RESETTLEMENT PLAN DANANG PEOPLE'S COMMITTEE PRIORITY INFRASTRUCTURE INVESTMENT PROJECT MANAGEMENT UNIT DANANG CITY SUSTAINABLE DEVELOPMENT PROJECT

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized, DANANG PEOPLE'S COMMITTEE PRIORITY INFRASTRUCTURE INVESTMENT PROJECT MANAGEMENT UNIT DANANG CITY SUSTAINABLE DEVELOPMENT PROJECT RESETTLEMENT PLAN DECEMBER 2012

2 DANANG PEOPLE'S COMMITTEE PRIORITY INFRASTRUCTURE INVESTMENT PROJECT MANAGEMENT UNIT DANANG CITY SUSTAINABLE DEVELOPMENT PROJECT RESETTLEMENT PLAN REPORT Package D60: Consultancy Service for Environmental Impact Assessment, and Resettlement Plan THE EMPLOYER DANANG PRIORITY INFRASTRUCTURE INVESTMENT PROJECTS MANAGEMENT UNIT II Danang SCDP - Resettlement Plan 1

3 Contents TABLE OF CONTENTS DEFINITIONS OF TERMS... 4 ABBREVIATIONS... 7 EXECUTIVE SUMMA.RY Project Background SURVEY AND RESEARCH... l6 2. MITIGATION MEASURES OBJECTIVES... l7 2.2 MITIGATION MEASURES... l7 3. LAND ACQUISITION AND RESETTLEMENT... l9 3.1 LAND ACQUISITION SCOPE... l9 3.2 INVENTORY OF LOSS SOCIOECONOMIC PROFILES Overview of project socio-economic situation Legal Framework POLICY ON THE COMPENSATION, ASSISTANCE AND RESETTLEMENT Entitlement Policy Resettlement Area Resettlement Options Resettlement site development Resettlement areas planning Host Community OVERVIEW ANALYSIS OF DEMAND PROPOSED LIVING RESTORATION PROGRAM l.Objectives And Policies Consultation And Participation Procedure Method for Consultation and Participation Community Consultation Results Responsibility Complaint Procedure I 0.1 Institutional Framework Responsibilities of Related Agencies Main Activities Implementation Steps IMPLEMENT SCHEDULE Internal Monitoring External Monitoring Danang SCDP- Resettlement Plan 2

4 13.1 FUNDING Replacement Cost Survey COST ESTIMATE APPENDIX Danang SCDP - Resettlement Plan 3

5 DEFINITIONS OF TERMS Displaced Person(s) (DPs) Resettlement Assistance Cutoff-date Detailed Measurement Survey (DMS) Entitlement Host community Income restoration/livelihood improvement Inventory of Losses (IOL) Displaced Person(s) (DPs) are the persons who are affected by involuntary taking of land, resulting in: (a) Relocation or loss of shelter; (b) Loss of assets or accessibility to assets; (c) Loss of income sources or means of livelihood, regardless of relocation or not; and (d) Restriction of accessibility to legally designated parks or protected areas causing adverse impacts on their livelihoods. Additional support provided to DPs who are losing assets (particularly productive assets), incomes, employment or sources of living, to supplement the compensation payment for acquired assets to achieve, at a minimum, the full restoration of living standards and quality of life. The date that the project is approved and the project landmarks are defined Displaced Persons and local communities will be informed of the cutoff-date, by the project management unit and relevant local authorities Any persons moving into the project area after the cut-off date will not be entitled to compensation and assistance under the project.. The finalization and/or validation of the results of the inventory of asset losses (IOL), severity of impacts, and list of DPs done during the preparation of the final resettlement plan and with the landmarks made on the ground demarcating for the project areas. The range of compensation, assistance measures and assessments comprising income restoration support, moving assistance, income restoration assistance, relocation and resettlement assistance to the DPs to restore their economic and social facilities, depending on the type and severity of their losses. A community living in the immediate vicinity of the proposed resettlement sites (communities receiving the resettlement). The restoration and/or improvement of income sources and livelihoods of all DPs. The process of tally, location, measurement and identification of assets that will be recovered or adversely affected by, or because of, the project. These include, (without limitation or being in an exhaustive list) lands used for residence, business, agriculture, ponds, dwelling, stalls and shops; other. structures such as fences, Danang SCDP - Resettlement Plan 4

6 tombs, and wells; trees with commercial value; and sources of income and livelihood. It also includes assessing the severity of the impacts on the DPs' affected land, property, assets livelihood and productive capacity. Land Acquisition Relocation/ Resettlement Replacement Value (Cost) Replacement Cost Study Vulnerable Groups The process by which the State issued administrative decisions to acquire the land-use rights or land allocated to users as regulated. Relocation means DPs' movement away from their old residence and resettlement means a new residence ofdps. The amount of money, which is needed to replace an affected asset and cover the transferring costs for such asset without depreciation or deductions for salvageable materials, inclusive of taxes, and/or costs of transactions as follows: (i)replacement cost is the concept used to calculate the compensation amount for an asset and involves using current market value plus the transaction costs which may include taxes, fees, transportation, labour, etc. (OP 4.12, footnote 11). The market value is determined by the PMU and confirmed by local authorities in consultation with the DPs. The methods of estimation of prevailing market value should evolve over time to achieve good practice. 1 (ii) Houses and eligible structures which are usable and associated with the land based on current market prices of materials and labor without depreciation or deductions for salvaged building materials plus fees for obtaining the ownership papers; (iii) Standing crops based on the current market value of the crop at the time of compensation; (iv) Perennial crops and fruit trees will be compensated by cash equivalent to the current market value given for the type, age and productive value of such trees (future production) at the compensation time. The process involved in the determination of the replacement cost of land, houses and other affected assets based on the predisplacements market surveys for the case of land in the vicinity of the affected land, with similar or improved public infrastructure. Distinct individuals or groups of people who might suffer disproportionately from the risk of land and property acquisition or building resettlement sites specifically including: (i) households falling under the MOLISA's poverty line, (ii) households with of martyrs, wounded and sick soldiers, heroes of the people's armed 1 PMU should use an independent appraiser (commissioned by the project) to assess the value of assets Danang SCDP Resettlement Plan 5

7 ABBREVIATIONS SCDP DMS DP(s) DRC ccu EIA FS HH IOL GRC PC PMU RCS RPIRAP RAPF SES TOR WB Sustainable City Development Project Detailed Measurements and Survey Project Displaced Persons District Compensation, Assistance and Resettlement Council Clearance and Compensation Unit Environmental Impact Assessment Feasibility Study Household Inventory of Losses Grievance Redress Committee People's Committee Project Management Unit Replacement Cost Survey Resettlement Plan/Resettlement Action Plan Resettlement Policy Framework Socio-economic Survey Terms of Reference World Bank Danang SCDP- Resettlement Plan 7

8 Executive Summary Introduction The proposed SCDP project, which continues to support the upgrading and expansion of environmental infrastructure, construction of a pilot bus-rapid-transit (BRT) corridor and two critical sections of road infrastructure to facilitate future city development, aims to help Da Nang become a more sustainable city that benefits all citizens by improving urban environment and increasing urban mobility in a clean, safe, inclusive, and energy efficient manner. The project consists of four main components as outlined as bellowed. Component 1: Drainage and Wastewater Improvement (US$ million, ofwhich IDA US$ 85.2 million). Component 2: Bus Rapid Transit Development (US$ 40.2 million of which IDA US$ 31.0 million). Component 3: Urban Strategic Roads (US$ 76.1 million of which IDA US$ 7.3 million and IBRD US$ 40.0 million). Component 4: Technical Assistance and Capacity Building (US$ 9.0 million to be financed by IDA). Among 04 components, impacts resulting from land acquisition take place in the 03 first components which are consolidated in this resettlement plan (RP) as required. Scope and Impact of Land Requisition The project location involves 16 wards of 5 districts of the Da Nang city. Accordingly, the total acquired area is 873,907.8 m 2 (ap~roximately 90 hectares), in which residential area is 172,307.8 m 2, agricultural land is 622,843 m and other public land (managed by Ward PC) is m 2 There are total 2, 798 affected households, in which 730 households need to be relocated. The table below is showing the summary of the project impact on land acquisition and resettlement: Danang SCDP- Resettlement Plan 8

9 Table 1: Summary of impacts due to the project Main impacts Unit Affected quantity I. Affected households: households 2,798 In which: + Households whose residential households II04 lands are affected +Households whose agricultural households I,694 lands are affected 2. Affected area 873,907.8 Of which: + residential land m2 172, agricultural land m2 622,843 + other land (public land) m2 78, Number of affected persons Persons II' Number of households to relocate, households 730 resettle 5. Area of house affected m Number of households whose households 999 agricultural land is seriously affected (20% or more) and I 0% for vulnerable group. 7. Number of business affected households 134 Danang SCDP Resettlement Plan 9

10 Mitigation Measures During the process of determining the project's investment scale, a close co-ordination between the technical consultant (SKM Company) and social consultant (Infra-Thanglong - the national consultant) has been established to achieve two following objectives: (i) Promote the effectiveness of the project's investment, minimize the land acquisition of landowners. During the socio-economic survey and consultation process with the project affected community, the Project considered measures to mitigate project impacts, by means of setting up proper resettlement and compensation options and confirm the DPs consensus towards the Project In doing so, there were dissemination activities in community meetings to introduce among DPs the Project's preparation and implementation arrangements. (ii) Simultaneously, measures to minimize temporary impacts in the construction stage were studied and actions are proposed to avoid or minimize impacts in the next stages. Policy Framework and Entitlement The basic principle applied for the RP preparation is that: DPs shall be assisted together with their best efforts to better or at least improve their living standards, their earning capacity and productivity similarly and living standards prior to the project. The lack of legal basis of land usage does not obstruct the affected persons' entitlements to the compensation and/or assistance for their economic restoration. Their affected properties will be compensated based on full "replacement costs" method. The cut-off date of the project is defined at the completion of IOL survey, 23 July, All cases arising after this date will not be compensated by the project. Resettlement Area For those DP with their residential land fully affected or their remaining land area not been economically feasible, a land plot in the resettlement site area will be provided. The estimated demand of plots in the resettlement area consists of about plots. The location for constructing resettlement area as per the consultations carried out with DPs, will be in the vicinity of their former residential area The resettlement site should be built as planned and in accordance with the construction standards for urban areas and provided with basic infrastructure before the relocation t of DPs. The five (5) resettlement sites areas defined are the following: the Hoa Lien Resettlement site Resettlement site at the north of Southern link (phase 3a), Resettlement site No.1 of DT605 road (phase 2), Hoa Phong - Hoa Phu Resettlen1ent Area (phase I) and Khe Can Resettlement site, accounting for a total area of about 302,239 m2, in which land for resettlement plots is 139,864 m2 (equal to 1,287 plots) ensuring resettlement required for the DPs. The affected land for the resettlement sites is mainly agricultural land. Besides, it also covers a small area of a muddy pond and other non-agricultural land. There are 890 affected households of agricultural land and 120 households will need to relocate due to the resettlement site construction. Livelihood Rehabilitation Program The livelihood rehabilitation program is an important activity of compensation and part of resettlement plan. In the project, a vocational training program and job introduction to be carried out by Danang Women Employment Service Centre would be proposed in more detail to the project's DPs, for contributing to their livelihood restorations. Danang SCDP - Resettlement Plan 10

11 Institutional Arrangements The RAP will be under the overall Project's Management Unit (PMU) management, and the City Clearance and Compensation Unit(CCU) implementation. The cooperation among the District Compensation, Assistance and Resettlement Council (DRC), the PMU, commune officers and resettlement specialists will ensure sound implementation results. Implementation Plan The RAP will be finalized and disclosed at appraisal and full compensation completion by the second quarter of 2014, before the construction or civil work starts. Consultation and Participation The project's RAP has been prepared in close cooperation of local authorities, mass organizations, and DPs to maximize their participation in the preparation. The local authorities, mass organizations and about over 843 affected households were consulted through different forms and channels including meetings, community consultations, in-depth interviews for typical cases and questionnaire survey for all households DP. The information obtained in the consultations informed the RAP and definition of compensation options. Consultation will be continuously carried out during project implementation. Monitoring and Evaluation The RAP implementation will be internally monitored and assessed by the PMU, and quarterly reports will be submitted to the Bank. In parallel, an independent monitoring organization will be hired to monitor the RP's implementation, evaluate the DP's livelihood restoration to define any remedies if required. Grievance and Grievance Redress Grievance and Grievance Redress mechanisms will follow the local procedure and regulation to ensure its processing in an adequate and timely manner. DPs will not pay any administrative fees for their grievance redress. All DPs' grievances/ complaints will be reported and submitted to the Bank by the PMU as a part of quarterly internal/ independent monitoring report. All complaints and redressing measures will be recorded at the PMU office and at the Clearance and Compensation Unit. RAP Cost Estimation Total estimated cost of RAP is 714,200,000,000 VND (about 34 million dollar). This includes compensation, allowance and assistance costs for project-affected land and structures, and other assets, the income rehabilitation programs, the transition assistances, the monitoring, evaluation and administrative management and contingency costs. Danang SCDP - Resettlement Plan 11

12 1. INTRODUCTION 1.1 Project Background Da Nang is the fourth largest city in Vietnam and has a provincial status, endowing it with a certain degree of administrative autonomy. It is widely viewed as a 'forward looking' city which is well planned, well governed and enjoys a generally higher quality of infrastructure than other cities. Da Nang is the most important city in the central coastal region with aspirations to serve as a regional economic hub and a gateway to the international markets. The city leaders have committed to developing the city into a "green" city by 2025, with emphasizes on high tech and tourism development. Da Nang city with an strategic location strategic, is considered priority economic area, with key transport hubs for roads, railway and domestic-international airways It is a major socio economic and cultural center for the country's Central region. In the regional and international context, Da Nang is a significant sea gateways region. In recent years, the city has implemented a number of projects funded by the World Bank. Particularly, in the period of , the Solid Waste Management and Drainage Improvement Project; and two phases of the Priority Infrastructure Investment Project (PIIP). Despite a great deal of infrastructure improvement, Da Nang has been facing particular difficulties such as flooding, and increased pollution in lakes and water resources. The World Bank would support the proposed Da Nang Sustainable City Development Project (SCDP), responsible for furnishing the city with essential urban infrastructure in order to assist its rapid expansion. The SCDP includes four components. Component 1: Environment Improvement with the key investment in wastewater collection and treatment. Component 2: Public Transport with key investment in Bus Rapid Transit system, Component 3: Strategic Urban Road Improvement includes the construction of new South-West highway route. Component 4: Capacity Building and Urban Infrastructure Management. The infrastructure by the proposed project will be concentrated in 05 urban districts of Da Nang Project Objectives The project development objective is to expand access of city residents to improved drainage, wastewater collection and treatment services, the road network, and public transport in selected areas of Da Nang. Project Components The project includes four components and two phases below. Component 1 - Environment Improvement and Key Investment in Waste Water Collection and Treatment Improvement of waste water collection and treatment system is concentrated. For the purpose of flood controlling, the storing capacity of lakes and canals needs to be expanded. Drainage and wastewater - overflow dam as well as pumping stations will be provided to the urban zones in Danang SCDP- Resettlement Plan 12

13 which their drainage system is directly discharge into rivers, lakes and canals. Besides, a separate sewer system will be constructed in the new development urban zones. In this component, a new wastewater treatment plant with two-tier treatment system (which has been experienced in another project) will be constructed in Lien Chieu district in order to serve the southern area of the city. In addition, the upgrading categories can be deployed in 04 wastewater treatment plants. Component 2- Public Transport: Bus Rapid Transit System Development Assistance to public transport development will be provided, in particular, Bus Rapid Transit system (BRn in the city will be constructed. BRT system aims to complete many routes of public transport lines (PT) which have been currently established. BRT route is proposed to construct with its length of22km from Hoa Khanh industry zone in the North-Western cities to new university zone in the Southeast, running though city center and Dragon Bridge. BRT will provide a separate lane and 26 bus stops. BRT system will also include stations, warehouses etc. Component 3 - Construction of Strategic Urban Roads: A new system of the East-West road-linking highway This component will provide investment fund in the strategic road network in order to stimulate modern urban road development. Besides, two main routes which link the East to the West will be established. In the South of the city, the Avenue will be extended to 8,25km heading to the West which is from the University zone/ Highway IA to Highway 14B. This route is 34m in width, with 6lanes (3,75m), mid (3m) and footpaths (5m) on both sides. The route runs through flat terrain in which mostly includes agricultural land for rice cultivation. On the routes, bridges over the rivers or canals will also be provided. The link road in the North of the city is proposed to be 6km long, extended towards the West from the intersection of Nguyen Luong Bang and Nguyen Tat Thanh (near the Highway 1 toll) to the link tunnel Southern Hai Van. The route will mainly spend agricultural land with flat terrain; however, there will be a significant number of affected households due to agricultural land acquisition. Component 4- Capacity Building of Urban Infrastructure Management SCDP will continue activities of capacity building which has been deployed in PIIP in order to support the city in improving the management of urban infrastructure assets. Danang SCDP will also give priority capacity building support for DATRAMAC and Drainage and Wastewater Management Company. Summary of Project Components Particular scale for each component as follows: Danang SCDP - Resettlement Plan 13

14 Component 1: Environment Improvement: Waste water collection and treatment NO. I Categories Subcomponent JA 1 Dredging Bau Tram lake 2 Dredging Bau Sau lake 3 Box culvert system along Quang Trung road 4 Box culvert system along Le Hong Phong road 5 Drainage system improvement at Hoang Van Thu road 6 Construction of exhaust port into Thac Gian lake and March 29 lake. 7 Khe Can Box culvert system from Le Trong Tan road to Phu Loc river Construction of drainage sewer and canal from Hoa Khanh Industry Zone to Cu 8 De river 9 Construction of box culvert from Bau Tram lake to Cu De river 10 Construction of drainage box culvert along Tran Quang Khai road 11 Construction of exhaust port to My Khe sea (CX3) and My An (CX4) 12 Da Co bridge improvement at Ton Due Thang road 13 Improvement of the culvert of Yen The- Bac Son canal on Ton Due Thang road 14 Improvement and rebuilding the manholes to prevent odors in the central area. Improvement of Yen The - Bac Son culvert system which is extended to Le 15 Trong Tan road 16 Building drainage sewer system from Huyen Tran Cong Chua into Co Co river 17 Building box culvert system from Phuoc Tuong foot mountain to Phuoc Ly lake II Subcomponent JB Construction of collection system, waste water pump station along Phan Lang 1 lakes Construction of sewer system for waste water collection and waste water 2 pumping station along Nguyen Tat Thanh road Construction of transferring sewer for waste water collection from Phu Loc 3 treatment plant to Lien Chieu treatment plant 4 Construction of waste water collection system on Tran Hung Dao road 5 Construction of drainage sewer system around Au Thuyen, Tho Quang 6 Construction of collection sewer system along Hoang Sa road 7 Construction of waste water collection system in My Khe and My An communes Danang SCDP - Resettlement Plan 14

15 Construction of main canal from Ngu Hanh Son Treatment Plant to Hoa Xuan 8 Treatment Plant 9 Construction of sewer system along Han river to Ngu Hanh Son Treatment Plant 10 Construction of sewer system along Co Co river to Hoa Xuan Treatment Plant Construction the connection of waste water collection system lever 03 for 40, households Enhance the capacity ofhoa Xuan treatment plant from m 3 /day to m 3 /day Construction of Lien Chieu waste water treatment plant with the capacity of m 3 /day Component 2: - BRT (Bus Rapid Transit) Route Alternative: Hoa Khanh Industrial Zone (initial point in the northern city)- Nguyen Luong Bang - Ton Due Thang Street, Dien Bien Phu - Nguyen Tri Phuong - Nguyen Van Linh, a new bridge over Han River (Dragon bridge)- Ngo Quyen street- Ngu Hanh Son street-levan Hien street - Viet - Korea (the last point in the southern city). The system has 37 terminals including stops, initial terminal, last terminal, warehouses, etc. Component 3: Construction of Strategic traffic routes 3A - Construction of Strategic Roads In terms of the Linked Nguyen Tat Thanh road to Hai Van Tuy Loan to Hai Van- Tuy Loan private siding: The route is oriented as Northeast - Southwest, from Km (the initial point) to Km 6+00 (the last point), go through the Hai Van - Tuy Loan and connected to the principal arterial of information technology area. Total route length is 3.3 km. Southern Ring Road: The initial point: KO +00 at the intersection of Southern Ring road - Highway la-hoa Quy (Km la). The route follows the West- Southwest, after then turns right around 48 to the West- Northwest, crossing Qua Giang River at KmO The route passes through the railway -the junction with the Provincial Road 605 at Km , then go to the West, across the Tay Tinh River at Km5 +310, crossing the Danang-Quang Ngai Expressway at about Km as in proposal, cross the river Yen at Km From there, the route continues to tum right according to West - Northwest direction to the end point of route at the intersection with Highway 14B, at the initial point of Provincial Road 604 at Km QL14B also at Kml273 Ho Chi Minh road in Bo Ban 1 village, Hoa Phong commune, at the North of the Administrative Center of Hoa Vang District, Da Nang city. Its length is 7.98 km. 3B- Construction of Resettlement Sites No. Resettlement Sites Location Total area (m2) 1 Hoa Lien Resettlement Site Hoa Lien commune, 53,784 Hoa V ang district 2 Resettlement Site at the north of Hoa Quy ward, Ngu 74,562 Danang SCDP - Resettlement Plan 15

16 Southern link (phase 3a) Hanh Son district 3 Resettlement Site No.1 of DT605 road Hoa Chau commune, 43,469 (phase 2) Hoa Vang district 4 Hoa Phong - Hoa Phu Resettlement Hoa Phu commune, Hoa 70,676 Site (phase 1) Vang district 5 Khe Can Resettlement Site Thanh Khe Tay ward of 59,748 Thanh Khe district and Hoa Minh ward of Lien Chieu district Study Scope and Main Assignments The project is anticipated to cause social impacts due to construction of the 03 first components. Although the impacts are very diverse, the RP covered detailed descriptions of impacts, benefits, rehabilitation assistance considered to ensure the improvement or at least maintain the living standard of DPs as compared to their pre-project condition. Therefore, the RAP addressed special attention to low-income areas and vulnerable groups affected. This RP report is prepared to ensure the compliance with the World Bank's policy OP4.12 on involuntary resettlement and consistency with the current policies on involuntary resettlement of Vietnam and Danang city. The work scope includes: (i) analyses of the results of social assessment, and (ii) preparation of socioeconomic information; an analyses of socio-economic survey results carried out in the project area in June, 20 12; results of the inventory of the losses and consultation processes with the DPs and key stakeholders analysis of replacement costs survey, and reviewed impacts and benefits of the investment components on the project's targeted communities. 1.2 Survey And Research During the period from April - September 2012, the inventory of losses (IOL), and socioeconomic survey were conducted. For the former, information among all affected households was obtained. For the latter, the survey included socioeconomic questionnaires among 843 affected households (equivalent to about 26.8% of total affected households) and including detailed information on households requiring relocation. Steps involved in this research and consultations with affected communities were as follows: Review and close coordination with detailed design consultant to identify investment components and to map out the entire route of the Project while conduct field surveys to take measures to minimize the land acquisition and resettlement impacts (if any). Details are shown in Chapter 2: Mitigation Measures. Map of the project's affected areas in order depict the types and levels of impacts associated to the results of the socio-economic survey and inventory of losses (IOL), both projects' baseline information. Conduct IOL including the affected land/property over (100%) households and the socioeconomic survey for 20% of partially affected households and 100% significantly affected and displaced households, thereby to establish an economic and social database report (enclosed with the resettlement plan report). Details in Chapter 3 and 4 : Land acquisition, resettlement and economic and social information; Danang SCDP- Resettlement Plan 16

17 Research replacement costs through the collection of compensation unit price issued by Danang City PC; collection of information on real estate transactions over the city (in or nearby the project area); collection of quotations on the properties/building materials etc. and consult people on compensation rates applied in their locality. Details in Chapter 13: Cost Estimate for Compensation, Assistance and Resettlement. Organize consultations with the community and stakeholders such as community representatives and affected households (applicable to all displaced and affected households). In addition, consultations with the PMU staff have been conducted to discuss and agree the contents mentioned, focusing on the research and replacement costs survey and livelihood restoration/ rehabilitation programs of affected households, among others. More details in Chapter 10: Community Consultation and Participation. Apart from the above statements, information on implementation organization, implementation plans, and benefit policies for affected households, resettlement arrangement and other rehabilitation policies are reflected in the following parts of the report. 2. MITIGATION MEASURES 2.1 OBJECTIVES The first principle of World Bank OP 4.12 policy is to avoid or minimize impacts on resettlement and land acquisition. In case it is not feasible to avoid such resettlement, mitigation methods and/or reasonable compensation should be applied for DPs. The resettlement and land acquisition for the SCDP has been minimized. The project engineering consultant, PIIP PMU and other authorities have made efforts to minimize impacts on land acquisition since the stage of project design and completion of the investment report; therefore, the impact scale on resettlement is minimized to the minimum. Unavoidable land acquisition impacts are caused by the need of land acquisition for the construction of the Nguyen Tat Thanh road extension (in Hoa Lien commune, Hoa Vang district) and Hoa Phuoc - Hoa Khuong road (passing through Hao Chau, Hoa Tien, Hoa Khuong, Hoa Phong roads in Hoa Vang District) and the rehabilitation and construction of the drainage systems in urban districts together with BRT stations. Wide-range consultations between the project's resettlement specialists (Infra-Thanglong) and local authorities, community-based organizations and especially households, who may be affected by the project, were organized to provide mitigation measures and identify options and solutions to avoid relocating residents from their existing shelters. 2.2 MITIGATION MEASURES In the project's design process, the PMU in an effort of project impact mitigation closely coordinated with the technical team of SKM a in charge of the technical design. Thereby, the plan of building culverts under the existing roads will not affect households and has no permanent land acquisition. Households will be temporarily affected during the construction period. Regarding the construction works of Linked Nguyen Tat Thanh road and Hoa Phuoc Hoa Khuong road, rebuilding and rehabilitation of ditches in city districts and BRT stations and terminals, there are some inevitably cases of affected houses, regardless of many mitigation Danang SCDP -Resettlement Plan 17

18 measures adddressed (such as designing route direction, building culverts on the existing canals and using public land fund). Therefore, in order to minimize impacts on these families, including those whose houses are partly or indirectly affected during the construction, the following mitigation measures are proposed: I. Firstly, the first action of project impact mitigation was for households to get information on the project's locations and benefits, as well as, with the estimated impacts in order to, jointly define the best ways to minimize impacts. The community consultations were carried out in the whole project area to inform about: (i) project information; and (ii) expected impacts as well as land acquisition and resettlement compensation methods. In the consultation meetings, many opinions were exchanged. In general, people supported the Project and hoped that it would be soon accomplished to solve the flooding situation in the area. 2. Secondly, for the Component of Strategic traffic route, this component will affect many households. Therefore, during the route identification and preliminary design, an appropriate technical plan has been proposed to avoid residential areas. A voiding impacts is the most feasible measure to minimize the Project adverse impacts effectively. In case of inevitable negative effects on property, adequate compensation policy and appropriate compensation cost at least, ensures the restoration of the loss in accordance with the Project's RPF. Besides, the construction of traffic routes will also influence on the irrigation system and local roads, which can cause temporary flood to some residential areas. Consequently, many mitigation measures are provided right at the predesign stage (intersections, work scale which meet local needs, method to prevent agricultural waste, straw which blocked the culvert). The newly formed low-lying areas also provide appropriated drainage solutions. 3. Thirdly, for the box culverts - most box culverts have been studied and set up in the middle of the road to minimize direct impacts on households living on both roadsides such as the construction of box-culverts in Hoa Minh - Hoa An residential area of Lien Chieu district. Accordingly, remaining impacts after the application of mitigation methods are only temporary impacts during the construction process, especially on those for access to business facilities of households living on two roadsides. In addition, as a result of the expected dimensions of box culverts in the project area, the land acquisition for these culverts ranges from m while road width ranges from 6-6.5m. However, in order to minimize impacts on households living along the roadsides, public consultation meetings with households were conducted in these wards to attract their supports on the construction process. Some temporary impacts (on traffic, business, etc.) will be minimized by the Contractor, in a close cooperation with the community, based on (i) notifying the Contractor's construction plan so that residents can make necessary and suitable arrangements; (ii) the construction activities should finished one by one with fencing/excavation section by section to minimize effects on traffic and business activities of households. 4. Fourthly, some houses, close to the natural drainage ditches, will be facing unavoidable adverse impacts on assets due to the expansion of drainage channels. Some households at the end point of BRT and some sections of the component of strategic traffic route will be affected by unavoidable adverse impacts on assets, due to land acquisition. Appropriate Danang SCDP - Resettlement Plan 18

19 compensation mechanism and compensation which ensure at least the restoration of loss will be provided according to policies in project's RP. 5. Fifthly, during the construction, there will be some negative impacts in the project area such as the need for house rehabilitation for partly affected households. The technical team will provide a number of mitigation measures such as defined construction schedule for each construction section and will inform the affected households. 6. Finally, meetings were held with the technical group to determine locations of drainage alignments and establish criteria of impact mitigation during the construction such as setting up working safety plans (when constructing near residential areas}, for making proper arrangements of materials and instruments (project sign boards, making partitions with residential areas, etc.), and preparing a construction schedule to minimize temporary impacts. 3. LAND ACQUISITION AND RESETTLEMENT 3.1 LAND ACQUISITION SCOPE As specified in the technical design, SCDP Project is designed and constructed in 16 wards of 05 districts, Lien Chieu, Cam Le,, Thanh Khe and Ngu Hanh Son and Hoa Vang districts. Major features of the impacts of land acquisition in the project districts are as follows: Overview of Project Impacts According to the preliminary design, the most important social impacts are as follows: Danang SCDP -Resettlement Plan 19

20 Table 2: Summary of Project Affected Quantity Main impacts Unit 1. Affected households: households In which: + Households whose residential households lands are affected + Households whose agricultural households lands are affected + Households whose houses are households affected 2. Affected area m2 Of which: + residential land m2 +agricultural land m2 + other land (public land) m2 3. Number of affected persons persons 4. Number of households to relocate, households resettle 5. affected house area m2 6.Number of households whose persons agricultural land is seriously affected (20% or more) 7 Number of business affected Household Affected quantity 2,798 1,104 1, , , , PAHs will be fully compensated/assisted in accordance with the Policy on compensation, assistance and resettlement agreed between the Government of Vietnam and the World Bank Affected Area Based on the preliminary design, the project is implemented in 2 phases. The RAP shows the project impacts for the whole project, including 16 wards/ communes of 05 districts. Ngu Hanh Son district: Hoa Quy, My An, Khue My wards and Hoa Hai ward o Cam Le district: Hoa An, Hoa Xuan wards o Lien Chieu district: Hoa Minh ward and Hoa Khanh Nam, Hoa Khanh Bac, Hoa Hiep Nam wards o Thanh Khe district: Chinh Gian and Thac Gian wards o Hoa Vang district: Hoa Chau, Hoa Tien, Hoa Lien and Hoa Phong communes. In addition to the mentioned direct impacts, the Project will also cause temporary impacts to over 50 households living along the routes and along the existing canals/ditches during the construction process. These impacts primarily prevent households from accessing their business facilities when the Project is under construction, where the road would be closed and traffic cramped. Danang SCDP -Resettlement Plan 20

21 3.2 INVENTORY OF LOSSES Based on the technical design, the Project works may affect 16 wards in 05 districts, in which the impact area is divided main categories following, details of impacts are shown in the table below: Impacts of Residential Land Acquisition As stated, thanks to the approach of land acquisition and resettlement mitigation in the Project design stage, the number of resettled households is minimized. However, there are many households on request of land acquisition, including 730 households in need of resettlement. It is stated in particular in the Table 3 below: Danang SCDP- Resettlement Plan 21

22 Table 3: Table of Residential Land Impacts Lien Chieu District Hoa Minh ward Cam Le District HoaAn ward HoaAn ward Ngu Hanh Son District HoaHai ward Sub-TOTAL TOTAL Source: /OL Survey, August 2012 Danang SCDP -Resettlement Plan 22

23 3.2.2 Affected Agricultural Land This is the main impact of the Project. Total 1694 households are to be affected with agricultural land. Total Project affected area is ,28 m2 Table 4: Table of Agricultural Land Impacts Affected Households whose agricultural area lands are affected (m 1 ) District Project component <20%(10% for vulnerable Total Lien Chieu District Hoa Khanh Bac ward ,679 Lien Chieu District Hoa Hiep Nam ward Hoa Vang District Hoa Lien commune Hoa Phong commune ~ ~ Extended Nguyen Tat Thanh road Hoa Phuoc - Hoa Khuong road Danang SCDP Resettlement Plan 23

24 Hoa Phuoc commune Hoa Chau commune Hoa Tien commune ,353 32,456 14,846 Sub-TOTAL ,896 Resettlement area,,, ' ' ',, ' ~ : ' '.,,.,. '' '' I ,589 Sub-TOTAL ,589 TOTAL , , Source: /OL Survey, August 2012 The table shows that the affected scope of agricultural land for the entire Project concentrates in the Lien Chieu and Ngu Hanh Son wards and Hoa Vang district, where construction's extension of the Nguyen Tat Thanh and Hoa Phuoc - Hoa Khuong urban road will take place. The income sources of households in these areas partiallycome from cultivation and fanning, so as the land acquisition will cause impacts, the RP will look at income restoration programs such as vocational training, to mitigate impacts on their livelihoods and income sources. Thus, in addition to the compensation and assistance, to assist DPs, the income restoration programs will support households with the new job environment, to ensure their economic stabilization and provide the opportunities to improve their income Affected residential housing Danang SCDP Resettlement Plan 24

25 Similarly to impacts on residential land, project impacts on houses and structures are significant mainly on the DPs along the Nguyen Tat Thanh and Hoa Phuoc- Hoa Khuong road and at the ending point ofbrt and DPs living along the drainage culverts. The details of impacts on houses and architectural objects are shown below: Table 5: Table of House Impacts District Project component Households whose houses are affected (Households) Affected area (mz Lien Chieu District Hoa Minh ward Hoa Minh ward Cam Le District HoaAn ward HoaAn ward Ngu Hanh Son District HoaHai ward Component 2 : BRT

26 Lien Chieu District Hoa Khanh Bac ward Starting point HoaQuyward Ending point ,864.4 Sub-Total ,189.4 Component 3: Strategic Urban Roads Hoa Vang District Hoa Lien commune Nguyen Tat Thanh extending road , Hoa Phong commune Hoa Phuoc commune , Hoa Phuoc - Hoa Khuong road Hoa Chau commune , Hoa Tien commune , ; Sub = To~l.f,.. r., <::{ :t - <-~-:'..._ -. :;." " ,326.07,-,::--~i------~ - ~-, 0. ;: ': '.1 f :,-.;r!'j: :;. v -':~;y;, ;: I:.; '', J. ~ :;~_~-,. '"(... :, I Resettlement area ,200 Sub.;Jfo~li '... : >>:~.J~ '- 7,_ : A,:. 'g_., \., : ; ' ~~1:. ::i i. A t~:"_:r : - ~i :-" _.., ,200 TOTAI{L -CC =. ' i f'..'y(.;,'\ji:''}'.;. ~:;x~ ~--( rr~ -::_.;,. ~ - ic;._ ,104 48,380 ' Source: IOL Survey, August Impacts on other structures There will be impacts on other households' structures including auxiliary works, yards and walls located along the existing culverts/canals/roads, and close to the ROW of canals. Therefore, they will have to be compensated. Danang SCDP Resettlement Plan

27 Table 6: Summary of other structures Impacts Other structure affected No District Project component Latrine (m) Wall (m) Lien Chieu District Hoa Minh ward Hoa Minh ward Cam Le District HoaAn ward HoaAn ward HoaHai ward Component2 Lien Chieu District Hoa Khanh Bac ward Starting point Hoa Lien commune HoaPhong commune Hoa Phuoc commune Hoa Chau commune road Hoa Phuoc - Hoa Khuong road Hoa Tien commune TOTAL Source: /OL Survey, August soo

28 3.2.5 Impacts on Trees and Farming Products SCDP project will affect plants and trees, including, ornamental plants, which is not significant. Table 7: Summary of Impacts on trees No Component 1: 1 Environment Improvement 2 Component 2:BRT Component 3: 3 Strategic Urban Roads TOTAL 362 Danang SCDP -Resettlement Plan 1

29 3.2.6 Other Im pacts 2 In Nguyen Tat Thanh and Hoa Phuoc- Hoa Khuong route, the project affects a cemetery where an estimate of 382 graves need to be moved for the project construction (in which there are 250 graves requiring relocation for the construction of Nguyen Tat Thanh extending and 132 graves requiring relocation for the construction of Hoa Phuoc - Hoa Khuong road). Due to the large number of affected graves to be relocated, the planning of the graveyard was consulted with the superior authorities (district and city level), that the proposed option is to move the said graves into cemetery of the Dannang city. After discussing with the local authority and the owners of the graves, an agreement have been reached: all graves will be moved to the city concentrated cemetery. Besides graves, none other local cultural, religious works are to be affected by the Project. 4. SOCIOECONOMIC PROFILES 4.1 Overview of project socio-economic situation Da Nang city is located strategically in the central Vietnam. Da Nang borders Thua Thien-Hue Province in the north, Quang Nam Province in the south and the west, and the Eastern Sea in the east. It has the distance of 759km from Hanoi and 964km from Ho Chi Minh City. Da Nang is considered as one of the important gateways of the central Vietnam in terms of railways, waterways and traffic roads (Highway 1A, 14B) together with international airways. The total area of Da Nang city is about km2 in which, the inner city with the area of km2 has 06 districts including Hai Chau and Thanh Khe, Son Tra and Ngu Hanh Son, Lien Chieu and Cam Le and 02 suburban districts including Hoa Van and Hoang Sa. The total population of the city in 2011 is people, in which the population in the inner city is people (accounting for 87%) and that in the suburban zone is (accounting for 13%). The number of labor employed in the city in 2011 was 496,200 people. In particular, the number of technical workers was 37,914 people; that of qualified employees was 26,039 people who were graduated from high schools, colleges and universities and the number of others was 432,24 7 people. The labor structure is divided as follows: 2 Note: The list of public utilities (electric poles, lighting poles) and underground utilities (such as water supply pipes/ drainage pipes, communication cables, etc.) which should be relocated for the project implementation are not part of the RP. These facilities will be compensated and removed by the counterpart fund and the local communities do not have to pay for it. Danang SCDP- Resettlement Plan 2

30 1. Agriculture, forestry and fisheries: 38,830 employees accounted for 7.8% 2. Industry and construction : 130,929 workers accounted for 26.4% 3. Services : 223,838 accounted for 45.1% 4. Others :20.7%. Da Nang in recent years has developed the infrastructure and service system. The traffic system of the city is furnished with not only traffic roads but also international airports, sea ports and the national railway. Network traffic in and out of the city is constantly being expanded and upgraded. Many large projects under operation or in the process of completion as Nguyen Tat Thanh, Dien Bien Phu, Ngo Quyen, Bach Dang, Son Tra - Dien Ngoc road, Hai Van tunnel, Han river Bridge, Tuyen Son and Thuan Phuoc bridge create favorable conditions for transportation and tourist development but also creates landscape and change the basic appearance of the most bustling urban center in the Central Vietnam. The economic structure focuses on service - industry - agriculture development. The proportion of service sector in GDP in 2010 reached 52.98%, industry- construction reached 43.84% and agriculture reached 3.18%. Da Nang is one of the largest education and training centers of the Central Region and Tay Nguyen Highland and the whole country. Currently, the city has 14 universities, institutes, 18 colleges and 50 professional schools, vocational training centers and more than 200 schools from preschool to higher schools. Danang has 19 general hospitals and specialized clinics, 11 hospitals and health centers of districts, 4 7 commune health centers and over 1,000 private clinics. With the establishment of the University of Medicine and Pharmacy and the University of Technical Health in the city, Da Nang aims to become a major medical center of the Central and Highland region and the whole country. Providing human resources and high quality health services serve socio-economic development of the country. 4.2 Socio-Economic Conditions of Affected Households (AHs) Data on socio-economic situation of the AHs due to the project is collected based on survey results through questionnaire interview for 843 households (HHs) and focus interviews with nearly 50 representatives from households, ward/commune and village staff (including both men and women) and 24 public consultations and group discussions. The selection of HH sample for socio-economic survey is based on the results of inventory losses (IOL) and severely AHs due to the loss of agricultural land, loss of residential land and HHs doing businesses.. The formal and informal meetings and group discussions with local authorities and other stakeholders were held during the implementation of socio-economic survey. The number of surveyed households through questionnaire survey is listed in the following table: Danang SCDP- Resettlement Plan 3

31 Table 8: Socio-economic survey scale No. Project area Household number HoaAn 48 f... I _,_.,_... _... _..,... ~ , HoaQuy 21 HoaHai 12 HoaKhanh 70, _... _,,,... ~..., 5 Hoa Khanh Bac _ """""'"""'"'"'"'""""'""'"'""""'"""'"'"'"'""'""''"'""""' HoaChau 97 Hoa Lien 111 Hoa Tien _, _ ~...,,,.. J::!2~...P...h.Q!!.g ,_,...,., ~-~-- 10 HoaPhuoc HoaMinh 80,,_,,,_,,,_,_,,,,...,,,,...,.,_,,_,_...,....~ , BinhHien 20 Total The demographic characteristics of APs According the survey sample of 843 HHs living in the project area, did not evidence any presence of ethnic minority people in the project area. Average number of people in a HH was 4.2 members and 49.3% men and 50.7% women Education In terms of household headers, most of them were qualified with upper high school. Among them, the people with high school qualification accounted for the highest proportion of 4 7,9%; followed by intermediate level, college and university level (accounting for 34,3%). The rate of APs with secondary qualification occupied the lowest rate (17,8o/o). There was no case of illiteracy. Danang SCDP- Resettlement Plan 4

32 Table 9: Education level of Household headers Main income sources and income level of AHs Income sources AHs have income sources from various sectors such as agriculture and from fisheries, trade, employment. Income sources depend on the locations. In communes in Hoa Yang district, such as Hoa Tien, Hoa Lien, Hoa Chau, Hoa Phong and Phuoc Hoa, household income source was mainly agricultural activities which accounted for the highest rate while those in Southern Hoa Kha11h, North~m Hoa Khanh, Quang Tho, Hoa An ward; households had income source mainly from!~bor salaries. Detail see Table 10 bellow. Danang SCDP- Resettlement Plan 5

33 Table 10: Income sources, according to communes/wards (o/o) IT Staff in Ward/ Agricult Aquic Hired Governm Trade Commune ure ulture labor ental offices Teacher's health care officers Drive r 1 HoaMinh % HoaK.hanh 2 Nam 24 I % HoaK.hanh Bac % HoaLien % HoaChau Other % HoaHai 6 0 I % HoaAn % HoaQuy 3 l % HoaPhong % Hoa Tien % Binh Hien % HoaPhuoc % l Total % Survey results also showed that, except for households in which both spouses were working in state agencies, most households have at least two or more different sources of income. For agricultural HHs, the majority of additional income sources could be from employment or state agencies; other households had revenues from small businesses, combined with employment and other payment sources. Many HHs had about income sources. Through group discussion and public consultation, it was confirmed that household's income source have experienced a transformation from agricultural, into non-agricultural sources. Number of laborers now working in the agricultural sector has also decreased, mainly in the age range from 45 to 55. The laborers with age under 45 mainly work in non-agricultural sector. Income level Total Danang SCDP -Resettlement Plan 6

34 According to survey results, the income levels of AHs mainly belong to the group of more than 70 million VND I household I year (61,3 %), in particular, each household has average income of 1.4 million per month per capita. Next was the percentage of households with income level of about million/year (up to 31.9%) equivalent to average income ranges from 700,000 VND to 1,4 million VND/person/month. Households with incomes below 35 million/household/year accounted for lowest proportion (6.8%). Graph 1: Annual Income ofhhs ( 0 /o) Bellow 35 millions VND From millions VND 11 More than 70 millions VND In the survey area, there is not great difference of income level between agricultural and nonagricultural HHs living in different wards/ communes (see detail in chart 2). This is due to the transformation into non.. agricultural income sources which has mainly taken place in Da Nang. Agricultural households do not depend on only a single source of income but they have income from various activities. Among them, agriculture is only one part of the income structure of the whole family. Danang SCDP- Resettlement Plan 7

35 Table 11: HH income according to Project locations Below million More than 70 No Ward/Commune million VND VND million VND Total I HoaMinh 7 2I % 26.2% 65.0% 100.0% 2 Hoa Khanh Nam 1 2I % 30.0% 68.6% 100.0% 3 Hoa Khanh Bac % 23.7% 65.6% 100.0% 4 Hoa Lien Ill 2.7% 31.5% 65.8% 100.0% 5 Hoa Chau % 22.7% 69.1% 100.0% 6 Hoa Hai I2.0% 58.3% 41.7% 100.0% 7 HoaAn 5 I % 29.2% 60.4% 100.0% 8 HoaQuy % 28.6% 66.7% 100.0% 9 HoaPhong % 22.0% 64.6% 100.0% 10 Hoa Tien % 16% 79% 100% I1 Binh Hien % 10.0% 80.0% 100.0% 12 Hoa Phuoc % 81.4% 13.7% 100.0% Total o;o 6.8% 31.9 /o 61.3 /o 100.0o/o Expenditure According to survey results, the expenditure of households focused on the range of over 70 million VND I household I year, accounting for 60.3%. Next was the HH group which has the spending rate of million VND I household I year (accounting for 27.4%). Spending level below 35 million VND I household I year accounted for lowest percentage (to 12.3%). The majority of households surveyed said that with their current income they are unable to save money. Danang SCDP -Resettlement Plan 8

36 Graph 2: Household Expenditure ( 0 /o) Bellow 35 millions VND From millions VND 11 More than 70 millions VND Living standards and Family facilities Living standard: According to Decision No.09/20 11/QD-TTg, the poverty line for the urban area is VND/person/month (or from less than 06 million VND/person/year). A nearpoverty line in urban areas will have average income from VND to VND/person/month. According to this standard, among 843 surveyed households, there are 54 poor households (accounting for 6, 4%). The poverty rate of Danang City is 3,05% in Compare with this survey, the poverty rate of surveyed households is higher than that of Danang City in general. There was no evidence of an extremely poor household ( according to national survey standards). There are 283 prosperous households (accounting for 33, 8%). There are 504 households who have average living standard (accounting for 60%). Danang SCDP- Resettlement Plan 9

37 Table 12: Classification of households by income Classification of households by income Total No Commune Rich Medium Poor 1 HoaMinh % 26.2% 8.8% 100.0% 2 Hoa Khanh Nam % 44.3%.0% 100.0% 3 Hoa Khanh Bac % 23.7% 10.8% 100.0% 4 Hoa Lien % 33.3% 2.7% 100.0% 5 HoaChau % 22.7% 8.2% 100.0% 6 HoaHai % 58.3%.0% 100.0% 7 HoaAn % 33.3% 10.4% 100.0% 8 HoaQuy % 28.6% 4.8% 100.0% 9 HoaPhong % 22.0% 13.4% 100.0% 10 Hoa Tien % 18.7% 1.9% 100.0% 11 Binh Hien % 10.0% 10.0% 100.0% 12 Hoa Phuoc % 81.4% 4.9% 100.0% Total % 33.8% 6.4% 100.0% Household Facilities: According the survey results, furniture, color TV, motorbikes, telephones, refrigerators, air conditioners, and cars, are owned by families. Details are described in the following table. Table 13: Facilities of affected households Furniture 59.4 Refrigerator 73.2 Motorbike 99.9 Washing machine 71.8 Bicycle 85.7 Air Conditioner 51.4 Color TV 100 Car 1.8 Danang SCDP -Resettlement Plan IO

38 4.2.6 Housing and residential land Most houses of the surveyed households are permanent (one or two stories), accounting for 59.8%; followed by the percentage of semi-permanent houses (houses, tiles or concreted roofthe level 4 house) accounting for 40.2%. There is no thatched household. The average housing area of the households ranges from 60 to 80 m 2!household accounting for the highest proportion with 38. 7%; followed by the proportion of houses with area of more than 80m 2 /household, accounting for 28.9o/o. The area less than 60m 2 accounts for lowest percentage only 16.6o/o. No. Ward Table 14: House types of displaced people Permanent House type Semi -permanent Total 1 HoaMinh % 35.0o/o 100.0% 2 Hoa Khanh Nam o/o 44.3% IOO.Oo/o 3 Hoa Khanh Bac % 34.4% IOO.Oo/o 4 HoaLien Ill 64.0% 36.0% 100.0% 5 HoaChau % 30.9% 100.0o/o 6 HoaHai % 58.3% 100.0% 7 HoaAn % 43.8o/o 100.0% 8 HoaQuy o/o 33.3% 100.0o/o 9 HoaPhong % 35.4% 100.0% 10 Hoa Tien % 20.6% 100.0% 11 Binh Hien % 20.0% IOO.Oo/o 12 HoaPhuoc % 86.3o/o 100.0% Total Occupants that self-constructed their houses account g for 45.6o/o, followed with 25.1% which have inherited it from their parents. The houses being rented account for only 0.8% out of the total number. Danang SCD P - Resettlement Plan 11

39 According to the field survey and public consultation with local governments, it was confirmed. that most of the houses are built on legal land, and their owners are holding land use certificate. Temporary housing mainly belong to poor households which might be requiring relocation as per the city's Master Plan. Graph 3: House forms in the project area ( 0 /o) II Inherited house State-provided house D Rented house D Built house on one's own Purchased house Utilities and public services Electricity use: According to the survey, 100% of the surveyed households use state power grid with separate meters. Electricity consumption of an average household costs around 250,000 VND I household I month. Clean water: In the project area, there is no case of using water from ponds, rivers and lakes for residential activities. There are three main water sources of the households are tap water, water from dug and drilled wells. Households in Hoa Lien, Hoa Phuoc, Hoa Phong, Hoa Tien, and Hoa Chau mainly use water wells and dug wells. Most of wards within the city mainly use tap water. Toilet: 100% of households have sanitary toilets. Most of households' toilets have septic tanks, accounting for as much as 80% of households. Households using two - compartment toilets account for 20%. There is no case of household using public toilets or lacking toilets Solid waste collection: Currently 100% of communes in the project area have solid waste collection system which has been being operated quite effectively with the frequency of 1-3 times per day. Danang SCDP -Resettlement Plan 12

40 Environmental sanitation: on the assessment of local pollution as much as 86.7% of people said that their living area is slightly polluted. A number of households living around the lakes which have not been rehabilitated are heavily suffering the pollution Healthcare and Education conditions Healthcare: In the project area, many households undertake medical examination every six months or once a year. Most families are usually treated at city hospitals (49.8%) and others lacking self-medicate themselves (31.4%). In addition, other health services such as district health centers, clinics and medical stations at wards are also popular among local people. Besides, according to public health registries t, local healthcare and family planning in the project's wards have been implemented comprehensively. Education: Each ward or commune have preschools, a primary school and a secondary school. In most of communes and wards there is 100% coverture on primary and secondary education levels.. 5. LEGAL FRAMEWORK AND ENTITLEMENT POLICY 5.1. Legal Framework The basic for developing a resettlement plan is based on the following legal documents: The World Bank's policy on Involuntary Resettlement The overall objectives of the World Bank's policy OP 4.12 on involuntary resettlement are the following: (a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. (b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (c) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. Vietnamese Policies: Constitution of the Socialist Republic of Vietnam dated April 15, 1992; Land law dated November 26, 2003; Decree No.181/2004/ND-CP of the Vietnam Government dated October 29, 2004, guiding the implementation Land Law; Danang SCDP- Resettlement Plan 13

41 Decree No.188/2004/ND-CP of the Vietnam Government dated November 16, 2004, on methods of determining land prices and land price framework; Decree No. 197/2004/ND-CP of the Vietnam Government dated December 03, 2004 on compensation, assistance and resettlement when the State acquires land; Decree No. 198/2004/ND-CP of the Vietnam Government dated December 03, 2004 on colection of of land use fee; Decree No. 131/2006/CP of the Vietnam Government dated November 09, 2006 on promulgation of Regulations on management and use of official development assistance (ODA); Decree No. 84/2007/ND-CP of the Vietnam Government dated May 25, 2007on additional regulations on granting land-use rights certificates; land acquisition; implementing land-use rights; settling land claims; and orders and procedures for compensation and resettlement when the State acquires land; Decree No. 123/2007/ND-CP of the Vietnam Government dated July 27, 2007 on amendment and supplement of a number of articles in Decree No. 188/2004 on Nov 16, 2004 on determination methods of land prices and land price frame; Decree No. 69/2009/ND-CP of the Vietnam Government dated August 13, 2009 on additional regulations on land use planning, land prices, land acquisition, compensation, assistance and resettlement; Circular No. 114/2004/TT -BTC of the Finance Ministry dated November 26, 2004 on guidelines on Decree No. 188/2004/ND-CP of Nov 16, 2004 on identification methods of land prices and land price frame; Circular No. 06/2007/TT- BTNMT issued on June 15, 2007 of the Ministry of Natural Sources and Environment on the implementation guidelines of Decree No.84/2007ND-. CP issued on 25th May 2007 regarding additional regulations on granting land using certificate, land acquisition, implementation of land using, procedures for compensation, assistance and resettlement when the State acquires land and redress grievances about land acquisition; Circular No.145/2007 ITT -BTC dated December 6, 2007 guiding on the implementation of Decree No.188/2004/ND-CP dated November 16, 2004 on methods of determining land prices and land price frame; Circular No.l4/2009/TT -BTNMT dated January I 0, 2009 of the Ministry of Natural Resource and Environment, regulating detailed regulations on compensation, assistance and resettlement and procedures of land acquisition, land allocation and land lease. Policies of Da Nang People's Committee: The current policies of Da Nang People's Committee on the compensation, assistance and resettlement when the state acquires land are expressed, which are references for the project land acquisition and compensation as follows: Danang SCDP -Resettlement Plan 14

42 Decision No. 36/2009/QD-UBND of Da Nang PC dated December 24, 2009 on compensation, assistance and resettlement when the State recovers land in Da Nang city; Decision No. 19/2010/QD-UBND dated June 25, 2010, Decision No. 50/2010/QD UBND dated December 30, 2010, Decision No.21/2011/QD-UBND dated August 05, 2011 of Da Nang CPC on amending and supplementing a number of contents of the Annex and Regulations on compensation, assistance and resettlement when the State recovers land in Da Nang city; issued together with Decision No. 36/2009/ QD-UBND dated December 24,2009 ofda Nang PC; Decision No. 35/2011/QD-UBND dated December 24, 2011 of Da Nang PC on the regulations of Land prices in Da Nang city. 5.2 RESETTLEMENT POLICY Objectives of the WB OP 4.12 The overall objectives oftthe World Bank OP/BP 4.12 are the following (a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. (b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced personsj.should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (c) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher Required Measures Measures to achieve the best resettlement results include: o Consultation with DPs on feasible measures for compensation and preparation of RP o o Provision of resettlement alternatives to DPs, for their choices Participation of DPs in all steps of planning and implementation o Full compensation at replacement costs for loss by the Project o Resettlement locations have the same necessary infrastructure and services as DPs' former residences o Providing allowances, support, vocational training and income support to facilitate the relocation and restoration of their livelihood. o Special assistance for vulnerable groups is provided Danang SCDP- Resettlement Plan 15

43 o Setting up a suitable institutional and organizational structure for smooth process of compensation and resettlement Principles for Compensation and Resettlement All DPs who have assets within or reside within the area of project land-take before the cut-off date are entitled to compensation or assistance for their losses. Those who have lost their income and/or subsistence will be eligible for livelihood rehabilitation assistance, based on the criteria of eligibility defined by the Project and in consultation with the DPs. If, by the end of the project, livelihoods have been shown not to be restored to pre-project levels, additional measures should be considered. The compensation rates will be determined based on the results of independent land/assets appraisal in a timely and consultative fashion. All fees and taxes on land and/or house transfers will be waived or otherwise included in a compensation package for land and structures/houses or businesses. The local authorities will ensure that DPs choosing relocation on their own obtain, without additional cost, the necessary property titles and official certificates commensurate with similar packages provided to those who choose to move to the project resettlement sites. Land will be compensated "land for land" or in cash according to the DP's choice whenever possible. The choice of land for land must be offered to those losing 20% or. more of their productive land. If land is not available, the borrower must assure itself that this is indeed the case. Those losing 20% or more of their land will have to be assisted to restore their livelihood. The same principles apply for the poor and vulnerable people losing 1 Oo/o or more of their productive landholding. DPs that prefer "land for land" will be provided with land plots with the equivalent productive capacity for lost lands if available or a combination of land (a standard land plot) in a new residential area nearby for residential land, and cash adjustment for the difference between their lost land and the land plots provided. The resettlement area will be planned properly and implemented in consultation with the DPs. All basic infrastructures, such as paved roads, sidewalks, drainage, water supply, and electricity and telephone lines, will be provided. DPs that prefer "cash for land" will be compensated in cash at the full replacement cost. These DPs will be assisted in rehabilitating their livelihoods and making their own arrangements for relocation. Compensation for all residential, commercial, or other structures will be offered at the replacement cost, without any depreciation of the structure and without deduction for salvageable materials. Structures shall be evaluated individually. Any rates set by category of structure must use the highest value structure in that group (not the lowest). The DPs will be provided full assistance (including a transportation allowance) for transportation of personal belongings and assets, in addition to the compensation at replacement cost of their houses, lands, and other properties. Danang SCDP Resettlement Plan 16

44 Compensation and rehabilitation assistance must be provided to each DP at least 30 days prior to the taking of the assets for those who are not to be relocated and 60 days for those who will have to be relocated. Exceptions should be made in the case of vulnerable groups who may need more time. If, by the end of the project, livelihoods have been shown not to be restored to preproject levels, additional measures should be considered. Financial services (such as loans or credits) will be provided to DPs, if necessary. The installment amounts and the schedule of payments will be within the repayment capacity ofdps. Additional efforts, such as economic rehabilitation assistance, training and other forms. of assistance, should be provided to DPs losing income sources, especially to vulnerable groups in order to enhance their future prospects toward livelihood restoration and improvement. The previous level of community services and resources, encountered prior to displacement, will be maintained or improved for resettlement areas. Compensation Criteria and Eligibility: DPs who are entitled to the compensation are: a. those who have legal rights to land or other assets; b. those who currently do not have legal rights to land or other assets but have claimed for legalizable land or assets in accordance with the Vietnamese laws based on the storage of such documents as land tax bills, certificates of residence status, or residential permissions of local authorities to occupy and use the land in the project affected areas; and c. those who have no recognizable legal right or no claim to legalizable land they are occupying. Persons covered under (a) and (b) are compensated for their land and other affected assets at replacement cost and provided other assistance. Persons covered under (c) are given Resettlement Assistance in replacement of compensation for occupied land, and other assistances, if necessary, to achieve the objectives in this policy. If they occupy the project area prior to a cut-off date determined in each RP, people who encroach on the area after the cut-off date determined in each RP are not entitled to compensation or any other form of resettlement assistances (though they may be entitled to some support stipulated in current policies). Identification of Valuation and compensation for losses: Methods used for the valuation of losses in the Bank funded projects are based on replacement costs. The replacement cost of land includes the land value as defined in accordance with the prevalent market price plus the fee for a certificate of land use rights. For affected houses and other structures, the valuation is based on the market price of construction materials to build a replaced house of equal or better quality and area to that affected. For works partly or wholly affected by the project, the compensation includes the market price of building materials plus costs for transportation, labor and contractor Danang SCDP- Resettlement Plan 17

45 fees, registration fees and transfer taxes. Asset depreciation and the value of materials that can be salvaged by DPs, are not deducted from the compensation. During the implementation phase, an external land appraiser (s) will be hired to survey and he/she/they will propose a set of replacement costs for all types of affected land (both agriculture and residential land) and assets, which will be served as basis for Da Nang City PC's compensation price ensuring that it is at the replacement cost Linked Activities: This policy applies to all components of the project that result in involuntary resettlement, regardless of finance source. It's also applied to other activities resulting in involuntary resettlement, that in the judgment of the Bank, are (a) directly and significantly related to the Bank-assisted project, (b) necessary to achieve its objectives as set forth in the project documents; and (c) carried out, or planned to be carried out, contemporaneously with the project. A screening of linked activities was conducted that enclosed in the Annex 1: Screening of Linked Activities). In that case that a link project is identified, a due diligence approach will be applied. Screening potential liked projects showed that there is only 136m of canal which belongs to Phuoc Ly urban zone project is linked to the prolonging Yen The - Bac Son canal to be built under the component 1 of SCDP. ADD review has been done for this canal section, which is described in the Annex 1 of the RP. Information was gathered by the PMU and reviewed by Bank staff supporting for SCDP preparation through visiting the Project site and talking with local authorities and related stakeholders. 15 households were affected by agricultural land loss. All the compensation and assistance were provided to the DPs in accordance with the Gov. and Danang city's regulations and norms. All DPs agreed with compensation package provided and handed over the land to the contractors, and the civil work were completed in October There is no outstanding complaints or legacy issues. The monitoring of livelihood restoration of the DPs will be conducted during SCDP implementation to ensure the livelihood restoration of affected households. Danang SCDP- Resettlement Plan 18

46 Table 15a. MAIN GAPS BETWEEN COMPENSATION, ASSISTANCE AND RESETTLEMENT POLICIES OF DA NANG CITY AND WORLD BANK'S AND PROPOSED POLICIES FOR DA NANG SCDP Policy Land/ Property Policy objectives World Bank's Policy {OP 4.12) Go V's Policy Proposed policy for the Project DP (Displaced People) should Resettlement site and its Livelihood and income sources are be assisted to restore or infrastructure should have equal or restored improved their living standards better development conditions than to the pre-project levels. the existing one. Treatment of Rehabilitation assistance to all Rehabilitation assistance at different Rehabilitation assistance to all DPs, informal or not displaced persons to achieve levels depending on the "illegal" regardless of their legal status. legal land users the policy objective. status of land users. Compensation Compensation at replacement Provided to cover the new structure Assistance at replacement cost for all for illegal cost for all structures costs. Depending on the "illegality structures, and provided regardless of structures regardless of legality status. status" attributed, covering legal status. between 80% and 0% of the total costs. Danang SCDP - Resettlement Plan 19

47 Policy Compensation World Bank's Policy (OP 4.12) Go V's Policy Proposed policy for the Project Methods for determining compensation rates Compensation for lost land and other assets should be paid at full replacement cost. Compensation for lost assets ts calculated at price close to transferring the assets in the market. Provincial governments are granted to annually set up the price for different categories of assets. Independent appraiser identifies market price as a reference for Danang PC to define compensation price. Compensation for income loss Compensation for indirect impact caused by land or structures taking All income losses should be compensated. It is good practice for the borrower to undertake a social assessment and implement measures to minimize and mitigate adverse economic and social impacts, particularly upon poor and vulnerable groups. Income loss is assisted registered business. only for All income losses are to be compensated and restored. It is not addressed. Social assessment undertaken and measures taken to minimize and mitigate adverse impacts, particularly upon poor and vulnerable groups. Livelihood restoration and assistance Provision of livelihood Livelihood restoration and Provision of livelihood restoration and restoration and assistance assistance measures are provided. assistance to achieve the policy to achieve the policy Not a follow up for full livelihood objectives. objectives. restoration after resettlement completion. Danang SCDP Resettlement Plan 20

48 Policy World Bank 's Policy GoV's Policy (OP 4.12) Proposed policy for the Project Consultation Participation in planning and Is limited mostly to information Participation designed and implemented and disclosure implementation specially sharing and disclosure. to achieve policy objectives confirming the eligibility criteria for compensation and assistance and access to Grievances Mechanisms. Grievance Grievance redress mechanism The same body making decision on Grievance and Redress in accordance redress should be independent. compensation, resettlement and with the existing mechanisms of Danang mechanism handling grievances at the first step. City. Monitoring & Internal and independent There is no explicit requirements on Both internal and external monitoring are Evaluation monitoring are required. monitoring, including both internal defined. and independent (external) monitoring. Danang SCDP- Resettlement Plan 21

49 5.3 Entitlement Policy Those who are affected by the project will be entitled to the compensation, assistance and resettlement policies in compliance with the regulations of Vietnam and WB's OP4.12. Project affected persons will not be considered to receive the compensation or assistance when entering the project area after the publication of the cut off date of the project. For special cases,such as poor/ vulnerable households,) who are certified by local authorities, will be considered for additional assistances on case-by-case basis. PAHs' rights are in accordance with the policy ofthe project, as follows: Compensation and assistance for Residential Land Residential land of each family includes houses and structures serving for their living activities. The affected households will choose the mode of compensation and assistance for their affected land and structures as follows: (i) (ii) (iii) (iv) Land users, who are eligible for the compensation of acquired land (legal and legalized land), are entitled to the payments of compensation and assistance for their lost area by cash payments at replacement costs and are prioritized to buy land lots in the resettlement area. In case, a remaining area of land, after the land acquisition, is not large enough for building houses and structures, if APs choose the compensation of the whole land (including the remaining area), they will receive cash for the lost land by I 00% replacement cost and appropriate land area in the resettlement site if they wish. Land users, who are eligible for the compensation of acquired land (legal and legalized land) but such acquired land is in dispute, shall be compensated at 100% replacement cost only when their disputes are resolved. Land users, who are not eligible for the compensation, but who have been living in the project area since October 15 1 \ 1993 before the project cut-off date and having no dispute on the land ownership, will be considered for the support in cash at 60% of replacement cost Compensation and Assistance for affected Houses and Structures This case includes houses I buildings and other assets - regardless of the conditions of ownership and use will (i) be compensated for 100% replacement cost (excluding the material salvage or depreciation, (ii) Rate of compensation is based on the actual affected area and is not based on the used area Compensation and Assistance for Agricultural Land Da Nang CPC has not enough agricultural land fund to compensate to affected household on basis of land for land mechanism. So the compensate in cash at 100% replacement cost is applied in this project. These are: (i) If a required land is less than 20% of their total agricultural landholding (or 10% for vulnerable households) and the remaining part of that land meets the household's Danang SCDP -Resettlement Plan 22

50 (ii) minimum economic efficiency, the household will be compensated by cash equivalent at I 00% replacement cost. If a required land lost is 20% or more (or I 0% for vulnerable households) of their total agricultural landholding and/ I or if the land loss is less than 20% but the remaining part of that land does not meet the household's minimum economic viability, the household will receive compensation by cash equivalent at I 00% replacement cost and assistance to income restoration. Those who are not eligible to be compensated (or illegal) will be considered to be assisted at the rate of 60% of the replacement cost Compensation for Graves The compensation for displaced graves includes all costs for digging, moving, burying and others logical costs. The compensation cash will be paid to each affected household and new graveyard location will be consulted with DPs before relocating. The project will ensure that all religious rituals or costumes are respected and related costs are paid Compensation for Equipment The household equipment (water tanks, electric meters)) affected by the project will be compensated by 100% replacement cost at market prices which do not differentiate land use right and house ownership Compensation for Crops, Plants With regard to affected annual farm production and perennial trees, cash compensation will be paid to DPs who are currently doing farming based on the market prices for farm produces and/or replacement costs for perennials Compensation for business/ income affected For economic organizations and households with business registration (i) Compensation for loss of income in case of affected economic establishments. Business households with business registration will be assisted at 50% of income after tax in OI year (equivalent to 1 00% income after tax in 06 months) according to average income in previous 03 years. (ii) To provide a support equal to 70% of the basic salary for permanent laborers. The period to calculate support must not exceed 6 months. (iii) To provide compensation for the loss of business structures, production materials at full replacement costs of the structures, excluding depreciation. (iv) Where a business location is relocated, a new one having equal area and customer access capacity should be provided to suit PAPs, or at the request of PAPs, a cash compensation amount for the loss of area should be made at the replacement price, added by support for transport expenses to relocate assets and production materials attached to the area. For economic organizations and households without business registration: Full-package assistance amount at one time for the lost income in 03 months according to evaluation of independent consultant. Danang SCDP- Resettlement Plan 23

51 5.3.8 Compensation for Temporary Effects in Construction Stage For temporarily affected land and properties on land, project affected households are entitled to: For residential/and to be temporally lost: (i) (ii) Compensation for all assets on affected land at replacement cost; Restoring to the original condition or improving land quality. For cultivation land to be temporally affected: (i) (ii) (iii) Compensation for one harvest of crops/plants fully by market price. Compensation for losses of income for the next crops during the time that land is occupied by the Project. Restoring land as the previous status or improving soil quality equal to or better than its original status before the project. For temporary impacts on business and production: (i) (ii) Compensation and assistance for the losses of income for production households, cooperatives of households, private enterprises in the project construction period. Compensation for all assets on affected land by replacement costs. Compensation for damages to household's works or public works caused by contractors during the construction The Contractors will diligently restore damaged structures as their original condition or better after the construction is finished. According to the terms and conditions of the construction contracts, Contractors are required to be diligent enough to avoid damaging people's properties during their construction. When damages occur, the contractors must compensate immediately right to the families, community groups, or state agencies under the applicable compensations to properties damaged by the Project. Moreover, recovering damaged properties as their previous quality must be done right after completion of construction. Compensation for affected public utilities If some public facilities as schools, bridges, factories, water sources, roads, electricity, water supply, or drainage etc. are affected, the Project shall ensure that these structures are restored or repaired for each specific case, and the community has not to pay for such costs. Project has to minimize the impacts of land acquisition to cultural works. In case, it cannot be avoidable, the project must take measures to resolve in each specific case. If the cultural works such as churches, temples, pagodas, shrines managed by the local government must be relocated, the City PC should decide this based on the public consultation with Committee of Compensation and Land Acquisition and Local Government as well as local people Subsidies and Assistance to livelihood Restoration In addition to the compensation costs for affected land, property and infrastructure as stated above, DPs are entitled to other allowances, including: Danang SCDP- Resettlement Plan 24

52 Relocation support Support transportation cost of 2,000,000 VND for households moving to new areas within the same district; Support transportation cost of 3,000,000 VND for households moving to new areas in other districts but within Da Nang city; and Support transportation cost of 7,000,000 VND for households moving to new areas in other provinces. Assistance for Life Restoration Relocated DPs will be assisted for living allowance in cash which is equivalent to 30kg rice/person/month in -6 months. Those that loss a part of their houses are supported with the equivalent to 30kg of rice per person per month for three months. In case, they will have to re-build the whole house on the remaining land, DRC will consider for additional assistance. Specific Assistance for Living Restoration for households whose agricultural/and is acquired Assistance for life restoration to HHs and individuals who are directly involved in agricultural production when the State acquires agricultural land including garden and pond land (except for the aquaculture land, 5% public land and the land which commune/ward PC assigns to the HHs/individuals for temporary use) will be VND 6,000/m 2 but assistance cannot exceed the area of 4,000 m 2 /HH. Agricultural land inside ward boundaries or rural residential areas are supported at 30% of the average residential land prices in the area. Allowance for Job Transformation HHs losing agricultural land and eligible for land compensation will receive support for job/occupation change. The assistance level is in cash will be at 1.5 times higher than the agriculture land price. HHs who are not entitled to the compensation but received assistance for affected agricultural land will receive allowance for job transformation according to allowance for affected land (about 60% of the above allowance level). In case, HHs demand/need vocational training, they will be assisted to participate in vocational training inside city and they do not pay for any fee (including primary, secondary school and training) for individuals who are in working age (not apply for individual who participate in courses outside of the city). Support for house rent Households who have their shelters affected will be assisted to rent a house in the project resettlement area. If project house is not available, they will receive assistance in cash with the amount of 1,200,000 VND/HH/ month. The period of assistance will be defined from the date when the DPs hand over land to the projects until they receive resettlement land or house according to the notification of the PMU, plus 6 months of tenancy cost in the process of house rebuilding 3 3 In project, transmission period is estimated about 9 months. Danang SCDP -Resettlement Plan 25

53 In case, above assistance is not enough for house rebuilding, these household will difference (compared with actual hired cost) Special Social Support receive The poor DPs and DPs of vulnerable group, who are certified by the local government, will be supported at least 2,000,000 (two million dong) per household. Bonus Organizations, households, who well execute the policy of self-dismantling and transferring land for the Project on planned schedule, will be awarded: (i) (ii) (iii) 5% of the asset compensation value (houses, structures, trees) for organizations, households whose compensation value is less than VND 50,000,000. 8o/o of the asset compensation value (houses, structures, trees) for organizations, households whose compensation value is more than VND 50,000,000 but not exceeding VND 80,000,000. The bonus level equals 50% of the general regulation but not exceeds VND 2,500,000 for affected, tents, small shops, gardens. Table 15b: ENTITLEMENT MATRIX No. Type of Loss 1 Residential land Definition of Entitled Persons Land users are eligible for compensation (legal and legalizable land users) Users of disputed land Land users are not eligible for compensation (illegal and non-legalizable land users) Entitlements DPs will compensated by cash for their acquired land at 1 00% replacement cost and will be allocated land plots in the resettlement site. The affected people are provided resettlement options. DPs will be cashed for their acquired land at 100% replacement cost when their dispute is resolved. DPs will be supported in cash for their acquired land at 60 % of replacement cost Danang SCDP- Resettlement Plan 26

54 No. Type of Loss 2 Houses/buildings and other assets Definition of Entitled Persons Irrespective of ownership/usage status Entitlements (i) DPs will be compensated for their affected structures at 1 00% replacement cost without deduction of salvage material or deduction of depreciation. (ii) The compensation prices are calculated based on the actual affected areas (not based on the used area). Each affected structure will be appraised separately. 3 Agricultural land Land users are eligible for compensation (legal and legalizable land users) The affected land is less than 20% (10% for vulnerable group) of the total land area DPs will be cashed for their acquired land at 100% replacement cost and other supports. Agricultural land inside ward boundaries or rural residential areas are supported at 30% of the average residential land prices in the area. The affected land is 20% or more (10% or more for vulnerable group) of the total land area DPs will: Be compensated by cash at 100% replacement cost and supported and assisted in information provision and job training to facilitate their options of appropriate jobs; Agricultural land inside ward boundaries or rural residential areas are supported at 30% of the average residential land prices in the area. Receive income restoration assistance and other assistances. 4 Graves/tombs Land users are not eligible for compensation (illegal land users) Households whose graves/tombs are affected by the Project DPs will be supported in cash for their acquired land at 60o/o replacement cost DPs are fully compensated for the moving expenses, reburial and other related costs Danang SCDP- Resettlement Plan 27

55 No. Type of Loss 5 Affected income and production/business facilities Definition of Entitled Persons For economic organizations and households with business registration For economic organizations and households without business registration 6 Affected farm DPs who have affected farm produces and trees produces Entitlements (i) Compensation for loss of income in case of affected economic establishments. Business households with business registration will be assisted at 50% of income after tax in 0 I year (equivalent to I 00% income after tax in 06 months) according to average income m previous 03 years. (ii) To provide a support equal to 70% of the basic salary for permanent laborers. The period to calculate support must not exceed 6 months. (iii) To provide compensation for the loss of business structures, production materials at full replacement costs of the structures, excluding depreciation. (iv)where a business location is relocated, a new one having equal area and customer access capacity should be provided to suit PAPs, or at the request of PAPs, a cash compensation amount for the loss of area should be made at the replacement price, added by support for transport expenses to relocate assets and production materials attached to the area. Full-package assistance amount at one time for the lost income in 03 months according to evaluation of independent consultant. Persons affected by the project will be compensated for their affected crops at replacement cost. Danang SCDP- Resettlement Plan 28

56 No. Type of Loss Definition of Entitled Persons Entitlements 7 Temporary impacts in the construction stage DPs whose residential land is temporally affected (i) (ii) To compensate for all affected assets attached to land at the replacement cost. To restore the land to its original condition DPs whose agricultural land is temporally affected Business households are temporarily affected by the Project Damages to the private/public works caused by contractors (i) To compensate for a crop of crops/ plants at the full market price. (ii) To compensate for loss of income for the next crops during the time land is temporarily affected (iii) To restore the land to its original condition or improve land quality to equal or better levels prior to the project implementation. (i) To compensate and support for income loss for production households, collectives, private enterprises if they are directly affected during construction stage. (ii) To compensate for affected assets attached to land at the replacement cost. (i)the Contractors are required, as per the contacts, to compensate at full replacement costs at once for HHs, organizations whose structures damaged and/or (ii) The damages must be remedied immediately to return the previous status of the works. Danang SCDP- Resettlement Plan 29

57 No. Type of Loss 8 Affected public uti 1 iti es/ structures 9 Supports for relocation transportation and livelihood restoration Definition of Entitled Persons Wards, urban population groups, administrative units whose public architectural works, houses, schools, bridges, factories, water sources, roads, drainage - irrigation systems are damaged Support for relocation DPs to relocated Entitlements The Project must ensure that the infrastructural works are restored or repaired case by case and the community does not pay such expenses. be Support transportation cost of 2,000,000VND for households moving to new residence within the same district; Support transportation cost of 3,000,000VND for households moving to new residence in other districts but within Da Nang city; and Support transportation cost of 7,000,000 for households moving to new residence in other provinces. Support for life stabilization Allowances for Living Rehabilitation DPs to be (i) Relocated households are relocated and supported equivalently to 30kg of DPs rebuild rice per person per month during houses or a part of house on remaining land six months. (ii) Those that loss a part of their houses are supported equivalently to 30kg of rice per person per month for three months. In case, they will have to re-build the whole house, DRC will consider for additional assistance. Assistance for life restoration for households and individuals who have agricultural land affected including agricultural land, ponds (except for the aquaculture, land, 5% public land, land managed by the Commune/Ward PC and assigned to household/individual) is at VND 6,000 I m 2, but the area of maximum support can not exceed 4,000 m 2 I household. Danang SCDP- Resettlement Plan 30

58 No. Type of Loss Definition of Entitled Persons Entitlements Support for Occupation Change DPs whose agricultural land is affected by the project are eligible for the compensation The support level for occupation change is in cash equal to 1.5 times of value of the compensated agriculture land area In cases, of vocational training need, APs will be admitted to a vocational center in the city and are exempted from tuition fees for such training course. Support for House Renting Special social support DPs whose The applicable level of job change agricultural allowance is 60% of the amount land is assisted to legal land users. affected by the project are not eligible for the compensation (nonlegalizable) DPs to be Relocated DPs whose houses are relocated demolished will be assisted in renting temporary houses in resettlement sites. If the house is not available, DPs shall be assisted in cash at VND I,200,000 per household/month. The supporting time for house renting is calculated from the date of land hand-over till the actual time that DPs are provided with resettlement houses based on the notices of the authority who allocates the house and land, plus to 6 month allowance for renting house during building their new house. The poor DPs To receive a special allowance at and DPs of least VND 2,000,000/HH for life vulnerable restoration. group Danang SCDP- Resettlement Plan 31

59 Definition of No. Type of Loss Entitlements Entitled Persons 10 Reward For those (i) 5% of the asset compensation DPs who value (houses, structures, trees) for transfer the organizations, households whose land as compensation value is less than planned VND 50,000,000. schedule (ii) 8% of the asset compensation once full value (houses, structures, trees) for compensation is received organizations, households whose compensation value is more than VND 50,000,000 but not exceeding VND 80,000,000. (iii) The bonus equals 50% general regulation but does not exceed VND 2,500,000 for affected tents, small shops, gardens. Danang SCDP - Resettlement Plan 32

60 6. RESETTLEMENT SITES 6.1. Objective When resettlement is unavoidable, the PMU needs to consider all possible options for constructing resettlement site(s) with timely meaningful consultation of DPs as well as current residents on the areas considered as resettlement alternatives (including the proposed site), in order to minimize and/ or reduce adverse impacts. The project's DPs are mainly living in the city neighborhood; therefore, new location needs to ensure suitable chances for business opportunities, with availability of technical and social infrastructure. However, more importantly DPs should opt for a defined location, through consultative process. Hence, consulting with DPs during the period of defining and constructing resettlement site is an factor. Resettlement's site will accomplish the established standards for urban and basic infrastructures and built before DPs move in. Consultation is also applicable to host community as is described in detail in next section Eligibility criteria Eligibility criteria and is described as follows: DPs whose houses or land are acquired by the Project and the remaining area is not economically viable, will be provided with plot of land in the project resettlement site. In case the cash compensation amount is not sufficient for the DPs to buy a land plot in the resettlement site, the DPs will be supported with the differences. If land users are not the subject to the land compensation but have no other places to live, and have certificate of local government on their current status, they: ( 1) would be considered to be. allocated a land plot at minimum size in resettlement area; and (2) would pay the land use fee. If DPs are unable to afford fee, they would be considered to be provided with a credit Affected people whose land is acquired by the construction of resettlement area are entitled to be compensated and assisted same as the Project affected households. 6.3 Relocation According to the survey results, the total households to be relocated under the SCDP is 730. They are all would be eligible for relocation into the project resettlement site. However, in many households, there are often have 2-3 small families living together (mature children even married, they still live with their parents), therefore there is a number of households in need of resettlement. For the households whose houses are partly affected, if the remaining area is not enough for rebuilding the house, they will receive a land plot in resettlement site. The below table shows the summary of resettlement needs (including proposed contingency rate at 25%). Danang SCDP Resettlement Plan 33

61 Table 16: Summary of Resettlement Needs No Component No. of No. of No. of Contingency Total households Sub- households needed must be households losing resettlement relocated (being partly land plots separated) residential land 1 Component Component Component Resettlement area constructing Total ,114 A total number of 1,114 plots of land are required with average size of 100m 2 per land plot and total of about 30 ha of land are needed for project's resettlement site % of total land will be for land plots, about 60-63% of total land for development of roads drainage s school, a kindergarten, among other public services Consultation results and selection of resettlement site Two (02) rounds of public consultation have been carried out on April and August, 2012 with the 730 affected households. Consultation included participation of affected households in resettlement site and representatives of the Host Community. These included community meetings, structured interviews with DPs, inter and group discussions; meetings with local authorities, local social organizations (for example, Women's Union, Farmer association, Veteran association, Youth union, etc.). In these meetings, the PMU representatives informed DPs and concerned parties of characteristics of proposed resettlement site, social services that would be built, principles of compensation, allocation of land plots among others. Consultation also aimed to collect DPs' opinions about following matters: (i)';,t.. '.DPs'optional choices: either for choosing resettlement sites (land for land or land for apartment) or self-relocation. In the case of self-relocation DPs will receive cash assistance equal to an average investment per plot in the resettlement site; (ii) Gather opinion on infrastructure and social services to be provided in the resettlement site; (iii) Procedures of compensation payment and for relocation. Danang SCDP - Resettlement Plan 34

62 Expectations for infrastructures at resettlement site According to project's detailed resettlement site planning, apart from proposal of high-rise apartments or land plot distribution, the remaining area will be provided with public services such as potable water supply, water drainage, power supply, school, and health center, confirming by the DPs expectation of social infrastructure provision been provided. 6.2 Resettlement Options Orientation of building and developing resettlement site at Khe Can, Hoa Lien 5 and Hoa Phong gold area, number 1 area - DT605 and the North of the South ring road includes three (03) measures for implementing building as below: Option I: Distribute land lots for each household, now prevalently applied in compensation and land clearance for other projects in Da nang City. Option 2: Option of high-rise building apartment. Option 3: Combination measure. This is the measure combining both of the above measures. Among the three (03) options, the option 1 is selected for SCDP. 6.3 Resettlement site development As mentioned, the project needs an area of about 30ha for development of project resettlement site The proposed resettlement sites are located in Hoa Lien, in the north of Southern Link, in residential area No.O 1 at DT605 -(phase 2), in Hoa Phong- Hoa Phu (phase I) and Khe Can. The land to be acquired for the resettlement site is mainly agricultural with a small pond area, area with tombs, and public land. Land needed to be acquired for the resettlement area is estimated on 30 ha. An estimated 1,0IO households will be affected, among which 120 households with their residential land and to be relocated, and 890 HHs affected with agricultural land. The below table showing the summary of affected households by proposed resettlement sites. Table 17: Summary of Affected Persons by the resettlement sites No. Resettlement area No. of AHs with No. of AHs with No. of residential land agricultural land AHs 1 Hoa Lien resettlement area The Northern Resettlement Area at the Southern Link 3 Residential area No.Ol at DT highway (phase 2) 4 Hoa Phong Hoa Phu Resettlement Area (phase 1) 5 Khe Can Resettlement area Danang SCDP- Resettlement Plan 35

63 Implementation process During implementation phase, next round of consultation will be needed, in order to carry out the following:. a. DPs consultation about resettlement options and detailed planning. b. Appraisal of relevant departments (Institute of City Planning and Architecture, Department of Construction, Department of Planning and Investment, Department of Natural Resources and Environment) and proposal submission to the Da Nang City PC for the resettlement site's detailed planning approval. c. Detailed information of the resettlement site design and planning. d. On-going information during the construction of resettlement site. e. Allocation of land lots and/ or apartments at resettlement site under principles which have been consulted and agreed with DPs. f. Support for transportation ofdps to resettlement site. g. Presentation of proposed livelihood restoration program 6.4 Resettlement areas planning Five (05) identified resettlement areas have been approved by Danang PC serving for Danang SCDP is described particularly as follows: Hoa Lien Residential area is a commune of Hoa Chau, Hoa Vang district, Danang city (53, 784m2) The borders of Resettlement area as follows: - The East borders with the existing rice field. -The West borders with residential area and the existing rice field. - The South borders with residential area and the existing rice field. - The North borders with the existing rice field. Hoa Lien resettlement area aims to serve the resettlement for DPs due to the construction Northern link. Due to its construction, there will be 216 households who have their agricultural land affected The Northern Resettlement Area of Southern Link (phase 3a) in Hoa Quy ward, Ngu Hanh Son district, Da Nang city (74,562m2) The borders of Resettlement area as follows: -The East borders with the residential land in master plan. - The West borders with the residential land in master plan. - The South borders with the Southern Link B=34,0m - The North borders with mixed land in master plan. Danang SCDP -Resettlement Plan 36

64 The Northern resettlement area of Southern Link (phase 3a) aims to serve the resettlement for DPs by the construction of Southern Link of Hoa Phuoc - Hoa Khuong and a part of Component 2 ofda Nang SCDP. The construction of this resettlement area will required agricultural land acquisition from 250 households Residential area No.Ol at DT605 highway is in commune of Hoa Chau, Hoa Vang district, Da Nang city (43,469m2) The borders of Resettlement area as follows: -The East borders with the field land - The West borders with Residential area No.O 1 at DT605 highway phase 1 - The North borders with the field land - The South borders with the residential land. Resettlement site No. I DT 605 aims to serve the resettlement for DPs by the construction of the Southern Link of Hoa Phuoc - Hoa Khuong. The construction of this resettlement area will required agricultural land acquisition from 250 households Hoa Phong-Hoa Phu Resettlement Area (phase 1) at Hoa Phu (70,676m2) with the identified borders as follows: - The East borders with mountain and hill land and residential area. -The West borders mountain and hill land and residential area. - The South borders with mountain and hill land - The North borders with DT604 and residential area. Hoa Phong Resettlement Area aims to serve resettlement of DPs due to the construction of Southern Link. The construction of this resettlement area will required agricultural land acquisition from I 7 4 households Khe Can Resettlement area in Thanh Khe Tay ward (59, 748m2), Thanh Khe district and Hoa Minh ward, Lien Chieu with the following borders: The borders of Resettlement area as follows: - The East borders with the residential area. - The West borders with the residential area - The South borders with the existing railway. - The North borders with Phu Loc river and the residential area Danang SCDP Resettlement Plan 37

65 Khe Can Resettlement Area aims to serve resettlement of affected households due to the construction of the Component 1 - SCDP. There will be 120 households who have their residential land affected. The detailed area of five resettlement areas as follows: No. Resettlement area In which Total area (m2) Total lots Number of area (m 2 ) Lots 1 Hoa Lien Resettlement area 53,784 28, Resettlement area in the North of 74,562 28, Southern link (phase 3a) 3 Resettlement area No.DT605-43,469 23, phase 2 4 Hoa Phong - Hoa Phu 70,676 31, Resettlement area - phase 1 5 Khe Can Resettlement area 59,748 28, Total 302, ,864 1, Host Community In the process of planning the five (05) resettlement areas for the SCDP Project, the PPMU also have consulted and informed host community's HHs. Since April 2012, during preparation of resettlement policy and RP for SCDP, the characteristics scale and work conditions at these resettlement areas as well as the positive and negative impacts during the construction period have been adequately informed to local residents. Basically, the investment works items of the fives resettlement sites covers both technical infrastructure including electricity, roads and drainage, and water supply, and social infrastructure such as kindergarten, school, and health care clinics. Resulting from above mentioned community meeting in the project affected area, the affected household and non-affected households (Host Community) agreed with the study results and construction works in these resettlement areas. They expected that the resettlement area would contribute to the improvement of environmental conditions in the locality. 7. Livelihood Restoration Program 7.1 OVERVIEW The general purpose of this program is to restore the livelihoods of affected persons same as or higher the rate before there is the implementation of the Project, and ensure that affected people adapt to new conditions. Danang SCDP- Resettlement Plan 38

66 For the Resettlement Plan (RP) implementation, the Project Management Unit of Da Nang Priority Infrastructure Investment Project will collaborate with local government agencies at all levels and social organizations like: Da Nang Women's Employment Service Center, Da Nang Employment Center, to restore DPs' incomes sources. The activities are mainly vocational training and job introduction. 7.2 ANALYSIS OF DEMAND According to the survey results, there are I, I 04 households whose land/houses and other works and structures are affected, including 730 relocated households. In addition, there are 999 households, whose agricultural land is heavily affected households (over 20% of agricultural land and 1 Oo/o for vulnerable) and 134 households having business affected. These households (999 severely affected by agricultural land loss plus 134 affected by business) have to be paid special attention during the income restoration program implementation. Many affected households still practice agricultural production. However, according to the survey, an estimate of 51 o/o households are currently living in agricultural occupations, in which 85% of their income come from other revenue sources such as business, services and freelance and a few are government staff. In general, DPs mostly live in the suburban under the urbanization conversion process and their income does not depend much on agricultural activities. The DPs have been consulted through the questionnaires and community consultations, their views and opinions to the life restoration after resettlement is shown as follows: Expectations for livelihood stabilization: When asked about the project impacts, approximately 75% households said the project will have significant impacts on their lives. Namely, about 35.8% households would have no land for production; about 30% said the project would disturb their family life; 12.9% said their family economy will be relatively impacted. People living in the project area expect the project's assistance of job training or vocational orientation. Specifically, 42.5% wanted vocational training; 32.9% needed job introduction; 23.4% wanted credit loans. The details of people's expectations are shown in the following table: Table 18: People's Expectation for Assistances No. ASSISTANCE FOR LIFE STABILIZATION Locations Total Vocational training Job introduction Credit loan Others Percentage (%) 42,5% 32,9% 23,4% 1,2% looo/o Priority Danang SCDP - Resettlement Plan 39

67 7.3 PROPOSED LIVING RESTORATION PROGRAM Budgetsource Income recovery is seen as an special component, which help affected households recover their sources of income or improve their economic situation. People with low incomes are defined as those who do not have skills or opportunities to improve their earning. The resettlement program looks for possibilities to ensure that all resettlement areas are in such positions create favorable conditions for improvement of DPs' skills and income opportunities, or/ and can combine both the improvement of their skills and income increase. Budget for the income recovery program will be city counterpart funds and makes part in the total compensation cost of the project Description of the Program According to the survey results and community consultations, both for business affected and agricultural land affected households, the majority of households wishes the assistance of vocational training and employment for their children at the working age. Vocational Training Currently, in Da Nang city, two (02) functional agencies which give vocational training and job recommendations are (1) Da Nang Employment Center and (ii) Da Nang Women's Employment Service Center. Da Nang Women's Employment Service Center: Through working with representatives of Da Nang Women's Employment Service Center, we know that the organization is enrolling students in diversified job training without fee for adult children of families whose land is acquired by the projects in Da Nang city. The career choice depends on their people's expectations and choices. Job fields: The job training enrollment of the Center includes: Civil sewing, industrial sewing, cooking, and beauty care. Expenditure: The level of free vocational training for elementary level is as follows: Industrial sewing: 3 months 1,000,000 VND/student Civil sewing: 4 months 1,400,000 VND/student Cooking: 3 months l, 100,000 VND/student Beauty care: 3 months 900,000 VND/student Da Nang Employment Center: The Center is applying free vocational training program for subjects like Da Nang Women's Employment Service Center, careers and training time are expressed as follows: Civil electricity Industrial electricity Industrial sewing Electronics Mechanics Danang SCDP- Resettlement Plan 4 months 4 months 3 months 6 months 5 months Free of charge Free of charge Free of charge Free of charge Free of charge 40

68 Also, depending on the nature of each project, the projects call for the Centers' cooperation in training for affected households to introduce their family members of labor age to the factories and industrial parks in the region. Family members of affected households are given priority to be admitted to work in the factories. Job placement Referring to the list of enrollees to the training courses and basing on the need of each participant, the Project Management Unit of Da Nang Priority Infrastructure Investment Project will cooperate with the vocational training centers and under the direction of the City People's Committee to work with the industrial parks in the region for job recommendations for the students. Training centers will associate with Industrial zones based on demands of them. During project implementation, the PMU will co-ordinate with the contractor to hire local labor. PMU will coordinate with DPC, ward's PC and training centers for training and introducing suitable jobs to people affected by projects, with priority given to female affected people Institutional arrangement The Project Management Unit (PMU): Based on the actual needs of households, the PMU, particularly resettlement Division will coordinate with Resettlement and Compensation Board to conduct detail surveys of training needs of each household then contact with the training centers to organize training courses. Vocational training centers: These centers will organize training courses for students in need and coordinate with the PMU in the job placement/and introduction for them. Households: Households will participate in the surveys, training courses and follow the instructions of the PMU and training centers. Danang SCDP -Resettlement Plan 41

69 8. CONSULTATION AND PARTICIPATION 8.l.Objectives And Policies The main objectives of consultation and participation are to: a) Ensure that all DPs and related agencies participate together in issuing decisions on involuntary resettlement matters; b) Minimize negative impacts caused by involuntary resettlement; and c) Avoid possible conflicts during Project implementation. DPs shall be fully informed and carefully consulted on resettlement and compensation plans.. Consulting DPs is the starting point for all activities related to resettlement. DPs may be afraid that they will lose their livelihood and community, or that they are not well prepared for complicated negotiations on their rights. Participation in creating the RAP and its management will help DPs relieve their worries and give them the opportunity to participate in what will affect their lives; implementing resettlement without consulting DPs is and improper and ineffective strategy. If DPs are consulted, and any objections to the Project can be timely dealt with. One of the important written documents towards strengthening democracy at the grassroots level in Vietnam is Instruction No. 30-CT /TW issued by the Central Committee of the Vietnamese Communist Party on the "Construction and implementation of a basic democratic regime," and Decree No. 79/2003/ND-CP on the same topic. The key basis of this legal document is the well-known slogan: "people know, people discuss, people do, people check." Ordinance No. 34/2007/PL-UBTVQHll (replacing and terminating the effectiveness of Decree No. 79/2003/ND-CP) points out matters that need the comments from local authorities and communities before the relevant authority issues a decision including the preparation of approach for compensation, assistance resettlement related to projects and works within the wards/communes. Article 3 9, clause 2 of the 2003 Land law requires matters related to resettlement, such as reasons and plans for land acquisition, relocation, general compensation and site clearance plans to be pub I ished for D Ps. Even so, consultation and participation is an innovation in project implementation in Vietnam, and both local residents and officers in charge of project implementation lack experience in this field. The following points need to be focused on to encourage relevant agencies to participate in the Project's consultation process: a. Determining and encouraging all related agencies, and especially DPs, to join in consultation and participation; b. Establishing strategies for them to participate in project planning, implementation, monitoring and evaluation; c. Explaining strategies and details for disseminating necessary information and propaganda, and establishing procedures to enable DPs to define their entitlements; Danang SCDP - Resettlement Plan 42

70 d. Attracting related agencies to participate in making decisions at the different steps of Project implementation (e.g. modes of compensation, consulting DPs on compensation and implementation schedules, etc); e. Setting up a schedule for activities such as providing information; compensation levels and modes; and establishing interests, locations and the relocation plan; f. Establishing procedures for redressing grievances. 8.2 Consultation And Participation Procedure Responsible Organizations: DPs will be informed by PMU about the responsibilities of all organizations and local governments concerned with resettlement, and the names and functions of relevant government officers along with their telephone numbers, office addresses and working hours (if any). Implementation Schedule: DPs will be informed of the estimated schedule for major resettlement activities, and that construction can only begin when resettlement activities are completed and DPs have moved out of the Project area. It is necessary to emphasize that DPs should move timely when once they receive all compensations for their affected assets. Compensation Councils/Committees at all levels will be provided with maps and implementation schedules. Publication: After having been approved by the City PC, the RAP will be publicized in at PMU, urban/rural district and commune/ward PCs, and on websites of WB information centers in Hanoi and Washington, D.C. and PMU's website The RP and should also be broadcasted widely through media such as local radio and TV, and in newspapers, posters, leaflets, etc. Furthermore, the Public Information Booklet will be needed for distribution in this stage Method for Consultation and Participation The methods of information dissemination and community consultation may include Participatory Rural Assessment (PRA) through family visits, site visits, community meetings, group meetings, focus group discussions, and socio-economic surveys. At the beginning of the preparation stage, local authorities and other government leaders at various levels will be informed about the Project, its objectives and activities. They will be consulted and actively participate in discussions about the demand for development and the priorities in their hometowns. They can also contribute comments and ideas about possible adverse effects of the Project and how to mitigate them and increase their community's interest in the Project. Local authorities will also be consulted about their consensus and commitment to the RPF. The mass media, including central and local television and the press, will broadcast the Project's objectives, components and activities in public areas once they have been approved. During the Project implementation, the PMU and the CCU will consult with the community about the Project. They will be responsible for: Danang SCDP -Resettlement Plan 43

71 Providing information to the Council of compensation and land clearance at all levels through training workshops which will detail Project policies and implementation procedures. Providing information and consultations with OPs during the Project. Updating unit prices issued by the City PC, based on the survey results of independent land appraiser and re-affirming of land acquisition and impacts on assets based on the OMS created with the participation with OPs. Assigning the rural and urban district ORCs to define compensation entitlements, and complete a plan for asset compensation and assistance for each affected person. The PMU or the rural/urban district ORCs will then announce this information in community consultations to those who are directly affected by the Project. OPs sign on the plan for asset compensation, stating the number of affected assets and compensation entitlements for each household, to certify their consensus and agreement with the assessment. Any questions from the OPs on the contents of the plan must be acknowledged at this time. Sending letters and/or questions relevant to resettlement options to all OPs to (a) inform them of resettlement options (with clear explanations of each option), (b) request that they choose an option for resettlement and affirm the location of a resettlement site, and (c) request that they clearly state the services they are currently using, such as education, health care, and markets, and the distance they travel to access such services. Consulting with OPs about their expectations for recovery support and applying this to affected and vulnerable persons. The rural/urban district CRCs will inform the OPs about the plans and entitlements to technical assistance before asking them to state their expectations for recovery support. Community Meetings: Prior to the detailed design, community meetings the Project organizes in each affected commune or ward to provide more information to DPs. They have opportunity to participate in open discussions on resettlement policies and procedures. Notification or invitations to the OPs should be sent at least two weeks prior to the meetings. The purpose of these meetings is to clarify information up to the date of the meeting, create an opportunity for discussion, and clarify information. In addition to letters to individual households, information should be disseminated through posters in public areas of communes and wards, and rural/urban districts where OPs are living, and/or via radio, newspapers, to inform OPs and the community. Men and women in affected households and other people in the community are encouraged to participate in meetings where the Project will be explained, the interests and entitlements of households will be clarified, there will be the opportunity for people to speak their concerns. Such meetings will be held periodically during the process of the Project. Textual and visual information will be provided for the OPsin the meetings and copies of such information will be available in the City and concerned communes/wards in the Project area. The meetings should include: Textual and visual explanations, including printed information and tentative drawings of The Project's for its different items. Oanang SCOP Resettlement Plan 44

72 Facilitating DPs in expressing their opinions, answering their questions, and encouraging them to contribute their ideas to the recovery plans. Rural and urban district CRCs preparing a complete list of affected households that participate in the meetings. Rural and urban district CRCs preparing a comprehensive list of questions, comments, ideas and decisions that arise during the meetings and consultations and reporting all the meetings to the PMU Consultation in the Preparation Phase At the beginning of project preparation, local authorities and administrative leaders at all levels were informed about the proposed project and the objectives and its various components. They were thoroughly consulted and actively participated in discussions about their demands for development and their priorities, as well as their awareness of the project's objectives. DPs were consulted about impacts and applicable measures to minimize negative impacts and improve the benefits for local residents. Local authorities have been consulted about their agreement with and commitment to implementing the resettlement policies Consultation in the Project Implementation During the Project's implementation, PMUs shall undertake the following with the support of the Project consultants: a) Providing information for district CRCs at all levels through training seminars and providing detailed information about the Project's policies and implementation procedure. b) Organizing information dissemination and consultation with DPs during Project implementation. c) Comparing annual unit prices and the Project's tentative compensation unit prices; and reaffirming the scale of land acquisition and impacts on assets based on the results of the DMS and consultations with DPs d) District PCs will publish Project land acquisition policies and invite affected persons to participate in popularizing the Project and its legal basis. e) Each affected person will in turn participate in the measuring and inventory of assets, and land, and sign the drawings of the acquired housing/land and inventory of lost assets. f) Each affected person will be involved in reviewing the draft plan for compensation, the calculation tables, and the amount of compensation for each affected person. g) Each affected person has the right to reflect, raise their questions about the calculation of compensation and have their questions answered satisfactorily according to their specific situation, including issues related to resettlement such as prices, installment payments and procedures for documenting ownership in the new place. Danang SCDP -Resettlement Plan 45

73 h) Each affected person will participate in the review process for draft compensation plan, spreadsheet and estimate the compensation payment to each affected person. i) After that, CRCs will calculate compensation based on the agreed prices and complete the compensation plan for affected assets. The PMU will present information on entitlements for DPs in the next consultation with affected persons. j) The plan for compensating assets shall clearly state affected assets and the compensation to which DPs are entitled, and this shall be signed by the DPs to show their agreement with the evaluation results. Any questions DPs have on the contents of the plan shall be noted at this time. k) Sending DPs letters and/or questions related to the RP to inform them about the plans and clearly explain the consequences of each plan, if any. 1) Requesting DPs confirm their choice of RP and get their preliminary confirmation of the location of the resettlement area. Displaced persons will visit the proposed resettlement areas to make their selection. m) Requesting DPs to clearly state services they are currently using such as education, health care, and markets, and the distance they travel for these services. Affected and vulnerable DPs will be consulted about their desires regarding restoration assistance in the RP. Project's Council of compensation and land clearance will inform DPs about the plan and their entitlement to technical assistance before requesting them to clearly present their desires for restoration assistance. Community Meetings Before starting detailed designs, the resettlement advisory group will conduct community meetings in affected wards/communes to provide additional information for DPs and create opportunities for them to participate in open discussions about resettlement policies and procedures. Ward PCs or residential groups will hold meetings to consider and resolve issues related to the Project, compensation policies, land use status, and the origin of land used Information Disclosure In addition to public announcements for DPs and their communities, the RPs, including Policy are available in departments of the City, Project affected district/ward PCs, the Info Shop in Washington, D.C, and the WB's Vietnam Development Information Center (VDIC) in Hanoi. 8.3 Community Consultation Results The consultant conducted public consultation on compensation and resettlement with stakeholders including officers form ward PC, population group leaders and local residents in affected area. Before the survey, the consultant had a meeting with the leaders of wards/communes in order to notify project implementation and the implementation of the survey and IOL. From that point, the local governments are required to obtain cooperation. Danang SCDP - Resettlement Plan 46

74 9. GRIEVANCES AND GRIEVANCE REDRESS 9.1 Responsibility The agencies which are responsible for procedure of redress of grievances and complaints during implementation process of site clearance and compensation include Danang CPC, involved departments, DPCs, DRCs and local PCs, Clearance and Compensation Units, and Danang PMU. Based on the functions and duties of each level, the mechanisms for grievance and complaint redress of affected persons will be regulated according to the law and regulations of Vietnam. For ensuring DPs' opportunity to present their complaint related to the compensation and resettlement, the detailed process of complaints will be informed fully to the DPs. It aims to resolve DPs' complaints quickly and in accordance with the procedures. The mechanism is designed simply, easily to understand, quickly and fairly. By resolving complaints at each project level, the project progress will certainly be more effective. Those whose land is recovered do not agree with the decisions of the compensation, resettlement assistance can make complaints as regulations of the law. The settlement of claims on decisions of compensation, assistance, site clearance and resettlement, the responsibility for complaint redress and time and procedures for complaint redress shall comply with the provisions of Article 138 of Land Law 2003, Grievance Law 2011, Administrative Judge Law, Decree No /ND-CP dated October 29, 2004 ofthe Government regarding to implementing the Land Law, Decree No.136/2006/ND-CP dated November 14,2006, Decree No. 84/2007/ND-CP dated May 25,2007 of the Government. During waiting for the grievance redress, DPs should comply with the decisions of land acquisition and hand over land as scheduled. The procedures of grievance redress related to administrative decisions on land management as stipulated in Decree 181/2004/ND-CP should follow regulations and Law on grievance redress. 9.2 Complaint Procedure Any questions and complaints from project affected people on the compensation entitlement, compensation policy; compensation rates, land acquisition, resettlement and other entitlements to the life recovery program will be recognized and processed by the functional units of all levels. The local social organizations as Fatherland Front, Farmers' Association, Women's Union, and reconciliation groups etc. are mobilized to participate actively in the process of settling claims and questions of project affected people. Grievance redress about compensation and resettlement from DPs follows the procedure as below: Step 1: DPs' complaints and grievances will be handed over to the Clearance and Compensation Unit (CCU) or Ward PCs in the project area or the PMU in writing or by direct reflection. The PMU will cooperate with relevant organizations of the city to redress these grievances. Clearance and Compensation Unit (CCU) is responsible for redressing grievance within 15 days as from the day of receiving complaints and grievances. Danang SCDP - Resettlement Plan 49

75 Step 2: If there is no agreement or conciliation with Clearance and Compensation Unit (CCU)'s solution, the DPs are entitled to submit their grievance to the District PC. The Chairman of the District PC (normally also the Chairman of the DRC) is responsible for considering and redressing grievances of the DPs with DRC members and related agencies. The District PC shall redress grievances not exceeding 30 days as from the day of receiving such grievances. In case the grievance of the DPs exceeds the competence of the District PC, this case will be reported to the City PC and simultaneously informed to the DP by the District PC. When receiving the solutions from the City PC, the District PC will be responsible for informing such solutions to the DPs. In process of grievance redress, the Chairman of District PC should organize dialogues with the complainants publicly and democratically. The result of dialogues is one of the foundations to redress grievances. Step 3: If DPs are not satisfied with the solutions of the District PC, the DPs are entitled to submit their grievances in writing to the City PC for City PC's redressing not exceeding 45 days as from the day City PC receives such grievances. In process of grievance redress, the leader of City PC should organize dialogues with the complainants publicly and democratically if necessary. The result of dialogues is one of the foundations to redress grievances.. Step 4: If the DPs are still not satisfied with the redressing decisions of the City PC, they can submit their grievances to the Court for resolution as stipulated by the Administrative Judge Law. During the time waiting for complaint solution and even dispute redress, DPs should hand over land to the project as scheduled. Compensation money should be deposited in a Bank account. All documents on grievances and grievance redress of related agencies will be archived in the CCU and Danang PMU, which will be recorded and reported by the PMU as a part of the internal monitoring report. Danang SCDP - Resettlement Plan 50

76 e) issue prices of land and property for the calculation of compensation and regulations of assistance and approve compensation value and resettlement f) Direct the relevant agencies to resolve complaints and denunciations of citizens on the compensation, resettlement assistance based on the authority prescribed by law. g) Decide or decentralize the People's Committees of districts to apply the enforcement for the cases which protect against the decision of land acquisition of the State. h) Give instructions and punish violations in the compensation, assistance and resettlement Other Relevant Agencies The Department of Finance is responsible for appraisal of compensation price proposed by the local authorities based on the results of independent land appraiser and submit the City People's Committee for approval. During the beginning stage of RP implementation, the Department of Finance will coordinate closely with the Department of Construction, Department of Natural Resources - Environment, Department of Transportation, Department of Industry, and district People's Committees to appraise the proposed unit prices to the City People's Committee for revision, if necessary, to ensure that the compensation unit prices are the replacement costs at the time of compensation payment for DPs. Department of Finance: a) Coordinate with the concerned agencies to submit the prices of land and property to the City People's Committee for approval. b) Evaluate the compensation, resettlement and assistance plan. c) Check the payment of compensation, assistance and expenses for the implementation of compensation, assistance and resettlement. Department of Natural Resource and Environment: a) Guide the identification of land types, land areas and compensation conditions when the State recovers land. b) Coordinate with DPI, DOC, DOF to evaluate and submit DNPC for land acquisition, hand- over of land to the project owner and acquire land of organizations. c) Evaluate compensation option, assistance and resettlement. d) Submit DNPC for making a decision of the Project scope of land acquisition. Department of Construction: a) Guide the determination of scale, area and legality of the construction works associated with the acquired land. b) Evaluate the quality of houses and structures, warehouses, yards and other buildings. c) Determine prices of houses and buildings constructed on land to calculate the compensation values and submit the City People's Committee for approval. d) Coordinate with other agencies to determine the locations and scales of the resettlement areas. Danang SCDP - Resettlement Plan 52

77 Da Nang PMU The Project Management Unit will be generally responsible for the development of the project activities as well as the resettlement activities. PMU includes Administrative and Personnel Division, Technical Division, Financial and Accounting Division, Planning and Procurement Division and Social and Resettlement Division. The PMU will bear the main responsibilities as follows: a) Prepare master plan, management and monitoring (internal) the implementation of Resettlement Plan. b) Support the City PC in making decisions of land acquisition in accordance with the compensation rates which are appropriately revised based on survey results of replacement costs. c) Coordinate with the Compensation, Resettlement and Assistance Councils (DRC), Clearance and Compensation Unit (CCU) and concerned agencies to ensure the effective implementation of the compensation and resettlement based on proposed principles and objectives. d) Recruit and monitor the consultants including the recruitment and monitoring of the independent resettlement monitoring agency. e) Develop mechanisms for disbursement and payment for the compensation and resettlement for households affected by the project. Prepare periodical reports and essential documents for the Project. f) Participate in resolving complaints and regulate the redress and resolving of complaints according} y. g) Arrange resettlement for households who must relocate and resettle. Clearance and Compensation Unit (CCU) a) Make plan or propose the compensation and site clearance plans for the preparation of project construction site, CCU is assigned by the City People's Committee for specific project. b) Directly perform the operation of compensation and land acquisition in the City. Clearance and Compensation Unit organizes the implementation of determination and inspection of impact level, acquired land scope and area, impacted houses, structures, crops and trees, etc. for calculation of compensation value and other assistance for P AHs according to the regulations and submit DRC/CPC for approval of compensation. c) Coordinate with the District People's Committees, Ward People's Committees, functional departments and the PMU to perform site clearance. d) Arrange resettlement for relocated HHs District People's Committees a) Direct, organize, propagate and mobilize all organizations and individuals on the compensation policy and resettlement assistance. Danang SCDP- Resettlement Plan 53

78 b) The District People's Committees shall direct the District Compensation and Resettlement Council to set up, submit and implement the options of compensation and site clearance. c) Coordinate with other state departments and agencies, organizations and investors for the project deployment. d) Settle complaints and denunciations on compensation, assistance and resettlement District Compensation and Resettlement Council (DRC) DRC are established by the City People's Committee in the districts which are affected by the project land acquisition. Chairman of DRC is a district's chairman and the DRC's members include representatives of the following units: The Clearance and Compensation Unit o PMU. o District Finance Division. o District Natural Resource and Environment Division. People's Committees of districts and wards where the land is acquired. District/ward Vietnam Fatherland Front. o Representatives P AHs. Responsibilities of the DRC: a) Assist the establishment and implementation of the compensation, assistance and resettlement plans. b) Check legality, propose additional compensation and assistance, consider resettlement location and submit to CPC for approval.. c) Reflect aspirations and participate in complaint redress of DPs on the compensation policy and entitlements. d) Closely cooperate with the independent monitoring agency The Ward/Commune People's Committee a) The Commune/Ward People's Committees are responsible for coordinating with other functional units on the certification of land and property. Reflect the people's feedback to Da Nang SCDP and the Site Clearance and Compensation Committees. b) Carry out the investigation, survey and mobilize people to implement the site clearance. The propaganda contents include the purposes of land acquisition and policy of compensation, assistance and resettlement of the Project External Monitoring Agency The independent monitoring can be conducted by a research institution, a university or a NGO, which is specialized in social sciences. This unit will carry out the socioeconomic surveys, monitoring and evaluating the implementation of the resettlement plan for the Project. The reports reviewing the progress, suitability of the resettlement plans and related proposals should be prepared periodically. Danang SCDP Resettlement Plan 54

79 11. IMPLEMENTATION PLAN 11.1 Main Activities To implement a project successfully, main activities need an implementation plan with milestones of time. This helps evaluate the implementation progress of the project components in certain times. At the beginning of the project, a plan should be made and lasted during the implementation stage to the complement stage of the Project. In a RP, main contents to be implemented from the beginning to the end of the project are: a. Notification of the cut-off date of the statistics and compensation limit: All DPs were fully informed the RP entitlements and policies including the validity, entitlement policies, methods and compensation rates, schedules, complaints and resolving complaints. The PMU will prepare Project Information Book (RIB) then distribute them to DPs or notices in the meetings of population groups, wards, districts or in community consultations. Besides, pamphlets, billboards, posters were also distributed to each household, pasted in public places like the ward People's Committees, houses of culture, health centers, schools. Announcement of the project land acquisition policy, the approved project investment decision, and the approved project design... b. Survey of socio-economic condition in the affected areas c. Develop a legal framework and entitlement policies for the project d. Make plans for the development of resettlement areas e. Develop life restoration measures f. Implement the compensation, assistance, resettlement and livelihood rehabilitation g. Assess project impacts on DPs: One year after the project ends, a socio-economic survey in the project areas will be conducted to assess project impacts on the benefited community and DPs. The results of this survey will serve as a basis for assessing project impacts to the community and drawing experience lessons for the later project design and operation Implementation Steps Orders and procedures for the compensation and resettlement are based on Decree 84/2007/ND CP dated 25/5/2007 of the Government and Decision 36/2008/QD-UBND dated 24112/2009 of Da Nang People's Committee on the Compensation, Assistance and Resettlement Policy when the State recovers land in Da Nang city. Based on the legal basis, the organization structure and the coordination among concerning agencies as mentioned above, the main activities of the compensation and resettlement will be implemented following the below steps: Step 1: Announcement of Land Acquisition Policy Da Nang People's Committee issues official documents regarding land acquisition policy or official documents of investment location acceptance according to DOC's suggestion on planning DONRE' s on project land use need. Danang SCDP- Resettlement Plan 55

80 The District People's Committees are responsible to the propaganda of land acquisition policy, land acquisition regulations, and compensation, assistance and resettlement when the State acquires land for the purposes of national defense, public benefit and economic development. The Ward/Commune People's Committees are responsible to publicize the land acquisition policy at headquarters of the ward/commune People's Committees and at the residential areas where land is acquired and to announce the policy publicly on the communal mass media (where there are radio speaker systems). Step 2: Approval detailed planning of project works and announcement of planning design Based on the CPC's official document on land acquisition policy, DOC directs Construction Planning Institute to coordinate with PMU to prepare detailed planning, project general site and submit TO CPC for approval of implementation. District PC chairs and coordinate with relevant Departments and PMU to organize handing-over landmark, posting up and announcing planning design in the project residential areas. DONRE bases on approved Project general site by CPC to carry out prescribed procedures of land acquisition and land delivery. Step 3: Approval of Compensation, Assistance and Resettlement Plan CRCs, make a general compensation, assistance and resettlement plan (hereinafter referred as to the general plan) based on the available data and documents surveyed and provided by relevant agencies and submit to DONRE for approval. The General Plan is inclusive of the following contents: a. Basis for option preparation; b. Synthetic statistics on square of all land types, land level for agricultural land, number of mapping pages, number of land plots; estimated value of assets on land; c. Synthetic statistics on number of households, household members, laborers in the land acquisition area, which clearly specify number of job-changed laborers, number of displaced households; d. Estimated compensation and assistance rate; estimated locations and areas of resettlement sites or resettled houses, and means of resettlement; e. Estimate of the supporting measures for employment and job-change training plan; f. List of the displaced works, scale ofthe displaced works ofgov, institutions, religious organizations and community and estimated locations to relocate these works; g. Number of relocated graves and estimation of location to relocate; h. Cost estimation for the implementation of the plan; 1. Cost sources for the implementation of the plan; J. Implementation progress of the plan. Danang SCDP- Resettlement Plan 56

81 Step 4: Announcement of Land Acquisition, Evaluation, Compensation and Resettlement After the general plan is approved, CRC is responsible for information to DPs the reasons of land acquisition, estimations of the compensation, assistance and resettlement costs; measures of job changing and job employment, displacement time and acquired land delivery schedule, which are stated in the general plan. DPs have rights, based on the regulations of the law, to comment, recommend or request the DRCs' explanations for the said contents. Step 5: Decision of Land Acquisition Based on decisions the project investment approval, land acquisition and delivery issued by CPC and CPC's official documents of instruction of on the land acquisition for the project implementation, the district People's Committees issue land acquisition decisions in the project affected areas after twenty (20) days of the receiving date of the official decision. Step 6: Grievance Redresses for Land Acquisition Decision During the land acquisition, if there are complaints of the residents in the project areas, the Ward People's Committees will collect opinions and letters of complaint and send to the authorities for review and settlement. The authorities of settle the complaints, which should be analyzed and confirmed if land acquisition is complying with the WB's policy, GoV's and the project's. Step 7: Inventory and Detailed List of Affected Land and Assets The agency that is responsible for compensation, assistance and resettlement is Compensation and Resettlement Board. Will carry out delivering, giving guideline and collecting forms of inventory of losses from DPs to prepare calculation of value of compensation, assistance and propose resettlement. DPs enumerate themselves and fill-in the provided form with square, land category, positions of land, number, quality of current land/ assets on acquired land, number of households members, number of labors. propose their resettlement desires (if any). The replacement cost information for land, property and architectural objects shall be collected through the independent price appraisal and reference of the local market transactions. If the market price is higher than the price offered by Da Nang People's Committee, the City People's Committee will request concerned agencies to update the unit price equivalent to the market value. For SCDP project, an independent price appraisal will be chosen to appraise the price of affected land and assets. Step 8: Approval of Compensation Value, Assistance and Resettlement Allocation for DPs Based on the detailed tables of on acquired land volume, lost assets of each DP, documents on land origin, members of households statistic, social policy households and price units, compensation and assistance policies, etc. District Compensation and Resettlement Council makes compensation value and assistance for each DP and submit to DOF for evaluation and CPC for approval. The applied unit price is issued by the CPC on the basis of replacement cost proposed by the independent price appraiser. Danang SCDP Resettlement Plan 57

82 The DRC also submit the list of land allocation to the relocated DPs for CPC approval. Step 9: Approval of Compensation Value, Assistance and Resettlement CPC shall approve specific compensation value, assistance and resettlement allocation for each DP depending on each type of project work. Step 10: Publicize Compensation value, Assistance and Resettlement After the compensation value, assistance and resettlement allocation are approved by the authorized agencies, Compensation and Resettlement Board is in charge of coordination with Ward PC on announcement, posting up the following information: compensation value, assisstance and resettlement allocation, plan and dates for the compensation and assistance payment and plan, for the property removal and relocation, for site handing - over and venue and date for receiving resettled land. Step 11 : Payment for Compensation, Assistance and Resettlement Within 15 days since the approval date of the compensation value and assistance, Compensation and Resettlement Board is in charge of payment of compensation and assistance for DPs. Particularly, the DPs will receive 80% of compensation cost. When the DPs hand-over their land, they will receive the remaining cost (20%). In brief, the DPs will reallocate only after they receive full 100% of the compensation and assistance cost. Step 12: Site Clearance and Land Acquisition The People's Committees of all levels coordinate with public organizations to inform DPs in the execution of the land acquisition decision, receiving the compensation and assistance payment based on approved plans, self-dismantling the architectural objects and assets, and handing-over land in accordance with the schedule; Along with the mentioned steps, after obtaining the approval for detailed design, the PMU shall employ resettlement experts to support the project and employ independent monitoring agency for the independent monitoring of the project compensation and resettlement implementation. The resettlement experts shall be responsible to support the PMU in implementation and internal monitoring of operation of Compensation and Resettlement Board and independent agency is in charge of periodically supervision of compensation and site clearance of the project. The External Monitoring agency shall periodically monitor the implementation of the compensation and land acquisition of the project. Danang SCDP- Resettlement Plan 58

83 11.3 IMPLEMENT SCHEDULE Table 20: Implementation schedule Main activities of resettlement plans Resettlement plan Schedule Predesign and setting out the clearance site Oct, 2011 Sign on the contract and mobilize the consultants for reports Dec, 2011 IOL for affected people and prepare compensation tables (replacement cost survey if necessary) Community meetings, public consultation with affected people and Resettlement Plan May, 2012 July, 2012 Resettlement plan is submitted to the PMU for consideration Oct, 2012 The CPC and the WB approves Resettlement Plan Dec, 2012 Resettlement plan Independent land appraisal April, 2013 Compensation payment Restoration measures (if any) June,2013 June,2013 Site clearance Sept, 2013 Construction contract Dec, 2014 Post-resettlement evaluation External monitoring PMU signed on the contract and mobilize the IMO IMO participates in IOL and conduct basic data survey on socioeconomic June,2016 June,2013 Jan,2014 IMO conducts survey and initial monitoring report July, 2014 IMO conducts survey and second monitoring report Jan,2015 IMO conducts survey after resettlement and final monitoring report July, 2015 Danang SCDP- Resettlement Plan 59

84 12. MONITORING AND EVALUATION Monitoring and evaluation activities take place during and after the resettlement stage to ensure that the land acquisition and resettlement are conducted in accordance with the regulations and instructions of the resettlement plans. Monitoring provides the concerned agencies with continuous reflections on the land acquisition and resettlement. Monitoring determines the reality, successful possibility and arising difficulties as soon as possible to facilitate the due adjustment in the project implementation. The purposes of monitoring and evaluation are (i) review if the project activities are completed effectively or not, including quantity, quality and time, (ii) evaluate if these activities achieve the objectives and purposes or not, and how like the achievements. PMU and the Investor as well as the External Monitoring Consultant should monitor the implementation of the resettlement activities frequently Internal Monitoring Internal monitoring of the implementation of the Resettlement plan (RP) is the responsibility of the PMU with the assistance of the Project Consultant. The PMU will monitor the progress of RP preparation and implementation throughout the regular progress reports. The main monitoring contents are: a. Information and consultation with DPs b. Summary of the results of independent land appraiser work (the proposed compensation price versus CPC's established price) c. The number of DPs according to types of impact, and the components and the status of compensation payment, relocation and income recovery activities for each component (compare with RP's figures and explain the reasons if the changes are substantial) d. Fund allocated and disbursed for compensation and resettlement activities. e. Complaints and resolutions of complaints and outstanding issues needing resolutions from management agencies at all levels. g. Issues arising during the RP implementation h. Plan of compensation and resettlement activities with estimated cost for the upcoming time i. Fill in the tables as in the annex External Monitoring External monitoring will be conducted by a consultancy unit I research non-governmental organization (NGO) who is experienced in monitoring and assessment for the implementation of socio-economic surveys. The PMU will sign a contract with Independent Monitoring organization (IMO). The implementation of external monitoring of the project will be funded from ODA sources for the project. Independent Monitoring Organization will report periodically on progress of implementation and make relating recommendations to solve any emerged problem during the monitoring. 60

85 The main monitoring indicators are: a. Payment of compensation and assistance for DPs according to the compensation policy described in the RP; b. Implementation of technical assistance, relocation, allowance payment and relocation support; c. Implementation of income recovery and entitlement to recovery support; d. Information dissemination and community consultation; e. Complaint procedures and settlement, outstanding problems that require to be solved up; f. Monitoring of the schedule of land acquisition... Methodology and Approach Sample Survey A socio-economic survey will be required before, during and after resettlement implementation to provide a clear comparison of success/failure of the resettlement plan implementation. Monitoring will be on a sample basis. The sample size should be 50% of relocating households and at least I 0% of all other households. The sample survey should be conducted twice a year. The survey should include women, elderly persons, and other vulnerable target groups. It should have equal representation of male and female respondents. A Post-Resettlement Evaluation will be carried out 6 to 12 months after completion of all resettlement activities. The IRMC will take activities including but not limited to: (i) compensation documents checking and (ii) working with compensation board and local authorities to collect all the necessary data and information; (iii) interviewing affected people; (iv) group discussion. Database Collection The IMO will maintain a database of resettlement monitoring information. It will contain files on results of independent monitoring, DPs data will be updated based on information collected in successive rounds of data collection. All databases compiled will be fully accessible by the PMU, Executive Agencies, and the Bank. Monitoring Report Follow- Up The monitoring reports will be discussed in a meeting between the IRMC and PMU held immediately after submission of the report. Necessary follow-up action will be taken based on the problems and issues identified in the reports and follow-up discussions. 61

86 13.COST ESTIMATE 13.1 FUNDING The resettlement plan will cover the detailed costs of compensation and restoration assistance, resettlement costs for specific land (agricultural land, residential land etc.), types of work and other impacts. The project resettlement costs is prepared based on the updated compensation unit prices issued by the City People's Committee, which reflect the market value/ replacement cost of all affected properties at the compensation time. The financial source for different activities of resettlement programs is mentioned in the table of estimation cost. The cost for the implementation of Resettlement Plan (Cost for compensation and assistance etc.) will be the counterpart fund. The budget for the RP implementation will be a part of counterpart fund of the Vietnamese government (from Da Nang People's Committee). Da Nang city will provide counterpart fund for the compensation and resettlement and this cost will be included in the total investment costs of the Project. The PMU will disburse this fund for land acquisition, assistance and resettlement of the project through the city CRC, which will pay directly for the project affected households Replacement Cost Survey The method used for valuation of losses in the WB projects is based on the "REPLACEMENT COST". In this Project, the losses consist of damages to urban land, structures and other assets. Urban land of the same area and using value should be determined by replacement costs in the consideration of the public structures and social services plus registration costs and transferable taxes. For houses associated with other structures, their value is determined by market prices of building materials to build a replacement house of the same area and quality at least, or to repair the affected structures, plus transport material costs, labor costs, bidding cost, registration fees and transferable taxes. Asset depreciation and material value that can be salvaged by affected households are not deducted Compensation Unit Price For reference purpose, the Consultant collected land unit prices for land on the roadsides on the real estate market from many different sources: a. Decision 35/20 11/QD-UBND December 24, 2011 of Da Nang People's Committee regulating on land prices in Da Nang city b. Information from the real estate transaction center; c. Consultation with local government and households affected by the project. Some unit prices of land in the project area are determined based on the results of replacement cost surveys, through working with local authorities, and the information on the market transactions. The determination of replacement cost is based on the coefficient, namely, the compensation rates will be calculated accordingly to the price coefficient, which is compared with the regulated prices issued by Da Nang People's Committee. The rates for identified areas are as follows: 62

87 Table 21: Proposed replacement costs for land compensation Unit prices based No. District/ward on Decision Coefficients Proposed unit price 35/2011 Ngu Hanh Son district 1.1 HoaQuyward HoaHai ward Khue My ward My An ward Thanh Khe district 2.1 AnKheward Thanh Khe Dong ward Lien Chien district 3.1 Hoa Khanh Nam ward Hoa Hiep Nam ward Hoa Khanh Bac ward Hoa Minh ward Hoa Vang district 4.1 Hoa Lien commune Hoa Phong commune Hoa Phuoc commune Hoa Tien commune Hoa Chau commune Compensation prices for architectural works The feature of the houses in the project area is house grade 3 and 4, temporary house and insignificant number of solid brick houses. In addition, there are some other structures such as: Yards, gardens, living areas... and some temporary structures. For houses associated with other structures in the project area, their value is determined by market prices of building materials to build a replacement house of the same area and quality at least, or to repair the affected structures, plus transport material costs, labor costs, bidding cost, registration fees and transferable taxes. Asset depreciation and material value that can be salvaged by affected households are not deducted. Through the review of Da Nang's new compensation policy for architectural works, the PMU proposed the compensation unit prices for architectural works, properties on land in the project area accordingly to Decision No.35/2011/QD-UBND on 24/12/2011 by Da Nang People's Committee relating unit prices of houses and structures, graves, plus 20% inflation for such architectural objects. The prices for architectural items and the compensation prices for trees and 63

88 crops are in the attached appendix. Based on the proposed rates, the estimated cost for compensation and assistance shall be determined in the following pages: Cost Estimate. During implementation phase, an independent land appraiser (s) will be mobilized to survey and propose a set of replacement costs for all types of affected land (both agriculture and residential land) and assets, which will be served as basis for Da Nang City PC to decide compensation price to ensure that it is at the replacement cost (Term of Reference for this Assignment is attached in the Annex) COST ESTIMATE Costs for compensation and resettlement including RP preparation and implementation costs and administrative and management costs are estimated based on the following items 4 : The costs for affected land and property compensation in the project area; The costs for the program of income restoration and special support for vulnerable groups (families under preferential policies, families deserving for the revolutions, female headed households, disabled people, poor households etc.); The allowances, subsidies, bonuses for affected people to move out of the project areas as scheduled; The cost for recruitment of domestic resettlement specialists and independent consultant; Contingency cost: The new Land Law, every January, the city People's Committee will issue the unit prices of land. Experiences show that in most cases, land prices increase gradually each year. The detailed statistical analysis of impacts and cost estimates will be divided into categories and represented in the pages below. 4 The cost for CRCs at city, districts levels and local authorities for the implementation of the RP are disbursed from the city budget, which is not included in this Item. 64

89 Table 22: Cost estimate No. Item Description/Unit price Quantity A Land Appendix 1 522,856,065,240 Affected residential land 517,873,319,000 Affected agricultural land 4,982,746,240 B Architectural works Appendix ,394,032,500 1 House (m2) 62,952,291,000 2 Kitchen (m2) 389,128,200 3 Auxiliary woks (m2) 420,087,300 4 Wall (m) 617,850,000 5 Yard (m2) 104,676,000 6 Water tank ( m3) - 7 Grave (unit) 1,910,000,000 c Affected trees/farm produces Appendix 2.2 3,842,681,040 1 Trees: 485,190,000 2 Rice, crops 3,357,491,040 D Subtotal I D=A+B+C 593,092,778,780 E Life Recove_ry Pro2ram 74,307,449,200 1 Relocation support 2,000,000 VND/household 1,404,000,000 Support for temporary residence of DPs 600,000 VND/main household 2 280,800,000 30kg /person/month x 6 month 2 Support for Life Stabilization 63,180,000,000 Vocational training and income 4 restoration assistance 9,342,649,200 5 Support for poor households 2,000,000 VND/household 100,000,000 F Subtota12 F=D+E 667,400,227,980 G Overhead cost 46,718,015,959 Management cost (2%) Equivalent to (2%) 1 13,348,004,560 Contingency cost (5%) Contingency 5o/o 2 33,370,011,399 H Total H=F+G 714,118,243,939 Rounded 7t4;2rio;ooo;ooo, Thus, the total cost of compensation, assistance and resettlement of SCDP Project is VND 714,200,000,000 VND (about$ 34 million). 65

90 14. APPENDICES Annex 1: DUE DILIGENT REPORT ON COMPENSATION AND ASSISTANCE ACTIVITIES FOR A CANAL IN PHUOC L Y EXPANDED RESIDENTIAL AREA I. Introduction 1. Summary of the Project of Phuoc Ly residential area Da Nang People's Committee approved the investment for the Technical Infrastructure Project for the Expanded Residential Area of Phuoc Ly in The project is built on the scale of ll0.950m 2 in total in Hoa Phat and Hoa An ward, Cam Le district, Da Nang city. The Project Owner is Da Nang Investment Joint-Stock Company - the Central Area. The project is located near the downtown bus station and Ton Due Thang road, a major traffic artery of the city, and subject to the master development planning ofda Nang city to the west. The project focuses on building infrastructural works to meet the standards of residential area projects, including: condominiums, land plots, roads, electricity and drainage. The item that is related to SCDP Project includes the construction of the drainage canal which connects the current canal with the one to be built under SCDP, namely Rehabilitation of Yen The- Bac Son sewer system in accordance with the master plan of the entire city. The canal is about 136m long. To build the drainage canal of 136m long, the project has acquired 3485 m2 of agricultural land from 15 households in The assessment report The purpose of the assessment report is to review if the implementation of the compensation and resettlement is consistent with the World Bank involuntary resettlement policy, then giving recommendations to overcome the differences (if any) to achieve the objectives and principles of the compensation and resettlement policy (in accordance with involuntary resettlement policy of the World Bank). II. Research scope and methodology 1. Research scope and survey method, the information to be obtained is as follows: Review the compensation, assistance and resettlement plan approved by the People's Committee ofda Nang city (especially entitlements for households affected by the project). Work with local authorities as well as with local organizations on the information disclosure (type of information, published time, how to publish and receive information, etc.). Review the mechanism for grievance redress as well as the status of complaints and complain resettlement of the project. Income restoration programs for affected families. 66

91 Interviews with relevant agencies at city, county, precinct, ward levels as the Department of Natural Resources and Environment, the Department of Finance, the Council of Compensation and Resettlement during the detail measurement process of implementation, calculation of the support packages and the process of review and approval of compensation and payment of compensation for affected households, etc. Interviews with affected families which received the compensation and assistance to get information as unit prices of compensation, types of assistance and allowances, their involvement in the compensation and resettlement, and how the disclosure of information was organized to the people, etc. Compare the applicable policies with the approved compensation policy and resettlement of the project to analyze the differences between the policies (for details, please see Table 1 ). 2. Methods The methods include: (i) examine the secondary information (including project documents from the investor) and (ii) interview 7 out of 15 affected households, involved local leaders as representatives from Hoa An ward, representatives from Da Nang Investment JSC, - Central area and representatives from Clearance and Compensation Unit No.Ol (CCU1), and c) field observations. Information was gathered by the PMU and then reviewed and verified by the Bank staff working for SCDP preparation through visiting the site and talking with local authorities and related stakeholders. III. The findings of the assessment process 1. Legal framework and entitlement policies The compensation, assistance and resettlement plan for damages caused by the site clearance for 136m of canal in Phuoc Ly Expansion Residential Area was approved by Da Nang City People's Committee in Decision No.6288/QD-UBND dated July 27, Thus the policy for compensation, assistance and resettlement of the Project is based on the policies issued in 2011 by the People's Committee of Da Nang city. These policies are appropriate with the actual situation and respond to the aspirations of local people, so the compensation activities were smooth without complaints from local people. The applicable compensation, assistance and resettlement policies of the Government of Viet Nam and Da Nang City People's Committee. Specific applied policies are as follows: Decision No.44/2010/QD- UBND dated December 17, 2010 of the People's Committee of Da Nang City, promulgating the regulations on land prices in Da Nang city. Decision No.36/2009/QD-UBND dated December 24, 2009 of the People's Committee of Da Nang City, promulgating the regulations on compensation, assistance and resettlement when the State recovers land in Da Nang city. 67

92 Decision No.4 7/2006/QD-UBND dated May 18, 2006 of Da Nang People's Committee, issuing "Regulations on orders and responsibilities for the organization of compensation and resettlement when the State recovers land in Da Nang city. Decision No.19/2010/QD-UBND dated June 25, 2010 and Decision No.S0/2010/QD-UBND dated December 30, 2010 of the People's Committee of Da Nang City, amending and supplementing a number of contents of the Annex and the provisions of Decision No.36/2009/QD-UBND dated December 24,2009 of the People's Committee ofda Nang City. 2. Assessment (Due Diligence) According to the provided information, Phuoc Ly Expansion Residential Area Project was approved in The Compensation, Assistance and Resettlement Plan was approved in July The land acquisition activities were conducted by the Clearance and Compensation Unit No.01 (CCUI). The households affected by 136m of canal linked to the SCDP had been compensated in October Compliance with the provisions of the Government: The resettlement policy and the definition of rights and entitlements were complied with the provisions of the Government of Vietnam (Land Law 2003 and Decree 69/2009) as well as with Danang City's regulations. Compensation funds: Da Nang Investment JSC. - Central area has funded the resettlement cost, which was proclaimed according to approved the compensation/resettlement plan (in accordance with the legislation/regulations of the Government). CCU1 made payments to affected people in accordance with the compensation plan approved by Da Nang city. The said budget was transferred to the State Treasury of Da Nang city. Compensation and resettlement progress:. This Assessment Report confirms that all project affected people in Hoa An ward (the drainage canal of 136m long) were fully compensated after they agreed with the compensation rates and handed over land for the Project in 2011, after the payment of full compensation. The entitlements for affected households: the entitlements were approved by Da Nang city in 2011 as follows: (i) households who lost agricultural land, received compensation at market price, (ii) damages of trees and crops are paid based on market prices. Allowances and assistances to affected families are under the provisions of the Government of Vietnam and the People's Committee of Da Nang city, which are also considered as part of the Package that provides to affected households to help livelihood rehabilitation. The entitlements proposed for the affected households have been defined in the, compensation and resettlement plan approved by Danang PC and the compatibility between the compensation plan and the project policies are presented in the table below: 68

93 Table 1 Gaps between Da Nang City's Regulation and the project s re ulation Key Issues (1) 1. Compensation on Agriculture Land 2. Affected farm produces and trees 3. Allowance for Living Rehabilitation 4. Sup port for Occupation Change Da Nang City's Regulation (Decision 36/2009/QD-UBND dated December 24, 2009). (2) All land users eligible for compensation will be paid in cash for the acquired land at 100% market price, regardless of their portion of total land lost. (Article 16) Land users not eligible for compensation will be supported in cash for acquired land at least 60% replacement cost. (Article 16) Persons affected by the project will be compensated for their damaged crops at price stipulated by The People's Committee and/or market prices. (Article 32) Supporting for Living Rehabilitation for those of agriculture producing households at VND 6,000 per m2, for area limited to 4,000m2 per households. DPs whose agricultural land is affected by the project eligible for the compensation is supported in cash equal to 1.5 times of value of the compensated agriculture land area 5 DPs whose agricultural land is affected by the project not eligible for the compensation (illegalized) are supported for their agricultural land, the support levels of occupation change are applied respectively for land by 60% of the above stated support levels. World Bank involuntary resettlement policy (3) All land users eligible for compensation will be paid in cash for the acquired land at 100% replacement costs, regardless of their portion of total land lost. + Land users not eligible for compensation (illegal land users) will be supported to achieve the policy objectives. Persons affected by the project will be compensated for their damaged crops at replacement cost Assistant for livelihood restoration Assistant for livelihood restoration Assistance to achieve Policy's objectives Gap Analysis (4) Consistent Consistent Consistent Consistent Consistent 5 The support rate is calculated at VND 35,000 per m2 multiplied with 1.5 time equal to VND 52,500 per m2 69

94 Consultation: The Assessment Report confirms that there were 02 public meetings at the Ward People's Committees for affected people. During the meetings, the compensation plan was proclaimed in the public in the commune. Before performing the inventory of loss, all affected households were informed of the schedule and a series of activities that enable them to participate and confirm their preliminary tally records. Households were informed of the compensation policy and implementation plan schedule, too. Their comments, feedback and recommendations are recorded in the meetings at the Ward People's Committees and considered by the City in the compensation planning. Complaint and grievance redress mechanism: Grievance Redress Councils under the ward are formed to resolve complaints of affected people related to their land acquisition, compensation and resettlement issues. The staff of the Resettlement Committees led people to file complaints at the ward level. The Assessment Report shows that all complaints of affected households have been resettled by the Councils with the cooperation of the commune authorities to settle on time under the provisions of the Government of Vietnam and the People's Committee of Da Nang city. In the Assessment Report, all documentation and information was collected from interviews with local authorities and affected households; no problems related to any aspects of compensation exist. All 15 households affected by the project agreed with the compensation rates for affected land and other assets, DMS minutes as well as compensation packages with the total cost ofvnd 233,495,000. Living Restoration Plan (LRP): Affected households received grants and allowances, as part of the compensation plan, according to the standards and regulations of the Government of Viet Nam. These include subsidies for living stability, job training assistance, and other special allowances for the poor and the vulnerable. Monitoring: The land acquisition and site clearance for the canal was completed in accordance with the compensation, support and resettlement policy regulated by the People's Committee of Da Nang city and the budget of Da Nang Investment JSC - Central area as well as the internal monitoring was conducted. The independent monitoring for livelihood restoration of these 15 affected HHs will be included in the scope of work for SCDP independent monitoring. In the interviews with households whose land is acquired: the affected households expressed their support for canal construction in particular and Phuoc Ly Expansion Residential Area in general, which will benefit them and the surrounding area. They also claimed that the project. impacts on land, which is not rich in agricultural values, are negligible and they hope to find jobs from the construction of the project. In summary, the Assessment Report confirms that up to now, in October 2012, 100% of the total affected households have been fully compensated and not any outstanding issues related to the land acquisition and resettlement do exist. The compensation is organized by the City Government in accordance with the laws and regulations of the Government. The livelihoods of affected households are being restored. The interviewed affected households said that the compensation is an opportunity for them to diversify and increase their income. It was agreed that SCDP will arrange further monitoring for their livelihood restoration. Danang SCDP- Resettlement Plan