some groceries. All 37 families operating these businesses have other income sources, mostly from farming/agricultural activities and as such income from these businesses is generally a moderate proportion of total household income. 4.8 Accuracy of the Census and Inventory and Follow up Steps At the time of the census and inventory in late 2004, detailed measurements were only completed for residential land, garden land and assets on these lands. Assessment of productive land and other associated assets in the operational area and at each proposed relocation site were determined (estimated) by using cadastral maps and other survey data. Therefore, after the initial census and inventory was completed, only sixteen (16) concrete benchmarks were placed on the ground (at all corners of demarcation lines) as a boundary for the Project area and proposed relocation sites. More recently, with the permission of the Thai Nguyen authorities, the boundaries of the six operational sectors and the Nam Song Cong relocation site were marked (with about 400 beacons) on the ground and minutes of boundary demarcation were singed by all relevant parties on September 14, 2005 (for the six operational sectors) and on October 27, 2005 (for the Nam Song Cong site). The remaining relocation sites will be marked on the ground as soon as detailed planning is approved by Thai Nguyen People s Committee Detailed Measurement Survey Based on the existing demarcations, a Detailed Measurement Survey (DMS) will be completed separately for every household and for public works and infrastructure in accordance with the schedule for Project implementation. The DMS will be used to update and confirm previous estimates and will be the basis for compensation calculations. For this reason, the numbers of Nuiphaovica, Vietnam Page 87

122 affected people, land, and assets may be adjusted during the resettlement program implementation phase. The DMS is conducted jointly by Nuiphaovica, the DDCARC and a team of experienced surveyors. The detailed survey will confirm information from the census and inventory for compensation purposes, including: Number of persons in each household, by age and sex; Number, type and area of house(s) to be acquired; Number and area of residential plot(s) to be acquired; Number, category and area of agricultural plot(s) to be acquired; Quantity and types of crops and trees acquired; and Quantity and category of other fixed assets affected by the Project. The Detailed Measurement Survey commenced in November 2005 for various operational sectors and relocation sites and the survey process is ongoing. As at June 2006 the status of the detailed measurement survey process is shown in table 4.7. Table 4.7 June 2006 Status of Detailed Measurement Survey Sector/Site Total To Date Completion Sector % Sector % Sector % Sectors 4 and % Sector % Nam Song Cong % (Phase 1 and 2) Hung Son % Cat Ne 100% K10 army facility 100% Upon completion of the survey for each affected household a Detailed Measurement Survey form is prepared and reviewed by relevant parties, including the affected household members. Once agreement is reached on the inventory the completed form is counter signed by the affected household, village leader/representative, commune leader/representative, the DDCARC and Nuiphaovica. Final details are incorporated into the existing Nuiphaovica database to confirm the inventory and finalise compensation packages. Nuiphaovica, Vietnam Page 88

123 In addition to the data obtained through the detailed measurement survey, other relevant socioeconomic baseline data will be updated overtime for households in order to adequately develop economic restoration programs and monitor progress of income restoration activities (see also Section 8.3). Nuiphaovica, Vietnam Page 89

124 CHAPTER 5. IMPACTS ON VULNERABLE GROUPS AND SPECIAL PROGRAMS 5.1 Vulnerability in the Project Affected Areas Ethnic Minorities In Vietnam, ethnic minorities are disproportionately at risk of poverty they represent 14 percent of the population but account for 29 percent of poor people. In part because the regions in which they live feature the slowest economic growth, their proportion among Vietnam's poor is expected to rise to over one third by 2010 ( Ethnic minorities within the Project area have settled there recently and are integrated into the local community. As such, ethnic minority groups in the area do not represent indigenous peoples under the definition set out in World Bank Group Policy OP4.10: Indigenous Peoples (see also Section 3.6). Ethnic minorities in the Project area include Cao Lan, Tay, Dao and Nung people who are concentrated in the villages 1, 2, 3, 4, 5 and 6 of Ha Thuong commune, with a few families living in village 1 of Hung Son commune and two ethnic minority families also live in Tan Linh commune. The Cao Lan ethnic minority group account for approximately 78% of the total number of affected ethnic minorities and they are mainly concentrated in Ha Thuong commune. Ethnic minorities in the Project area are living together with Kinh people in villages and their economic status, educational level, cultural identities etc. as well as physical infrastructure and social services of communities are not significantly different to the Kinh people. Whilst social baseline data indicates that the ethnic minority groups in the Project area are socially integrated with the wider population, their position must be considered within the larger national context and they are therefore identified for special assistance programmes within this resettlement programme. Specific legislation exists that identifies ethnic minorities as vulnerable people and special assistance is mandated under this legislation to assist ethnic minority communities and individuals. Under Decision No. 134/2004/QD-TTg on assistance policies for Ethnic Minorities a range of special support is available. For example, ethnic minority children are provided with assistance to attend university (i.e. reduced entrance criteria and fees), schools and other physical infrastructure in ethnic minority communities are improved and should be of suitable quality and so on Poor Families A key vulnerable group or groups are the poor and in particular the extreme poor. There are three vulnerable groups identified in the Project area which are related to economic poverty. These include those that fall under the poverty line of the Ministry of Labour, Invalids and Social Affairs (MOLISA), families with low-value houses, and war veteran s households who receive social welfare payments from the government. Nuiphaovica, Vietnam Page 90

125 The poor lack savings or assets that assist in coping through hardships. Therefore, it is the poor who are particularly vulnerable to changes such as natural disasters (floods), market crashes (tea, minerals), and loss of land or employment opportunities. The poor tend to be more severely impacted by these changes and take longer to recover. While there are a variety of programmes run by local government and unions to address poverty, the extreme poor are generally excluded from loan and credit schemes due to a lack of assets that are necessary to qualify for these programmes. As local communities have become increasingly reliant on the cash economy, households have become vulnerable to changes in market prices of both key agricultural commodities (tea) and other products (minerals). While risks are inevitable in any agricultural or commercial activity, losses incurred as a result of changes in prices are a particular burden on the poor. Poor households lack the financial buffer to carry their families through difficult periods and are therefore more likely to resort to marginal activities, sell vital assets, or incur debt. Families classified by MOLISA are officially recognised as poor households and receive a certificate/card verifying their status. These families receive special assistance from the government in the form of subsidies, no school fees for children, reduced medical costs and various other supports. Veterans and their families are also formally recognised and receive a regular social welfare allowance from the government as well as support with special assistance programs Women and Women Headed Households Women are typically more vulnerable to livelihood changes due to fewer available employment opportunities and a higher reliance on agricultural activities. Additionally, women tend to have less access to education and training opportunities. Women of reproductive age, in particular, have been identified as a vulnerable group by government officials due to a high rate of reproductive health problems within this age bracket in the Project area. The Dai Tu Women s Union reports that domestic violence, rape, and sexual assault are present in the area, but that these issues are both under reported and under prosecuted. Women headed households are considered a vulnerable group for special consideration within this resettlement programme. A considerable number of households have been identified as single female headed households and the majority of these families are also poor, relying on government assistance and often with a high number of dependent children Elderly, Infirm, and Disabled Human health is an important issue for the Project area, and a tenth of the population are aged 60 years or over. Although no specific disabled persons were indicated during the socio-economic survey, it is known that some are present. The majority of economic activities are physical, relying heavily on good human health. Programmes or provisions to compensate for sick periods are few, and health facilities lack the capacity to address major local health issues. Nuiphaovica, Vietnam Page 91

126 Poor health impacts on livelihoods include the inability to provide labour and the financial burden of medical treatment. Sixteen percent of households listed medical treatment as one of their three highest monthly expenditures. The elderly, infirm, and disabled are particularly vulnerable to changes in livelihood activities that involve the loss of either land tenure or land access and increased reliance on the wage labour sector. 5.2 Impacts on Vulnerable Groups A summary of impacts on vulnerable groups for both the Project operational area and at relocation sites is provided in tables 5.1 and 5.2. Table 5.1 Vulnerable Groups Affected by the Project Operational Area Vulnerable groups Number of HH Number of heads Ha Thuong (HH) Hung Son (HH) Tan Linh (HH) Ethnic minorities Woman headed households Poor families (under poverty line of MOLISA) Families with poor existing house (house value less than value of house with Class 4 and area of 50 m2) Veteran households receiving social welfare from Government Total 386 2, Notes: 1. A Class 4 house type is a definition provided by the Provincial authorities and relates to the size, structure, and quality of the house according to defined criteria; and 2. some families can fall into a number of the abovementioned categories as the classifications are not mutually exclusive. Table 5.2 Vulnerable Groups Affected by Relocation Sites Vulnerable Groups Ethnic Minorities Woman Headed Household Poor Family (under poverty line of MOLISA) Poor Existing House (House Value Less Than Value of House with Class 4 and Area Of 50 M 2 ) Veteran HH Receiving Social Welfare From Government Nam Song Cong Hung Son Hung Son Xom Trai Khe Thuy Tinh Cat Ne - Tan Lap site (for Army) Total Nuiphaovica, Vietnam Page 92

127 Physical displacement and loss of land and productive assets could result in impacts to vulnerable people, including: Loss of accommodation, particularly for those who do not own property or land, and/or those that have poor existing housing quality and are therefore eligible for limited compensation for existing assets; Loss of source of livelihood, particularly for those who may be unable to fully access off-farm employment opportunities, such as the elderly, women headed households and the ill or disabled; and Weakening or loss of support networks, particularly where vulnerable people move away from some of their formal or informal support channels. Vulnerable people can also feel a general sense of loss of well-being as a result of resettlement and measures to prevent impacts are important to enhance self-sufficiency and to the extent practical improve the livelihoods of already impoverished or disadvantaged groups. 5.3 Consultation with Local Authorities and Local Unions and Associations Several sessions of consultation were conducted by Nuiphaovica with local people, local authorities and local unions and associations to discuss potentially vulnerable group issues. Many meetings have been held to discuss the necessity and proposals for programs and activities in order to help vulnerable groups and affected communities of ethnic minorities to improve their income generation and livelihoods after relocation. A summary of meetings held specifically to discuss these topics is provided in table 5.3 below. Nuiphaovica, Vietnam Page 93

128 Table 5.3 Meetings with Key Stakeholders for Affected Vulnerable Group Issues Date Meeting Venue Contents 27/12/2004 Hung Son Women s Union Office of Hung Son People s Committee 29/12/2004 Leaders of Ha Thuong Commune PC and Commune Women s Union Office of Ha Thuong People s Committee Determined the role of the Women s Union and current activities run by women. Determined the role of the Women s Union, current activities. Difficulties of vulnerable groups and living conditions of Ethnic Minority people. 30/12/2004 Leaders of Ha Thuong Commune PC and Commune Women s Union 01/01/2005 Women s Union of Dai Tu district 06/01/2005 Directoral Board of Tien Dong CO. Ltd. 06/01/2005 Collective of teeth and incense stick making Office of Tan Linh People s Committee Women s Union Office of Dai Tu district Thanh Oai- Ha Tay province Quoc Oai- Ha Tay Determined the role of the Women s Union and current activities run by women. Roles of District authorities and the Women s Union and discussed activities and programs for women who will be affected by the Project and other proposed activities for women. Discussed cooperation with respect to handicraft manufacturing, employment generation for project affected people, and especially for women. Discussed cooperation for employment generation for project affected women. 07/01/2005 Van Loc handicraft Co.Ltd. Gia Lam- Hanoi Discussed cooperation for employment generation for project affected women. 14/01/2005 Tan Linh Women s Union and Farther Front 14/01/2005 Hung Son Women s Union and Farther front 25/01/2005; 07/03 and 14/03/2005 Directoral Board of Tien Dong CO. Ltd. Office of Tan Linh People s Committee Office of Hung Son People s Committee Thanh Oai- Ha Tay province 29/03/2005 Nurses of Tan Linh Tan Linh health care station 29/03/2005 Principal of primary school, Women s Union, Youth of Tan Linh commune 29/03/2005 Principal of primary school, Women s Union, Youth of Ha Thuong commune 29/03/2005 Doctors and Nurses of Ha Thuong commune 30/03/2005 Rep representatives of Cao Lan people in Ha Thuong Office of Tan Linh People s Committee Office of Ha Thuong People s Committee Ha Thuong health care station Community hall of village 5-Ha Thuong Discussed ethnic minorities and gender issues and proposed activities Discussed ethnic minorities and gender issues and proposed activities Pilot programs (handicraft manufacturing) Discussed health issues of communities, women and their needs. Discussed the needs of pupils and especially girl students. Discussed the needs of pupils and especially the Ethnic Minority students. Discussed health issues of communities, women and their needs. Discussed ethnic Minority issues and proposed activities/programs. Affected people attended these meetings through their participation in the various unions and associations that were present at each of the events. As most affected people participate in at least one or more unions or associations a high proportion of affected families were represented. Nuiphaovica, Vietnam Page 94

129 Meeting for upgrading a primary school in Ha Thuong commune as part of an ethnic minority program Meeting about gender issues and special programs in Tan Linh commune 5.4 Activities and Programs to Assist Vulnerable Groups Nuiphaovica s policy for vulnerable groups aims to complement the provisions of Vietnamese legislation and the responsibilities of the district and commune People s Committees, where they may be inadequate and/or where persons or households are at risk to be further impoverished by displacement. To meet the objectives and principles set forth in the Project resettlement policies, special financial assistance for vulnerable groups are proposed as shown in table 5.4. Nuiphaovica, Vietnam Page 95

130 Table 5.4 Financial and Other Assistance for the Vulnerable Families Details Unit (HH) Unit cost (VND) Total (VND) Assistance to poor families (under the poverty line of MOLISA) Assistance to veteran families receiving social welfare from Government Land less and families with poor houses (value of existing houses less than value of house class 4 and with 50 m 2 ) 99 HH 5,000, ,000, HH 1,000,000 85,000, HH 10,000,000 1,400,000,000 Woman headed HH 164 HH 5,000, ,000,000 Total 488 2,800,000,000 This assistance will be provided to vulnerable families in addition to the assistance set out in the entitlements (see Section 2.8). Vulnerable families will receive this assistance in addition to the overall compensation and resettlement package for structures, land, productive assets and other assistance to be provided to all affected households based on their entitlements. These amounts will be paid to each vulnerable family in cash. However, to help them use their money wisely, economic and livelihood restoration programs (e.g. vocational training, agricultural extension training, non-farm based activities etc.) will be offered. These programs are clearly described in CHAPTER 8 which provides details for potential economic and livelihood restoration programs for affected persons. Support will also be provided by the Company and its partners for all cash compensation payments in the form of money management advice and assistance. Employment Nuiphaovica has made a commitment to give preference for employment and business opportunities to persons from affected households and communities. Nuiphaovica s Human Resources Department will set up a registration and screening system for job applications. In particular, Nuiphaovica will fast track for special consideration all those persons on the list of vulnerable people who are employable. Hiring will remain subject to Nuiphaovica s operational requirements and selection criteria. Employment policies will be clearly described and widely publicised. Special Assistance Programs Activities and programs for vulnerable groups will be focused on better facilities for primary schools, knowledge, scholarships for students of poor families; healthcare services, and the protection of cultural and traditional entities of ethnic minorities. Nuiphaovica will aim to work with organisations responsible for such activities within the community to enhance existing social Nuiphaovica, Vietnam Page 96

131 welfare programs. Initial activities and programs for a number of key vulnerable groups have been identified and these are shown in table 5.5. An initial cost estimate for these programs is also provided. Table 5.5 Initial Proposed Special Assistance Programs for Vulnerable Groups Activity/programs Gender programs (health care for women, micro finance management training, and awareness of relevant laws and programs for the advance of women etc.) Programs for Ethnic Minorities and affected communities (upgrade primary schools in Ha Thuong and Tan Linh, protection of cultural and customary identities; computer to be installed at primary and secondary schools with electronic library etc.) Priority recruiting members of vulnerable families to work for the Project Unit cost VND (M) Total VND (M) Total Remarks Programs will be implemented by Dai Tu district and commune Women s Unions Information on education, policies for environment, rural development, Ethnic Minorities and People who living in remote and mountainous areas available on computer. Number to be recruited from affected families will depend on capacity and available positions These initial ideas for special programs are based on consultation with the Women s Union, leaders of affected communes, the National Centre of Science and Technology under the Ministry of Science and Technology as well as affected vulnerable people in Ha Thuong and Hung Son and Tan Linh communes. The detailed proposals for these activities will be developed during implementation of the resettlement program and based on further consultation with unions, affected communities, ethnic minority groups and other key stakeholders. Detailed proposals will include the following: (i) (ii) (iii) (iv) (v) Purpose and need of the proposed programs; Specific tasks involved in each proposed program; Institutional arrangements (individuals and institutions involved to implement programs, activities and respective responsibilities); Implementation arrangements (progress report on supervising, implementation and evaluating the project within a time frame); and Cost estimate (break-down of costs for each task). Nuiphaovica, Vietnam Page 97

132 Initial programs have been discussed between the various stakeholders and these include: extra assistance with the logistics of resettlement; resettlement near family, friends, neighbours and social and political infrastructure and networks to improve vulnerable families access to these supports; targeted training programs for vulnerable people to maximise their chance of participation in direct and indirect employment opportunities; and upgrading of ethnic minority village infrastructure. Discussing ethnic minority issues and programs in Ha Thuong commune In addition to the programs described above, Nuiphaovica is currently assisting affected communes by providing cash to some poor families according to a suggestion from the Women s Union. The Company also purchased a hearse and procured ping pong tables for Ha Thuong commune, and purchased 90 chairs for communal halls of three affected communes. Further special assistance programs for other vulnerable groups are likely to be identified and developed during the implementation of the resettlement program. Vulnerable groups will be a key focus of Nuiphaovica s community development program and vulnerable people will be specifically monitored by Nuiphaovica throughout implementation of the resettlement program. Nuiphaovica, Vietnam Page 98

133 CHAPTER 6. ORGANISATIONAL ARRANGEMENTS Nuiphaovica is responsible for preparing and implementing the Resettlement Action Plan in conjunction with the Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) and with the cooperation of key government authorites in particular, the Thai Nguyen Provincial People s Committee (TNPPC) and its local authorities from district to commune level. Institutional arrangements for the Company and local authorities have been established and coordination between the different parties is central to ensuring effective implementation of the compensation and resettlement program. Figure 6.1 shows the relationships between the key parties involved and each of the groups is described in detail in the following sections. 6.1 Nuiphaovica Nuiphaovica provides its own staff, consultants and resources to implement the Resettlement Action Plan. The Compensation and Resettlement Unit of Nuiphaovica was formed in June, 2004 with six experienced staff in the fields of communication skills, site development, public works, social services, economic rehabilitation and cost estimation. This team is led by the External Relations Manager, who is a senior resettlement specialist with experience in involuntary resettlement from various departments of the government and the World Bank in development projects for the rural, urban, energy and transport sectors. This compensation and resettlement team is working under the supervision of the General Director of Nuiphaovica and is advised by a number of international resettlement and social development specialists. Nuiphaovica s key responsibilities include: (i) (ii) Drafting the project resettlement policies and entitlements; Together with the DDCARC and affected communes: a. Organise surveys on socio-economic conditions; b. Conduct the census and inventory of affected land and assets; c. Organise participation of key stakeholders throughout the entire RAP preparation and implementation process; d. Prepare the interim and final Resettlement Action Plans, and have them approved by the Board of Management of Nuiphaovica and TNPPC; and e. Implement the RAP including their involvement to redress complaints and internal monitoring. Nuiphaovica, Vietnam Page 99

134 To implement the RAP successfully, Nuiphaovica intends to recruit more staff and/or consultants as required to continuously develop the capacity of the team. Specifically, the following positions have been identified for additional recruitment: a. Training coordinator; and b. Two construction engineers to review the cost of site development proposed by contractors and to supervise the relocation site construction. The compensation and resettlement team is also supported by other departments and staff within Nuiphaovica and relies on others to provide specialist assistance. Liaison with Other Nuiphaovica Teams The Nui Phao Mining Project is supported by a dedicated community liaison team that also report to the External Relations Manager and who manage all aspects of consultation and disclosure efforts for the Project. The community liaison team works in close collaboration with the compensation and resettlement team for all related interactions with the communities and other local stakeholders. The External Relations Manager and team also liaise with other departments, including the Environment Department which is responsible for environmental permitting and other environmental issues related to relocation site development and construction activities. 6.2 Thai Nguyen Provincial People s Committee (TNPPC) The TNPPC is responsible for adopting the Project resettlement policies, endorsing the RAP and its sub-compensation plans for each sector, directing responsibilities to its relevant departments or institutions and overseeing the implementation of the RAP for the Project Affected Persons. It is also responsible for establishing the Compensation Oversight Board (COB), the provincial advisory team and the DDCARC as well as approving regulations on the operations of the COB and allocating responsibilities to its members. The TNPPC is specifically responsible for approving: (i) (ii) The unit costs of compensation for land and other affected assets and allowances and subsidies to the Project Affected Persons; and Sites for relocation, site planning, detailed designs and bidding documents of relocation sites as well as results of bidding evaluations and selection of contractors for site construction. The TNPPC must also redress complaints and grievances at the provincial level (third level) of the complaint mechanism set forth for the Project (see CHAPTER 10). Nuiphaovica, Vietnam Page 100

135 6.2.1 Key Provincial Departments A number of key provincial Departments such as the Department of Finance (DOF), Department of Construction (DOC), Department of Natural Resources and Environment (DONRE), and Department of Agricultural and Rural Development (DARD) etc. also have responsibilities including: (i) (ii) (iii) (iv) Reviewing the current compensation unit costs and revising them (if necessary) to meet with current replacement values and submitting these to the TNPPC for the approval; Reviewing the draft resettlement policy, the RAP and providing comments and feedback to Nuiphaovica for improving and finalising these documents; Reviewing the proposed relocation sites, their planning, detailed designs, and then providing advice to the TNPPC to assist in its decision making; and Coordinating with Nuiphaovica as relevant to their Department in organising surveys, and conducting activities for RAP preparation and implementation The Compensation Oversight Board (COB) and Provincial Advisory Team The COB was established according to Decision No. 944/QD-UB dated May 05, 2004 of TNPPC. It is headed by a Vice Chair of the TNPPC and the Director of DONRE and comprises 20 members who are representatives of: Key Provincial Departments; Local Unions / NGOs (e.g. Women s Unions, Farmer s Associations, the Public Relations Service etc.); Thai Nguyen Newspaper and Broadcasting Services; Religious Boards; Dai Tu People s Committee; and Nuiphaovica. The advisory team comprises nine members from DONRE, the Department of Finance, Construction Department, TNPPC officers and Nuiphaovica. All of the COB members are either governmental officials or Nuiphaovica staff. Therefore, with the exception of Nuiphaovica staff, the members of the COB are and will be working only part time (on this Project). Regulations for the COB and detailed responsibilities of each member were also prepared and approved by the TNPPC (Decision No. 1705/QD-UB; dated July 20, 2004). The COB and advisory team hold meetings periodically to review the RAP preparation and implementation Nuiphaovica, Vietnam Page 101

136 status and propose solutions for coming activities. As described in the regulations, the COB and advisory team are mainly responsible for: (i) (ii) (iii) (iv) (v) Assisting the TNPPC in coordination with Nuiphaovica to mobilise and implement the Project, including all relevant aspects of the RAP to make sure that affected person can at least restore their livelihoods and access benefits from the Project; Organising the participation of key stakeholders during RAP preparation and implementation; Implementing the RAP effectively together with all relevant parties; Monitoring and evaluating the results of ongoing RAP implementation; and Redressing complaints at the provincial level. 6.3 Dai Tu District People s Committee (DTDPC) The DTDPC is responsible for directing its DDCARC and Nuiphaovica on all resettlement activities, including: (ii) (iii) Announcement of the cut-off date and counselling of people in the Project area not to build new houses or plant new perennial trees and crops; Directing relevant departments and affected communes to closely coordinate with Nuiphaovica, in: a. Carrying out the socio-economic survey and the census and inventory for affected households and properties; and b. Seeking replacement land for relocation of the PAP and land for farming; (iv) (v) (vi) (vii) Proposing solutions for employment generation and economic rehabilitation for severely affected PAP; Reviewing and approving relocation sites and plans for compensating and relocating PAP; Granting land use right certificates and building ownership to PAP at new sites; and Addressing complaints at the district level (second level) of the complaint mechanism set forth for the Project (see CHAPTER 10). Nuiphaovica, Vietnam Page 102

137 6.4 Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) The DDCARC was established according to Decision No. 1505/QD-UB of the TNPPC dated June 28, It is composed of 15 members from key district departments, leaders of the affected communes and resettlement managers of Nuiphaovica. Except for staff of Nuiphaovica, remaining members of the DDCARC are working for district departments and therefore, they will work part time for the DDCARC. The DDCARC will play the main role in implementing RAP together with Nuiphaovica and is responsible for day to day activities and tasks. In coordination with Nuiphaovica and consultants, the DDCARC will: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Review and give feedback on the draft resettlement policies; Carry out socioeconomic surveys and census and inventory of affected households and properties; Seek replacement land for relocation sites and review planning and detailed designs of the sites before submitting it to the TNPPC for their appraisal and approval; Organise consultation with and participation of all key stakeholders for the RAP preparation and implementation; Review the compensation unit costs and recommend adjustments to the TNPPC (if necessary) to make sure that the compensation unit costs are equal to replacement values; Finalise entitlement forms for the Detailed Measurement Survey (DMS) see also Section 4.8.1, according to entitlement policies set forth in the RAP. Prepare a sub-compensation plans for each operational sector, arrange for them to be approved by the TNPPC, and then pay entitlements to each PAP as per the schedule proposed; Distribute information to key stakeholders on the resettlement policies and make these available at the offices of the district and affected communes; Address complaints together with commune, district and provincial People s Committees, and Internally monitor implementation of the RAP together with affected households. Nuiphaovica, Vietnam Page 103

138 6.5 Commune People s Committees The People s Committees of affected communes and their working groups will be specifically responsible for: (i) (ii) Day to day contact with their people and attending to their concerns relating to compensation and relocation; Helping the DDCARC, Nuiphaovica and its consultants carry out all activities such as: a. Consultation with PAP, information campaigns, socio-economic surveys, and the census and inventory of assets for households and properties; b. Seeking land for relocation sites and farming, delivering entitlements to the PAP and assisting them with moving to relocation sites; and c. Implementing economic and livelihood restoration programs as well as programs and activities for vulnerable groups. (iii) (iv) Redressing complaints at the commune level (first level) of the complaint mechanism set forth for the Project (see CHAPTER 10); and Participating in monitoring aspects of RAP implementation with affected households such as compensation delivery, relocation site development, and evaluation of the restoration of livelihoods after relocation. Commune Working Groups have been established for the Nui Phao Mining Project in order to ensure that commune representatives can actively participate in resettlement program development and implementation. For example, working groups have been established for the detailed measurement survey whereby working group members participate in the asset and inventory process for affected households with Nuiphaovica and their consultants. Working group members are chosen from affected households and other representatives by commune leaders together with Nuiphaovica. 6.6 Project Affected Persons (PAPs) Project Affected Persons are responsible for: (i) (ii) (iii) (iv) Coordinating with the survey team in carefully checking and signing off their affected lands and other assets as well as their entitlements; Participating in all phases of RAP preparation and implementation; Providing feedback on improving the quality of the RAP and suggesting solutions for its effective implementation and Moving to new sites in a timely manner after receiving full entitlements. Nuiphaovica, Vietnam Page 104

139 Project Affected Persons are also responsible for using the designated complaint mechanism set forth for the Project (see CHAPTER 10), for submitting and making complaints or grievances. 6.7 Key Responsibilities Key activities for development and preparation of the resettlement program are summarised in table 6.1 together with group or groups responsible for each activity. Table 6.1 Key Activities and Responsible Organisations No. Activity Responsibility 1. Institutional arrangements for the compensation and resettlement program 2. Identification of operational areas and proposed relocation sites and establishing bench marks on the ground 3. Announcement of the cut-off date to relevant stakeholders (May 12, 2004) 4. Ensuring that PAP do not build new houses and plant new long term trees, fruit trees etc 5. Socio-economic survey, census and inventory of impacted assets, including survey impacts by land acquisition for relocation sites (two phases) 6. Prepare a draft Resettlement Policy Framework Nuiphaovica All People s Committees from provincial to district levels and Nuiphaovica Nuiphaovica, DONRE and DDCARC Dai Tu District and affected commune People s Committees Nuiphaovica and affected commune authorities Dai Tu District and affected communes People s Committees, Nuiphaovica and its consultants 7. Review and give feedback for final resettlement policies 8. Finalise resettlement policies and have them approved by TNPPC 9. Prepare an interim and then final RAP and ensure its approval by TNPPC and the Board of Management of Nuiphaovica 10. Prepare terms of reference, surveys, planning and detailed design, bidding documents for relocation sites. Bidding evaluation, selecting contractors for site construction etc 11. Supervise construction of relocation sites and compensation payments 12. Implementation of the RAP and subsequent monitoring and evaluation COB, unions and associations, Dai Tu District and affected communes People s Committees, affected households and people Department of Finance, DONRE, Department of Construction, Dai Tu District People s Committee and Nuiphaovica. Nuiphaovica and DDCARC Nuiphaovica, DDCARC and consultants DDCARC, Nuiphaovica, Commune authorities and affected household representatives COB, DDCARC, Nuiphaovica, commune authorities, PAP and independent monitoring evaluation aagency/ies. 6.8 Staff Resources The main experience that local authorities and the Dai Tu District Compensation, Assistance and Resettlement Committee have with regards to involuntary resettlement is in the implementation of Nuiphaovica, Vietnam Page 105

140 national policies where, there is less involvement of key stakeholders and host communities in the planning and implementation of such policies. This is the first time these authorities will be involved with an involuntary resettlement program designed in accordance with international standards and guidance will be required. Nuiphaovica will prepare implementation arrangements and plan public consultation and information disclosure sessions with the local authorities and key stakeholders to ensure they clearly understand the Project, the resettlement policies and the requirements of the Resettlement Action Plan. To prepare and implement the RAP effectively, adequate arrangement of human resources, working facilities and budget are required. Table 6.2 summarises human resources and working facilities allocated for RAP preparation and implementation. Table 6.2 Staffing and Working Facilities for RAP Implementation No Organisations/ Institutions Number of Members Total Full Time Part Time Working Facility 1 COB (Nuiphaovica staff) 2 DDCARC (Nuiphaovica staff and District Officials) 20 (Provincial Officials) 11 (District Officials) Office at Thai Nguyen DONRE - 01 computer - 01 photocopy - 01 fax and telephone - Mobile phone cards - 03 computers - 01 Printer - 06 desks 3 Nuiphaovica Varying Offices in Dai and HaNoi - 06 computers - 01 car - 02 motorbikes 4 Provincial Advisory Team 5 Commune Working Groups (Nuiphaovica staff) 07 (Provincial Officials) 24 None 24 (Commune Cadres) Operating from the Provincial offices and their resources 06 desks and 06 chairs Costs for the COB and DDCARC activities and allowances for working groups are included in the Nuiphaovica cost estimate (see CHAPTER 13). Nuiphaovica, Vietnam Page 106

141 Figure 6.1 Institutional Chart Nuiphaovica (Board) Thai Nguyen Provincial People s Committee (TNPPC) Compensation and Resettlement Unit Compensation Oversight Board (COB) Resettlement Advisers External Relations Manager Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) Manager Survey, Data, Cost Estimate Manager Economic Restoration, Public Works Manager Relocation Sites & Supervision Resettlement Facilitator Training Coordinator Ha Thuong People s Committee Hung Son People s Committee Resettlement Assistants Tan Linh People s Committee Unions, Associations and Non-Governmental Organisations Other People s Committee (as relevant) Nuiphaovica, Vietnam Page 107

142 CHAPTER 7. RELOCATION SITES AND REPLACEMENT OF PUBLIC WORKS 7.1 Summary of Relocation Site Requirements and Impacts Development of the Project will involve acquisition of both residential land and agricultural land. According to the census and inventory there are 1,153 households that will be affected by 445 ha acquired for the Project operational area. The number of people living in these households is 4,276 persons. From these 1,153 households the number that need to be physically relocated is somewhat smaller at 793 households, with 2,942 persons. The total area of land to be acquired for the residential relocation sites and the market centre/handicraft workshop site is approximately 56 ha. The number of households affected by the acquisition of these sites is 637 households with a population of 2,600 persons. An estimated 83 households with 331 persons will lose land and houses, while the balance will lose agricultural land only. Almost all of the land for the relocation sites is agricultural land, for which compensation will be paid on the same basis as the land acquired for the Project operations. There are also 8 households whose residential land and houses will be affected by land acquisition at the Tan Lap site (Cat Ne/Quan Chu communes), which is designated for relocating the army facilities. Therefore, the total number of households to be relocated or rearranged at the relocation sites is 884 households. The total number of affected households is 1,910 households with a population of 7,464 persons. 7.2 Resettlement and Relocation Site Principles The guiding principles of the Resettlement Action Plan on resettlement and relocation due to loss of residential and/or agricultural land include the following: Owers of properties located in the land acquisition areas are eligible to compensation. Properties of Project Affected Persons include residential land and associated buildings and agricultural land. Eligible Project Affected Persons receive compensation against the replacement value of their affected property, at a level intended to allow them to replace their property with a similar one or an improved structure, particularly for people with poor existing houses. Eligible Project Affected Persons can either use this compensation to relocate to a site developed by Nuiphaovica or receive the compensation in cash and resettle themselves by purchasing a replacement property in a location of their choice (self-relocation). Nuiphaovica, Vietnam Page 108

143 The property of eligible Project Affected Persons is valued and compensated following the same rules whether they choose to resettle or self-relocate. Project Affected Persons choosing to relocate to a Nuiphaovica relocation site have the option to build their replacement housing themselves on a designated location or they can opt to have Nuiphaovica build their replacement house for them at the designated site. Project Affected Persons who lose agricultural land due to Project development have the option for obtaining in-kind land for land at replacement value that has been identified by the Company. However, replacement agricultural land is scarce in the nearby Project area and therefore Nuiphaovica can only offer replacement agricultural land far from the existing area (approximately 16 km). Affected infrastructure and services and other public facilities will be re-established at the relocation sites or compensated in cash and will depend on the level of people who choose to relocate to the various sites. Different types of replacement house models are proposed and offered at relocation sites including various cost structures to match the different compensation packages of Project Affected Persons. Nuiphaovica provides assistance in the design of replacement house options and will provide technical and supervisory support to Project Affected Persons who determine to build their own house at the designated relocation sites. The Company will provide various types of assistance and training to help affected people restore their income generating capacity and livelihoods at their new locations (see also Section CHAPTER 8). 7.3 Process of Seeking and Approving the Relocation Sites Nuiphaovica together with affected communes and the Dai Tu district authorities have been seeking land for replacement since 1 June The process has involved seeking potential sites for both agricultural and residential land. Nuiphaovica staff and local authorities surveyed the local area for potential sites and the options identified are summarised in table 7.1. Nuiphaovica, Vietnam Page 109

144 Table 7.1 Potential Sites Surveyed for Relocation Name Location (commune) Total area (m2) Standard plot (m2) Number of plot Hung Son village no.2 Hung Son 54, Hung Son village no.3 Hung Son 74, Khe Thuy Tinh Ha Thuong 165, Xom Trai Binh Thuan 83, Nam Song Cong Hung Son 157, Lang Cam (agricultural) Khe Vey (agricultural) Long Lanh (agricultural) Ha Thuong 22, Tan Linh 70, Cat Ne 1,750, Tan Lap (army facilities) Cat Ne 1,300,000 n/a n/a Cemetery no.1 Cemetery no.2 Cemetery no.3 Ha Thuong (Village 3) Ha Thuong (Village 12) Hung Son (Tao Village) 11,670 n/a n/a 17,950 n/a n/a 1,080 n/a n/a The first six sites are very close to the existing places of affected communities, but Khe Vey and Cat Ne are far from Dai Tu town (about 15 km). Many meetings were held with the authorities of Dai Tu district and relevant communes, local unions and affected people to obtain their suggestions and feedback on the proposed sites. The process of seeking replacement land is summarised as in table 7.2 below. Nuiphaovica, Vietnam Page 110

145 Table 7.2 Meetings and Site Visits Concerning Replacement of Land Date Participant Content 11-12/06/04 Nuiphaovica staff, Leaders of Hung Son commune and leaders of villages no.2 and no.3. Site visit to proposed relocation sites of Hung Son 2 and Hung Son 3. Review land use status and availability of land for relocation in Hung Son. Two sites were proposed by local authorities: 1-Hung Son 2 (in village 2) and 2-Hung Son 3 (in village 3). 11/08/04 Leaders of Hung Son and its People s Council. Discuss and approve for proposed relocation sites in Hung Son commune. 16/06/04 Nuiphaovica staff and Leaders of Ha Thuong commune /06/04 Leaders of affected villages and Nuiphaovica staff. Site visit to affected cemeteries and proposed new cemetery locations. Visit affected community halls, other public works and two proposed relocation sites: Lang Cam and Khe Thuy Tinh. 09/08/04 Leaders of Ha Thuong and its People s Council Discuss and approve for proposed relocation sites. 07/07/04 Nuiphaovica staff, leaders of Tan Linh commune, Directorial Board of Dai Tu Forestry Enterprise. 02/08/04 Nuiphaovica staff and Directorial Board of Dai Tu forestry Enterprise /08/04 Nuiphaovica staff, leaders of Dai Tu district, Tien Hoi, Binh Thuan and Hung Son commune authorities /08/04 Nuiphaovica, leaders of Dai Tu district, Tien Hoi, Binh Thuan and Hung Son commune authorities. 05/08/04 Nuiphaovica staff, leaders of Dai Tu district and representatives of the army KV3, KV10. 08/09/04 Nuiphaovica staff, leaders of Dai Tu district, representatives of the army KV3, KV 10 and leaders of Cat Ne commune. Review land use status and availability of land for relocation in Tan Linh commune. Site visit to Khe Vay proposed relocation site. Discuss availability of land at Khe Vey site for residential land and the number of households that would be offered with contracts of forest protection after relocation. Discuss and visit to the Nam Song Cong and Xom Trai proposed relocation sites. Finalise selection of Nam Song Cong and Xom Trai proposed relocation sites. Meeting with Cat Ne authorities, visit to proposed sites in Cat Ne (for relocation of army facilities and agricultural replacement land). Visit two proposed sites (Tham Thinh and Tan Lap) for relocating army facilities and agreed that Tan Lap site is more suitable due to less impacts on individuals located in the area. 12/11/04 Nuiphaovica staff, leaders of Cat Ne commune. Visit Long Lanh site (site proposed for a combination of agricultural and residential land) and agreed that more than 100 ha in this site could be used for relocating of affected people who prefer to continue with farming. 06/01/05 Nuiphaovica staff, leaders of Cat Ne commune and Director of Tea Stock Company of Quan Chu. 08/03/05 Nuiphaovica staff, leaders Dai Tu district, Cat Ne commune and Director of Tea Stock Company of Quan Chu. Review of land management between Cat Ne commune and Tea Stock Company of Quan Chu and current land use status. Discuss about land availability for relocation of agricultural activities and agreed that about 175 ha of agricultural land in this site would be available for people affected by the Nui Phao Mining Project. Based on the above agenda, the Dai Tu People s Committee, the Dai Tu People s Council and the Party of the district approved these proposed sites and submitted their proposal to the Provincial Construction Department for their approval (letter no. 998/TT-UB; DATED 07/12/2004). After their consideration the Department of Construction agreed and submitted its proposal for 08 sites Nuiphaovica, Vietnam Page 111

146 (letter no. 615/QH-XD; DATED 09/12/2004) to the Thai Nguyen Provincial People s Committee for final approval. 7.4 Agricultural/Productive Land Loss and Potential of Replacement Land Replacement agricultural land is scarce in the near vicinity of the Project area. Nevertheless, Nuiphaovica together with local authorities has sought to find replacement agricultural land or offer the opportunity for re-establishment of agricultural activities on land acquired by the Project in order provide as much land for land compensation as possible to affected households. The agricultural land acquired for the Project operational area is approximately ha plus 54 ha for feasible relocation sites. Nuiphaovica has developed the following options to offer the opportunity for affected households to continue agricultural or similar activities: Agricultural land in Sector 6-safety area (approximately 110 ha) is intended to be made available for affected households to continue farming. As negotiated with relevant authorities, land owners in this area will compensated and relocated, but then as part of economic restoration programs be permitted to continue with agricultural activities throughout development of the mine and in accordance with relevant safety precautions and requirements as the pit is excavated. An estimated 85 ha of land (agricultural and forestry land) at the existing site of the K10 army facilities will be allocated to affected families (after relocation of the army facilities). The land currently occupied by the army will be purchased by Nuiphaovica although not all of this land is likely to be required for Project operational activities and the Company to the extent practical will allocate this to affected households. Agricultural land (more than 175 ha) has been identified and will be available at the Long Lanh (in Cat Ne/Quan Chu commune) and Khe Vey sites (Tan Linh commune) for the remainder of affected households if they would prefer to continue farming. These sites are both at more than 15km from the existing affected areas. A small parcel of agricultural land, an estimated 11.3 ha, is also available at the Khe Thuy Tinh residential relocation site that can be allocated to affected households who opt to relocate to this site. Agricultural land plots sizes will be determined based on the number of affected families wanting replacement land in the different areas where it is available. Agricultural plots will be allocated based on the amount of productive land loss of each affected household. For example, at the Khe Thuy Tinh site agricultural land will be divided into plots and allocated to eligible households once it is confirmed what number of affected families will opt to reside at the Khe Thuy Tinh site. At the same time, affected families that opt to receive replacement land at the Long Lanh site are likely to be allocated with land equivalent to their total agricultural land loss as greater land is available at this site. Nuiphaovica, Vietnam Page 112

147 7.5 Consultation and Participation for Proposed Relocation Sites Two rounds of consultation were carried out by Nuiphaovica in the period from June 2004 to April 2005 for the Resettlement Action Plan preparation phase (see also CHAPTER 9). Consultations were conducted using different methods, such as meetings, questionnaires, direct interviews with affected people and group discussions. There were 60 representatives of affected villages taken to the proposed relocation sites and many meetings were held with local authorities from provincial to village levels and local unions (such as the Women s Union, Farmer s Association, Veteran Association and the youth etc.). Meetings also involved direct participation of more than 1,000 people in all affected villages (see Table 7.2). During these site visits, meetings and other activities, Nuiphaovica clearly informed local authorities, affected people and other key stakeholders of the characteristics of the proposed sites. They were informed of the physical infrastructure and social services that would be developed at each site, the principles of compensation, proposed plot allocation and the procedures for relocating to the sites. Details of these meetings are described in CHAPTER 9 on public consultation and participation. In addition to seeking input about relocation sites during face to face meetings and site visits, Nuiphaovica sought to obtain specific preferences of affected people for proposed relocation site options using a consultation questionnaire. Consultation questionnaires were distributed to each affected household and these questionnaires included key information on each relocation site, the compensation policies of the Company and requested affected households to provide their choices of compensation mode (plot at the proposed relocation sites or cash for land plus bonus for selfrelocation) and preferred relocation site option. An example of one of the questionnaires used for the survey is provided in Annex A. The first survey was conducted in August/September 2004 and involved sending the questionnaire to 876 households. All questionnaires were collected from households although some surveys were completed partially with answers provided to only some questions. A further survey of 854 households was completed during the second round of consultation activities in April 2005 and a total of 465 households submitted their feedback to Nuiphaovica. The remaining households did not return the questionnaires and therefore did not provide their preferences regarding relocation mode and site options. Nuiphaovica continues to try to obtain feedback from all affected families and engages daily with households on their opinions and choices on a range of different proposals. However, the Company recognises that some affected people may not formally provide their preferences or confirm their choices until later in the resettlement program. The key results from the survey related to relocation site options and proposals are provided in tables 7.3, 7.4 and 7.5. Nuiphaovica, Vietnam Page 113

148 Table 7.3 Residential Land Compensation Preferences Choice of Affected Households Total Ha Thuong Hung Son Tan Linh Households who prefer residential land for land % 50% 41.6% 8.4% Households who prefer cash for residential land % 72.9% 18.8% 8.3% Households who prefer either land or cash for land % 60.4% 35.2% 4.4% Households who gave no decision % 77.9% 17.7% 4.4% Table 7.3 illustrates that approximately 20% of households prefer cash for land and will manage their own self-relocation. Table 7.4 Agricultural Land Compensation Preferences of Affected Households Agricultural Land Total Ha Thuong Hung Son Tan Linh Phuc Linh No. of households that can buy land themselves 55.69% 50.63% 60.96% 79.71% 66.67% No. of households that cannot buy land themselves No answer % 19.75% 7.88% 7.25% 33.33% % 29.62% 31.16% 13.04% 0.00% The figures in this table indicate that about 50% of affected households believe that they could purchase agricultural land themselves. Nuiphaovica, Vietnam Page 114

149 Table 7.5 Affected Households Choice of Relocation Sites Relocation site Priority Ha Thuong Hung Son Tan Linh Total Nam Song Cong Xom Trai Hung Son 2 Hung Son 3 Khe Vay Khe Thuy Tinh Lang Cam Long Lanh- Cat Ne First priority Second priority First priority Second priority First priority Second priority First priority Second priority First priority Second priority First priority Second priority First priority Second priority First priority Second priority Self-relocation First priority Second priority No choice given The results in table 7.5 indicate that approximately 6% of affected households would opt to selfrelocate and the majority of households who will move to relocation sites are likely to opt for the Nam Song Cong and Hung Son 2 sites. Less than three households opted for the Xom Trai residential site. Nobody opted for land at the Khe Vey site, while only one household showed interest in agricultural land at the Long Lanh site. A more recent review of affected households and their choice for relocation sites indicates that 357 households have nominated to go to Nam Song Cong and 3 households to Hung Song 3, giving a total of 360 households. In addition, 44 households from Hung Son commune and 24 households from Ha Thong commune have advised that they wish to self relocate, giving a total of 68 households. This represents a total of 428 households for which nominations have been received, representing approximately 50% of the total number of affected people with residential land and house plots. These nominations are not fixed and may change in the future. Nuiphaovica, Vietnam Page 115

150 This uncertainty makes it difficult to establish priorities for development of relocation sites, however recent experience indicates that as land is required for acquisition by the Project, affected people are more willing to express and confirm their choice. Ongoing sessions of consultation are held during the implementation phase to confirm the choices of relocation mode and preferences for relocation sites. 7.6 Relocation Site Selection From the results of consultation described above and to balance the requirements for land with availability, the following sites were selected for relocation/replacement options: Site #1 Nam Song Cong (residential site); Site #2 Hung Son 2 (market centre and other economic restoration activities); Site #3 Hung Son 3 (residential site); Site #4 Xom Trai (residential site); Site #5 Khe Thuy Tinh (residential site, with limited agricultural land available); Site #6 Long Lanh (agricultural land); Site #7 Khe Vey (agricultural land); and Site #8 Army facilities relocation site. There are four proposed residential relocation sites, one site for economic restoration activities and three other sites (two for agricultural land and one site for the relocation of the army facilities). There is also a site for resettlement of the cemetery areas in Ha Thuong commune. Long Lanh and Khe Vey sites (agricultural) are held in reserve for affected households that may choose to opt for replacement land instead of cash compensation as the resettlement implementation phase progresses (see also Section 7.4). Nuiphaovica and local authorities will help any affected household who wishes to purchase land at these sites. Every effort will also be made to allow affected households now living along National Road No. 37 to move along the new section of road after realignment (see below). 7.7 Residential Plots The Company has designed plots in consultation with local authorities and affected households. Plot sizes at the different relocation sites are based on the types of land available at each of the sites, the zoning requirements and recommendations of district authorities (e.g., Nam Song Cong is in a more urban area and plots are therefore smaller than for some other sites). According to the suggestion of the District and relevant Provincial departments, the sites close to Dai Tu will be no less than 125 m2, while for sites further away from Dai Tu town and therefore in more rural Nuiphaovica, Vietnam Page 116

151 areas the plot size will be no less than 300 m2. The number and size of plots available at proposed relocation sites are shown in table 7.6. Table 7.6 Residential Plots Available at the Selected Sites for Relocation Site No Name (in a priority ranking) 1. Nam Song Cong (phase 1) Nam Song Cong (phase 2) Location (commune) Hung Son Tien Hoi Total area (m 2 ) 157,989 90,211 Standard plot (m 2 ) Number of plots 3. Hung Son village no.3 Hung Son 74, Xom Trai Binh Thuan 83, Hung Son village no.2 Hung Son 54, Khe Thuy Tinh Ha Thuong 165, Totals - 626,299-1,317 The total number of available plots from these sites is about 1,317 and the number of affected plots is approximately 975 and thus availability and requirements for relocation site plots are met. However, approximately 20% of households are likely to be allocated two plots in the Nam Song Cong site, and therefore the number of plots required is increased. At the same time, there are additional options for residential plots along the new section of the realigned National Road No. 37. The number of plots required by affected households is also impacted by self-relocation and/or cash compensation preferences of some households. According to consultation results and ongoing discussions with affected people approximately 10% of households in the Project operational area prefer self-relocation or cash compensation for residential plots (without buildings). Eight households affected in Tan Lap site (Cat Ne and Quan Chu communes) also prefer cash compensation with a bonus for self-relocation. From the above analysis and in combination with the topographical and geological conditions at the proposed relocation sites, three sites (Nam Song Cong and Hung Son 3) will be given priority and developed in 2006 and 2007, while the remaining sites will be developed later based on the remaining number of households who still need residential plots and their preference for the remaining sites. At the time of writing it is likely that the Xom Trai site may not be developed due to sufficient capacity in the other sites and lack of interest from affected households (see Section 7.8 below) Allocation of Residential Plots Residential plots within the relocation sites are allocated to resettling households according to their preference and their existing affected plot. The allocation of plots will be according to the DDCARC approved allocation processes and Nuiphaovica policies. Specifically, plots will be allocated with the following considerations: Nuiphaovica, Vietnam Page 117

152 (i) (ii) (iii) (iv) (v) (vi) Land will be provided with a boundary survey permit, and joint title provided to the husband and wife (or equivalent). Plots are to be prepared for house construction (the household is not required to move if plot and infrastructure are not ready). Infrastructure at relocation sites is to be in place before the households are required to move to site. Every effort will be made to relocate those now living along National Road No. 37 to the new section of National Road No. 37. Site planning for relocation sites should initially attempt to incorporate the existing houses into the new site plan giving these owners first priority to select a new plot. This is related to displaced households at relocation sites who will be rearranged. Residential land for land compensation will be provided according to the following rules: a. If compensation value of original plot is equal or less than cost of new plot, the household will receive the new plot at no additional cost to the household; b. If compensation value of original plot is higher than cost of new plot, the household will receive the new plot at no cost to the household and the difference in cash; c. The cost of the new plot will be the compensation for land at the relocation site and the cost for site physical infrastructure. The cost does not include the cost of earth works and providing community infrastructure (on and off site-infrastructure) or any social services; d. Some affected families will be allocated more than one plot (depending on the area of original residential land lost and if there are more 7 persons or one family living in one affected household or the household has unmarried sons over 20 years of age); and e. All households affected by residential land aquisition with or without a building on the land (either in the Project operational area or in the relocation sites) will be entitled to plots at the relocation site or cash compensation at full replacement cost according to their choice. Family, neighbours, social groups and networks can request to be kept together and Nuiphaovica will make every effort to accommodate such requests. For example, the Catholic community in Ha Thuong Commune have requested to be relocated together and Nuiphaovica is committed to seeking appropriate locations for this community to remain together. Nuiphaovica, Vietnam Page 118

153 Based on consultation results Nuiphaovica does not forecast issues with affected households competing for the same plots as most families have indicated a preference for the Nam Song Cong site, which if fully developed, has sufficient capacity to accommodate all affected households Affordability Analysis on Purchasing Plots at Relocation Sites The Resettlement Action Plan has been developed on the principle of replacement cost and as such affected people will not have to pay any additional costs for a residential plot at any of the relocation sites. Nevertheless, Nuiphaovica has completed an affordability analysis to ensure that most of the affected households can buy plots at the relocation sites with their compensation for affected residential land. According to initial planning and analysis, unit cost estimates for relocation site plots (not including the cost of providing earth works and community infrastructure and social services) are within the range of compensation payments for affected residential land. Example cost estimates for residential land at the relocation sites are as follows: VND 650,000/ m2 for the Nam Song Cong site; VND 200,000/ m2 for the Xom Trai site; VND 200,000/m2 for the Hung Son No.2 site; VND 150,000/m2 for the Hung Son No. 3 site; and VND 60,000 for Khe Thuy Tinh site. These costs are based on a preliminary assessment undertaken by Nuiphaovica and its consultants and consider recent land transactions in the different localities. Actual unit costs will be calculated after receiving the estimates for detailed planning of relocation sites and will be officially decided (approved) by the Thai Nguyen Provincial Peoples Committee (see also Section 13.3). Compensation unit costs for residential land will vary based on the location of the affected areas and according to the unit costs issued by the TNPPC (Decisions no. 2686/2004/QD- UB dated November 14, 2004). According to the inventory of affected residential land, approximately 123 households will be compensated a unit cost of VND 700,000 VND/m2; 196 households will be compensated at VND 400,000 VND/m2; and the remaining households will be compensated at VND 130,000 VND/m2. Thus, all of the affected households will be able to purchase plots at relocation sites. 7.8 Site Planning and Development Nam Song Cong Relocation Site The Nam Song Cong site is proposed to be developed in two phases. The land for phase 1 of the Nam Song Cong site belongs to Hung Son commune and is very close to Dai Tu town. The total area is about 157,989 m 2. It will be divided into 500 standard plots with an area of 125 m 2 each. The land for phase 2 of the Nam Song Cong site belongs to Tien Hoi commune and is adjacent to Nuiphaovica, Vietnam Page 119

154 the Hung Son land. The total area is about 90,211 m 2 and will be divided into approximately 300 standard plots also with an area of 125 m 2 each. The proposed physical and social infrastructure includes: Main road 10.5 m wide with asphalt pavement and with sidewalk of 0.5 m width each side. Lighting and drainage systems. Water supplies (drilled wells) and water quality treatment systems. Social services such as one health care centre (1,500 m 2 ); infant school and two kindergartens (4,500 m 2 ); one primary school with five classrooms of 50 m 2 each. Households affected with more than 200 m 2 of existing residential land will be eligible for two plots at Nam Song Cong as plots offered are smaller in size due to the urban location of this site Xom Trai Relocation Site Xom Trai site belongs to Binh Thuan commune and is about one km from Dai Tu town. The total area of this site is about 83,662 m 2 it will be divided into 200 plots each with an area of 300 m 2. The proposed physical and social infrastructure includes: Main road 06 m wide with asphalt pavement and with sidewalk of 2 m width each side. Inter-roads of 3 m wide with asphalt pavement and with sidewalk 1.5 m width each side. Lighting with a transformer, drainage, water supply (drilled wells) and water quality treatment systems. Social services such as one health care centre (1,500 m 2 ); an infant school and two kindergartens (4,500 m 2 ); primary school with five classrooms of 50 m 2 each; and a community hall. To date, limited interest (less than three families) has been shown in the Xom Trai relocation site and therefore this site is held in reserve and its development potential remains unknown Hung Son No.3 Relocation Site This site belongs to Hung Son commune and the total area is about 74,200 m 2. The site will be divided into 112 plots of 300 m 2 each. This site is close to an existing primary school with 16 classrooms and 489 pupils and some other social services. The proposed physical and social infrastructure includes: Nuiphaovica, Vietnam Page 120

155 Main road of 6 m wide with asphalt pavement and with sidewalk of 2 m width each side. Inter-roads 3.5 m wide with asphalt pavement and with sidewalk 1.5 m width each side. Lighting with a transformer, drainage, water supply (drilled wells) and water quality treatment systems. Social services such as health care centre (1,000 m 2 ); infant school kindergarten (3,000 m 2 ); upgrading of an existing primary school with four new classrooms and community hall (500 m 2 ) Hung Son No.2 Relocation Site This site belongs to Hung Son commune located at the corner of National Road No. 37 and the road to Nui Coc (tourist area). This site has been designated for economic restoration programs including a market centre, mushroom farming workshop and handicraft, garment and toothpick manufacturing. The total area of this site is about 54,400 m 2 and it will be divided into 125 plots of 300 m 2 each. The proposed physical and social infrastructure includes: Main road of 6 m wide with asphalt pavement and with sidewalk of 2 m width each side. Inter-roads 3.5 m wide with asphalt pavement and with sidewalk 1.5 m width each side. Lighting with a transformer, drainage, water supply (drilled wells) and water quality treatment systems. Social services such as infant school and kindergarten (800 m 2 ). Market centre and workshop for handicraft manufacturing are also to be constructed on this site. Nuiphaovica, Vietnam Page 121

156 Nam Song Cong relocation site Hung Son 3 relocation site Nuiphaovica, Vietnam Page 122

157 7.8.5 Khe Thuy Tinh Relocation Site This site belongs to Ha Thuong commune and is about 1.5 km from National Road No. 37. The total area of this site is about 165,837 m 2 and it will be divided into approximately 80 plots of 400 m 2 while the remaining land will be allocated to affected households for farming (an estimated 112, 938 m 2 ). The proposed physical and social infrastructure includes: Access road, 3 m wide with tar mac and pavement. Transmission line to the site with one substation, water supply (drilled wells) and water quality treatment systems. Social services such as health care centre, infant school kindergarten and primary school Long Lanh and Khe Vey Agricultural Sites (reserved) The Long Lanh site is located in Cat Ne commune, approximately 15 km from Dai Tu town, while the Khe Vey site is located in Tan Linh commune and is also approximately 15 km from the Project area. After two rounds of consultation, only one household opted for replacement agricultural land within the Long Lanh site and no affected families showed interest in the Khe Vey site. Notwithstanding, experience in Vietnam shows that affected people may change their preference during the period of resettlement implementation, especially farmers, as they consider land for land is always the best way to avoid risks in generating income after relocation. Thus, these sites are reserved in case affected households choose to opt for land for land compensation rather than cash for land, in which case they would be assisted by Nuiphaovica and local authorities to purchase land at these locations. Affected households can also choose to build houses at these sites if they opt for agricultural land, however this would be on a self-relocation basis as the Company is not planning to build residential sites at these locations Army Facilities Relocation Site (Tan Lap site) The total area of the K10 army facility is currently under management of KV3 and the replacement land for these facilities will be in Cat Ne and Quan Chu communes (Tan Lap site). The Tan Lap site is approximately 130 ha (equivalent to the affected area) and is currently being used for agricultural activities, in particular tea plantations. Development of this site will be the responsibility of KV3. Potential Use of the Army Facilities (land) After Relocation According to the Feasibility Study (Aker Kvaerner, 2005), out of the 130 ha of K10 to be acquired, only about 20 ha would be needed for the Project operations. Out of the remaining 110 ha, 29 ha could be used for tea plantations and 56 ha could be reallocated to affected households for a forest protection program. This land would be allocated to the affected people in Ha Thuong Nuiphaovica, Vietnam Page 123

158 commune for farming, commercial forestation or a forest protection program. This site would be available after the relocation of the army facilities (about the third quarter of 2006). The final area and land types at this site that could be allocated to affected people will be reviewed by Nuiphaovica, the DDCARC and Ha Thuong commune authorities after relocation of the army facilities. Options for land use on this site will be discussed with the people of Ha Thuong commune and will be based on regulations relating to land use in this area. Affected households who prefer agricultural land at this site would be allocated land according to the approved regulations and their compensation package will be adjusted according to the value of land allocated Re-Arrangement of Households along New Segment of Road No. 37 Every effort will be made to relocate those now living along existing National Road No. 37 to the new segment of National Road No. 37. Currently, the design of realignment for the new segment of road is being studied and therefore, the potential for plots along this new section are not yet known. Once the alternative realignment has been through detailed engineering and design, a survey to determine the number of plots available for allocation to affected households will be completed. 7.9 Detailed Design and Construction Progress Nuiphaovica has signed contracts with consultants in Thai Nguyen (Stock Company of Investment & Construction and Centre for Planning & Construction) to do surveys and detailed planning for the Nam Song Cong site and the Hung Son 2 site, incorporating the market centre and workshop for handicrafts manufacturing. On April 07, 2005, consultants presented their first draft plan to the District and Hung Son commune authorities and Nuiphaovica for comments. Detailed planning was completed by the end of The Nam Song Cong site, and the market centre, and the workshop for handicraft manufacturing will be developed first which will then be available to receive more than 200 households relocated from Sectors 1 and 2 of the Project operational area. Initial land clearing activities and civil works are scheduled to begin on the Nam Song Cong site in mid 2006 and the Hung Son 2 site shortly thereafter. Detailed design activities for other relocation sites will be developed as the Project progresses, preferences are confirmed from affected households and ongoing needs are assessed after development of these initial sites Housing and Design Affected households who are eligible and choose to move to a designated relocation site have the option to build their own house or to purchase a house that will be built by Nuiphaovica s approved construction teams. Nuiphaovica, Vietnam Page 124

159 Company Built Housing Nuiphaovica has developed in consultation with affected people and local authorities, a series of proposed house designs to be built at the different relocation sites. A total of seventeen (17) house designs have been prepared by Nuiphaovica and their architects and construction and planning consultants. The different designs have been developed with the following considerations: Suitability for different plot sizes at the various relocation sites; Design and layout of existing structures; Size of existing structures and other local residences in the area; Use of high quality materials for house construction; and A range of cost options in accordance with replacement values of existing structures. The different house designs proposed therefore represent a range of options that include: Different costs: costs range from approximately VND110 million to over VND400 million; Multiple storey designs: both one and two storey house designs are offered; Varying floor space: houses with floor space of between 100m2 to over 300m2 are available; and Finishes and fittings: a range of exterior/interior finishes and fittings can be chosen within the different options proposed. Each of the proposed designs includes minimum fixtures and fittings and a summary of common house characteristics are provided in table 7.7. Nuiphaovica, Vietnam Page 125

160 Table 7.7 Common Basic Characteristics of Different House Designs Walls / structure Roof Floors Components Water, drainage and sanitary facilities Kitchen facilities Bathroom Brick walls Concrete frames Concrete foundations Concrete floor slabs Tiled roof Common Characteristics Floor tiles to suit different room types Potable water facilities Septic tank and associated infrastructure Drainage systems Sink Area for cooking (facility to be decided by owner) Sink Shower Toilet The proposed pricing matrix for resettlement houses and plots is presented in table 7.8. Each of these designs represents a different configuration of house design and the different options are suited specifically to different plot sizes available at the different relocation sites. Figure 7.1 shows some examples of the proposed designs on offer to affected households. Nuiphaovica, Vietnam Page 126

161 Table 7.8 Estimated Pricing Matrix for Different Housing Options Offered No. Plot size Name Floors Floor space (m2) 125 m 2 Unit cost/m2 (VND) Total cost (VND) 1 CL floor 100 1,500, ,999,304 2 CL floor 100 1,500, ,501,230 3 CL floor 100 1,500, ,467,877 4 CL floor 100 1,500, ,882,914 5 CL floors 200 1,500, ,854,556 6 CL floors 200 1,500, ,103,986 7 CL floors 200 1,500, ,364,993 8 CL floors 200 1,500, ,642, m 2 NV floor 150 1,500, ,707, NV floor 150 1,500, ,871, NV floor 150 1,500, ,749, NV floors 300 1,500, ,325, NV floors 300 1,500, ,518, NV floors 300 1,500, ,842, NV floors 300 1,500, ,557, Low cost CL floor 100 1,000, ,663, options CL floors 200 1,000, ,854,219 Note: costs provided by Nuiphaovica s construction and planning consultants and architects. This matrix will be used for affected households to compare the compensation packages that they will be entitled to receive for their old property with replacement house options. Nuiphaovica will provide additional details and assist affected households to make a full comparison and informed choice for a replacement house. Prices are estimated based on basic construction with minimum finishes. Nuiphaovica, Vietnam Page 127

162 Figure 7.1 Example of Proposed House Designs at Relocation Sites Example CL1 one and two-storey house design components Nuiphaovica, Vietnam Page 128

163 Figure 7.1 (Cont.) Example of Proposed House Designs at Relocation Sites Example CL1 one and two-storey house design components Nuiphaovica, Vietnam Page 129

164 Figure 7.1 (Cont.) Example of Proposed House Designs at Relocation Sites Example NV2 two-storey house and NV1 one-storey house design components (respectively) Nuiphaovica, Vietnam Page 130

165 Figure 7.1 (Cont.) Example of Proposed House Designs at Relocation Sites Nuiphaovica, Vietnam Page 131

166 Self-Built House Construction Consultation with affected families has indicated that most households would prefer to build new houses themselves as shown in table 7.9. Nuiphaovica continues to engage with affected families to confirm their preferences as the resettlement program is implemented. Table 7.9 House Construction Preferences Household Preference Total Ha Thuong Hung Son Tan Linh Phuc Linh Q ty % Q ty % Q ty % Q ty % Q ty % Self-built house House built by the project developer Total Where families do opt to construct their own houses they will still be able to use the house designs developed by Nuiphaovica and other relevant support (if they choose) that would be offered to households who opt for Company built houses. Nuiphaovica has assessed the possibility of local organisations providing services for site planning, detailed design as well as the supply of construction materials, contractors, workers, and construction supervisors for relocation site development and housing. According to this study, in three affected communes (Ha Thuong, Hung Son and Tan Linh) and Dai Tu town, there are eighteen (18) construction teams with about 270 workers and ten (10) businesses selling construction materials. These construction teams and resources are considered to have sufficient capcity to build approximately 1,000 houses at any one time. Meetings will be held with key stakeholders before construction to conclude the solutions for house construction, as well as the responsibilities of various parties to make sure the construction and completion of houses is implemented in a timely manner. To ensure that affected families construct their houses and move in a timely manner, compensation in cash for their buildings and other assets will be disbursed in instalments based on the progress of construction of their new house. A timely moving allowance of VND 5 million will alsp be provided to households who move on time (see also Section 2.8). Supervision will be by Nuiphaovica staff and the Dai Tu District Compensation, Assistance and Resettlement Committee. To track the construction and other progress a resettlement card will be used with a format similar to that set out below. Nuiphaovica, Vietnam Page 132

167 The Proposed Resettlement Card 1 Name of householder: 2 Address: Village Commune District 3 Affected sector: 4 Time of plot allocation to the family Date Month year 5 Time to complete construction Date Month year 6 Deadline to move out of the affected sector Date Month year 7 Cash compensation and other relocation assistance First payment: Items Amount Date Signature Second payment: Items Amount Date Signature Third payment: Items Amount Date Signature A similar process will be applied to the affected households who opt for self relocation where they will build their own house. This would not apply to those households that self-relocate far away and/or choose another compensation option such as moving in with relatives Land Use Right Certificates and Building Ownership Over time, the households living at the relocation sites are at liberty to sell their plots and houses to others at the going rates. The Land Use Right Certificate and Building Ownership will be granted to the PAP as soon as a plot is allocated and the construction of housing completed. The fees for these certificates will be paid by the Project Developer Process of Compensation, Site Development and Allocation of Plots Nuiphaovica together with local authorities has established a systematic process for implementation of compensation procedures, site development and allocation of plots to affected households. The following steps are administered: 1. Communes and Dai Tu district, Nuiphaovica and the affected families and institutions to agree on the selection of proposed sites (Completed April to November, 2004). 2. Relevant provincial departments (Departments of Construction, Investment & Planning and Environment & Natural Resources) review and recommend to the Thai Nuiphaovica, Vietnam Page 133

168 Nguyen Provincial People s Committee to approve the selection of relocation sites (Completed November, 2004). 3. Tendering, review and selection of consultants for site planning will be completed by Nuiphaovica (Completed for some sites and ongoing for others). 4. Site planning to begin for the relocation sites for affected households living in the first operational sectors required for mine development. 5. Compensation payments for buildings and other affected assets of the affected households at the relocation sites and in the relevant operational sectors (about five months prior to the land clearance for the civil works). 6. Detailed design of the relocation sites, bidding documents, bidding evaluations and selection of contractors for site construction. Bidding evaluation and selection of contractors will be completed by Nuiphaovica and the Dai Tu District Compensation, Assistance and Resettlement Committee. 7. Construction of relocation sites by selected contractors and supervised by Nuiphaovica, Dai Tu District Compensation, Assistance and Resettlement Committee, representatives of the affected households and officials of affected communes. 8. The site will be ready and plots allocated to the affected households at least four months prior to land clearance of the affected area for the Project. 9. Plots will be allocated as soon as possible after compensation has been paid in order to provide households with sufficient planning and organisation time to prepare for house construction. 10. Transfer of affected people to relocation sites and other relevant assistance to quickly restore their livelihoods. 11. Land use right certificates and building ownership arranged for all affected households with the fees paid by Nuiphaovica. 12. Compensation for public land will be paid directly to the relevant government authorities. 13. Compensation in cash for community affected assets will be paid to the affected communes/communities. 14. The use of buildings on the existing army facilities (after relocation) will be discussed later between Nuiphaovica and key stakeholders. Nuiphaovica, Vietnam Page 134

169 Figure 7.2 shows the establishment of a new resettlement site and the relationship between all the major activities, while Figure 7.3 shows the process for the compensation of affected households and their transfer from the Project operational area (sectors) to the new relocation site. Figure 7.2 Relocation Site Development Process Nuiphaovica, Vietnam Page 135

170 Figure 7.3 Compensation Process and Transfer to Relocation Sites These diagrams represent the major activities to be completed as part of the resettlement program. There are a considerable number of complex sub-activities that require to be completed in order to achieve these processes. Nuiphaovica, Vietnam Page 136

171 7.13 Implementation Details for Relocation Site Development Implementation details for development of relocation sites, compensation and allocation of plots have been estimated for each of the main proposed options. Tables 7.10, 7.11 and 7.12 show the key activities required for to develop the sites and to provide an indicative timeframe required to complete the main tasks. Table 7.10 Schedule for Nam Song Cong Site 500 Standard Plots At 125 m 2 Each, Market Centre, and a Workshop for Handicraft Manufacturing In Hung Son 2 No. Activities Time Required 1 Detailed site planning and related activities 1.5 months 2 Consultation and revision of the draft planning 0.5 month 3 Submission to the appraisal committee of Thai Nguyen Province for review and comments 4 Revision and submission of final plans to Thai Nguyen People s Committee for approval 5 Decision of People s Committee on land acquisition for the Project and putting bench marks of the site on the ground 6 Detail Measurement Survey for land and other affected assets, preparation of sub-compensation plans for the site, and obtain approvals from the Peoples Committee. Subsequent payment of compensation to affected families. 7 Detailed designs for physical infrastructure and social services, and associated bidding documents and activities 0.5 month 01 month 0.5 month 01 month 01 month 8 Submit detailed designs to the People s Committee for approval 01 month 9 Invitations to bid, bidding evaluation and selection of contractors for various packages (land levelling, physical infrastructures and social services). Approval by relevant authorities for various bidding evaluations 03 months 10 Awarding of contracts to successful contractors Varies for different packages 11 Site construction under supervision of Nuiphaovica and local authorities Seventy (70) plots to be ready for housing the affected households 05 months 12 Cash compensation for buildings to the affected households, housing and moving to the site by affected people from Sector 1 Subsequent hand over of the Sector 1 area for Project development civil works 13 Completion of site construction plots ready for the affected households from Sector 2 and other sectors. Then repeat relevant steps. 05 months 04 months Nuiphaovica, Vietnam Page 137

172 Table 7.11 Schedule for Hung Son 3 (roughly 112 standard plots of 300 m2 each) and Xom Trai (around 200 plots of 300 m2 each) No. Activities Time Required 1 Detailed site planning and related activities 01 month 2 Consultation and revision of the draft planning 0.5 month 3 Submission to the appraisal committee of Thai Nguyen Province for review and comments 4 Revision and submission of final plans to Thai Nguyen People s Committee for approval 5 Decision of People s Committee on land acquisition for the Project and putting bench marks of the site on the ground 6 Detail Measurement Survey for land and other affected assets, preparation of sub-compensation plans for the site, and obtain approvals from the Peoples Committee. Subsequent payment of compensation to affected families. 7 Detailed designs for physical infrastructure and social services, and associated bidding documents and activities 1.5 month 01 month 01 month 02 months 01 month 8 Submit detailed designs to the People s Committee for approval 01 month 9 Invitations to bid, bidding evaluation and selection of contractors for various packages (land levelling, physical infrastructures and social services). Approval by relevant authorities for various bidding evaluations 3.5 months 10 Awarding of contracts to successful contractors Varies for different packages 11 Starting of construction and supervision by Nuiphaovica and local authorities 04 months 12 Cash compensation for buildings to the affected households, housing and moving to the site by affected people from relevant sectors Subsequent hand over of the sector areas for Project development civil works 13 Completion of site construction plots ready for the affected households from sectors. Then repeat relevant steps. 05 months 04 months Nuiphaovica, Vietnam Page 138

173 Table 7.12 Schedules for Khe Thuy Tinh (around 80 standard plots of 400 m2 each and Hung Son 2 (roughly 125 standard plots of 300 m2 each) No. Activities Time Required 1 Detailed site planning and related activities 1.5 months 2 Consultation and revision of the draft planning 0.5 month 3 Submission to the appraisal committee of Thai Nguyen Province for review and comments 4 Revision and submission of final plans to Thai Nguyen People s Committee for approval 5 Decision of People s Committee on land acquisition for the Project and putting bench marks of the site on the ground 6 Detail Measurement Survey for land and other affected assets, preparation of sub-compensation plans for the site, and obtain approvals from the Peoples Committee. Subsequent payment of compensation to affected families. 7 Detailed designs for physical infrastructure and social services, and associated bidding documents and activities 01 month 1.5 months 01 month 03 months 02 months 8 Submit detailed designs to the People s Committee for approval 02 months 9 Invitations to bid, bidding evaluation and selection of contractors for various packages (land levelling, physical infrastructures and social services). Approval by relevant authorities for various bidding evaluations 04 months 10 Awarding of contracts to successful contractors Varies for different packages 11 Starting of construction and supervision by Nuiphaovica and local authorities 06 months 12 Cash compensation for buildings to the affected households, housing and moving to the site by affected people from relevant sectors Subsequent hand over of the sector areas for Project development civil works 13 Completion of site construction plots ready for the affected households from sectors. Then repeat relevant steps. 05 months 04 months 7.14 Realignment and Replacement of Public Works and Affected Assets Nuiphaovica has contacted all the owners of affected public works and social services and requested them to coordinate cost estimates for compensation of these affected assets. Physical infrastructure and social services of affected communes such as inter-roads, kindergartens, infant schools, electricity/power infrastructure, community halls and cemeteries etc will mostly be compensated in kind as the structures will be reconstructed at the relocation sites and in communities receiving the resettlers (see also Section 7.8). Some affected public works will be compensated in cash to their owners. Affected public works and social services which will be compensated and/or reconstructed are listed in table 7.13 below. Nuiphaovica, Vietnam Page 139

174 6 Table 7.13 Public Works and Social Services to be Compensated/Reconstructed Name Sector/s Quantity Compensation mode Notes National Road No.37 2,3, km Realignment Cost of civil works is not included in resettlement/relocation costs but rather in feasibility study estimates Railway to Nui Hong 2,3,6 2.7 km Realignment -ditto- Power T/L 35 kv 2,3,6 2.5 km Cash to owner -ditto- Power T/L 0.4 kv 2,3, km Cash to owner -ditto- Substations 2,3,6 03 Cash to owner -ditto- TELECOM (overhead) 2,3,6 5.2 km Cash to owner -ditto- TELECOM (underground) 2,3,6 3.5 km Cash to owner -ditto- Controlling house of railway of village 2-Ha Thuong Community hall of village 1-Ha Thuong House for hearse cart of village 1-Ha Thuong Cemetery of village 1-Ha Thuong Community hall of village 3-Ha Thuong Community hall and Primary school of village 4-Ha Thuong. Community hall and kindergarten of village 2- Ha Thuong Storage building of village 2-Ha Thuong Prayer house of village 2- Ha Thuong Temple of village 5-Ha Thuong Army facility-k10 in village 5-Ha Thuong Community hall of village 5-Ha Thuong Community hall of village 1-Hung Son Treo Market of village 1- Hung Son Cemetery of village 1- Hung Son m 2 In the package for railway realignment -ditto m 2 In kind Likely to be constructed in Hung Son relocation site 2 62 m 2 Cash to affected community 2 8,597 m 2 Reconstruction m2 Cash to affected community m 2 Cash to affected community 3 88 m 2 In kind More class rooms will be constructed in an existing primary school in Ha Thuong 3 87 m 2 Cash to affected community m 2 Land and in kind for house 4 90 m 2 In kind - 4 2,973 m 2 Land for land and cash for buildings and other assets To be constructed at a new site to be decided by local people later m 2 In kind To be constructed in Nam Song Cong site m 2 In kind m 2 In kind To be constructed in Hung Son 2 site 6 4,120 m 2 In kind - On farm irrigation systems Various 9,300 m Cash to affected communes - - Nuiphaovica, Vietnam Page 140

175 6 Nuiphaovica and its main Construction Contractor will work with owners of the public assets (items from 1 to 7) to survey, design and re-construct the infrastructure in accordance with Project scheduling and other requirements. Nuiphaovica will undertake to ensure that works will be completed by approved engineers and contractors and the costs for these works are taken into account in civil works budgets that form part of the overall Project development costs. Assessment of the loss and compensation costs for INTRACO assets will be conducted by independent consultants and are excluded from the resettlement program cost estimate. Costs of compensation for land and commune level assets are incorpored into the resettlement program cost estimate (see CHAPTER 13) Environmental and Other Conditions at Relocation Sites Background All candidate relocation sites are located in areas that are characteristically similar to those from which the affected households will be moving from and therefore, the general environmental, physical and social conditions are expected to be similar. Nuiphaovica is committed to providing safe living conditions to all resettled households and to ensuring that the environmental impacts associated with the new development sites are minimised to the maximum practical extent. The Project is located in a region where elevated concentrations of arsenic and some heavy metals occur naturally in local soils. This arsenic concentration is associated with the natural surface soils and is generally not linked with the geochemistry of the ore deposit. Baseline studies in the Project area have documented elevated concentrations of arsenic, lead, and boron to be naturally present in certain areas at levels that could pose health risks to local residents. Because these natural contaminants are associated with surficial soils and not the ore mineralisation, each candidate resettlement site has the potential to have elevated concentrations of naturally occurring contaminants in the soil. Residential occupation and food production on these naturally contaminated soils is an important consideration for the Project. While Nuiphaovica holds no authority or responsibility with regard to the food that people grow and eat from the land outside the Project footprint or from where they may acquire their food in general, the Company will implement measures directed at educating local residents on the risk of arsenic exposure and controlling the quality of food served to Project staff onsite. Nuiphaovica will also implement a soil cleanup programme within the Project footprint where soils exceeding an established threshold value will be excavated and moved in an engineered facility so that the remaining soils in work areas do not represent an unacceptable arsenic exposure risk. Nuiphaovica will complete an environmental and social assessment of each proposed relocation site to ensure that site conditions are suitable for residential and/or agricultural development from both the arsenic risk exposure and environmental impact perspectives. These evaluations will include due consideration for air, water, and soil quality issues as they may affect relocated Nuiphaovica, Vietnam Page 141

176 6 individuals. Also, Nuiphaovica will provide its assistance to the local Vietnamese authorities in educating local residents on how to reduce their risk of arsenic exposure to the maximum practical extent as part of its community development initiatives. For each relocation site Nuiphaovica will provide housing, green space and community facilities. All households in the new resettlement sites will be provided a suitable fresh water supply and will be equipped with appropriate wastewater treatment systems meeting local and international standards to ensure a healthy environment and minimal impact on the environment Environmental Impact Assessment Prior to final acceptance of any relocation site, an Environmental Impact Assessment (EIA) will be completed to ensure safe living conditions and no significant impacts on the environment. Each EIA must be submitted to the provincial Department of Natural Resources and Environment (DONRE) where it is reviewed and commented on by Commune, District and Provincial officials before the relocation site can be approved for construction. Objectives for Preparing the Environmental Impact Assessment (EIA) The EIA is used by the regulators as a scientific and technical document to analyze, evaluate and forecast any adverse, direct or indirect, short or long-term impacts that may be caused by each project, including: Socio-economic impacts on agriculture and the development of business enterprises; Environmental impacts; Health care impacts; Culture impacts; National defence impacts; and Other areas as may arise. The EIA has become a legal and technical tool for environmental management and appraisal for projects in Vietnam. Legal Basis Environmental Impact Assessments will be conducted for each relocation site based on requirements under: Law on Environment Protection passed by Vietnam National Assembly on December 27, 1993 and the Ordinance signed by the President and issued on January 10, 1994; Decree No. 175/CP dated October 18, 1994 of the Government concerning the guidance for implementation of the Law on Environment Protection; Nuiphaovica, Vietnam Page 142

177 6 Circular No. 490/TT-BKHCNMT dated April 29, 1998 concerning guidance for preparation and appraisal of Registration applications for environment standards of project owners; Decree No. 143/2004/ND-CP dated July 12, 2004 of the Government concerning the amendment and supplement of Article 14, Decree No. 175/CP dated January 18, 1994 concerning the guidance for implementation of the Law on Environment Protection; Regulations on environment protection in construction sector as promulgated together with Decision No. 29/1999/QD-UB dated October 22, 1999 of the Minister of Construction; Regulations on Environment Protection of Thai Nguyen PC as enclosed with Decision No. 1593/2002/QD-UB dated June 04, 2002 of Thai Nguyen PC; Instruction No. 36/CT-TW dated June 25, 1998 of the Politburo concerning strengthening environment protection during the industrialization and modernization process; and Standards of Vietnam on environment, TCVN 1995, TCVN 2000 and TCVN Assessment Content The basic content of each relocation site EIA includes: Project description (of relocation site development); Baseline conditions; Environmental and sociological impacts; Mitigation measures; Environment monitoring program; and Conclusions. Initial assessment and monitoring of each proposed resettlement location is conducted on noise levels, air quality, soil arsenic and metal concentrations, surface and ground water quality and land elevation relative to the risk of flooding (summarised below) Key Monitoring Parameters Air Quality Air monitoring data for total suspended particulates (dust), carbon monoxide, sulphur oxides, nitrogen oxides, hydrogen sulphide, and noise levels are collected to measure existing conditions Nuiphaovica, Vietnam Page 143

178 6 in the relocation area. Calculations are then done to estimate future conditions based on the number of people and vehicles expected during the construction period and thereafter. Soils Soil quality at relocation sites needs to be of a standard that is acceptable for residential use. Sampling is undertaken to assess arsenic and metal concentrations in soils. Prevailing conditions in the area include locally elevated levels of naturally occurring arsenic and some existing contamination due to commercial activities, including artisanal mining and agriculture. A risk assessment was carried out by Pottinger Gaherty Environmental Consultants Ltd. (March 2006) to quantify the human health risks associated with the existing site conditions. The study found that arsenic concentrations in local soils below 50 mg/kg posed an acceptable human health risk for long-term residential and agricultural use (see below). Where arsenic concentrations exceed this value, Nuiphaovica will remove the contaminated soil, as per local requirements, and replace the material with fill. To this end, clean material is being sought for those locations where elevated contaminant levels are identified. Water Both surface and ground water are assessed to determine potential water supplies at the proposed relocation sites. Nuiphaovica will ensure that potable water meeting Vietnamese and International drinking water quality guidelines is provided to households at all relocation sites. Flood Elevations All relocation sites are designed to safeguard against the flooding that will result from a 25- year/24-hour precipitation event. Land surveys will be accomplished at each relocation site to establish the maximum flood level and that level then correlated to the locations of the new home sites. Where development areas are below the flood level, clean fill will be placed to where the home site foundation is at or above the maximum flood elevation Treatment Facilities Nuiphaovica will ensure that all relocation sites receive an adequate supply of potable water and an appropriate treatment system for sanitary wastes. While the water treatment plant at Nam Song Cong is being built by the local District, Nuiphaovica will also build water treatment facilities where necessary for the other sites in close cooperation with the local government officials. Once built, Nuiphaovica will donate the new treatment facilities to the local government agencies, which will maintain and operate them at their expense. Nuiphaovica will monitor the quality of the drinking water supplies and of sewage treatment effluent to document that proper treatment is occurring and will provide assistance as needed if remedial measures are required. Nuiphaovica, Vietnam Page 144

179 6 Wastewater Treatment It is planned that each house being built will be equipped with a septic tank to remove solids and trap oils and grease. Liquids will flow from the septic tanks to a waste treatment facility, where further sedimentation will occur and the effluent will be aerated to reduce the biological oxygen demand (BOD). After aeration and further settling of solids, the effluent will be chlorinated and discharged into the receiving environment. Alternatively, for some relocation areas, houses may be connected to municipal water treatment systems. Water Treatment Nuiphaovica will provide a suitable potable water drinking source to all resettled households. Baseline water characterisation indicates that most of the contaminants in local water sources are present as suspended solids and that dissolved arsenic (the primary contaminant of concern) is generally below acceptable drinking water guidelines. Water treatment will include filtration of suspended solids and chlorination to reduce bacterial counts to acceptable levels. Water quality analyses will be conducted on a regular basis to document that drinking water supplies meet applicable Vietnamese and World Health Organisation drinking water standards Key Results of EIAs Completed to Date At the time of writing, three EIAs had been completed for the Nam Song Cong, Hung Son 2 and Hung Son 3 sites, with more planned for each resettlement location. Nuiphaovica has been utilising the services of the Centre of Environment Monitoring and Protection (CEMP), located in Thai Nguyen City, to conduct the environmental assessments. Key results from the EIAs completed include: Average arsenic concentrations are typical for the area with relocation sites averaging between 4.1 mg/kg (Nam Song Cong) to 24 mg/kg (Hung Son 3). These values are well below the acceptable long-term risk for residential and agricultural soil concentration of 50 mg/kg level as determined by the human health risk assessment. Air quality at the sites remains fairly good as each location is in a predominantly agricultural area and not as likely to be impacted by commercial and other activities that affect some areas in the region. Relocation site design includes filling the area to above the flood level resulting from the 25-year/24-hour precipitation event to safeguard households from regular flooding. Both surface and shallow ground water analytical results indicate elevated coliform bacteria counts at almost all locations; however, with chlorination treatment, safe drinking water supplies can be provided at the relocation sites. Arsenic and metal levels have been found to meet drinking water standards when the suspended solids are removed through filtration. Nuiphaovica, Vietnam Page 145

180 6 Baseline data for key monitoring parameters are provided in the separate and standalone EIA reports held by Nuiphaovica at their offices Risk Assessment Summary As previously mentioned, Nuiphaovica retained Pottinger Gaherty Environmental Consultants Ltd. to assess the cancer and non-cancer risks to human health in the general Project area. The risk assessment evaluated the existing conditions in the Project site area from the worker safety perspective and also from a residential and agricultural perspective post closure. It also evaluated the Nam Song Cong relocation site. The findings of the risk assessment show: Current Site Risks (baseline condition): There are certain areas in the Project vicinity where arsenic concentrations in soil exceed international non-cancer and cancer risk objectives. Non-cancer risks for children (Hazard Quotient = 5.12) and adults (Hazard Quotient = 2.42) exceed the risk objective of 1.0. Incremental lifetime cancer risk for an adult is 4.7x10-4 (approximately 5 in 10,000). Most human health risk assessments establish the upper boundary for acceptable risk at between 1x10-4 and 1x10-6 depending on sitespecific conditions. Resettlement Risks: Soils in the Nam Song Cong resettlement site have been sampled, analysed and found to have considerably less arsenic and other contaminants present than soils in the general Project area. Cancer and non-cancer risks to children and adults who are relocated from the Project area to Nam Song Cong are reduced ten-fold to within acceptable risk objectives. Offsite Receptors: Nuiphaovica will undertake a soil remediation programme within the Project area boundary. The risk to offsite residents and farmers living and/or working near the clean-up area boundary from the inhalation of fugitive dust is 8.2x10-7, well within acceptable risk objectives (less than 1x10-4 to 1x10-6 depending on sitespecific objectives). The arsenic risk studies accomplished to date clearly demonstrates that Nuiphaovica s plan for rehabilitating the land results in environmental improvement and reduced risk to workers, the resettled people and local community members Cost of Relocation Site Development Cost estimates for relocation site development and compensation of public works are summarised in CHAPTER 13. Nuiphaovica, Vietnam Page 146

181 CHAPTER 8. ECONOMIC AND LIVELIHOOD RESTORATION MEASURES 8.1 Background Experience indicates that involuntary resettlement under development projects, if unmitigated, often gives rise to severe economic, social, and environmental risks: production systems are dismantled, people face impoverishment when their productive assets or income sources are lost, people are relocated to environments where their productive skills may be less applicable and the competition for resources is often greater. Community institutions and social networks can be weakened, kin groups dispersed, while cultural identity, traditional authority, and the potential for mutual help may be diminished or lost. Involuntary resettlement may cause severe long-term hardship, impoverishment, and environmental damage unless appropriate economic and livelihood restoration measures are carefully planned and carried out. The Nui Phao Mining Project will cause impacts not only on physical displacement but also on economic activities and income generation, especially when acquiring productive land for the Project (in the operational areas and in relocation sites). Unfortunately replacement land for farming is generally available far from the affected sites and replacement areas are often much smaller than the areas of land loss. The total number of affected households is 1,910 households, with a population of 7,464 persons. Even with great efforts to minimise land acquisition for the Project, land acquisition and physical relocation in some areas is unavoidable and therefore, this Resettlement Action Plan is developed in order to harmonise economic, social and environmental development and provide measures to assist affected people to restore their livelihoods in a sustainable manner through long-term income generation activities and associated measures. Effective economic and livelihoods restoration is key to ensuring that this resettlement program is developed in a sustainable manner to safeguard people from becoming worse off than before their displacement and to maximise their benefits from the Project and, wherever possible, improve their livelihoods after Project implementation. 8.2 Summary of Key Economic Activities and Associated Impacts In order to provide context for the economic and livelihood restoration strategy and programs set out in this chapter, summary details of impacts on land use, income generation and other activities is provided in the following sections. A summary of the status of agricultural land use of people who are living in the Project area and from the annual report on land use status of Dai Tu district is shown in table 8.1 below. Note: the data provided in the following tables represents commune level information and not only data for affected households in order to provide an overview of the agricultural activities, land use status and income generation in the area. Nuiphaovica, Vietnam Page 147

182 Table 8.1 Land Use Status in the Main Project Affected Communes No. Criteria Unit Ha Thuong Hung Son Tan Linh 1 Number of Agricultural Households 2 Paddy area Ha Household 1,619 2,137 1, Average per household Ha Annual maise area Ha Average per household Ha Annual sweet potato area Ha Average per household Ha Annual cassava area Ha Average per household Ha Annual vegetable area Ha Average per household Ha Annual peanut area Ha Average per household Ha Tea area Ha Average per household Ha Table 8.1 illustrates how people in Ha Thuong commune are mainly growing rice while people in Hung Son and Tan Linh communes grow tea for cash crops. From the census and inventory of affected land and assets, productive land impacts have also been analysed and summarised in tables 8.2 and 8.3. Nuiphaovica, Vietnam Page 148

183 Table 8.2 Impact on Productive Land in the Project Affected Area and at the Proposed Relocation Sites Impact on Agricultural Land in Operational Areas Impact on Agricultural Land in Five Residential Relocation Sites Total Commune Area (ha) Total HH Affected Site Area (ha) Households Affected Area (ha) Total HH Affected Ha Thuong Khe Thuy Tinh Hung Son Hung Son Hung Son Nam Song Cong Market centre and handicraft workshop Tan Linh Binh Thuan Xom Trai Total , ,643 Table 8.3 Affected Land in the Project Operational Area (by sectors) Sector Total Affected Households Total Persons (head) Households Affected on Agricultural Land Agricultural Land Area (m 2 ) Average Area per Household (m 2 ) ,974 1, ,568 1, , ,612 2, ,478 2, ,782 3, , ,087,218 3,855 Total 1,153 4,276 1,046 2,927,632 2,841 Tables 8.2 and 8.3 show that on average 0.21 ha will be acquired from each family, or 0.18 ha per household at relocation sites and 0.28 ha per household in the Project operational area. Nuiphaovica s studies of net income from tea and annual crop production (rice, sweet potatoes etc.) derived from interviews with 15 families in Ha Thuong, Hung Son and Tan Linh (07 men and 08 women) and with leaders of affected communes shows that, on average, net income from tea is about VND 51,000,000 and from annual crops is about VND 15,000,000 per ha per household annually. Therefore, by losing an average of 0.21 ha each affected households will be Nuiphaovica, Vietnam Page 149

184 on average subject to losses of approximnately VND 10 million per year as a result of agricultural land acquisition. Economic development in the Project area is mainly based on farming and animal husbandry. Table 8.4 below shows a summary of the different income levels for people in the affected communes. Table 8.4 Monthly Income per Head in the Project Area Income Ha Thuong Hung Son Tan Linh Total (million VND) Number of HH Percent Number of HH Ratio Number of HH Ratio Number of HH < % % % % % % % % % % % % % % % % > % % 1 1.6% % Ratio Table 8.4 shows that about 70% of people generate an income of less than VND 1,000,000 per year. This is considerably lower than those few families who earn upwards of VND 15,00,000 for annual crops or tea cultivation. 8.3 Eligibility and Entitlements for Restoration Programs The guiding principles of the Resettlement Action Plan on economic and livelihoods restoration due to loss of productive assets and income generation opportunities include the following: Individuals and households affected either by land acquisition at the Project operational area or at the relocation sites will be eligible to receive an allowance for economic and livelihoods restoration/re-establishment activities. Eligibility for each household is based on the extent of loss of income (from productive land or businesses) and priority is given to severely affected people. Severely affected people are those whose permanent loss is equal to or more than 30% of their existing income source and will be mostly those households who have more than 30% of their productive land permanently affected (especially those groups who cannot continue farming in Sectors 1, 2, 3, and 5, as well as those at proposed relocation sites and families who have businesses that will be affected). Affected people that lose less than 30% of their land and/or productive assets but whose remaining 70% is not considered economically viable will also be classified as severely affected. Nuiphaovica, Vietnam Page 150

185 Nuiphaovica assigns to severly affected persons who are eligible a minimum of VND 6 million towards the cost of one or more designated vocational training and income generation programs of their choice. The level of allowance for other affected households is based on their estimated loss of income. The number of eligible persons of each household depends on the severity of affected productive assets. The average family will have from one to two persons eligible for these economic and livelihood restoration programs. For households that can continue farming in Sector 6-safety area and in an existing area of the K10 army facility, or are allocated land elsewhere, one person will be assisted with economic and livelihood restoration assistance. Eligible persons can choose to receive a cash allowance rather than participate in a Nuiphaovica designed program or activity, although these people will remain subject to monitoring by Nuiphaovica to assess their post-relocation income levels and livelihood status. Based on the above principles it is estimated that there are approximately 3,000 affected people in need of income generation and livelihood restoration assistance. 8.4 Consultation and Identifying Potential Activities and Program Two rounds of consultation for economic restoration programs have been conducted by Nuiphaovica in the period from June 2004 to April Many meetings and discussions were held with key stakeholders (local authorities, affected people, local unions etc.) to find solutions for generating employment and income for affected people after land acquisition and relocation. Consultation and information dissemination related to economic restoration activities has been achieved through various channels and instruments similar to those described for consultation on proposed relocation site options (see Section 8.4). Key results of this engagement with affected people are summarised in tables 8.5, 8.6 and 8.7. Nuiphaovica, Vietnam Page 151

186 Table 8.5 Options for Off-Farm Activities and Affected Households Choices Activity Total Ha Thuong Hung Son Tan Linh Construction material production Animal breeding and food processing Tea planting and processing Commercial services Working for Nuiphaovica Other kinds of businesses No proposed preference Table 8.6 Preference for Other Kinds of Assistance Assistance type Total Ha Thuong Hung Son Tan Linh Loan Technical assistance (training) Other Both loan and technical assistance Table 8.7 Results of Second Round of Consultation (In Order of Preference) PAPs Option Priority Ha Thuong Hung Son Tan Linh Total Cash assistance for self-economic development Vocational training and working for Nuiphaovica Driver (car, truck, bulldozer etc.) Training for repairing motorbike, cars Training for sewing and laundry Training to be electrician, repair washing machine, Nuiphaovica, Vietnam Page 152

187 PAPs Option Priority Ha Thuong Hung Son Tan Linh Total refrigerator etc Canteen and restaurant services Basic business management Handicraft manufacturing Vocational training for labour export Training to be nurses Basic IT Mechanical Training Foreign languages Construction services and furniture manufacturing Raising husbandry Agricultural extension Administration skills These results are indicative of the likely preferences of affected people for economic and livelihood restoration assistance. However, many affected households have not provided a preferred option as they would rather wait until closer to the time when their land will be acquired and compensation payments made. Nuiphaovica encourages early involvement of affected people in a program of their choice. Experience so far shows that as land is required by the Project, Nuiphaovica, Vietnam Page 153

188 affected families are opting to access one or more of the Nuiphaovica designed economic and livelihood restoration activities Initial Proposed Program Options for Economic Restoration As a result of ongoing consultation with affected people and other stakeholders, and background research on the feasibility of different programs, a list of proposed options for income generation are shown in table 8.8. Since many affected households are yet to confirm their preferred strategy for economic and livelihood restoration, the numbers provided are indicative only. Nuiphaovica remains flexible in developing programs to suit the evolving preferences and needs of affected people. As further consultation is completed during the early stages of the Resettlement Action Plan implementation, the specific economic restoration activities and the proposed number of participants will be confirmed. Table 8.8 The Proposed Programs for Economic Restoration/Rehabilitation No Activities Number of Trainees/Participants 01 Training to work for Nuiphaovica Vocational training for handicraft manufacturing 1, Business in market centre and training in business anagement 100 and regulations of the market centre. 05 Vocational training for working in foreign countries (labour 200 export) 06 Garment industry training and employment Nurse Tire repair shop Mechanical service Laundry service Electrician Driver Restaurant (cooking, management) Administrative staff Information technology/computer skills (basic level) Hairdresser Agricultural extension/animal husbandry programs Construction services and making furniture 50 Total 3,000 Note: these figures are estimates provided by Nuiphaovica however as described above this will be modified and updated as affected people confirm their preferences for economic and livelihood restoration opportunities. The diversification of non-farm income generating activities as well as agriculture growth in the area is necessary to ensure food security, especially of the vulnerable relocated or resettled populations, and is critical to the enhancement of rural livelihoods and community resiliency. Nuiphaovica, Vietnam Page 154

189 Unless there are rapid improvements in agricultural productivity as well as alternative livelihood creation and efficiencies, those displaced by the Project will remain vulnerable and impoverished. To diversify and increase income, the Nuiphaovica economic and livelihood restoration programs will promote income-generating activities and provide vocational and technical skills training in, for example, driving, mechanical repairs, laundry service, catering, food processing and value added technologies, and training in small- and medium-sized enterprise creation and expansion to encourage development of viable businesses. Nuiphaovica through its programs will provide business development services to the existing businesses identified in the census and inventory, as well as facilitate the creation of new smalland medium-sized enterprises. These new small- and medium-sized enterprises will be created to support some of the services and needs that will arise out of a population influx into the community due to the Project. These include businesses such as tailoring for mine worker uniforms, block-making for construction, high value vegetable and fruit production, livestock / meat production, and transportation services. To support small- and medium-sized enterprise creation and expansion, Nuiphaovica will also consider the development of a revolving micro-credit and education scheme, targeting both farmer and business groups. This program would likely be established under the Nuiphaovica community development program (see also Section 0). Consultation and information dissemination for affected people on economic restoration programs is central to the ongoing development of activities by Nuiphaovica and its partners. Annex B provides and example poster that describes the different economic and livelihood restoration programs currently proposed by the Company, the eligibility criteria and some lessons learnt from different pilot programs that have already been implemented, such as mushroom growing and garment manufacturing. 8.5 Detailed Planning for Economic Restoration Activities Nuiphaovica s aim is to identify and develop economic and livelihood restoration activities and programs that help affected persons and households to re-establish their livelihoods or create new ones that are long-term and can provide sustainable and secure income sources. The Company develops its programs based on the following principles: Vocational training is central to most of the activities and programs developed by Nuiphaovica. Training and skills enhancement are essential for affected persons to obtain the necessary tools to change livelihood strategies and develop long-term and stable income sources. Nuiphaovica seeks to work with partners who can offer an actual employment or business opportunity after vocational training is completed. Contracts include written requirements for service providers to either directly employ individuals after their Nuiphaovica, Vietnam Page 155

190 vocational training is completed or in the case of other income generating activities, to provide a guarantee of finding buyers for products, such as mushrooms or handicrafts. Nuiphaovica requires service providers to incorporate supervision and support for people as they are getting started in their business venture or new job, to ensure that programs are implemented effectively and that affected people have access to any ongoing technical support they may require. Employment conditions must meet labour standards for Vietnam and Nuiphaovica visits all potential locations of employment and requires written guarantee of acceptable conditions. Nuiphaovica together with its partners and service providers, undertake extensive background research on each employment or income generating activity that is proposed. For example, for garment manufacturing, the research would involve assessment of the types of positions available and job tasks, salary levels and conditions, locations of proposed employment and so on. Whereas for handicraft manufacturing, market research would be conducted and include where to buy bamboo and at what prices, what materials and equipment would be required, where the products could be sold and the expected income from handicraft sales. Nuiphaovica provides detailed information to affected people about each program or employment opportunity to enable them to make fully informed decisions about their preferred livelihood restoration option. Company staff has daily contact with affected families. Box 8.1 provides a case study of mushroom farming initiatives currently being undertaken by Nuiphaovica with a number of affected people. Box 8.1 CASE STUDY: Mushroom Growing Economic Restoration Program Nuiphaovica has developed a mushroom growing/farming initiative for affected people that is designed to provide families with an alternative income source and livelihood strategy following land acquisition and displacement as part of Nui Phao resettlement program. Partner: Institute for Agriculture, Genetics and the Centre for Plant Biotechnology (under the Ministry of Agriculture and Rural Development). The Institute was contracted to provide market analysis, vocational training and ongoing support to participants to establish a mushroom growing enterprise. Vocational training requires approximately one week and ongoing support and supervision is initially for 3 months. Nuiphaovica, Vietnam Page 156

191 Box 8.1 continued Participants: Thirty (30) families are currently participating in the program from Nam Song Cong. These families are some of the first households to be affected through loss of agricultural land required for the relocation site development. One of the participants was identified as a candidate to be the seed bank and Nuiphaovica nad its partner worked to establish this family as a separate business to supply and sell seeds to the mushroom growers. Investment required: Approximately VND 2 million per vocational training course and for 3- months support and supervision from the Institute. A further VND 5 million is required to buy seeds and equipment. The total investment per family is therefore approximately VND 7 million. These costs are paid by Nuiphaovica for each family involved as part of their designated economic and livelihood restoration allowance. Income potential: Based on the research undertaken the average income potential is estimated at 80, ,000 VND per day (per family). Currently, families are actually able to obtain considerably higher prices as local demand is high, although people are aware that as more growers are introduced prices are likely to stabilise to these estimates. Key background features and market research results: A survey of restaurants and local markets was conduced to estimate the quantity of mushrooms that are currently available and purchased in the local area. For example, a total of sixteen restaurants were surveyed in Dai Tu town and Thai Nguyen city. In Dai Tu town surveyed restaurants reported using between 50 kg 300 kg per month of mushrooms and in Thai Nguyen city restaurants reported using between 85 kg 170 kg per month. Market research identified that local demand would be sufficient to support the quantity of mushrooms provided by these growers in the foreseeable future. However, in addition, the Company also identified other markets in Thai Nguyen province, Ho Chi Minh City and internationally in China. Nuiphaovica negotiated as part of its contract a guarantee from the Institute to directly purchase mushrooms produced from these 30 families for up to 5 years (if local demand becomes low or better prices can be obtained). The Institute has various longstanding trading arrangements with China (approximately 1,000 tonnes per year exported) and other markets, and is therefore able to provide this guarantee. Lessons learned: Nuiphaovica continually monitors the progress of each mushroom growing businesss and collects and collates lessons learned to share with other affected people. Early results and findings from the mushroom growing program have been displayed in the Project Information Centre, within village halls and disseminated to affected households through the Local Information Network. Currently, each family is producing approximately 03 kg of mushrooms per day and this supply is being readily taken up by local people themselves who at the moment buy direct from the mushroom growers. Nuiphaovica, Vietnam Page 157

192 The process for developing economic and livelihood restoration programs includes the following steps: (i) (ii) (iii) (iv) (v) (vi) (vii) Prepare a draft framework for each activity and program including key information on income potential, training requirements, selection criteria (if any) and other data. Present the details for different programs and options to affected persons, consult with them on the draft framework and make amendments or modifications as required. Develop detailed implementation plans for each program based on the interest shown and preference of affected persons. Arrange contract with service providers/employers and schedule vocational training and program implementation in accordance with the schedule of land acquisition and compensation. Implement vocational training and subsequent program activities and provide intensive ongoing support to affected people during early implementation. Monitor implementation of program activities by affected people, whether they are in a salaried position, undertaking a small business enterprise or an agricultural extension program. Monitoring will include comparison of pre and post resettlement income levels for affected households. Report on monitoring and lessons learned and prepare results and findings to consider in future program design. Disseminate findings and results from programs to other affected families to assist them in decision-making about their future livelihood restoration options. 8.6 Land-Based Programs and Initiatives Re-establishment of Agricultural Activities The total area of agricultural land acquired for the Project operational area and relocation sites is about 347 ha affecting approximately 1,643 households. However, Sector 6 is considered as a safety area for the operations and can therefore continue to be used (with appropriate precautions and/or restrictions) even though the affected people will be compensated for land and buildings. Houses will be removed in this area but agricultural activity in the sector (about 110 ha) can continue for about 282 housesholds. Thus, the actual area of agricultural land to be taken out of productive use by the Project operational areas is about ha. The total area of K10 army facilities is about 130 ha and it is estimated that approximately 85 ha could be allocated to affected families (about 80 households) in Ha Thuong commune for farming, commercial forestation or forest protection as an economic restoration program. Land use rights in this area will belong to Nuiphaovica once the army facilities have been relocated. The actual area of land that can be used for farming will be reviewed by Nuiphaovica and Ha Nuiphaovica, Vietnam Page 158

193 Thuong commune authorities at that time, and affected people in Ha Thuong will be further consulted on their ideas and preference for land use at this site. The Khe Thuy Tinh site is also being developed to allow for approximately 11 ha of farming for affected households who choose to relocate to this site. Agricultural extension programs and associated activities will be available to eligible affected people to assist those that continue with farming activities to achieve accelerated growth and intensification to improve agricultural outputs (see below) Agricultural Extension and Related Programs In the past, agriculture growth has been achieved through expanding cultivation, but the land available for new farming is limited, a situation compounded by the land take associated with the Project. In order to alleviate this, accelerated growth must involve a transition to more intensive farming and improved husbandry, applying increased inputs to farms, promoting livestock / crop integration, increasing crop diversification, and improving access to technical expertise, inputs, agricultural technology and credit. The economic and livelihood restoration program will address food security and vulnerability factors, and provide training in areas such as improved farming techniques, soil fertility, natural resource management, participatory farm management, marketing, seed production and integrated pest management in order to increase food production and productivity for farmers. For cash crops, in particular tea, programs will aim at improving the economic and social wellbeing of smallholder tea farmers and the environmental sustainability of tea farming. This will be achieved by transfer of production technologies and development of trade and market information systems around tea. These key activities will be executed by conducting capacity needs assessment of producer organisations, delivering targeted training to improve capacity of individuals/organisations, training farmers in improved tea cropping systems using discovery based learning approaches, and studying internal tea marketing to identify weakness and design interventions to make the market more efficient. Currently, specific programs related to these objectives include: Agricultural intensification programs: A pilot program for thirty people will start at in June The aim of this program is to improve sustainable tea production among tea producing farmers. Activities include training in sustainable crop production systems and tea farm management and provision and facilitation of access to agricultural inputs, equipment and tools. Initial investment for training and implementation is approximately VND 1 million with approximately VND 5 million required for fertiliser and equipment. Other agricultural extension programs will be developed for different food and cash crops as economic and livelihood restoration plans develop. Nuiphaovica, Vietnam Page 159

194 Animal husbandry programs: Animal husbandry has also been identified as a suitable income generation activity for affected people who wish to choose this option. In particular, animal husbandry has been idenfied by Nuiphaovica and local stakeholders as a feasible income generation option for elderly affected people and youth, who may have fewer opportunities to participate in other employment or business activities. The aim of the animal husbandry program will be to support affected households to participate in animal husbandry as a food source and as a primary or secondary income source. Activities will include training and advice on how best to purchase, raise, feed and breed animals as well as opportunities available to sell products locally. An initial study on income generation in the Project area shows that an annual income from husbandry of about VND 8,500,000 per household could be achieved. 8.7 Employment and Procurement Opportunities Nuiphaovica has publicly committed to employing as many local people as possible at all stages of the Project in order to ensure maximum local capture of the economic benefits of the Project. The Company s hiring policy is aimed at giving preference to hiring Project Affected Persons and at minimising influx of non-local job seekers. Nuiphaovica has established a system that gives first order preference to people directly affected by resettlement activities, second order preference to the government-recognised residents of the seven host communes (those communes where the Project area is located and where relocation sites will be developed), and next order preference to district and provincial residents. Procedures for identifying and verifying where applicants live will be carried out in conjunction with local authorities. Employment policies aim to be appropriate to local capacity and maximise opportunities for local employment. This includes graded requirements for skilled, semi-skilled, and unskilled positions, and appropriate training opportunities (see below). All employees will be subject to an employment agreement and Nuiphaovica has established wage rates at least equal to the rates published for Foreign Invested Enterprises. During the construction phase numbers are estimated at 1500 to 2000 people, with a peak period lasting five to six months. The level of potential local jobs has not yet been formally estimated and will be assessed by Nuiphaovica and its Construction Contractor. Jobs during the construction phase will be predominantly temporary although the Project intends to retain construction phase employees wherever possible into the operations phase of the mine. During the operations phase, the workforce is expected to comprise of approximately 450 local staff in a range of predominantly unskilled and semi-skilled positions. Nuiphaovica and its contractors will require numerous vendors and service providers to meet the daily operating needs of the Project and also the domestic needs of its employees. Project Nuiphaovica, Vietnam Page 160

195 employees will likely enjoy a higher disposable income level than they have prior to the Project which will add to the demand for local products and services. Nuiphaovica has a procurement policy that commits the Company and its main contractors (including the Construction Contractor) to procure goods and services as much as is feasible from locally and regionally based companies and suppliers. Currently, for example, the Company has utilised a local business to design and construct the new cemetery site in Ha Thuong commune, and various small businesses provide daily operating products to the Dai Tu office and staff. 8.8 Skills Enhancement and Training Activities Skills enhancement is central to the Nuiphaovica economic and livelihoods restoration programs for Project Affected Persons. The Company recognises the need to provide affected people with skills and resources to participate in employment generation and other opportunities that will provide a sustainable source of income and livelihood security. Nuiphaovica has identified that a proportion of funds for economic restoration measures need to be allocated to skills enhancement and vocational training to help the restoration of livelihoods for relocated/resettled persons whose productive skills may be less applicable in their new situation. The objectives of Nuiphaovica skills enhancement and training programs is to provide affected household members with education and training support to improve their socio-economic opportunities, help them to participate in Nuiphaovica s operations and income generation programs, and to improve their overall vocational skills. To increase opportunities for local people to be selected for employment in the new plant and mine, the Company will organise training courses, including English language training for people affected by the resettlement program and host commune residents. In many cases, skills enhancement programs will also be directly linked to the various income generation and agricultural extension activities undertaken by the Company. Nuiphaovica plans to identify and provide skills training that will lead to practical employment and/or business opportunities for affected people. To this end, the Company seeks partnerships with training and service providers who can also offer employment or business opportunities to affected people at the end of their training activites (see Section 8.5). 8.9 Assistance for Small and Medium Enterprises There are thirty seven small businesses operating along the segment of National Road No. 37 that will be realigned as a result of Project development. These businesses only provide a portion of the household income for their owners who also participate in other income generating activities, usually farming. These businesses will be offered first preference to relocate along the new segment of the road after realignment and/or will be offered a stall at the Market Centre to be built at Hung Son 2 relocation site. Nuiphaovica, Vietnam Page 161

196 The Market Centre at Hung Son 2 will have an area to accommodate approximately 100 stalls and there will therefore be small business opportunities for other Project Affected Persons to operate at the Centre. The Market Centre is on a main road and very close to Dai Tu town (less than a kilometre) with good access to passing traffic and townspeople. Affected people will not have to use their economic and livelihoods restoration allowance on obtaining stall facilities as Nuiphaovica will invest in the civil works to build the stalls and provide necessary common infrastructure. Nuiphaovica intends to provide stall owners and other small business operators with business management training as part of their designated allowance for economic and livelihood restoration which would also involve assisting small business operators in buying products and equipment to operate their stalls. Thirty participants will take part in the first round of business management training in July 2006 and further courses are expected to follow based on affected people s preferences for training and income generation opportunities. An area of the Hung Son 2 site is also being allocated for manufacturing and other activities, and is likely to include handicraft manufacturing, garment manufacturing and mushroom growing and sales (see below) Off-Farm Income Generation Activities A range of off-farm income generation activities have been identified as potential new livelihood strategies for affected people. Off-farm employment and business opportunities are important for affected people to enhance community resiliency and minimise dependency on agricultural livelihoods that are vulnerable to scarce land availability and shocks such as land degradation and seasonal conditions. Several of the off-farm programs proposed to date are discussed in the following sections. Further programs will be developed as the Project progresses and additional families are in need of support and assistance Garment Manufacturing Employment opportunities in garment manufacturing were identified by Nuiphaovica and local stakeholders as a potential income generating opportunity for some affected people, particularly women and young people. Nuiphaovica has sought several opportunities for employment of affected people with garment factories in Ha Noi and regionally in Thai Nguyen city. In mid 2005 the Garment Industry Company No. 10 in Ha Noi was contracted by Nuiphaovica to provide vocational training to affected people who were interested in an employment opportunity in the garment industry. Twenty five affected people expressed interest in this program and were provided with 05 months of vocational training at the factory. It was a condition of the agreement with the garment factory that they would offer employment to all trainees who successfully completed the training course. Nuiphaovica covered accommodation and other costs for trainees during the training period as part of the allowance for economic and livelihood restoratio. Nuiphaovica, Vietnam Page 162

197 Nine trainees accepted jobs and are now working in the factory. Average salaries are approximately VND 700,000 per month. Remaining trainees preferred to obtain a job in a regional area such as Thai Nguyen and seek job opportunities for themselves. As a result of interest in garment manufacturing after this initial program and a desire of many affected people to remain within the vicinity of the district, Nuiphaovica sought other opportunities within the province. The Thai Nguyen Garment Stock Company will provide vocational training to thirty affected people beginning in July This training will also last for 05 months and trainees who complete the course successfully will be offered jobs in the garment company. Nuiphaovica visits each garment factory and it is a written contract condition that employment conditions must meet the labour standards of Vietnam. Nuiphaovica also requires regular reports on each trainee and undertakes supervision of the affected people during the vocational training period and afterwards if they accept employment with a company. Other employment opportunities in garment factories will be sought by Nuiphaovica as the economic and livelihood restoration program develops and affected people express interest in these opportunities Programs for Handicraft Manufacturing Handicraft making has been identified as an income generating activity that could be well suited to the local area and in particular affected women. Nuiphaovica has conducted significant research into the potential for handicraft manufacturing options and has sought companies who could help affected people and communities in implementing this type of business. Two companies were selected to help affected people to generate income after relocation by creating and selling handicraft products. They are Tien Dong Co. Ltd., (in Ha Tay province) and Van Loc Co. Ltd., (in Gia Lam district, Hanoi capital). These companies have been operating for the past ten years and have assisted many local people to earn an income from handicraft manufacturing. Initially a program for about 1,500 people is proposed and will be divided into two steps. Step 1: a pilot program for approximately 250 people; and Step 2: expansion of the program to more than 1,000 Project affected people. Experience from two handicraft manufacturing companies is that workers could earn from VND 600,000 to 800,000 per month in handicraft manufacturing and therefore if two members from one household could participate in a handicraft program the familiy income would be about VND 14 million per year. Nuiphaovica, Vietnam Page 163

198 Pilot Handicrafts Program for 250 People Nuiphaovica reached an agreement with Tien Dong Co. Ltd to assist in the implementation of a pilot program to train approximately 250 people to make different types of products from bamboo such as baskets, curtains, tables, and chairs. The main activities and responsibilities are described in table 8.9. Table 8.9 Main Activities and Responsibility for a Pilot Handicrafts Program for 250 people No. Activity Responsibility Status / Indicative Schedule 1 Site selection for workshop Local authorities and Nuiphaovica. Done 2 Survey and site planning Consultants selected by Nuiphaovica Done 3 Land acquisition and approval for the Hung Son 2 site 4 Inventory of affected land and assets Awaiting approval from Thai Nguyen People s Committee Local authorities and Nuiphaovica and consultants Done April, 06 5 Detail design and approval Consultants selected by Nuiphaovica May to June, 06 6 Land levelling Contractors selected by Nuiphaovica and DDCARC. 7 Workshop construction Contractors selected by Nuiphaovica and DDCARC. August, 06 September, 06 9 Training Tien Dong Co., Ltd. October to November, Mobilising of manufacturing Tien Dong Co., Ltd., Nuiphaovica and local authorities. December, 06 to February, 07 This pilot program is scheduled for implementation during late 2006 to coincide with development of the Hung Son 2 market centre and manufacturing workshop. Visiting a handicraft manufacturing workshop in Ha Dong for employment generation programs Nuiphaovica, Vietnam Page 164

199 Pilot Toothpick Manufacturing Program for 18 People In addition to handicraft manufacturing, Nuiphaovica also developed a pilot program for toothpick manufacturing. The Company signed a contract with Van Loc Co. Ltd. on April 08, 2005 for training (in making toothpicks) and quality testing of trainee s products. The training was implemented for two months in Gia Lam district of Hanoi capital. There are 18 people from three affected communes (08 from Ha Thuong commune, 05 from Hung Son commune and 05 from Tan Linh commune) that were selected for this pilot program. The program started on April 15, 2005 and was completed on June 15, Nuiphaovica provided approximately VND 1,060,000 to cover all expenses such as accommodation, meals, fees and training etc. The main activities and responsibilities are described in table Table 8.10 Main Activities and Responsibilities for a Pilot Program for 18 People No. Activity Responsibility 1 Discuss with three communes and select people for training Nuiphaovica and leaders of three affected communes. 2 Draft, negotiate and sign contact for a pilot program Nuiphaovica and Van Loc Co., Ltd. 3 Arrange for accommodation, meals, training Van Loc Co., Ltd. 4 Monitoring and evaluation of training Nuiphaovica and Van Loc Co., Ltd. 5 Making productive after training Trainees 6 Verify the productive and determine salary for the first month after training. 7 Lessons learned and recommendation to local people, local authorities and management Board of Nuiphaovica. Van Loc Co., Ltd. Nuiphaovica and Van Loc Co., Ltd. Further activities to build on this pilot programme are planned for early to mid 2006 in conjunction with business management training initiatives and development of the Hung Son 2 market centre and manufacturing workshop. Eighteen people from 03 affected communes were trained for toothpick manufacturing in Gia Lam Ha Noi (pilot program) Nuiphaovica, Vietnam Page 165

200 8.11 Money Management Nuiphaovica is delivering a series of money management seminars and training courses for affected households. These seminars and courses are designed to help impacted people to apply compensation payments appropriately in support of sustainable livelihoods. To prepare for the seminars and provide focused information and advice, Nuiphaovica first conducts individual interviews with affected households in the target villages to assess the current level of understanding about money management and gather ideas for how affected households could best be supported by various money management initiatives. To date, fifteen interviews with individual households and other stakeholders have been held in Hung Son commune. A subsequent seminar with twenty households was then conducted by Nuiphaovica staff and various partners (see below) in the commune. This seminar was conducted for households who have received advanced compensation payments as part of the Nam Song Cong relocation site development. At the seminar Nuiphaovica coordinated discussions on: Strengths, weaknesses, opportunities and threats related to money management for affected people and in particular related to their compensation payments; Resources and assistance available from the different partners and Nuiphaovica to support improved money management initiatives and activities; and Proposals and ideas of the affected households. Current partners working with Nuiphaovica on these seminars include: The Bank for Agriculture and Rural Development; The Business Association of Dai Tu district; A local tea company; The Small and Medium Enterprises Association of Thai Nguyen province; The Department of Agricultural Extension of Thai Nguyen province; Local authorities and relevant department representatives; and Local associations and unions. A number of these partners made presentations during the seminars to present different options and resources to the affected families. As a result of the seminar affected people have access to a range of resources and Nuiphaovica also intends to engage its various partners to provide workshops and training courses on specific topics such as money control, savings and investment and household economic models. Similar processes will be developed for other affected families as the program is rolled out to the various villages and communes. To support small- and medium-sized enterprise creation and expansion, Nuiphaovica will also consider the development Nuiphaovica, Vietnam Page 166

201 of a revolving micro-credit and education scheme, targeting both farmer and business groups. This program would likely be established under the Nuiphaovica community development program. In addition to these money management seminars Nuiphaovica has made an agreement with the Bank for Agriculture and Rural Development to support its compensation payment process. The Bank is responsible for arranging cash for compensation payments for Nuiphaovica and attends all compensation payment transactions. Nuiphaovica informs the Bank of compensation payments to be made on a given day and the Bank prepares the funds to be disbursed. A representative from the Bank attends the designated village/commune with Nuiphaovica and local authorities. In advance of all compensation payments Nuiphaovica distributes details and information about savings and other banking options to affected households. At the time of compensation payments, the Bank representative brings along savings books for affected families should they choose to deposit part or all of their compensation payments with the Bank. No fees are associated with opening a savings account and Nuiphaovica encourages households to use this service to securely manage their compensation payments. To date, approximately 50% of total compensation payments made have been deposited in savings accounts with the Bank Cost of Economic and Livelihood Restoration Programs Costs for economic and livelihood restoration programs are incorporated into the resettlement program cost estimate (see CHAPTER 13). Nuiphaovica, Vietnam Page 167

202 CHAPTER 9. CONSULTATION AND PARTICIPATION 9.1 Objectives Nuiphaovica has established a consultation and disclosure program for the Project which includes a suite of stakeholder consultation, disclosure activities, engagement exercises and media interactions. The consultation and disclosure program strategy requires that the Project: Provide real opportunities for stakeholders to actively contribute to Project development; Help to minimise any potentially negative impacts and strengthen the Project s benefits; and Ensure that stakeholder involvement is monitored and evaluated to enable continuous improvement in the program. Consultation and participation with affected people and key stakeholders on compensation and resettlement will assist to: (i) (ii) (iii) Reduce potential of conflicts; Minimise the risk of Project delays; and Enable the Project to design the resettlement and restoration programs as a comprehensive development program that fits the needs and priorities of the affected people, thereby maximising the economic and social benefits of the Project investment. The objectives of the program related to compensation and resettlement include to: Share information about the Project with affected people; Obtain information about the needs and priorities of affected people as well as obtaining their reactions and feedback to the proposed resettlement policies and other relevant activities; Obtain the cooperation and participation of affected people and host communes through all phases of resettlement planning and implementation; and Ensure transparency in all activities related to land acquisition, resettlement and economic and livelihoods restoration. Nuiphaovica has developed a Public Consultation and Disclosure Plan to implement this strategy and achieve its stated objectives. Nuiphaovica, Vietnam Page 168

203 9.2 Public Consultation and Disclosure Plan The Company has produced and is in the process of implementing a comprehensive Public Consultation and Disclosure Plan (Nuiphaovica, 2006), the goal of which is to improve Company decision-making through dialogue with individuals, groups and organisations having a legitimate interest in the Project. Nuiphaovica aims for effective public consultation and disclosure with Project Affected Persons and other stakeholders, to establish sound relationships with its host communities and to build broad community support for the Project through ongoing dialogue and meaningful participation. The Plan describes the Company-wide activities related to interaction with its host communities and in particular, people affected by the land acquisition and the resettlement program. It also provides methods and tools for effective two-way communications, describes and sets out the Nuiphaovica complaints mechanism and contains details on past and future community liaison and associated activities for the Project. A summary of key consultation and participation activites related to compensation and resettlement are summarised in the following sections, whilst some details of meetings and associated activities are provided throughout other relevant chapters of the RAP. 9.3 Resettlement Action Plan Development Consultation Phase I: During Surveys for the Interim Resettlement Action Plan From May to October 2004, many meetings and discussions were held between Nuiphaovica and key stakeholders (local authorities, affected people, local unions etc) on a draft resettlement policy framework, seeking land for relocation, solutions for employment generation, special requirements for vulnerable groups and other relevant topics. Information dissemination and consultation was conducted using a number of different channels and instruments, such as surveys, questionnaires and public and focus group meetings. The socio-economic baseline survey (see CHAPTER 3) and the census and inventory of land acquisition impacts (see CHAPTER 4) conducted in mid to late 2004 initiated the engagement process with local people and those potentially affected by land acquisition. At the same time a series of meetings were initiated with a range of different stakeholders including the provincial, district and commune leaders and their key departments; local unions e.g., Women s Unions, Farmer s Association, Farther Front, Veteran s Association, religious boards etc; and affected villages and special groups, such as the catholic community in Ha Thuong. A summary of key meeting activities for this phase of compensation and resettlement consultation is provided in table 9.1. Nuiphaovica, Vietnam Page 169

204 Table 9.1 Meetings with Key Stakeholders for the Development Phase of the Compensation and Resettlement Program No. Meeting / Activity Topics Discussed 1 June 28, 2004: First meeting of Compensation Oversight Board (COB). 2 July 08, 2004: Meeting with Chairman of Dai Tu Compensation Committee and four chairmen of communes in the project land lease area. 3 July 21, 2004: Meeting with party and district leaders of Dai Tu. 4 July 25, 2004: Meeting with all leaders and other key stakeholders of Tan Linh communes (Party, Women s Union, Veteran, Youth, Farmer Association etc.) 5 July 28, 2004: Meeting with 85 PAP of villages 12, 13 and 14 of Tan Linh Commune. 6 July 30, 04: Meeting with 18 participants of Hung Son (leaders of Commune, Party, Women s union, veteran, Youth, Farmer Association; and leaders of villages etc.) 7 July 31, 2004 (Morning): Meeting with 37 participants (leaders of Ha Thuong; leaders of villages no. 1,2,3,4,5,6,7; Women s Union, Veteran Association, Youth, Farmer Association; Elderly Association and Father Front). 8 July 31, 2004 (Afternoon): Meeting with 195 PAP of village no.1- Hung Son. Meeting with thon 1 Ha Thuong on August 02, 04 (Morning). 135 PAP. 9 August 02, 2004: Meeting 310 PAP of villages no.2 and no. 3 (catholic community) of Ha Thuong commune and representatives of provincial religious Board and Thai Nguyen newspaper. 10 August 03, 2004: Meeting with 192 PAP of village no. 4 of Ha Thuong commune. 11 August 04, 2004: Meeting with 161 PAP of villages no.5 and no. 6 of Ha Thuong commune. 12 August 05, 2004: Meeting with Chairman of DDCSRC and leaders of Cat Ne commune, KV3 of army. 13 August 13, 2004: Meeting with 121 PAP of village no.2 of Hung Son commune. 14 August 17, 2004 and August 23, 04: Meeting with Director and Heads of Departments of Dai Tu Forestry Enterprise. 15 August 24 and 27, 2004: Bring 61 representatives of PAP to visit the proposed relocation sites. Map of the project and proposed relocation sites were sent to all affected villages. 16 August 28, 2004: Meeting with 11 representatives of army and deputy chair of Dai Tu district. 17 September 03, 2004: Meeting with leaders of Dai Tu, representatives from army different departments of Thai Nguyen Province. 18 September 04, 2004: Workshop in Do Son with more than 50 participants from all affected communes, provincial and district departments, local unions. 19 September 14, 2004 : Meeting with PAP in village no. 7 of Ha Thuong; 69 participants with 41 women. 20 October 10, 2004: Meeting with standing party committee of Dai Tu. Draft regulation for COB members and answers for PAP questions related to land acquisition and its implementation schedule. Proposed resettlement sites, progress report/status and proposed economic rehabilitation programs. Resettlement sites and economic rehabilitation programs. Mobilising for socio-economic survey and census and assets survey. Mobilizing socio-economic survey and census and assets survey. Introduce PAP to the project, purpose of survey and its schedule; key principle of compensation and resettlement; proposed relocation sites. Answer questions. Mobilising socio-economic survey and census and assets survey. Mobilising socio-economic survey and census and assets survey. Introduce PAP to the project, purpose of survey and its schedule; key principle of compensation and resettlement; proposed relocation sites. Answer questions from PAP. As above As above As above Relocation sites for army facilities. Introduce PAPs to the project, purpose of survey and its schedule; key principles of compensation and resettlement; proposed relocation sites. Answer questions from PAP. Possibility to arrange lands (residential and agricultural) for PAP in Khe Vay. Presenting to leaders of Party about proposed relocation sites and economic restoration programs. Special assistance to vulnerable groups. Discuss the proposed relocation sites and physical infrastructures, social services required in each sites. Selecting relocation site for army facilities and cost estimate for movement to Cat Ne site. Discuss the draft resettlement policy, relocation sites, and economic restoration programs. Present resettlement policy and proposed relocation sites. Nuiphaovica, Vietnam Page 170

205 No. Meeting / Activity Topics Discussed 21 October 12, 2004: Meeting with Leaders of Thai Nguyen PPC and COB members. Brief on the activities completed by Nuiphaovica Compensation & Resesttlement Unit. 22 Meeting with all owners of public works such as power lines, TELECOM lines. Cost estimate for realignments. A Consultation Questionnaire (Annex A) regarding household preferences for proposed relocation sites, modes of compensation land for land or cash for land, and proposals for economic restoration activities was also issued during this phase to affected households. The first survey was conducted in August/September 2004 and involved sending the questionnaire to 876 households. All questionnaires were collected from households although some surveys were completed partially with answers provided to only some questions. Results from this questionnaire have been described throughout the various sections of the RAP. Overview of consultation results This phase of local consultation allowed issues to be identified and discussed with a wide range of stakeholders, predominantly focused on compensation and resettlement issues but also on broader Project development topics. As a result of this first series of consultation Nuiphaovica together with relevant authorities developed the Project resettlement policies and the interim RAP. Local people generally reported that they were in support of the Project because they believe that it will have a significant contribution to economic development for Thai Nguyen province and Dai Tu district. Some concerns were also expressed and these included the following areas: Replacement costs: the need for compensation at replacement costs to allow affected households to purchase other houses, land and associated assets. Relocation/resettlement assistance: Nuiphaovica was requested to provide assistance during the transition period and especially for restoration of livelihoods when households convert from farm to non-farm activities. Quality of infrastructure: quality of new infrastructure and expectations that good physical infrastructure and social services will be provided at relocation sites. Employment opportunities: maximisation of their opportunity to work for the Project and to get other benefits from the Project. Consultation and disclosure: requested to be provided with timely information about compensation unit costs; resettlement policies; relocation site planning; detailed implementation schedule; mechanisms for delivering compensation; and managing complaints. Nuiphaovica, Vietnam Page 171

206 Consultation workshop with stakeholders in Do Son Hai Phong on 04/09/ Phase II: For final RAP (November 2004 to April, 2005) During the second phase of consultation, ongoing meetings were held with further affected households and other key stakeholders and consultation questionnaires were again disseminated to households to get their feedback on a range of proposals on compensation and resettlement. A total of 854 households were surveyed using the questionnaire during the second round of consultation and 465 households submitted their completed surveys to Nuiphaovica. Nuiphaovica continues to try to obtain feedback from all affected families and has discussed with all households their opinions and choices on a range of different proposals. However, the Company recognises that some affected people may not formally provide their preferences until later in the resettlement program. In addition to meetings and surveys, information was also disclosed to stakeholders related to the interim RAP including unit costs for land and other assets and Nuiphaovica s proposed resettlement policies. A summary of activities for this phase of consultation is provided in table 9.2. Table 9.2 Second Round of Compensation and Resettlement Consultation and Disclosure No. Meeting/Activity Topics Discussed 1 January 18, 2005: Meeting with provincial Departments of Finance, Construction, Environmental and Natural Resources and Dai Tu district. 2 March 02 to 07, 2005: Meeting with Leaders of three affected communes. 3 March 08, 2005: Meeting with Dai Tu district, Cat Ne commune, Cat Ne forestry stock company. 4 March 09 to 20, 2005: Meeting with PAP in three affected communes. 5 Information Disclosure: Disseminate resettlement policies and compensation unit costs for land and other assets that were issued by People s Committee of Thai Nguyen to all affected villages. Finalising the project resettlement policy and countersigning by government Departments and Nuiphaovica. Disseminate consultation questionnaire to PAP. Study about land use status at Long Lanh site. Inform the PAP about the project resettlement policies (approved by the People s Committee of Thai Nguyen). Discussed with the PAP contents and purpose of the second round of consultation. Nuiphaovica, Vietnam Page 172

207 Meeting with affected families and local authorities in Ha Thuong commune Consultation with vulnerable groups (with local authorities and unions) Several rounds of consultation were conducted with local people, local authorities and local unions to discuss proposals and programs for potentially vulnerable groups. The primary aim of these meetings was to discuss particular issues and concerns of these groups in affected communities in order to develop mitigation measures to improve their income generation and livelihoods after relocation. A summary of meetings with various representatives and groups is provided in table 5.3. Consultation for seeking replacement land and approving relocation sites Nuiphaovica together with affected commune and Dai Tu district authorities started its efforts to seek land for replacement residential and agricultural lands from June Many meetings have been held with authorities and relevant communes, local unions and affected households to obtain their suggestions and feedback on the proposed sites. The process for seeking replacement land and associated community participation is summarised in table 7.2. Replacement of public works, affected assets of institutions Nuiphaovica has contacted all the owners of affected public works and social services and requested them to coordinate for cost estimates on compensation for these affected assets. Physical infrastructure and social services of affected communes such as inter-roads, kindergartens, infant schools, power grids, community halls, cemeteries etc. will be mostly compensated through in kind compensation and are to be re-constructed at the relocation sites and in communities receiving resettlers. Some affected public works will be compensation in cash to Nuiphaovica, Vietnam Page 173

208 their owners. These activities have been completed as part of the overall phases of consultation described above. 9.4 Ongoing Compensation and Resettlement Activities Public consultation has been at the heart of stakeholder involvement in development of the resettlement program for the Project. Extensive consultation and disclosure activities are ongoing and Nuiphaovica has daily interaction with Project Affected Persons, local authorities and associated public and private institutions. Now that the approval of the Mining License has occurred, specific land acquisition details have been formally defined and as such the detailed measurement survey for all affected assets has begun. A summary of public participation activities undertaken since mid 2005 until early 2006 is provided in tables 9.3 and 9.4. Table 9.3 Summary of Compensation and Resettlement Public meetings to the End of 2005 Date Meeting Topics Discussed May 21 st Meeting with 13 participants from Office of Discussed RAP implementation. Provincial People's Committee (PPC) & Council, provincial departments, District People's Committee (DPC) and leader of Nui Hong coal mine. June 29th Meeting with 14 participants from District and Construction & Consultant Joint-Stock Co. Discussed draft planning for Nam Song Cong (NSC) site. July 28th Meeting with 27 participants of District mass organizations. Finalised detailed panning for NSC and discussed approvals for this planning. August 5th Meeting with 10 participants from Provincial and District People s Committees and District Party Presentation by Nuiphaovica on the RAP and discussion by participants. Committee. September 01st Meeting with 13 participants from Provincial Getting feedback for RAP. 13th 04th Departments and DPC. Project field visit with DONRE, DPC, Ha Thuong, Hung Son, Tan Linh, and Phuc Linh People s Committees and Compensation Oversight Board (13 persons). October Meeting with 18 participants from district Party Committee, People s Council, DPC, Compensation Oversight Board (COB). Hand over landmark of Nui Phao Project areas and signed minutes of the site demarcation documents. Inform participants about the approval by the Province of the RAP and disseminate resettlement and compensation booklet to all. -ditto- 11th Meeting with 50 participants from DPC and Tan Linh Commune. 11 th Meeting with 80 PAPs of Tan Linh Hamlet 13. -ditto- 12 th Meeting with leaders of DPC, Hung Son People s Committee (56 participants). -ditto- 12th Meeting with 245 PAPs of Hung Son Hamlet 1. -ditto- 13th Meeting with leaders of Thai Nguyen Export Discuss about vocational training for PAPs. Garment Company. Nuiphaovica, Vietnam Page 174

209 Date Meeting Topics Discussed 19th Meeting with 20 leaders of Ha Thuong People s Inform participants about the approval by the Committee and affected hamlets. Province of the RAP and disseminate 20th 28th Nuiphaovica took 30 representatives of PAPs to visit mushroom planting models in Ninh Binh Province, Soc Son District of Ha Noi and Biological Technology Center Head Quarters under MARD. Meeting with 172 Party members of Ha Thuong Commune and leaders of the DPC. resettlement and compensation booklet to all. Introduce mushroom growing models to PAPs. Inform participants about the approval by the Province of the RAP and disseminate resettlement and compensation booklet to all. November 01st Meeting with leaders of District mass organisations (24 participants) -ditto- 02nd District staff, affected commune leaders and commune officials Training on the Detailed Measurement Survey (DMS). 03rd Meeting with the COB and District officials (30 persons) Discussed the DMS schedule as well as economic restoration programs. 06th Meeting with 232 members of Hung Son Party Committee. Discussed the DMS schedule as well as economic restoration programs. 07th Meeting with 81 PAPs Hung Son Hamlet 16. Disseminate compensation and resettlement policies of Nuiphaovica and discussed the DMS schedule as well as economic restoration programs. 08th Meeting with 114 PAPs Hung Son Hamlet 4. -ditto- 09th Meeting with 152 PAPs Hung Son Hamlet 15 -ditto- 21st Meeting with 98 participants from mass organisations and affected hamlets in Ha Thuong Commune. -ditto- 22nd Meeting with 74 PAPs Ha Thuong Hamlet 5. -ditto- 22nd Meeting with 61 PAPs Ha Thuong Hamlet 3. -ditto- 23rd Meeting with 148 PAPs Ha Thuong Hamlet 1. -ditto- 23rd Meeting with 148 PAPs Ha Thuong Hamlet 6. -ditto- December 08th Meeting with 186 PAPs Ha Thuong Hamlet 2. -ditto- 19th Meeting with 18 participants from Hung Son Discussed planning for Hung Son Hamlet 2 area 22nd People s Committee. Meeting with 18 participants from Hung Son People s Committee. (Market Centre). Second discussion on abovementioned topic. Nuiphaovica, Vietnam Page 175

210 Table 9.4 Summary of Compensation and Resettlement Public Meetings to Date 2006 Date Meeting Topics Discussed January: non activities February 14th Training course for network members of affected hamlets (30 participants). Disseminate Compensation and resettlement policies of Nuiphaovica to participants. 16th Meeting with Leaders and members of Party -ditto- Committee in Ha Thuong Commune (76 participants). 17th Meeting with Leaders and members of Party -ditto- Committee in Ha Thuong commune (50 participants). 17th Meeting with leader of Garment Company and trainees (35 participants). Course-ending ceremony at No. 10 Garment Company in Ha Noi. 18h Workshop in Dai Tu with 140 participants from District Party Committee, DPC, district mass organisations, affected hamlets, district television, Summarised mushroom pilot program for the first 21 affected households participating in economic restoration programs. the provincial center for botanic biological technology. 21st Meeting with 102 PAPs of Ha Thuong Hamlet 2. Announced compensation and resettlement policies and provided document (Decision 2044, 197, 1932 and consultation questionnaire.). 22nd Meeting with 168 PAPs of Hung Son Hamlet 2. -ditto- March 2nd Meeting with 17 participants from Provincial and District People s Committees. Discussed compensation implementation progress. 8th Meeting with 14 participants from District Discussed compensation issues. Compensation Committee. 16th Meeting with 220 PAPs in Cat Ne Comune. Announced compensation and resettlement policies and provided document (Decision 2044, 197, 1932 and consultation questionnaire.). 20th 117 persons from local mass organisations, local A rapid assessment on community training needs. authorities and affected households 27th Meeting with 226 PAPs of Ha Thuong Hamlet 2. -ditto- April 13rd A half day training course for 22 members of NUIPHAOVICA s information network 19th Meeting with 279 PAPs of Hung Son Hamlet 2. -ditto- Discussed Nuiphaovica s policies for economic restoration programs. 21st Meeting with 83 PAPs of Hung Son Hamlet 16. Discussed about giving PAPs advance payment for compensation. 27th Meeting with 12 participants from District Compensation Committee and COB. Discussed about hastening the Detailed Measurement Survey and compensation process Project Brochures and Information Booklets A Project Information Booklet was prepared by Nuiphaovica in early 2006 to outline the current progress of Project activities and to notify a wide range of stakeholders about key events such as the opening of the Project Information Centre and to provide an overview of the Project to stakeholders that may have otherwise had limited information about the Company or its activities. Importantly, the Booklet describes the availability of a complaints mechanism for local people and where to go for further information. The booklet is available in Vietnamese and English. Nuiphaovica, Vietnam Page 176

211 Preparation of a Resettlement Information Booklet was completed in late 2005 and provided to all Project affected households. The Resettlement Information Booklet contained the following key information: General information about the Project and Nuiphaovica; The main policies for compensation and resettlement; Indicative schedule on compensation payments and land acquisition activities; Schedule for construction of relocation sites; and Details on the complaints mechanism for affected people. Nuiphaovica has also developed a Compensation Payment Procedure for households affected by the resettlement program to simply and concisely explain the compensation process to local people. A copy of the Compensation Payment Procedure leaflet is provided in Annex C. The Public Consultation and Disclosure Plan also contains a copy of other relevant disclosure materials and a development of information is ongoing Other Consultation and Disclosure Mechanisms A number of other mechanisms and programs have been set up as part of the Nuiphaovica consultation and disclosure program that directly support the compensation and resettlement activities. A Project Information Centre was opened in January 2006 in Dai Tu town, next to the current Nuiphaovica offices. The Project Information Centre is open daily during weekdays. The Centre is permanently staffed by a member of the community liaison team and is a central repository for all Nuiphaovica communication materials, consultation and disclosure materials and associated records. Relevant compensation and resettlement information is posted in the centre and affected people can directly raise questions, concerns and complaints. Copies of the Resettlement Action Plan and associated documentation are available at the Project Information Centre. In addition to the Project Information Centre a system of Local Information Corners has been set up in local villages. By mid 2006 approximately 30 corners had been set up in village halls, schools, kindergartens and local government buildings throughout the Project area. Brochures, copies of question forms, complaint forms and other materials are posted at the Information Corners and managed by members of the community liaison team and designated local people. Materials are regularly updated to ensure that information is current and relevant to current Project activities. The main aim of the Information Corners is to bring as much information as possible directly to local residents to make it easily accessible and readily available. Nuiphaovica, Vietnam Page 177

212 Inside the Nuiphaovica Project Information Centre, Dai Tu town Nuiphaovica community liaison staff member and visitor at a Local Information Corner The Nuiphaovica community liaison team established a Local Information Network group in February This group is comprised of local residents of Nuiphaovica s host communities and is predominantly comprised of people affected by land acquisition and resettlement. The group is intended to assist in building sound relationships with local people, and ensuring that methods and channels to provide and Nuiphaovica, Vietnam Page 178

213 receive community input and comments are extensive and readily accessible at the local level. The Local Information Network group meets regularly with Nuiphaovica staff and is tasked with a range of activities to promote consultation and disclosure between the Company and local residents. The community liaison team set up a Question and Answer system ( Frequently Asked Questions ) including a Question Form that has been widely publicised and distributed to local residents in all host communes. Nuiphaovica uses the Local Information Network group to receive completed Question Forms and also receives the forms directly when working in the communities and at the Project Information Centre. Stakeholder questions are also collated from meeting minutes, other correspondence received by Nuiphaovica and direct feedback from the community liaison team. Responses are provided in a regular publication (at least monthly) and posted in relevant locations including the Project Information Centre and Local Information Corners. To date the majority of questions received relate to compensation and resettlement issues. For full details on these and other mechanisms that have been and are being implemented by the Company, see the Public Consultation and Disclosure Plan (Nuiphaovica, 2006). Nuiphaovica, Vietnam Page 179

214 CHAPTER 10. COMPLAINTS SETTLING Nuiphaovica is committed to addressing stakeholder concerns, complaints and grievances regarding resettlement. For compensation and resettlement complaints Nuiphaovica will work closely with commune, district and provincial authorities. Relevant authorities will be made aware of all resettlement and compensation complaints and as such these parties will then work together to resolve the issue. A specific three step process is in place to deal with compensation and resettlement complaints. First Step If any person is aggrieved by any aspect of the resettlement and compensation program, he/she can lodge an oral or written grievance with Ward/Commune authorities. The People s Committee of the Ward/Commune is required to work with Nuiphaovica to resolve the issue within fifteen days. Second Step If any aggrieved person is not satisfied with the decision in Step 1, he/she can bring the grievance to the District People s Committee or District Compensation, Assistance and Resettlement Committee (DDCARC) within fifteen days from the date of the receipt of the decision in Step 1. The District People s Committee or District Compensation, Assistance and Resettlement Committee will reach a decision on the complaint within fifteen days. Third Step If PAPs are still not satisfied with the decision at District level, he/she can appeal to the Provincial People s Committee (PPC) or Dai Tu District Court within fifteen days of receiving the decision of the DDCARC. The PPC or Dai Tu District Court will reach a decision on the complaint within fifteen days. All PAPs will be exempted from all administrative fees in connection with the above processes, and are entitled to recover any legal fees. Nuiphaovica will assign its staff to follow up with all steps of grievance settling and always as a member of complaint settling teams at the Dai Tu District and Commune levels. For further details on the resettlement and compensation grievance mechanism, see the Resettlement Action Plan (Nuiphaovica, 2006). The receipt of complaints will include of the following information: (i) (ii) (iii) (iv) Name of complainant; Address; Complaint issues; Date of receipt; Nuiphaovica, Vietnam Page 180

215 (v) (vi) Appointment date for a solution; and Signature of the complaint receiver. Solution for the complaint should at least include of the following information: (i) (ii) (iii) (iv) (v) (vi) Name of complainant; Address; Complaint issues; Solutions and legal documents to be applied for the proposed solutions; Date of issuing the solutions to the complainant; and Signatures of responsible persons. An example Complaint Action Form is provided in Annex D. This form will be used Company wide to capture complaints for the Project including resettlement and compensation complaints Disclosure of Complaints Procedures Complaint procedures have been disclosed to local stakeholders in a relevant format. Nuiphaovica has prepared a range of information materials to explain its complaints procedures and an example of a simplified complaints procedure poster is provided in Annex E. Complaint Action Forms are also made available in accessible locations within host communities and at public locations. Nuiphaovica has Complaint Action Forms and other information materials available at the Information Corners it has established in local village halls (approx. 30 village halls) and various other locations including the Project Information Centre and in several government buildings. Nuiphaovica also utilises their Local Information Network group to receive completed Complaint Action Forms and pass these to the Nuipahovica community liaison team. The Nuiphaovica Local Information Network members are trained in completing Complaint Action Forms. For further information on the Company-wide complaints system that this resettlement process forms part of, see the Public Consultation and Disclosure Plan (Nuiphaovica, 2006). Nuiphaovica, Vietnam Page 181

216 CHAPTER 11. MONITORING AND EVALUATION 11.1 Objectives Monitoring and evaluation are key components of the Resettlement Action Plan and have the following general objectives: Monitoring: Monitoring of specific situations or difficulties arising during implementation, and of the compliance of implementation with objectives and metholds set out in the RAP; and Evaluation: Evaluating emergent, mid- and long-term impacts of the Project on the welfare of impacted households, communities, environment and local government and capacities. Monitoring aims at correcting implementation methods during the course of resettlement program implementation as required, while evaluation is intended at providing lessons learnt for amending strategies and implementation in the longer term. Monitoring and evaluation will also provide a picture of socio-economic status of Project Affected Persons after relocation and if required, propose necessary solutions for solving outstanding issues. Monitoring will be essentially an internal function whereas evaluation will generally by external Internal Monitoring Monitoring Methodology and Process Day to day implementation of the RAP will be monitored by Nuiphaovica and the DDCARC. Monitoring will be undertaken under the direction and responsibility of the External Relations Manager. The monitoring process will be designed to: (i) (ii) (iii) (iv) Verify the provision of compensation and other entitlements being carried out in accordance with the provisions of the RAP; to this end, a database will be set up and shared by the DDCARC, and Nuiphaovica; Verify that funds for implementing the RAP have been provided in a timely manner, that the amounts are sufficient for their purpose, and that such funds have been used in accordance with the provisions of the RAP; Track progress against the schedule for implementing the RAP to ensure it is being met; Track any complaints from the affected people and that these have been addressed on time and according to the proposed mechanism for complaints; Nuiphaovica, Vietnam Page 182

217 (v) (vi) (vii) (viii) Determine if the objectives of the resettlement project are being met in terms of livelihood and income being restored and improved. Determine whether the procedures for delivery of compensation and other rehabilitation entitlements to affected people and organisations have been carried out in accordance with the provisions of the RAP; Gather quantitative and qualitative information of the social and economic impact of the Project on the livelihoods of affected households and the wider host communities including Dai Tu district. Suggest mitigation measures and modifications to achieve the principles and objectives of the RAP including the Project resettlement policies Indicators and Information Management Monitoring will be based on indicators of change relevant to the compensation and resettlement process and will be based as much as is possible on participation with affected households and communities. Table 11.1 provides a summary of potential monitoring areas on which indicators will be based. Table 11.2 Monitoring Aspects and Indicator Areas Overall social and economic status Compensation and negotiations Resettlement Economic restoration activities and measures Consultation & disclosure Complaints/grievances Implementation organisation Social and economic status of households, villages and communes Reestablishment of agriculture Actions targeting vulnerable groups Access to employment and business opportunities Compensation payments made, timing of such payments Detailed Measurement Surveys completed Negotiation process and conclusion of sale/purchase agreements Contracts and associated arrangements Resettlement options finalized Self-relocation statistics Accommodations at relocation sites (house types, costs, facilities etc) Relocation site development progress (status of construction works, testing and commissioning of housing, schedules etc) Economic restoration programs implemented Resettlers participating in assisted programs Business re-establishment and assistance Skills enhancement programs and activities Small loans components Perception of resettlement program Satisfaction with compensation and other assistance Information provided to affected households, villages and other stakeholders Number, type and cause of complaints/grievances Resolution rates and effectiveness of complaints settling Staff and other changes compared to previous periods Nuiphaovica, Vietnam Page 183

218 Monitoring is by its very nature a long-term and potentially open ended activity. The Company, relevant authorities and the community will work to define end-points and year on year goals to enable targeted and effective monitoring. This approach is intended to allow monitoring to be reduced in areas where activities have been completed and goals achieved while maintaining focus on problematic issues. Nuiphaovica has a well established data base and relevant ancillary hard copy archives that contain all data on entitlements, compensation payments, socio-economic status of affected households and so on. The data base is always being expanded to cover additional data and statistics as RAP implementation progresses Monitoring Reports The Thai Nguyen People s Committee and the Compensation Oversight Board will be provided with a monitoring report prepared by Nuiphaovica every three months. These reports will evaluate the implementation status and include suggestions to improve implementation and intended outcomes. The monitoring reports will be available in Vietnamese and English and made available in Vietnamese at the Project Information Centre in Dai Tu town and other locations as relevant Independent Evaluation Evaluation Methodology and Process Evaluation will be conducted to: (i) (ii) (iii) (iv) Assess the compliance of the implementation of the RAP with objectives and methods set out in this document; Assess the compliance of implementation of the RAP with laws, regulations and safeguard policies; Evaluate the implementation of the RAP to achieve its objectives in particular "to improve or at least maintain the income and living conditions of the affected households after the resettlement process"; and Identify actions to be part of the ongoing monitoring process to improve the positive impacts of the program and to mitigate any possible negative impacts. Specifically, the independent evaluation team will be responsible to include, but not be limited by the the following tasks: (i) (ii) Review the Resettlement Action Plan and associated studies and efforts; Review unit costs of compensation applied in the RAP and check at the site to ensure the compensation costs are at replacement value; Nuiphaovica, Vietnam Page 184

219 (iii) (iv) (v) (vi) Review consultation activities, information campaigns and disclosures; Evaluate the progress of the Detailed Measurement Survey (DMS) and entitlements calculated for the PAPs; Evaluate socio-economic impacts of the Project on the PAP; Assess compensation and resettlement procedures including: Compensation payments and delivery in a timely manner; Relocation site development and the allocation of plots to the affected households; and Livelihood status of self-relocating affected households. (vii) (viii) (ix) Assess the progress of relevant programs such as those for economic restoration, gender programs, and programs for vulnerable groups etc. Offer suggestions on how to improve RAP implementation; and Evaluate complaints and grievances. Terms of Reference (TOR) for independent evaluation have been prepared by Nuiphaovica and include: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) The Project details and background; Purpose and objectives of evaluation; Scope of services required; Description of evaluation tasks; Hiring and qualifications of the consultant/s; Mode of operation; Reporting and deliverables; Inputs available; Timing and schedules; Location of work; and Type of contract proposed. The schedule for independent evaluation will include a mission/visit at least twice a year during implementation and then once a year after operations begin for at least 2 years. Nuiphaovica, Vietnam Page 185

220 From time to time the Company may initiate its own internal evaluations to support or supplement the external review process. This program would be initiated on an as needed basis. Reference documentation for the evaluation will include the following: This Resettlement Action Plan and associated source documents; Vietnamese laws and regulations as described herein; and The applicable World Bank Group safeguard policies, i.e. OP 4.12 Involuntary Resettlement. Other reference documents may include relevant materials and information developed and disseminated for local residents and internal monitoring reports when these are available Auditors The auditor/s will be an independent consultant/s or NGO with experience in resettlement program design and practical implementation, and with no previous involvement with the Project. An independent Panel of Experts (POE) who has been engaged by Nuiphaovica will initially provide this evaluation function for the Project. The POE is scheduled to undertake their first independent review in mid Nuiphaovica will offer unrestricted access to its internal documentation to the evaluation team Evaluation Reports Evaluation reports will be completed by the independent evaluation team after each review mission. Evaluation reports will be publicly released and will also be available locally at the Project Information Centre in Dai Tu town and other relevant locations. In addition to the evaluation reports that will be prepared after each review, the evaluation team will be expected to produce a completion report which is to be prepared six months after the completion of the entire resettlement program. This document shall provide detailed evaluation of the RAP and its implementation. It shall also report the outcome of interviews with the affected households on their situation and their opinions after they have been resettled and compensated. Nuiphaovica, Vietnam Page 186

221 CHAPTER 12. IMPLEMENTATION AND SCHEDULE Resettlement implementation continues to parallel negotiations with affected people and local authorities. The main activities and associated implementation schedule for the preparation and implementation of the Resettlement Action Plan is provided in table Table 12.1 Schedule for Resettlement Action Plan Preparation and Implementation No. Activity Schedule Responsibility PREPARATION PHASE May 01, 04 to April 30, 05 1 Announcement of the cut- off date to all communes and affected people 2 Prepare questionnaire and carry out for the socioeconomic survey, census and inventory of affected land and assets 3 Site survey, site selection, planning and preliminary survey for affected land and other assets in proposed relocation sites 4 Carry out for the first round of formal consultation program for resettlement and compensation proposals 5 Prepare a Draft Interim Resettlement Action Plan 6 Adoption and approval of the proposed relocation sites 7 Approval of the Project resettlement policy framework 8 Survey and site planning for Nam Song Cong, Hung Son 2, market centre and handicraft workshops 9 Second round of formal consultation and information dissemination (including resettlement policies, compensation unit costs) to all affected communes and villages 10 Prepare the Final Resettlement Action Plan for approval by relevant authorities. May 12, 04 June 1 to September 30, 2004 August 1 to September 15, 2004 August 1 to September 30, August 1 to October 31, 2004 November 1, 2004 to April 30, 2005 March 2005 April to September 2005 March to April 2005 November 01, 2004 to April 30, 2005 IMPLEMENTATION PHASE May 15, 2005 to June, Review and approval of the Resettlement May to June 2005 Action Plan 12 Information campaign and ongoing May 2005 to ongoing consultation and negotiations 13 Demarcation of project affected areas and relocation sites, the Detailed Measurement Survey (DMS) and individual area compensation plans 14 Update of the Resettlement Action Plan for public disclosure with the ESIA/ESAP documentation September 2005 to December 2006 April to June 2006 COB, Dai Tu district and affected communes Nuiphaovica, consultants and commune officials Nuiphaovica, District and commune officials Nuiphaovica, consultants and commune officials Nuiphaovica Dai Tu district People s Committee and Provincial Department of Construction Thai Nguyen People s Committee Nuiphaovica, consultants and commune officials of Hung Son Nuiphaovica, officials of Hung Son, Ha Thuong and Tan Linh communes. Nuiphaovica Board of Nuiphaovica and Thai Nguyen People s Committee Nuiphaovica, officials of Hung Son, Ha Thuong and Tan Linh communes. Nuiphaovica, consultants and relevant local authorities. Nuiphaovica, consultants. Nuiphaovica, Vietnam Page 187

222 No. Activity Schedule Responsibility 15 Relocation site construction and associated works July 2006 to December 2007 Nuiphaovica, consultants and the Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC) 16 Economic and livelihood restoration programs including programs and activities for vulnerable groups 17 Monitoring and evaluation for resettlement program implementation April 15, 2005 to December, 2007 November, 2005 to June, Procedures of Compensation and Relocation Nuiphaovica Nuiphaovica and independent auditors (e.g. the Panel of Experts for resettlement program evaluation) In order to carry out the necessary activities and tasks in accordance with Project implementation requirements and schedules, a number of procedures have been established to guide the process. The key steps of compensation and resettlement are summarised in the following procedures Procedure of Compensation Step 1: Ground demarcation of the affected sectors and areas. Step 2: Carry out Detailed Measurement Survey for each affected household in each sector/area. Step 3: Step 4: Step 5: Step 6: Distribute survey and entitlement forms to each affected household for their approval and signature. Prepare a sub-compensation plan for each sector and obtain approval from the TNPPC. Prepare a compensation and resettlement card for each affected person. Inform the affected household of the date, time and venue of compensation payment. Step 7: Completion and final delivery to the affected household with representatives of DDCARC, Nuiphaovica, communes and villages in attendance. The affected household/person will sign on the compensation card and copies of receipt will be kept by relevant parties Procedure of Resettlement to New Relocation Sites Step 1: Step 2: Step 3: Ground demarcation of the site, a survey and detailed planning report, detailed design and bidding documents for the site with stamped approval by the relevant authorities. Decision on land recovery for developing the relocation site by TNPPC. Carry out Detailed Measurement Survey and prepare sub-compensation plan for the site. Nuiphaovica, Vietnam Page 188

223 Step 4: Step 5: Step 6: Step 7: Step 8: Step 9: Approval of sub-compensation plan for the site and pay compensation to the affected households. Finalise the list of families to be relocated to the site and locations of their plots. Inform the affected households about the number of plots they will be allocated. Select contractor and site construction and supervisor of the construction site. Allocation of plots to the affected households. Housing and supervision of construction progress according to the proposed schedule Resettlement Action Plan. Confirm that affected households will supervise the construction of their house in a timely manner. Nuiphaovica and local authorities will closely supervise this progress and compensation for building will be paid in instalments based on the quantity of civil work completed. Step 10: Verification of site construction and transfer the affected households to the site. Step 11: Monitoring the livelihood restoration at the new site Procedure of Self-Relocation Step 1: Consultation on affected household s options and finalise the list of the households who prefer to opt for self-relocation. Step 2: Together with local authorities and independent monitor s pay compensation to the affected households for residential land acquired by the Company, and if necessary assist the households in purchasing new residential land. Step 3: Step 4: Step 5: Monitoring of housing and transfer of the affected families to their new residential area. Monitoring the livelihood restoration at the new site. Monitoring the livelihood restoration at the new site. Nuiphaovica, Vietnam Page 189

224 CHAPTER 13. COSTS AND BUDGET 13.1 Overview The total cost for developing and implementing the Resettlement Action Plan is estimated to be VND 413,502,796,189 which is equivalent to US$26.75 million 4 (including a 3.15 million contingency for unforeseen expenditures). This cost estimate includes the replacement cost of compensation for land and structures, economic rehabilitation measures, relocation site development, transition period allowances. Resettlement costs account for approximately 15 percent of the total Project costs. The compensation and resettlement program costs in US dollars by broad categories are as follows: Boundary demarcation and detailed measurement surveys 0.06 million Compensation for residential land 6.92 million Compensation for agricultural land 3.56 million Compensation for houses and other fixed assets 3.86 million Compensation for crops, fruit trees and other trees 1.47 million Acquisition and development of relocation sites 3.40 million Replacement of public infrastructure and cemeteries 0.58 million Economic rehabilitation/restoration programs 2.37 million Transition allowances and special assistance programs 1.20 million Local government management (excl. of Nuiphaovica costs) 0.18 million Contingency costs 3.15 million Total million Additionally, a cost of US$ 2.57 million has been estimated for the relocation of the military depot currently located within the Project area Legal Basis The cost estimate for this Resettlement Action Plan is based on the following: (i) (ii) Results of census and inventory prepared by Nuiphaovica; Decree 197/2004/ND-CP of December 03, 2004 on compensation, assistance and resettlement when land is recovered by the state; 4 Based on an exchange rate of VND 15,800 per USD. Nuiphaovica, Vietnam Page 190

225 (iii) (iv) (v) (vi) Decree 188/2004/ND-CP of November 16, 2004 on methods of determining land prices and assorted land price brackets; Circular 116/2004/TT-BTC of December 7, 2004 guiding the implementation of December 03, 2004 on compensation, assistance and resettlement when land is recovered by the state; Circular 114/2004/TT-BTC of November 26, 2004 guiding the implementation of the Government s Decree No. 188/2004/ND-CP on methods of determining land prices and assorted land price brackets; and Decision of Thai Nguyen Provincial Committee on compensation unit costs for land (Decisions no. 2686/2004/QD-UB dated November 14, 2004); compensation units cost for building (Decision no. 3234/2004/QD-UB dated February December 24, 2004); and compensation units costs for trees and annual crops (Decision no. 2340/QD-UB dated September 26, Calculation of Costs and Compensation Compensation calculations and the overall cost estimate are based on the principle of replacement value for residential and garden land, agricultural land, crops and trees, houses and other structures and associated assets. Unit costs are the rates determined for land, assets and other structures by the provincial level government. These rates are based on surveys conducted by the provincial authorities in Thai Nguyen. Surveys involve various teams of assessors that determine unit costs based on the current market value for such lands, assets and other materials. The provincial survey process is particularly important for land evaluation as Viet Nam does not have a formal market for land and according to the land law, the Government use the land value on transferring land use rights (land belongs to the State and people have the land use right only). These values are considered to be in accordance with market values as the methodology for determining land price is to survey the area regarding the price at which people sell or buy land and through review of auction processes in the locality. Nuiphaovica has worked closely with district and provincial authorities and affected people to ensure that unit costs are reflective of current values and costs for the time at which compensation plan is approved (see also Section 13.5). Compensation for Structures For house structures and associated assets, replacement costs are based on the categorisation of buildings according to the standards of Vietnam (with different categories of building). Example unit costs for different house classes are provided in table No deduction is made for depreciation and rates also include the cost of design, materials, labour and other fees for building ownership. Nuiphaovica, Vietnam Page 191

226 Table 13.1 Unit Prices for Houses (by Class) House Class Unit Unit Cost (1000 / VND) Class 1 m Class 2 m 2 1,747 Class 3 m Class 4 m 2 1,887 Class 5 m Class 6 m Class 7 m Class 8 m Class 9 m Class 10 m House on stilts m Temporary structure m Note: house class is defined by the type and nature of the structure as determined by the Ministry of Construction. Table 13.2 also provides example unit costs for other assets or sub-components associated with residential structures. Table 13.2 Unit Price Examples for Miscellaneous Assets Component / Structure Unit Unit Cost (1000 / VND) Dug wells Unit 115 Brick water tank m Sanitation on tank m Yard Brick m 2 29 Cement sand m 2 19 Concrete m Allay Brick m 2 29 Cement sand m 2 19 Concrete m Brick stanchion m Concrete stanchion m 3 3,253 Telephone Unit 550 Power meter Unit 574 Fish pond m 2 31 Graves Brick reburied 1,148 Earth not reburied 1,313 Bridge Floor m Abutment m Girder m 3 2,491 Nuiphaovica, Vietnam Page 192

227 Compensation for Land and Associated Assets Table 13.3 provides the unit costs for residential land as calculated for the different communes. Unit costs vary within the different communes depending mainly on location. Table 13.3 Unit Prices for Residential and Garden Land Commune Land Type Unit Unit Cost (1000 / VND) Hung Son Residential land Located in other sites m Located by the road 37 m Garden land m ~89.5 Fish pond m ~89.5 Road No. 37 corridor m Ha Thuong Residential land Located in other sites m Located by the road 37 m Garden land m 2 92~92.5 Fish pond m ~92 Road No. 37 corridor m ~96 Tan Linh Residential land m 2 Located in other sites m Located by the road No. 37 m Garden land m Fish pond m 2 n/a Road No. 37 corridor m Productive land e.g. agricultural land is classified depending on its productive purpose and capacity. The compensation value of agricultural land is the replacement value, crops on land will be compensated separately. Table 13.4 provides example unit costs for agricultural land types in each of the different communes. Unit costs vary within the different communes but mainly depend on the land type and purposes of land use. Nuiphaovica, Vietnam Page 193

228 Table 13.4 Unit Prices for Agricultural Land, Crops and Trees Commune Land Type Unit Unit Cost (1000/ VND) Hung Son Affected annual crop land m 2 24,374~25,405 Affected perennial tree land m 2 18,538~19,702 Affected fish pond land m 2 15,800~16,978 Affected forestry land m 2 2,300~ 8,300 Ha Thuong Affected annual crop m 2 25,165 ~ 28,938 Affected perennial tree land m 2 16,597~22,944 Affected fish pond land m 2 18,318~19,265 Affected forestry land m 2 2,585~8,300 Tan Linh Affected annual crop m 2 26,500 Affected perennial tree land m 2 23,290 Affected fish pond land m 2 16,748 Affected forestry land m 2 5,278 The rates for residential and agricultural land as well as buildings and other structures presented above, are costs for 2004 and have recently been reviewed and updated by the Thai Nguyen provincial authorities. Updated rates for 2006 will be used by Nuiphaovica to make final calculations for compensation packages to affected households, since it is Company policy to pay at the most current rates at the time compensation is made to affected households (see also Section 13.5) Detailed Cost Estimate The detailed cost estimate has been broken down into different operational sectors, affected areas and also for each affected commune. The following costs are excluded from the resettlement program budget: (i) (ii) (iii) (iv) (v) Costs for reconstruction of public works such as National Road No.37; the realignment of the railway, TELECOMs and power transmission line systems; Cost for land clearance in the Project area (such as demolishing houses, cutting trees etc); Cost for staff of Nuiphaovica and associated expenditures; Costs incurred in the resettlement program preparation phases such as the socioeconomic and asset surveys, meetings etc; and Cost of INTRACO assets. Costs for these items are incorporated into civil works and construction budgets and Nuiphaovica operating costs for mine development. Nuiphaovica, Vietnam Page 194

229 Costs for compensation and resettlement including costs for Resettlement Action Plan preparation, implementation, administration and management costs, are inclusive of the following costs: Compensation costs for affected land and other assets in the Project operational areas and for all relocation sites. Relocation site development (resettlement and agricultural sites). Social services and infrastructure to be upgraded or newly constructed for communities receiving re-settlers. Cemetery development and construction. The market centre and handicraft workshops. Economic rehabilitation programs and special assistance to vulnerable groups (ethnic minorities, women headed households, mentally and physically disabled people, landless households, and poor families etc.). Allowances and subsidies for additional assistance during relocation and the transition period. Bonuses and incentives/additional assistance for self-relocation and for affected households who move themselves out of the affected area in a timely manner. Running costs for the Compensation Oversight Board, the Dai Tu District Compensation, Assistance and Resettlement Committee. Allowances for local officials who will be working on Resettlement Action Plan implementation and training costs for capacity building and skills development. Costs for independent monitoring of the compensation and resettlement program. The detailed cost estimate is provided in table 13.5 and presents costs for each key component of the program. Costs are estimated based on current understandings and assumptions and will be evaluated further as the detailed measurement survey is completed and land acquisition impacts are finalised. Nuiphaovica, Vietnam Page 195

230 Table 13.5 Summary of the Cost Estimate for the Nuiphaovica Resettlement Program Exchange rate: VND 15,800 per USD No. Item Unit Quantity 1 Boundary demarcation and detailed measurement survey Total (VND) Total (USD) Marking affected areas of operational area and remaining operational sectors (including labour and installation) Detailed measurement survey for affected land and assets in accordance with proposed land acquisition schedule Pile ,000,000 6,392 HH 1, ,500,000 54, Sub-total 960,500,000 60,791 2 Compensation costs 2.1 For residential land (and garden land) Sector 1 52,268 6,866,503, ,589 Ha Thuong m 2 25,649 3,309,722, ,476 Hung Son m 2 26,619 3,556,781, ,113 Tan Linh m Sector 2 110,304 18,656,842,000 1,180,813 Ha Thuong m 2 99,945 16,641,140,000 1,053,237 Hung Son m 2 10,359 2,015,702, ,576 Tan Linh m Sector 3 251,173 33,263,223,500 2,105,267 Ha Thuong m 2 218,891 29,050,075,000 1,838,612 Hung Son m 2 6,372 1,292,514,000 81,805 Tan Linh m 2 25,910 2,920,634, , Sector 4 17,326 1,896,640, ,041 Ha Thuong m 2 17,326 1,896,640, ,041 Hung Son m Tan Linh m Sector 5 65,560 6,812,129, ,147 Ha Thuong m 2 65,560 6,812,129, ,147 Hung Son m Tan Linh m Sector 6 241,691 41,917,999,450 2,653,038 Ha Thuong m 2 15,012 3,211,743, ,275 Hung Son m 2 180,683 34,082,006,950 2,157,089 Nuiphaovica, Vietnam Page 196

231 No. Item Unit Quantity Total (VND) Total (USD) Tan Linh m 2 45,996 4,624,249, , sub-total 738, ,413,337,450 6,924, For non-residential land (agricultural and other land) Sector 1 m 2 112,974 2,457,240, ,522 Ha Thuong m 2 54,145 1,332,418,300 84,330 Hung Son m 2 58,829 1,124,822,400 71,191 Tan Linh m Sector 2 176,568 3,640,589, ,417 Ha Thuong m 2 148,147 3,082,009, ,064 Hung Son m 2 28, ,579,280 35,353 Tan Linh m Sector 3 m 2 986,612 21,875,816,900 1,384,545 Ha Thuong m 2 932,265 20,799,596,100 1,316,430 Hung Son m 2 38, ,456,200 46,991 Tan Linh m 2 16, ,764,600 21, Sector 4 212,478 3,321,212, ,203 Ha Thuong m 2 212,478 3,321,212, ,203 Hung Son m Tan Linh m Sector 5 351,782 4,879,103, ,804 Ha Thuong m 2 351,782 4,879,103, ,804 Hung Son m Tan Linh m Sector 6 1,087,218 20,012,788,060 1,266,632 Ha Thuong m 2 81,658 1,701,146, ,668 Hung Son m 2 717,010 12,469,750, ,225 Tan Linh m 2 288,550 5,841,890, , sub-total 2,927,632 56,186,750,740 3,556, For buildings and other substructures (grave, well, fence, yard, kitchen, water meter, power meter etc.) Sector 1 5,496 3,913,298, ,677 Ha Thuong m 2 2,149 1,857,587, ,569 Hung Son m 2 3,347 2,055,710, ,108 Tan Linh m Sector 2 11,811 11,462,590, ,480 Ha Thuong m 2 10,892 10,437,195, ,582 Nuiphaovica, Vietnam Page 197

232 No. Item Unit Quantity Total (VND) Total (USD) Hung Son m ,025,395,328 64,898 Tan Linh m Sector 3 23,127 19,491,480,896 1,233,638 Ha Thuong m 2 20,846 17,476,505,803 1,106,108 Hung Son m ,070,576,760 67,758 Tan Linh m 2 1, ,398,333 59, Sector 4 1,433 1,180,478,732 74,714 Ha Thuong m 2 1,433 1,180,478,732 74,714 Hung Son m Tan Linh m Sector 5 4,364 4,311,068, ,852 Ha Thuong m 2 4,364 4,311,068, ,852 Hung Son m Tan Linh m Sector 6 23,748 20,761,674,297 1,314,030 Ha Thuong m ,966,854 32,909 Hung Son m 2 20,603 18,678,561,132 1,182,187 Tan Linh m 2 2,540 1,563,146,311 98, For trees, annual crops and reserve for annual crops 2.3 sub-total 69,979 61,120,590,544 3,868, Sector 1 119, ,470,259 59,587 Ha Thuong Tree 57, ,628,229 28,774 Hung Son Tree 61, ,842,030 30,813 Tan Linh Tree Sector 2 207,347 1,634,460, ,447 1,413,510,1 Ha Thuong Tree 179, ,463 Hung Son Tree 28, ,949,980 13,984 Tan Linh Tree Sector 3 894,649 7,052,309, ,349 Ha Thuong Tree 832,035 6,558,738, ,110 Hung Son Tree 32, ,858,879 16,067 Tan Linh Tree 30, ,711,927 15, Sector 4 166,098 1,309,313,803 82,868 Ha Thuong Tree 166,098 1,309,313,803 82,868 Hung Son Tree 0 0 Nuiphaovica, Vietnam Page 198

233 No. Item Unit Quantity Total (VND) Total (USD) Tan Linh Tree Sector 5 301,647 2,377,816, ,495 Ha Thuong Tree 301,647 2,377,816, ,495 Hung Son Tree 0 0 Tan Linh Tree Sector 6 960,512 7,571,490, ,208 Ha Thuong Tree 69, ,779,644 34,859 Hung Son Tree 648,837 5,114,627, ,711 Tan Linh Tree 241,804 1,906,083, , sub-total 20,886,860,865 1,466, Annual crops (reserved) HH 1,910 2,287,301, , Sub-total 249,894,840,599 15,816,129 3 Compensation and survey, planning, design and construction for 05 relocation sites 3.1 Relocation site at Nam Song Cong m 2 157,989 64,306,760,500 4,070, Relocation site at Hung Son No.2 m 2 83,662 20,795,961,850 1,316, Relocation site at Hung Son No.3 m 2 54,400 12,984,259, , Relocation site at Xom Trai m 2 74,200 19,075,823,080 1,207, Relocation site at Khe Thuy Tinh m 2 165,837 4,701,186, ,543 4 New cemetery development 3. Sub-total m 2 536, ,863,991,230 7,712, Sub-total m2 30,700 2,005,412, ,925 5 Compensation and construction of a segment of affected inter-road in Sector Sub-total Km 6 5,616,083, ,448 Compensation for land and other assets affected by realignment of public works and affected assets of institutions 7 Economic restoration programs 6. Sub-total 3,508,481, , Employment generation Person 3,000 18,000,000,000 1,139, Construction of market centre M 2 5,347 3,874,102, , Handicraft workshops M 2 21,230 15,500,390, ,037 8 Allowances and subsidies 7. Sub-total 37,374,493,100 2,365, Relocation/transition allowance HH/Person 844 / 3,305 2,974,500, , Transport allowance to new sites HH 844 2,532,000, , Incentive for timely moving HH 844 4,220,000, , Bonus for physical self relocation (assumed) HH 100 4,000,000, ,165 Nuiphaovica, Vietnam Page 199

234 No. Item Unit Quantity Total (VND) Total (USD) Health check before and after relocation Compensation for economic disturbance (reserved) Person 3, ,500,000 20,918 HH 403 1,209,000,000 76,519 9 Special assistance to the vulnerable groups 8. Sub-total 15,266,000, , Poor HH according to MOLISA criteria Families receiving social welfare from Government Landless PAP and PAP with affected household values less than value of 50 m 2 (reserved) HH ,000,000 31,329 HH 85 85,000,000 5,380 HH 140 1,400,000,000 88, Women headed households HH ,000,000 51, Gender programs (health care, micro finance for women...) Programs for Ethnic Minorities and affected communities 150,000,000 9, ,000,000 47, Sub-total 3,700,000, ,177 A SUBTOTAL (1-9) 440,189,801,829 27,860, Administrative and implementation costs 10.1 Cost for COB 1,200,000,000 75, Cost for DDCARC and commune working groups 900,000,000 56, Cost for independent monitoring 400,000,000 25, Training for RAP implementation 300,000,000 18, Sub-total 2,800,000, ,215 B SUBTOTAL (10) 2,800,000, ,215 C TOTAL (A+B) 442,989,801,829 28,037, Land for land compensation 70,077,857,000 4,435,307 D ACTUAL COST (C-11) 372,911,944,829 23,602, Contingency 12.1 Contingency for compensation package (15%) 37,484,226,090 2,372, Contingency of remaining items (10%) 37,291,194, , Sub-total 74,775,420,573 3,151,009 E GRAND TOTAL (D+12) 447,687,365,401 26,753,030 Notes: HH is household MOLISA is the Ministry of Labour, Invalides and Social Affairs COB is the Compensation Oversight Board DDCARC is the Dai Tu District Compensation, Assistance and Resettlement Committee Sectors relate to different operational areas required for mine development Nuiphaovica, Vietnam Page 200

235 13.5 Contingency Allowance According to the Vietnamese Land Law (2003), every January each Provincial People s Committee must update and issue new unit costs for land, assets, materials and labour costs. Experience has shown that in most cases the value of land has increased annually, especially for residential land. The cost estimate of land and assets to be compensated in 2006 and 2007 have been calculated using the unit price which was issued in late Therefore, a contingency of 15 percent has been applied to the compensation package. This contingency allows for future increases in unit prices that may occur between the time of this cost estimate and payments to affected people. In addition, a 10 percent contingency has also been applied to remaining items of the compensation and resettlement budget to allow for potential unforeseen expenditures. Nuiphaovica, Vietnam Page 201

236 ANNEXES Nuiphaovica, Vietnam Page 202

237 ANNEXES Nuiphaovica, Vietnam Page A1

238 ANNEX A EXAMPLE CONSULTATION QUESTIONNAIRE Nui Phao Mining Joint Venture Company Socialist Republic of Viet Nam Independent-Freedom-Happiness CONSULTATION QUESTIONNAIRE (for registration of vocational training programs and other economic restoration programs and location for resettlement) I General information of HHs: Householders full name DOB: Sex: male/female Ethnicity: religion current occupation. Name of village Commune Dai Tu district Total No. of members in family: age:. Persons, No. of person(s) in labouring (Number of member aged: 18-35: ; aged: 36-60) No. of person(s) currently working for government organizations/company:. 2 Affected categories: Total productive land area: m 2 ; Total area lost by the project: m 2 Affected category (see attached policies): Category 1: Category 2 Category 3 Relocation: 3- Occupational and other economic restoration program registration I certify that, vocational training policies, information on economic restoration programs are thoroughly studied and the following member(s) of my family would like to participate in the Nuiphaovica economic restoration programs Name of participants Sex DOB Educational level Title occupation of Signature Note: The following papers are attached with this questionnaire: (a). vocational training policies of Nuiphaovica, (b) List of suggested occupations and (c) Materials and information on vocational training centres. A detailed schedule of training and economic restoration programs is going to be informed to householders after consultation questionnaire analysis is completed. 4. Householder s commitments: I commit that I would comply with regulations of economic restoration programs of Nuiphaovica. I also commit that I would fully participate in offered programs if I decide to register. Date, / /.2005 Signature of householder Nuiphaovica, Vietnam Page A2

239 INFORMATION ON THE PROPOSED RELOCATION SITES FOR FAMILIES CHOICES Commune. Village.. No. Name of Site Commune Plot area (proposed) Plots Proposed technical infrastructures Proposed social infrastructure buildings Household s decision 1 Nam Song Cong Hung Son Tien Hoi 2 Xom Trai Binh Thuan 3 Xom 3 (Ham Rong) Hung Son 4 Khe Thuy Tinh Ha Thuong 5m x 25m= 125m 2 Estimated price: vnd per 1m m x 25m=300m 2 Estimated price: vnd per 1m m x 25m=300m 2 Estimated price: vnd per 1m m x 25m=400m Main road with asphalt pavement. - Lighting, electricity network. - Water supply and drainage - Main road with asphalt pavement. - Lighting, electricity. - Water supply and drainage - Main road with asphalt pavement. - Lighting, electricity network. - Water supply and drainage - -Maintain inter-roads. - Electricity - Water supply and drainage - A new community meeting hall, a nursery school, kindergarten and commune health station. - Some new class-rooms for primary school. - A new community meeting hall, a nursery school, kindergarten and commune health station. - Some new class-rooms for primary school. - A new community meeting hall, a nursery school, a kindergarten and a commune health station. - Some new class-rooms of Hung Son Primary School 1. - Health station. - Infant school, kindergarten. 6 Military K10 store Ha Thuong Currently, this area has 100 ha of trees and tea planted - Electricity - Upgrade current road - Building a new irrigation dam 5 Long Lanh (16 km from Dai Tu) Cat Ne An area of 400m 2 residential land will be available to each HH (for purchase). Additionally, 5,000m 2 land for tea planting & 2 ha-4 ha of forestry land are also available. Estimated price: 80, ,000 VND per 1 m 2 for residential land. Approx. 50 plots - Electricity - Other services as relevant depending on level of relocation and/or land purchasing at these sites - A small nursery school and a kindergarten will be able to built if at least 20 HHs move to this site - A small health care station. 7 For HHs who do not want to move to suggested relocation sites, they will be supported with an additional amount of 40 million VND. This amount is not inclusive of compensation, vocational training expenses, cost of 6 months food. HHs who wish to build house by themselves: Date:././2006 HHs trusts Nuiphaovica to build house: Signature of Householder (sign and write full name) We discussed, agreed upon and confirm our choices Nuiphaovica, Vietnam Page A3

240 ANNEX B POSTER ON ECONOMIC RESTORATION PROGRAMS Nuiphaovica, Vietnam Page A4

241 ANNEX C COMPENSATION PAYMENT PROCEDURE LEAFLET Nuiphaovica, Vietnam Page A5

242 ANNEX D COMPLAINT ACTION FORM COMPLAINT ACTION FORM PART 1 CONTACT AND REGISTRATION DETAILS COMPLAINT REGISTRATION NUMBER: (Number to be taken from the Complaint Log) DATE RECEIVED: TO BE COMPLETED BY COMPANY LOCATION: (Community/general area) Complainant: (Name, Surname) Telephone Number: Address: TO BE COMPLETED BY COMPLAINANT PART 2 COMPLAINT DESCRIPTION TO BE COMPLETED BY COMPLAINANT PART 3 PROPOSED RESPONSE/CORRECTIVE ACTION Nuiphaovica, Vietnam Page A6

243 COMPLAINT ACTION FORM Immediate Action: Date for Completion: Responsible Person: Signature: Date: Long Term Action: Date for Completion: Responsible Person: Signature: Date: TO BE COMPLETED BY COMPANY Other Resolution Details PART 4 VERIFICATION OF CORRECTIVE ACTION Follow-up Details: Closed Out: Signature: (Date) TO BE COMPLETED BY COMPANY Attach additional pages as necessary Nuiphaovica, Vietnam Page A7

244 ANNEX E COMPLAINTS PROCEDURE POSTER Nuiphaovica, Vietnam Page A8