VIE: Yen Vien-Lao Cai Railway Upgrading Project

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1 Social Monitoring Report Semi-Annual Report June 2014 VIE: Yen Vien-Lao Cai Railway Upgrading Project Resettlement Monitoring Report Prepared by Railway Projects Management Unit of Viet Nam Railway for the Asian Development Bank.

2 NOTE In this report, "$" refers to US dollars. This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 VIETNAM RAILWAY (VNR) Under MINISTRY OF TRANSPORT CONSTRUCTION SUPERVISION: CDM SMITH DBI JOINT VENTURE SUPERVISION CONSULTANTS SERVICES YEN VIEN LAO CAI UPGRADING PROJECT SEMI ANNUAL RESETTLEMENT MONITORING REPORT JANUARY TO JUNE 2014

4 RESETTLEMENT MONITORING REPORT YEN VIEN LAO CAI RAILWAY UPGRADING PROJECT SEMI-ANNUAL REPORT JANUARY TO JUNE 2014

5 LIST OF ABBREVIATIONS ADB BTHT&TĐC BAH DCARB UBND EMA DMS IOL EM RPMU RP TTPTQĐ DA NCTĐS TĐC CRIB SAP TOR SES FHH USD VND PSC Asian Development Bank Compensation, assistance and resettlement Affected (people/households) District s Compensation and Resettlement Board People s Committee Executive Monitoring Agency Detailed Measurement Survey Inventory of Losses Ethnic minorities Railway Projects Management Unit Resettlement Plan Centre for Land Fund Development Railway Upgrading Project Resettlement Compensation & Resettlement Information Booklet Seriously affected people Terms of Reference Socio-economic survey Female-headed households US Dollars Vietnam Dong Project s Supervision Consultant

6 I. INTRODUCTION With loan assistance from the Asian Development Bank (ADB), the Government of Viet Nam is currently preparing the Kunming-Haiphong Transport Corridor Project (TA VIE) to upgrade and rehabilitate transport infrastructure from the Haiphong Port of Viet Nam to Kunming City in Yunnan Province in the People s Republic of China (PRC). The project sub-component for upgrading the Yen Vien Lao Cai Railway Line will upgrade a section of railway line that traverses 285 kilometers (km) in a northwestern direction from Yen Vien Station near Hanoi to Lao Cai Station on the border with China. This section of railway line passes through four provinces of Lao Cai, Yen Bai, Phu Tho and Vinh Phuc and the City of Hanoi. Line improvements will consist mainly of: (i) Selective improvement of the horizontal and vertical alignment and track layout; (ii) Stabilization of embankments and sliding slopes; (iii) Improvements of track-work including turnouts; (iv) Upgrading of bridges; (v) Improvements of safety of selected at-grade level crossings; (vi) Upgrading of stations and passing loops for train loads up to 1,200 tons and train length of up to 400 meters (m); and (vii) Modernization of auxiliary facilities and provision of maintenance equipment and facilities, as well as rolling stock. Vast social and economic benefits are expected from the project. However, there will be certain negative impacts beside the positive ones. Specifically, construction activities will result in unwilling resettlement and acquisition of land, crops and trees owned by households and organizations in affeected areas. To deal with it, resettlement policies enacted by the Goverment of Vietnam as well as ADB (ADB, 1995) targeted at minimizing impacts on afftected people, households, organizations and others. In case resettlement/compensation is a must, living standard of affected people should be better, or at least the same as theirs before the Project starts. The Project s Resettlement Plan prepared in 2006 was in line with ADB s Safeguards Policy as well as legal documents issued by the Government of Vietnam. The Updated Resettlement Plan was also approved by ADB in November Land acquisition and compensation/assistance activities started before 2010 and have been substantially completed until now. This semi-annual report (January to June 2014) highlights resettlement, compensation and assistance activities and remaining issues in the reporting period. Major contents

7 cover the following: - Scope of affected area (which requires resettlement); - Information dissemination; - Payment of compensation, assistance; - Implementation of resettlement activities; - Livelihood restoration and relevant assistances; - Progress of land acquisition and hand-over of construction sites; - Grievance redressal; - Conclusions and recommendations. II. SCOPE OF AFFECTED AREA Scope of land acquisition, affected households Package Province Land occupied (m2) Total Affected households In which Relocated Business affected CP1 8, Vinh Phuc 3, Phu Thọ 4, CP2 Yen Bai 207, Yen Bai City 45, Tran Yen Dist. 70, Van Yen Dist. 91, CP3 Lao Cai 362, Lao Cai City 342, Bao Thang Dist. 13, Bao Yen Dist. 6, Total 577,805 1, Source: Updated RP for CP1, CP2, CP3 Packages November, 2013 According to the updated RP, total affected area is ha with 1,206 affected households including 544 relocated ones. However, investigation showed the actual number of affected households in Phu Tho province (CP1 Package) was 42 which is equivalent to a difference of 13 households compared to the updated RP. This means that total number of affected households on the whole line stands at 1,219. There are no

8 impacts on business activities and religious properties such as temples, pagodas, churches, etc. Specific description is presented below: 1. CP1 Package: CP1 Package is located in Vinh Phuc and Phu Tho provinces. There is a total of 0.82 ha of land and 49 households will be affected including 1 relocated household. Vinh Phuc province A total of 0.35 ha will be acquired for the project s civil works. Based on the results of the DMS and census, land acquisition for CP1 in Vinh Phuc province will cause impacts to 20 households. None of households will lose more than 10% of productive land. Impacts of housing structures will affect 1 household of whom none will be fully affected and require relocation. Phu Tho province A total land area of 4,665.9 m2 will be acquired, in which: - Temporary acquisition: 2,427.2 m2 of agiculture land around Vinh Chan bridge; this area will be returned to its owner after the primary conditions are restored. The approved RP shows a total of 29 affected households including 19 at Viet Tri station located in Bet Got ward, Viet Tri city and 10 others in Vinh Chan commune, Ha Hoa district. However, investigation showed an actual number of 42 affected households/organizations including 32 households around Viet Tri station an 10 others in Vinh Chan commune. Summary of affected households and actual land acquisition Housing Garden Agri. land Archit Reloca Trees/cro Hou ecture ted Location Househ Area Area Househo Area ps seho affecte househ olds (m2) (m2) ld/org (m2) affected lds d olds Viet Tri city Ha Hoa Dist , Total , Source: Compensation and Resettlement Boards of Viet Tri city and Ha Hoa district Among 42 affected households in Phu Tho province, there are 12 with affected housing area (203.5m2) mostly located around Vinh Chan bridge, Ha Hoa commune; 1 with

9 affected garden (20,6m2); 11 with affected agriculture land (2,567.2 m2) including 10 households with 2,427.2 m2 of temporary acquisition; 22 with affected architecture and 35 with affected trees/crops. 1 out of 42 affected households must be relocated at Ben Got ward, Viet Tri city. 2. CP2 Package: CP2 Package is located in Yen Bai province. A total land area of ha will be acquired in Yen Bai city, Van Yen and Tran Yen districts. There are 472 households and 7 organizations to be affected. The number of relocated households stands at 40 including 37 who asked for land at the resettlement area and 3 others received compensation and managed the new accommodation on their own. Affected area and level of impacts are presented below: Description Affected Acquired land area (M2) households Total Housing land Crops Seasonal Permanent Forest Yen Bai city 67 45, , , , , Upgrading Van Phu station 27 28, , , , Resettlement at Van Tien commune 10 7, , Bridge works 30 10, , , Tran Yen district , , , , , , Upgrading Co Phuc station 7 1, Resettlement at Dao Thinh 31 10, , Realignment section , , , , , , Bridge works, slopes 75 12, , , Van Yen district , , , , , , Upgrading Mau Dong station 14 7, , , , Upgrading Lam Giang station 8 2, , Resettlememt at Lang Thip station 12 4, , Lang Thip station 21 5, , , , Bridge works, slopes , , , , Total , , , , , , Source: Yen Bai Centre for Land Fund Development 3. CP3 Package: CP3 Package is located in Lao Cai province. A total land area of ha will be acquired in Lao Cai city, Bao Thang and Bao Yen districts. Land acquired for construction is ha and for 5 resettlement areas is ha which includes ha of private land and ha of public land. The acquired public land is in Lao Cai city

10 only including the land owned by VNR, land for transport, irrigation works and unused land. Most of the acquired land is in Lao Cai city which includes land for construction and 4 resettlement areas. Summary of land acquisition is presented below: Type of land Lao Cai city Bao Thang district Bao Yen district Total (m2) Private land (for construction) Private land (for resettlememt area) Public land (for construction) Total required land acquisition Source: Updated RP for CP3 Acquired land includes 48,705m2 of housing land and 209,993m2 of agriculture land; Lao Cai city is mostly affected. Area of acquired housing and agriculture land Type of land/ percentage (%) Bao Thang district Bao Yen district Lao Cai city Total Housing land (m2) 1,274 1,210 46,221 48,705 Percentage (%) 10% 20% 19% 19% Agriculture land (m2) 11,969 4, , ,993 Percentage (%) 90% 80% 81% 81% Total 13,243 6, , ,698 Source: Updated RP for CP3 Land acquisition for construction of works: Type of land Bao Thang district Bao Yen district Lao Cai city Total I. Private land - Housing land 1,274 1,210 44,819 47,303 - Housing land in urban area ,367 43,367 - Housing land in countryside 1,274 1,210 1,452 3,936 - Agriculture land 11,969 1,232 25,609 38,810 - Crops

11 Type of land Bao Thang district Bao Yen district Lao Cai city Total - Seasonal land for planting trees ,609 25,999 - Permanent land for planting trees Garden, pond Hill, forest 11, ,969 Private land for construction of works 13,243 2,443 70,428 86,114 II. Public land Construction land transferred to railway, in which ,483 12,483 (i) Acquired land - - 9,419 9,419 (ii) Non-acquired land - - 3,064 3,064 - Land for transport works ,306 20,306 - Land for irrigation works - - 7,959 7,959 Public land for construction of works 40,748 40,748 Total (I + II) 13,243 2, , ,86 1 Source: Updated RP for CP3 Total acquired land for construction of railway works is 126,861m2 including 86,114m2 of private land (housing and agriculture land) and 40,748m2 of public land (construction land transferred to railway and land for transport, irrigation works, etc). Land acquisition for construction of resettlement areas: Private land Type of land Bao Thang district Bao Yen district Lao Cai city Total Land in urban area - - 1,102 1,102 Land in the countryside Agriculture land at Lang Den resettlement area Agriculture land at Duyen Hai area (with certificate of land-use right) Agriculture land with limited land-use right ,483 31, ,616 49, ,000 42,000

12 Type of land Bao Thang district Bao Yen district Lao Cai city Total Agriculture land at Duyen Hai area without certificate of land-use right ,389 44,389 Agriculture land at Kim Son area with certificate of land-use right 3,695 3,695 Total - 3, , ,585 Source: Updated RP for CP3 Total land acquired for construction of resettlement areas is 172,585m2 including all private land (land in urban area and countryside, agriculture land). Acquired land is mostly in Lao Cai city with 168,890m2; Bao Yen district with 3,695m2. No land acquisition is required for construction of resettlement areas in Bao Thang district. There is a total of 685 affected households in 3 cities/districts in Lao Cai province under CP3 Package including 626 in Lao Cai city, 37 in Bao Thang district and 22 in Bao Yen district. There are 503 relocated households including 486 in Lao Cai city, 8 in Bao Thang district and 9 in Bao Yen district; and 80 households losing their productive land which includes 42 in Lao Cai city, 29 in Bao Thang district and 9 in Bao Yen district. No. City/District Total affected households Relocated households Households losing productive land Households with affected business 1 Lao Cai city Bao Thang district Bao Yen district Total Source: Updated RP for CP3 I. PUBLIC CONSULTATION AND INFORMATION DISSEMINATION Public consultation and information dissemination have been being carried out from the preparation stage to the project implementation. 1. CP1 Package:

13 Information dissemination: During the preparation of draft RP in 2006, information dissemination had been being carried out by compensation, assistance and resettlement boards of Viet Tri city and Ha Hoa district, Phu Tho province. Orientation meetings have also been held with relevant parties and affected households since In addition, CRIBs have been given to affected households. In order to upadate the RP in 2010 and 2011, various meetings and public consultation were held with local authorities at city, district and communal levels as well as affected people to disseminate updated project information and the Government s policies on land acquisition, compensation and resettlement. Coordination with the authorities in announcing the plan was done in September, This was followed by various meetings with affected people to announce the overall land acquisition plan. Subsequently, compensation and resettlement boards in Phu Tho province proposed representatives of affected people and invite heads of groups to the meeting on announcement of overall approval. In general, compensation and resellement boards in Phu Tho province have disseminated information following the Project s policy framework. Public consultation: This activity aims at getting comments from authorities and representatives of the affected/relocated househods. A Resettlement Plan (RP) has been prepared by the Consultant an a conference has also been held in Viet Tri city with participation of Departments of Transport, Natural Resources and Environment, Construction, Finance as well as districts/communes compensation and resettlement boards. Various tools and approaches of public consultation were carried out during the preparation of RP in 2006 and updated RP in March April, The public consultation was carried out with participation of officials from affected districts, communes and relevant organizations at provincial and district levels in Phu Tho province which targeted at the Project s compensation and resettlement policy, affected people s choices in terms of resettlement; compensation (cash or equipvalent assets); income restoration programs; consultation and participation mechanism during various stages; grievance and redress mechanism; gender issues and vulnerable groups, etc. Interests and recommendations from relevant parties, especially affected people have been included in the RP. The public consultation has been properly carried out by the compensation and resettlement board of Phu Tho province.

14 2. CP2 Package: RPMU has coordinated with local authorities (at provincial, district, communal levels) in information dissemination and public consultation towards all affected households in Yen Bai province with 17 wards/communes including 4 in Yen Bai city, 4 in Tran Yen district and 9 in Van Yen district. Basic project information such as its name, Employer, Donor, management unit, implementing agency (compensation, assistance and resettlement), disputes addressing agency, scope of land acquisition, policy framework, etc has been disseminated at the community meetings and broadcasted on mass media (radio, television, speakers). Besides, publications/leaflets have been made available at the communal People s Committees. Local officers and village leaders are also willing to give the answer to any questions concerning the project. The Detailed Measurement Survey (DMS) as well as Project s conversion price have been disseminated and consulted many times at affected areas. The arrangement for relocation has also been encouraged together with public consultation resulting in an agreement that each affected household can randomly choose their land in the resettlement area. Information incluing layout of resettlement area, basic facilities such as electricity, water, drainage system, etc have also been made public. As for the households who are not given land in the resettlement area but wish to be relocated there with a certain amount of money as regulated, they are also consulted and allowed to randomly select the land and have the same benefits as relocated households. 3. CP3 Package Dissemination of information: Started since 2006, the orientation meetings were carried out with the relevant parties and affected households. The project information handbook distributed to the affected households. The meeting between the citizens and the competent authorities to implement and promulgate the planning was carried out on 27 th and 28 th September, After that, the meetings with the inhabitants were held to disseminate and announce for the entire land withdrawal. Next, Lao Cai compensation board elected the representative whose land was withdrawn and invite the cooperative secretary and residential group leader to participate into the meeting of comprehensive approval announcement. In general, Lao Cai Province s compensation board followed the information dissemination under the project framework and policy. The information dissemination was implemented fully and properly. Public consultation: Many tools, consultation sources and various participation were collected in the 2006 resettlement plan preparation and revision from March to April Public consultation and participation were conducted with the leaders of affected communes, districts and Lao Cai province and district level organizations. The

15 consultation and participation of the affected people and stakeholders was about the compensation and resettlement policy of the project, the selection of affected people for resettlement for each resettlement form and compensation (in cash or in kind), the income restoration program, parcipatory mechanism and consultation in the different stages of the project, dispute and dispute resolution, gender issue and the vulnerable groups etc., The concerns and requests of the relevant parties, particularly the affected people, have been raised and collected in the resettlement plan. The public consultation was fully conducted by Lao Cai Province compensation board during the project deployment; especially the resettlement and the people s questions were resolved satisfactorily. II. PAYMENT, COMPENSATION AND ASSISTANCE FOR THE AFFECTED HOUSEHOLDS The payment, compensation and assistance for the affected households are implemented according to the following documents: ADB Mandatory Resettlement Policy - 11/1995; The laws and regulations of Government of Vietnam; 2003 Land Law passed by National Assembly of Socialist Republic of Vietnam on November 26 th, 2003 and effective from July 1 st, 2003; Decree No. 197/2004/ND-CP dated December 3 rd, 2004 on compensation, assistance and resettlement when the State acquires the land; Circular No. 116/2004/TT-BTC dated December 7 th, 2004 of Ministry of Finance guiding the implementation of Decree No. 197/2004/ND-CP dated December 3 rd, 2004 on compensation, assistance and resettlement when the State acquires the land; Decree No.17/2006/ND-CP dated January 27 th, 2006 of the Government on amending and supplementing some articles of decrees guiding the land law execution; Decree No. 84/2007/ND-CP of the Government dated May 25 th, 2007 about the supplementary regulation on granting the certificate of land use right, land recovery, the implementation of land use right, sequence and procedure for compensation, assistance and resettlement when the State acquires the land and solve the land disputes; Decree No. 69/2009/ND-CP dated August 13 th, 2009 by the Government about the additional regulation on planning land use, land price, land acquisition, compensation, assistance and resettlement; The legal document of Phu Tho Province Decision No. 1467/QD-UBND dated April 27 th, 2011 issued by Phu Tho Province People s Committee regulating on the compensation, assistance, resettlement,

16 implementation sequence and procedure when the State acquires the land in the province s area; Decision No.24/2012/QD-UBND dated December 20 th, 2013 by Phu Tho Province People s Committee regulating on the price of various land type in 2003 in Phu Tho Province area; Pursuant to the letter No. 264/UBND-KH1 dated September 1 st, 2009 by Phu Tho Province People s Province on assignment to be the Employer of land clearance project for Yen Vien-Lao Cai Railway upgrading construction; Pursuant to notification No.258/CTK-TB dated June 20 th, 2011 of Phu Tho Province Statistics Department about the average yield of 2010 annual crops and aquaculture; The legal document of Yen Bai province Decision No.02/2010/QD-UB dated January 21 st, 2010 by Yen Bai Province People s Committee on land acquisition, assistance, resettlement (amendment and supplement of some articles of Decision No.04/2011/QD-UBND dated January 24 th, 2011 by Yen Bai Province People s Committee); Decision No. 37/2010/QD-UB dated December 24 th, 2010 on classification of street, road, location and land unit price type in 2011; The legal document of Lao Cai Province Decision No.45/2009/QD-UBND dated December 25 th, 2009 by Lao Cai Province People s Committee on issuing the regulation of compensation, assistance and resettlement when the State acquires land to use for the purpose of national defense, security, national interest, public interest and the purpose for economic development in Lao Cai Province. Letter No.2538/DS-RPMU dated November 5 th, 2010 by Vietnam Railway sending to Lao Cai Province People s Committee on allowance to apply the policy of compensation, assistance and resettlement under the ADB framework to Yen Vien-Lao Cai Railway Upgrading Project; Letter No. 3465/UBND-QLDT dated December 27 th, 2010 by Lao Cai Province People s Committee sending to Vietnam Railways, People s Committees of Lao Cai City, Bao Thang district, Bao Yen district on applying the compensation, assistance and resettlement policy under the ADB Policy Framework for Yen Vien-Lao Cai Railway Upgrading Project; Decision No.49/2010/QD-UBND dated December 29 th, 2010 by Lao Cai Province People s Committee on issuing the regulation of land unit prices, land classification, land area division, re-allocation of road, street and land location in Lao Cai area in 2011; Decision No. 22/2011/QD-UBND dated August 18 th, 2011 by Lao Cai Province People s Committee on amending and supplementing some articles regulating on the compensation, assistance and resettlement when the State acquires land to use for the purpose of national defense, security, national interest and public interest; Decision No. 55/2011/QD-UBND dated December by Lao Cai Province People s

17 Committee on issuing the price of land types, land classification, land area division, reallocation of road, street and land location in Lao Cai area in 2012; Letter No. 96/UBND-QLDT dated January 12 th, 2012 by Lao Cai Province People s Committee on the minimum price of land support for the self-managed households in resettlement and land clearance in Yen Vien-Lao Cai Railway Upgrading Project, sending to departments of Planning and Investment, Finance, Construction, Resource- Environment; Bao Thang district People s Committee; Payment for compensation and assistance: The payment for compensation, assistance and resettlement in the whole route basically completed before In the report period (from January to June 2014), the additional payment for the problematic households and at the time of monitoring completed. 100% of affected households (only accounting for the households having the approved plan of compensation, assistance and resettlement) received the compensated amount and no further claims. The payment for compensation, assistance and resettlement was conducted satisfactorily. The affected people were compensated with the replacement cost and assistance before relocating houses, land and property. Based on the decision of approved amount for compensation, assistance and resettlement of the competent authorities (the provincial and district people s committee), the compensation, assistance and resettlement board coordinated with the local authority (commune level) conducted to pay directly for the affected household under the supervision of societies (such as the cooperative, Women s Union, Farmer Union, National Front) and the village leaders of the affected households. Payment progress for compensation, assistance and resettlement as below: Package Project area in province/di strict/ commune Affected household Number of households received compensation and assistance Number of households not yet received compensation and assistance Household Household % Household % Payment period CP1 Vinh Phuc Phu Tho CP2 Yen Bai CP3 Lao Cai Total 1,219 1,

18 1. CP1 Package Compensation, assistance and resettlement commenced since April 2012 and completed in Vinh Phuc Province The total amount paid for compensation, assistance and resettlement for the affected households at Huong Canh station, Binh Xuyen district, Vinh Phuc province is VND 437,062,395. Phu Tho Province Viet Tri city The detailed payment of 3 periods of Viet Tri City as follows: Compensation and assistance amount (VND) Period Land compensation Structure Trees /crops Fish Raising Public land assistance Dredging Amount Period 1 98,175, ,696,390 30,205, ,076,885 Period 2 14,222, ,368,973 1,783, ,374,285 Period 3 2,475, ,495,484 8,009, ,003, , ,964,091 Total 114,872,312 1,205,560,847 39,998, ,003, ,000 1,364,415,261 Source: Viet Tri City s Compensation and Land Clearance Board The paid amount for Viet Tri City is VND 1,365,420,170; in which the land compensation is VND 114,872,312; the structure compensation is VND 1,205,560,847, the tree and crop compensation is VND 39,998,262; the fish production compensation is VND 1,005,480, public land assistance is VND 3,003,840; the compensation for pond dredging is VND 980,000. Ha Hoa district Compensation and assistance for 10 households whose agricultural land was temporarily acquired in the bridge upgrading component for railway at group 10 area in Vinh Chan commune with the total amount is VND 67,210,000. Details as below: Number of househol ds Amount for compensation and assistance (VND) Structure Assistance for trees and crops Expenditure for board Expenditure for verification Total 10 32,012,000 33,880,000 1,186, ,000 67,210,000 Source: Ha Hoa district compensation and land clearance board The above amount was paid to the affected households since May All households have received the compensation, assistance cost and without claims with the total amount is VND 67,210,000.

19 2.CP2 Package The compensation, assistance and resettlement for CP2, the railway section passing through Yen Bai Province area, completed in 2013 with the total amount of VND 24,781,406, % of affected households have received the amount of compensation, assistance and resettlement and no further claim. The compensation, assistance and resettlement officially commenced since July Centre of Yen Bai Province Land Fund Development was assigned to implement the compensation, assistance and resettlement for households and individuals with the total amount of VND 20,801,820, Compensation and assistance for land: VND 7,953, 930,800 - Compensation and assistance for structure: VND 6,190,264, Compensation and assistance for trees and crops: VND 1,379,924,700 - Other assistance: VND 5,277,700,000 In April 2013, Yen Bai Province s People Committee, Tran Yen District s People Committee, Van Yen District s People Committee have issued the decisions of supplementing solutions for compensation, assistance and resettlement for the following items: - Total additional amount: VND 3,979,586,588 in which + Compensation for houses, structure: VND 3,077,869,293 + Compensation for trees and crops: VND 463,331,964 + Other assistance: VND 438,385, 331 The new case: There is 01 household of Mrs. Nguyen Thi Minh. In preparation for compensation, assistance and resettlement, Mrs. Minh s household has the 72.5m2 land area and one outside compartment affected. Mrs.Minh requested to be compensated the whole and resettled and did not agree to receive the compensation amount. RPMU decided to adjust the route in order to not affect Mrs. Minh s household. However, RPMU did not get the official reply letter about delimitating Mrs. Minh household s acquired land boundary. 3. CP3 Package The compensation, assistance and resettlement for CP3 in Lao Cai Province commenced since 2010 and basically completed in In the first 6 months of 2014, the additional

20 amount has been paid for 2 problematic cases (Mr. Tran Duc Nam s household in Bao Thang district and Mr. Di in Bao Yen district) who have received the compensation. Therefore, up to the supervision time, CP3 has paid for 100 affected households (excluding 54 households in the 1ha land area managed by Lao Cai Station). Lao Cai City s Compensation Board finished the detailed inventory of losses and is submitting the compensation and assistance plan for the review and approval of Lao Cai People s Committee. This is expected to be approved in September 2014 (it is planned that VNR will give advance payment to Lao Cai People s Committee). The status of payment for CP3 compensation, assistance and resettlement is presented in the below table: Project area Affected households Household s affected by the railway Households affected by resettlement area construction Household reallocated Number of households received the amount for compensation, assistance and resettlement Number of households received the amount for compensation, assistance and resettlement Lao Cai city Payment period 2010,2011,2012,20 13, 2014 Bao Thang district , 2012, 2014 Bao Yen district ,2012, 2014 Total Up to June 2014, all households received the compensation and assistance amount. Lao Cai city Total affected households of Lao Cai city is 626 (in which 497 households are affected by the freight yard of Lao Cai station, 129 households are affected by constructing 4 resettlement areas). The number of households receiving the compensation price and approval decision is 626 households. Currently, all households received money. Furthermore, there are 54 households whose houses are built in the 1ha land area managed by Lao Cai Railway Company and 60 households/individuals who are the employees of Lao Cai Railway Company temporarily residing in 3 resident blocks. Lao Cai city s compensation board has made inventory and compensation plan in accordance with the updated resettlement plan which was submitted to the provincial People s Committee and not yet received the approval decision.

21 Total amount under the approval decisions (43 periods) up to June 10th, 2014 is VND 48,814,367,459, in which: - Amount for land clearance (2%): VND 932,370,105 - Total amount paid for the inhabitants is VND 47,881,997,324 (Source: Lao Cai city s compensation, assistance and resettlement board) Bao Thang district The 2 affected communes are Thai Nien and Xuan Giao: Total affected households of 2 communes are 37 households, in which there are 9 households in Thai Nien station and 28 households in Xuan Giao. Total 37 households received the amount of compensation, assistance and resettlement. Total paid amount: VND 3,699,578,688 (6 decisions), in which: - Amount paid for land clearance (2%): VND 73,574,020 - Amount paid for the households: VND 3,626,004,668 (Source: Bao Thanh district s compensation, assistance and resettlement) Bao Yen district Upgrading Thai Van station in Kim Son commune, Bao Yen district: Total affected households are 22 in Thai Van station (There are 19 households affected by Thai Van station upgradation, 03 households affected because of land use for resettlement construction). Currently, all households were compensated without any claims and they absolutely support to the project. Total approved value and expenditure for 19 affected households at Van Thai station under the railway project is 2,289,862,574, in which: - Land compensation: VND 257,306,200 - Structure compensation: VND 1,684,558,722 - Trees and crops compensation: VND 40,214,652 - Assistance: VND 307,783,000 (Source: Bao Yen district s compensation, assistance and resettlement)

22 III. RELOCATION AND RESETTLEMENT 1. CP1 Package Vinh Phuc Province Land acquisition for CP1 in Vinh Phuc Province will affect 20 households in which the housing structure of one household will be affected, but no household needs to be relocated. Phu Tho Province Total number of affected households in Viet Tri, Phu Tho Province is 31 and 01 organization (the public land is under the management of Ben Got Ward). In which, the relocated household into resettlement area is 01. Early 2014, the City s People Committee arranged the resettlement for this household in the Ben Got Ward residential area with the fairly convenient position, near the traffic road, market and schools. 2. CP2 Package The relocation and resettlement in Yen Bai area (CP2) completed before There are 3 resettlement areas and 4 resettlement points complete including Van Phu resettlement area in Van Tien commune with 2 resettlement points, Dao Thinh and Lang Thip resettlement area. The households which are relocated and wish to move to the resettlement area were handed over land. Land delivering and receiving in the resettlement as detailed below: Van Tien resettlement area Grading and infrastructure construction in Area 1 and Area 2 completed. Yen Bai City People s Committee issued the decision to hand-over the resettlement land for the eligible households under the regulation. The Provincial Center for Land Fund Development handed over land in the resettlement area for 14 households. Yen Bai City People s Committee issued the Certificate of Land use right for these households. Both resettlement areas has been installed the public lines of Yen Bai City Electricity. Currently, meters and electricity connection for households are being carried out. The assistance amount for wells was paid for the resettled housed. Some households built new houses and stabilized their lives. Dao Thinh resettlement area Grading and infrastructure construction completed. The provincial center for land fund development coordinated with Dao Thinh commune People s Committee and relevant units to hand over land for households. Certificate of land use right was granted for 11

23 households, the remaining household list is being submitted to Tran Yen district People s Committee to grant Certificate for land use right as regulated. The resettlement area had the electrical line and meters of the project. Center for land fund development handed over the electricity system at the resettlement area to Tran Yen district electricity for management. The assistance amount for wells was paid households as well. Lang Thip resettlement area Grading and infrastructure construction completed in Lang Thip resettlement area, Van Yen district. The provincial center for land fund development coordinated with Lang Thip commune People s Committee to hand over the plan for 14 households (in which there are 11 households in official and 03 households with payment for land receipt). Van Yen district People s Committee granted the certificate for land use right for 14 households. The resettlement area had the electrical line and meters of the project. Centre of land use development handed over the electricity system at the resettlement area to Van Yen Electricity for management. The assistance amount for wells was paid the resettled households. 3. CP3 Package Construction work for resettlement area in order to move population has been performed well in Lao Cai Province. 05 resettlement areas were completed before 2014 with 542 resettlement land lots, in which 04 of them belongs to Lao Cai City, 01 of them belongs to Bao Yen district. In general, water and electricity system are complete for households to use. These resettlement areas are located at good places where are close to hospital, market and favorable traffic. Lao Cai City: The progress of construction for resettlement areas is rather good and quick. Resettlement areas and households are mostly located in Lao Cai city, in which 486 households are affected because of the Item Extension and improvement of freight yard of Lao Cai station. Before 2014, 04 resettlement areas in Lao Cai City were completed to built and handed over to resettlement household, of which 03 areas (head of Pho Moi bridge, Broadcast and Television area and Lake No.6), most of the people have built their house and become more stable. The plan of Lang Den/black village area in Dong Tuyen commune has just been handed over, the people have received land lots, some of them are building houses and settling down their lives. Bao Thang District: 09 households can resettle self-managed accommodation by themselves according to the policy of Lao Cai Province (resettlement area were not built);

24 these households have received money for compensation, assistance and resettlement, built their new houses and settled down their lives. Bao Yen District: there is one resettlement area for 09 resettled households in mountain village 6AB, Kim Son commune, its plan has been completed and handed over to the households. Arising matters: At the time of supervision, 02 households refused to receive land lots in the resettlement area at Kim Son commune and expected to receive cash (Mr. Nguyen Van Trinh and Mr. Dang Van Hien). Minimum price of resettlement land has been waited to be approved by Bao Yen District's committee. IV. INCOME AND LIVELIHOOD RESTORATION Yen Vien - Lao Cai Railway Upgrading Project has certainly effected households in the Project's area on land recovery, trees, secondary drops, architecture works, etc. for the Project's construction. However, this influence has been studied to restrain as much as possible by Board of Land Acquisition of Vinh Phuc, Yen Bai, Phu Tho and Lao Cai Province and related authorities in the design stage of the Project. Otherwise, most of work items have been carried out on existing foundation; therefore there are not too many occupied land lots, not too much influence on livelihood of households as well. Serious affected households who must be moved and over than 10% damaged, sensitive households whose owners are single women, poor people, ethnic minorities, elders and invalids need to be specially cared and assisted if necessary during the process of income recovery. Measures of livelihood recovery, assistance and removal have been implemented: Policy frame of Asian Development Bank (ADB) 1. Households who are self-conscious to move their house and hand over plan on schedule. 2. Assist households, individuals directly produce agriculture, whose total agriculture land recovered from 10% belong to sensitive group. Policy of the Province 1. Assist households to move houses. 2. Assist households to rent accommodation during establishing process of new house.

25 3. Assist households to settle down and manufacture (for those who directly produce agriculture). 4. Assist households to overcome poor situation (for those who are poor). 5. Assist households to change occupations (for those who directly produce agriculture). 6. Assist households to receive agriculture land in residential area. V. PROGRESS OF LAND ACQUISITION AND HAND-OVER At the time of supervision, work of land recovery and handover in whole line has been basically completed. 1. CP1 Package Land was completely handed over to RPMU in March CP2 Package Handover of land was completed before Total of 37 households who have demands on land delivery have been allocated land in resettlement areas; Most of the households had built their houses and moved to live in resettlement areas, the remainings have been building their house and going to live there in coming days. In general, households' lives have been more stable. 3. CP3 Package Land acquisition was basically completed before Up to now, there are some following obstacles: Lao Cai City: - Mr. Le Cong Ty (01 household) has received compensation but not yet handed over the site for construction which is located at Group 30A in station area, Pho Moi ward, Lao Cai City. He requested 02 lots of resettlement for his father and son but the authorities refused this because these 02 people were not present at the local area. They also received response letter of Lao Cai City Board of Compensation, Assistance and Resettlement. 54 households located in freight yard at station in Lao Cai City who are given to be under Lao Cai station's management by Lao Cai Province People's Committee and

26 affected by item extension and widen Lao Cai station freight yard ; detailed measurement survey (DMS) has been carried out and compensation alternative has been submitted to Lao Cai Province People's Committee but not yet approved so far. - Bao Yen District: 02 households expect to receive cash, refuse to receive land lot; they have not moved and handed over plans. These can be solved right after getting decision of People's Committee on resettlement minimum price which is under the consideration. VI. GRIEVANCE REDRESSAL An appropriate grievance and redressal mechanism has been included in the updated RP. All affected people are aware of their rights and necessary procedures for grievance. The procedures have been disseminated through an effective public campaign. In addition, grievance mechanism and procedures are also further explained in the Compensation & Resettlement Information Booklet given to all affected people. Relocated households can express grievance about land acquisition and resettlement including their rights, compensation rates, assistance, resettlement procedures, income restoration programs and other related issues. Supervision of updated RP implementation in terms of land acquisition and resettlement shows that this activity has been in compliance with specified procedures avoiding unexpected disputes. Despite some complaints from affected households regarding inventory of losses and compensation rates, those matters have been generally addressed following the Government and Project s current regulations. VII. GENDER ISSUES AND ETHNIC MINORITIES 1. Gender Issues Gender equality is among critical criteria of a civilized community. This issue has been specifically mentioned in the on-going RP, specifically women s socio-economic status and gender strategy in order to ensure an efficient integration. During the supervision, it was observed that public consultation and information dissemination through community meetings, explanation of queries, leaflets and radio system have given the affected households including women and ethic minorities an access to necessary information and policies on compensation and the Project s benefits.

27 HIV/AIDS and human trafficking awareness programs have been launched at communities under the Project. Development will certainly bring benefits but also result in disadvantages. During the construction stage, complicated social matters will arise that should be controlled. Particularly, women and children will be directly affected when a large number of male workers arrive to work at the construction sites. This is the negative side of social mobility and women, especially young ones, will possibly be victims of sexual abuses or social diseases. However, neither HIV affection nor women trafficking resulting from project activities has been found until now. 2. Ethnic minorities Socio-economic status of affected ethnic minorities has been being collected since 2011 as a part of SES and DMS for the updated RP. Those data have been analysed basing on common socio-economic criteria in the project area; and results show that ethnic minority households are with lower economic conditions (based on properties) and higher vulnerability (based on the terms of poverty and female-headed households) compared to the average. However, they get in well with the other ethnic group and share the same lifestyle as well as livelihoods. Ethnic minority development had been highlighted right at the project design stage; specifically religion, culture and spiritual life of local communities. Impacts on religious and spiritual assets such as temples, pagodas and cementary were minimized in the technical design. During the project implementation, Contractors and relevant parties have been recommended to respect cultural values of local communities; and a commitment has been signed by the Contractors to avoid any impacts on the community s spiritual life. Public consultation and information dissemination to PAPs including ethnic minorities have been carried out by RPMU, provincial compensation and resettlement boards and People s Committees at district and communal levels during the project implementation. Seriously affected households under the vulnerable group including ethnic minorities have received an amount of money to recover their livelihoods and living conditions which is in line with updated RP and ABD s policy framework. VIII. CONCLUSION AND RECOMMENDATIONS 1. Conclusion Land acquisition and resettlement activities under Yen Vien Lao Cai Railway

28 Upgrading Project have been early carried out and basically completed until now. In addition, city and district s compensation and resettlement boards have made great afforts in implementation of land acquisition and resettlement plan. Implementation plan for updated RP has gained initial success thanks to a close coordination between RPMU and provincial compensation and resettlement boards. Public consultation and information dissemination have been carried out by RPMU and compensation and resettlement boards resulting in certain effectiveness. However, this still needs to be maintained on a regular basis during the project implementation. Compensation, assistance and resettlement under Yen Vien Lao Cai Railway Upgrading Project have been in line with the Government s regulations and ADB policy. The compensation rates for affected households were applied following existing regulations; and those households have received the compensation following approved plan. Special attention was paid to the assistance for seriously affected households and vulnerable groups. However, ethnic minority households in Lao Cai city and Bao Yen district have not received assistance as specified in the project s policy framework. Other assistances for the households losing agriculture land has been given following policy framework. All remaining issues, comments and expectations from affected people have been basically addressed by provincial People s Committees as well as compensation and resettlement boards at city, district and communal levels. Actual investigation shows that affected households basically agreed with the compensation rates that allow them to own alternative assets or build their new house. They also noticed that basic facilities at the new location are much better than the old one. At the monitoring time, most of the affected people have relocated and got their land in the resettlement areas to build their new house. Land acquisition and resettlement have been basically completed except for some minor issues in Lao Cai (CP3 Package): one household has not handed over the site for construction (Lao Cai city) and 2 others who refused the land in the resettlement area and wished to receive compensation to manage their new accommodation (Bao Yen district). Moreover, compensation for 54 households located in a 1ha area (freight ward) and 60 others temporarily staying within Lao Cai station has not been approved. Payment of compensation has basically complied with the procedures set out in the updated RP; specifically application of compensation rates for certain assets to ensure alternative values.

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