VIE: Hanoi Metro Rail System Project Line 3: Nhon-Hanoi Station Section

Transcription

1 Social Due Diligence Report Document Stage: Second Draft Project Number: May 2013 VIE: Hanoi Metro Rail System Project Line 3: Nhon-Hanoi Station Section Prepared by Hanoi Metro Railway Board for the Asian Development Bank. This social due diligence 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.

2 TABLE OF CONTENTS PAGE I. INTRODUCTION 3 II. PROJECT BACKGROUND AND RELEVANT FACTS 3 III. FINDINGS 4 A. Resettlement Progress Overview Up to Date 4 B. Preparation of Updated Resettlement Safeguards Documents 8 C. Supplementary Assistance Plan 8 D. Gender Equality in Resettlement Activities 8 E. Public Consultations and Grievance Mechanism 9 IV. ASSESSMENT AND RECOMMENDATIONS 9 V. STATION NO.3 UPDATED THE SITUATION OF LAND ACQUISITION 11 ANNEXES ANNEX 1: List of People Met ANNEX 2: Briefings on Meetings with Tay Tuu, Minh Khai and Xuan Phuong Commune PCs... 15

3 LOAN 2741-VIE: HANOI METRO RAIL SYSTEM PROJECT LINE 3: NHON-HANOI STATION SECTION RESETTLEMENT REVIEW CONSULTANCY 22 JANUARY TO 15 APRIL 2013 I. Introduction 1. An ADB consultant team undertook a resettlement review for the Loan 2741-VIE: Hanoi Metro Rail System Project -Line 3: Nhon-Hanoi Station Section (the Project) from 22 January to 3 March 2013.The team consists of Dr. Vu Ngoc Long, Senior Resettlement Specialist and Ms. Huynh Thi Ngoc Hoa, Resettlement Specialist. 2. The Consultant Team held discussions with ADB officers, Hanoi Land Acquisition Steering Committee, the Executing Agency for the Project, Hanoi Metro Railway Board (MRB) and its Land Preparation Department, The TuLiem Center for Land Development Fund, Xuan Phuong, TayTuu, Minh Khai Communes People Committees and their related agencies, TuLiem District People Committees, TuLiem District Compensation Board, other district relevant agencies and resettlement consultants currently engaged in RP updating. The Consultant team also conducted site visits to the planned locations for the Xuan Phuong Resettlement Sites and interviews some affected HHs in Minh Khai and TayTuu Commune, TuLiem District. Annex-1 lists the key persons met by the Team. This Review Report provides a summary of the Team s findings and discussions for submission to ADB for review. II. Project Background and Relevant Facts 3. Project Background. The Project Hanoi Pilot Metro Line, Section Nhon Hanoi Station (MRT3) outputs will consist of the construction of approximately 12.5 km in length of MRT Line 3 and depot facilities and electrical and mechanical (E&M) systems and rolling stock. Civil works for MRT3 will start from Nhon depot in the west to Hanoi Station within the central business area. The total length of MRT3 is 12.5km, of which 3.6 km underground, 8.4 km elevated, and 500 m in ramps. It includes the design and construction of the depot and ancillary buildings, elevated viaducts, transition tunnel portal, cut and cover and bored running tunnels, and 12 stations, with eight (8) elevated and four (4) underground. This includes all civil, structural, building services, architectural/builders work and all necessary utility services to the works. 4. The depot and access line will be constructed in Minh Khai and TayTuu communes of TuLiem district. The depot design includes 14 buildings which are used for offices and workshops of technical maintenance and reparation. An access railway connects workshops to the main railway. The elevated line with the length of 8.4 km and 8 elevated stations are mainly constructed along the roads going through districts TuLiem, CauGiay, and Ba Dinh.

4 III. Findings A. Resettlement Progress Overview Up to Date Depot Phase 2 and access line 5. An Updated Resettlement Plan for the Access Line and Depot Phase II was finalized and submitted to ADB in November ADB is in the process of reviewing and asking for further updates so no official concurrence has been given yet. According to this Updated Resettlement Plan with the DMS conducted in May- July 2011, 102 households are expected to be affected by land acquisition of 2.2ha for the access line and Phase 2 (1.3ha) of the Depot (0.9ha). Among 65 households who lose housing structures, 23 of them shall have to relocate to the resettlement sites. 6. Latest DMS conducted and provided by TuLiem Center for Land Development Fund as of February 2013 shows the number of affect households of 140, all to be agricultural land users and 2 organizations. So relevant latest information needs to be further updated in to the Updated Resettlement Plan appropriately. DMS has been 100% completed. Compensation and payment plans are under preparation and payment to affected households and organization and hand over of the clear site are planned to be completed by end of March There are two Resettlement Sites located in Xuan Phuong Commune, TuLiem District planned for relocated households affected by the Depot Phase 2 and access line of the project, namely DD1 and DD 2.For the resettlement site at location DD1, the land to be acquired for construction is 1.8 ha, mostly agricultural land with 46 households and 1 organization affected. DMS is ongoing and completed around 50%. Public consultations conducted by TuLiem District Land Development Fund were held for the selected locations of the resettlement sites with HHs affected being informed on planned schedule and relevant policies. Most of HHs affected supported the acquisition while showing concerns on how they will be compensated and assisted. 8. Investment preparation procedures for DD 1 resettlement site have been completed and official decision is expected to be issued soon. Initial surveys shows that land area affected for both resettlement sites is 100 % agricultural land so it is expected that no household shall be displaced and resettlement activities shall be smoothly completed. The current updated resettlement plan has not provided sufficient detail on the scope of land acquired for resettlement site as well as implementation plan as the data was not available at the time. So the land to be acquired for the resettlement sites and DMS data needs to be included in a separate report in case the Updated Resettlement Plan for the Depot Phase II and Access Line need to be approved in advance for project commencement purpose. Table III-1: Implementation Plan for DD1 Resettlement Area, Xuan Phuong Commune No Work items Status Completion Target 1 Investment preparation procedures Completed 2 Hand-over of land acquisition staking Completed 3 DMS 50 % completed March Cost estimates and as-built drawings Under preparation Quarter II/2013

5 No Work items Status Completion Target 5 Selection of contractors Quarter II/ Construction Commencement End of Quarter II/ Allocation of Land Plot End of 2013 Table III-2: Implementation Plan for DD 2 Resettlement Area, Xuan Phuong Commune No Work items Status Completion Target 1 Investment preparation procedures On going 2 Hand-over of land acquisition staking Not yet started 3 DMS Not yet started March Cost estimates and as-built drawings Under preparation Quarter III/ Selection of contractors Quarter IV/ Construction Commencement Quarter IV/ Allocation of Land Plot Quarter 1/ Site visits and interviews with 3 relocated HHs in TayTuu Commune and 2 relocated HHs in Minh Khai commune revealed that the relocated HHs had not been consulted and informed on the approved DD1 resettlement site. And they have no information on where and when to be relocated in the resettlement site. At the meetings with the TayTuu and Minh Khai Commune PCs, the local authorities reported they had not been consulted and informed on the resettlement site location and schedule so far. 10. The Consultant team held discussion with Xuan Phuong Commune PC and other commune organizations and raised the question of whether there is any cultural gap as affected HHs in Minh Khai and TayTuu Communes shall be relocated in Xuan Phuong commune, 3 km from their previous residences. The commune authorities advised that similar relocations have been on going in the locality and no cultural gaps or conflicts are observed as all the 3 communes are in the same district with similar cultural characteristics. There will be 46 HHs affected for the construction of the DD 1 resettlement site, all the land area affected is agricultural land with the land owners having changed their primary income sources into services and small business. As such, the acquisition of agricultural land for construction of DD 1 resettlement site is expected to have no significant impacts on affected HHs in terms of live hood and income. The Commune PC confirmed there is no case of vulnerable case among these 46 HHs and adequacy job change training and assistance shall be given to eligible affected HHs. 11. The Consultant team also visited the planned locations for DD 1 and DD 2 resettlement sites which are in the middle of a quick urbanized area in Xuan Phuong Commune. The planned DD 1 resettlement site is with the 154 ha Xuan Phuong Town area to South East and with extended Le Duc Tho Street to the North East which is under widening in to 50 m. Access to the DD 1 resettlement site is very convenient with

6 available road in good conditions. The location selected for DD 2 resettlement site, not far from the DD 1 is also agricultural land has similar socio-economic conditions. Both resettlement sites are expected to have no environmental impacts and are well connected with surrounding areas with convenient access to services. 12. Compensation payments are expected to be approved and paid by end of March 2013 for affected households under Depot Phase 2 and Access Line section. In accordance with current Vietnamese regulations and the Project Resettlement Policy Framework, TuLiem Center for Land Development Fund confirmed that adequate transitional relocation assistance, including rental assistance for the period from displacement until they can rebuild their houses at the resettlement site shall be provided to affected households. This entitlement policy was also included in the updated resettlement plan for Depot Phase 2 and access line. In this regard, there are still concerns over the transitional time as construction can be lengthened and inflation may have negative impacts to the affected household on their financial capacity to rebuild their houses and to restore living conditions. 13. Replacement cost surveys. In accordance with Decision No. 02/2013 dated 7 January 2013 by Hanoi city PC, TuLiem Center for Land Development Fund has engaged an independent, qualified land evaluator, Hanoi Joint Stock Price Appraisal and Financial Services Company, to conduct the market rates for review and determination of the compensation rates for residential land for the project. As the detail of the methodology was not given in the contract document, the Consultant Team cannot assess the adequacy of replacement determination against ADB Policy requirements. Though, this engagement of an independent land evaluator can be seen as an important step in approaching ADB Policy. So compensation payment for residential land affected by Depot phase 2 and Access Line shall apply the result of this survey. However, MRB and TuLiem Center for Land Development Fund still concern the Replacement Cost study and its application shall cause negative impacts on other 700 ongoing projects in the locality and may lead to serious grievances from affected households. 14. It should be noted that the replacement cost survey is conducted for residential land only, not covering other land types and assets affected. The Hanoi Land Acquisition Steering Committee advised the Consultant Team that the replacement cost for agricultural land was not applied as in accordance with current Vietnamese regulation, agricultural land use right was issued to people with a definite number of years and could not be legally traded in the market. 15. According to HRB and TuLiem Center for Land Development Fund, a larger percentage of affected households are using agricultural lands as residential land without legal permits, i.e converting to residential land without recognizable rights. This fact raises the concern that whether these HHs are eligible to compensation, assistance and relocation arrangements. TuLiem Center for Land Development Fund confirmed that as the case may be, these HHs are still entitled to compensation and assistance, depending appraisal results in accordance with current Hanoi city regulations (Decision 108/2009/QD-UB dated 29 September 2009 and Decision 02/2013/QD-UB dated 7 January 2013 by Hanoi PC on regulations on resettlement activities in Hanoi city. The project executing agencies and other governmental agencies consider this measure to be approaching ADB Safeguard Policy. 16. TayTuu Commune PC expressed concerns over the impact of Depot construction on the local irrigation system as the construction of depot phase I had intercepted 2 out of 3 irrigation channels that served for planting activities. No design mitigation measures were proposed and the Commune PC received complaints from affected HHs as they could not continue planting and production activities due to flooding. MRB and TuLiem District PC had temporarily conducted some dredging

7 activities but basically this flooding could not be solved in the long term as no reservation of additional land for restoration of irrigational channel system was planned at the beginning. Elevated Section 17. DMS for station 6, 7 and 8 had been completed and payment was made to affected agencies in accordance with relevant decisions of the CauGiay and Ba Dinh District PCs. According to DMS results, no households are affected and only surrounding physical properties of Ha Noi National University, Hanoi Pedagogical University and Hanoi Zoo Co. Ltd. So no impacts on livelihood are expected for this section. A due diligence review has been made by resettlement consultants however no information on application of replacement costs are given. Also, impacts caused by the construction of the elevated section such as disruptions to business activities and other environmental impacts along the existing road are not identified yet so the mitigation measures are not mentioned. Supplemental information and measures needs to be provided to address these impacts with proper mitigation measures. Underground Stations 18. MRB advised that review of land staking drawings was ongoing and site staking works would be started from beginning of March The site staking works are expected to last for 2 months. Implementation arrangement for resettlement activities for this section was submitted to related authorities and a land acquisition and compensation board would be established thereafter. DMS is expected to start from end of April Land acquisition decisions have been issued for affected areas by Station 10 and Station 11. Overall resettlement plan for underground section is under review by related authorities. 19. For impacts on some buildings above the tunnel which were not expected to be impacted in the Draft Resettlement Plan, MRB s response is that they are in the process of reviewing and no definite plan or solution for this issue is given. However, MRB advises that HN PC is planning to issue compensation procedures and policies for construction of underground works in Hanoi city as so far no policy or regulations on compensation and assistance for underground works are in place. DMS and compensation and assistance plan for this section shall follow Hanoi PC s regulations. Depot Phase I 20. In Minh Khai commune, 72 HHs were affected and relocated with the total area of 4 ha in In accordance with applicable regulations on resettlement in this stage, no HH was entitled to resettlement arrangement. The PC commune advised that the current living conditions of these affected HHs are now improved much better than before as they used the compensation money to invest in building house for rent. Many HHs engaged in providing services for a huge amount of people moving to the commune for educational or economical purpose. Minh Khai commune is mostly a commercial base locality so chances of income generating activities are accessible. 21. In TayTuu Commune, 227 HHs were affected and relocated with the total area of 12 ha out of 340 ha agricultural land in the commune. The PC commune advised that on average, each HH in the commune owns at least 3 land lots and the acquisition of 12 ha out of 340 ha accounted to a small percentage of the commune land fund. Among the affected HHs, up to now, no unemployment occurred as people in the commune even

8 has to hire additional labor for flower planting activities. The TuLiem District and TayTuu PCs assessed that acquisition of land had no significant impacts on livelihood. B. Preparation of Updated Resettlement Safeguards Documents 22. The resettlement planning documents for Line 3- Nhon- Hanoi Station will be for the following civil work components (i) Phase 2 of the Depot, including access line; (ii) the elevated rail section; and (iii) underground stations. Resettlement activities for elevated rail section had been completed and construction started. Updated Resettlement Plan for Phase 2 of the Depot, including access line has been prepared by resettlement consultants engaged by ADB. 23. For the underground sections, the Consultant Team consulted MRB on their attention to prepare a similar updated resettlement plan for this section, as well as for XuanPhương Resettlement Sites. MRB advised that they had not received any instruction from Hanoi PC for preparation of such updated resettlement plans and all resettlement activities shall proceed following current regulations of Hanoi city PC. TuLiem Center for Land Development Fund supported this plan. 24. The Consultant team was provided with an organization description of the Land Preparation Department under MRB. The review indicates that the department has stronger capacity in technical disciplines as engineering and law but lack of formal academic backgrounds in social development related fields. Furthermore, while the MRB has experience in Vietnamese policy resettlement frameworks and administrative requirements, it has less exposure to international safeguards practices as those required by ADB. As such the consultant team considers that MRB requires assistance from resettlement experts experienced in international resettlement safeguards standards and practices to ensure that socail dimensions of resettlement are addressed and updated resettlement plans acceptable for the project needs can be prepared. C. Supplementary Assistance Plan 25. A supplementary Assistance Plan (SAP) was designed under the Updated Resettlement Plan for Depot Phase 2 and Access Line which aimed at income restoration support for affected HHs of both phase I and II of the Depot. Three components are proposed: i) Construction of Cold Storage for preservation of flower; ii) Job training and new job in the metro system and iii) Assistance of micro-credit fund. An institutional arrangement was also included in the SAP which was not very practical as there was no indication of source of budget in the plan. In addition to this, a SAP at this stage needed to be more specific with detail arrangements of implementation than it was in feasibility study. An implementation guide should be included with clear criteria of entitlement and steps of implementation. 26. Most important of all, budget for this plan has not been confirmed as MRB advised that this work item was not included in the total cost estimates for the project. Tuliem District PC supported the idea of such a SAP, especially the construction of Cold Storage for preservation of flower. However, they confirmed that the TuLiem District PC could not arrange budget for this plan as it is out of their authorities. So the governmental institutional arrangement for this SAP is not clear and feasible in terms of implementing agencies and budget. D. Gender Equality in Resettlement Activities 27. Consultations with TuLiem District PC, TayTuu, Minh Khai and Xuan Phuong Communes PCs showed that most of the land use right was issued to women as they directly involved in agricultural production activities. The local authorities were aware of gender issues in conducting resettlement activities to ensure woman rights. In parallel

9 with social economic development in the localities, women are more aware of their asset rights. E. Public Consultations and Grievance Mechanism 28. The Tuliem District PC advised the Consultant Team that public consultations grievance mechanism have been strictly conducted in accordance with current regulations. Basically, current GOV regulations on public consultations and grievance mechanism are mostly the same as ADB policy. For the consultation on resettlement area, the consultant team proposed the local authorities promptly conduct public consultation on the location and construction schedule for the Xuan Phuong Resettlement area to affected HHs to enable them to plan for livelihood activities in the new residence. The TuLiem District PC committed to further enhance public consultation in the coming time. IV. Assessment and Recommendations 29. Consultation and disclosure. Public consultation and disclosure was conducted but not to the full satisfactory level as local commune PC and relocated HHs have not been consulted and informed on the selection, location and construction schedule of the Xuan Phuong resettlement sites. Records of the Public Consultation Meetings were not showing that all the project impacts, including social and environmental impacts, have been made public to the affected HHs. Recommended action: HRB is to cooperate with TuLiem District PC and other relevant authorities to promptly conduct public consultation on resettlement sites and other issues concerned possible impacts of the project for their preparedness and plan for future livelihood activities. 30. DMS and census data. DMS and census data for the Depot Phase II and Access Line, Elevated section are 100 % completed. However, there are some discrepancies between the DMS data in the Updated Resettlement Plan and latest DMS data provided by TuLiem District Center for Land Development Fund. Recommended action: HRB and resettlement consultants to further updates the latest DMS and census data for the Depot Phase II and Access Line, and DMS data for Xuan Phuong resettlement sites if appropriate. 31. Replacement cost. TuLiem District Center for Land Development Fund engaged a qualified appraiser to conduct market survey for residential land only. The methodology was not included in the contract so the Consultant team could not assess the adequacy of the process of determination of replacement cost. In addition to this, MRB and other relevant agencies confirmed no replacement cost survey shall be conducted for other types of lands and non-land assets. This is not in compliance with ADB policy. Recommended action: For other types of lands and non-land assets, additional assistance which is equivalent to replacement cost in monetary term can be applied by the local authorities as a harmonization measure. 32. Resettlement and relocation arrangements. DD 1 resettlement site has been approved for relocated HHs of Depot Phase II and access line. The back-up DD 2 is also under preparation. However, the need for resettlement site for underground section cannot be confirmed at the moment as DMS has not started yet.

10 Recommended action: MRB to prepare a realistic plan of resettlement activities for the underground section to ADB, indicating the need for resettlement if required. 33. Resettlement sites : The selected locations of the DD 1 and DD 2 resettlement sites in Xuan Phuong commune are with convenient access, well connected with the surrounding areas and in the mid of a crowded residential area. No acquisition of residential land and houses so the site preparation is expected to be smooth. However, the local authorities and HRB expressed their intention to proceed with the resettlement activities without ADB s prior consent so no confirmation on compliance with ADB Safeguard Statement Policy can be made. Recommended action: ADB to send request to HN PC and HRB for the preparation of project safeguard document in compliance with ADB Safeguard Statement Policy, as such, a separate resettlement plan for Xuan Phuong resettlement site or a full comprehensive section under the updated resettlement sites for Depot phase II and access line need to be supplemented. Additional transition allowance needs to be provided to relocated HHs for the duration of time awaiting for the completion of resettlement site construction. 34. Livelihood restoration measures for those displaced from Depot Phase II and Access Line. In accordance with HN PC current regulations, in addition to compensation, displace HHs shall be provided with additional assistances: i) Livelihood stabilization allowance; ii) Job changing and creation allowance and iii) allocation of resettlement site. A Supplementary Assistance Program is designed under the Updated Resettlement Plan for Depot phase II and Access Line. The proposed components have been consulted with commune PCs, but not the District PC. However, the Tuliem District PC supports the component of building cold reservation for flowers. The budget source for SAP is not clear and consultations with MRB and TuLiem District PC show that the no budget item for this activity in the project cost. Recommended action: ADB to send request to HN PC and MRB to confirm budget and institutional arrangement for the SAP. Resettlement Consultants to update the SAP with more specific and feasible implementation mechanism accordingly and consultation with related agencies at district level needs to be conducted. 35. Status of livelihood for those displaced from Depot phase I. From the site visit to the Depot, Minh Khai and TayTuu Communes, review of the communes socio-economic development reports and consultations with the local authorities at district and commune level, it can be seen that land acquisition and relocation for the Depot phase I have no significant and negative impacts on the livelihood of affected HHs. Socio-economic development of the Minh Khai and TayTuu Communes in particular and TuLiem District in general has brought in benefits to residents in the locality. The component of building cold reservation for flowers in TayTuu commune shall benefit HHs affected by both Depot phase I and phase II. 36. Grievance Mechanism. The Grievance Mechanism for the Project is in place in accordance with current regulations with GOV regulations and has been made public to the affected HHs. 37. Gender. The district and commune authorities are aware of the gender equality in general and in resettlement activities in particular. In agricultural production communities such as TayTuu or Xuan Phuong Communes, the land use titles are mostly issued to woman. In conducting procedures for issuing new land use titles, both husbands and wives are encouraged to bear the name.

11 38. Other issues in connection with underground sections.mrb is to provide ADB with the status of claim resolutions from those who made claims in connection with the impacts by the underground section. As now DMS has not started yet, HRB cannot reconfirm the status with the Consultant Team. MRB is to keep ADB inform on the progress of the resettlement policies for underground works to be issued by HN PC. 39. Environmental impacts: MRB and TuLiem District PC to proceed with further actions to fully restore the irrigation channel system in the commune. Compensation for loss of productivity from the depot phase I construction should be considered with care and paid to affected HHs if appropriate. V. Station No.3 Updated the Situation of Land Acquisition 40. According to the issue was raised by the resettlement consultants (by Ms. Nancy and Ms Van) for the sustainable transport component of the Hanoi Metro Project was that it was not clear if households within the red line were fully compensated and cleared or not for Station 3. Because the area within the red line (the area cleared for the road expansion) is also to be utilized for the Hanoi Metro Project, there were required conducting the field studying to ensure that all previous land acquisition for the road expansion has been fully completed and that there are no pending unresolved issues. If there are any unresolved issues then this can be covered under some form of correction action to be agreed between MRB and ADB. 41. The consultant team in coordination with Ms. Van (EGIS) was conducted field studying as followings: a. March 27-29, meeting with MRB, relevant stakeholders in order to prepare and discussing the field studying planning. Receiving support from ADB office in terms of providing letters of request to Hanoi PC and Tu Liem DPC conducting meeting in Tu Liem PC. b. April 10 12, field studying in the project site and taking part in the stakeholders meeting of TuLiem DPC. 42. These are some findings and comments as followings: a. The NH 32 Improvement Project (Cau Dien- Nhon Sectin) was approved for investment by MOT in 2003 with total estimated cost of billion VND and the funding by the Government s bonds. The road section was designed as urban road type I with road width of 35 m (8 lanes) and side pavements of 7,5m each. This project is of significant importance and closely connected with other Ha Noi capital s key projects. PMU 5 (MOT) is the project owner and Ha Noi PC is in charge of resettlement works. After suspension period, the construction of NH 32 Improvement Project was officially commenced in December After 4 years of commencement, due to the slow implementation progress, the GOV had agreed to transfer the project to Ha Noi PC, and Ha Noi PC assigned Urban Transport Development Project Management Unit under Ha Noi DPC as the project executing agency. b. Despite these movements, the project progress was extremely slow and caused hazards to residence s living conditions and negative impacts on traffic safety. This project had been prioritized as one of the key projects for greeting the Thang Long- Hanoi

12 1000-year festival, but until September 2010, resettlement works was still incomplete. c. From February 2011 to September 2011, the local governments tried to achieve a humble target of traffic opening but all the efforts failed then this road was said to be the slowest road project ever in Hanoi Capital with more than 8 years for the construction of only 3km. In order to speed up the progress, Ha Noi PC Vice Chairman Nguyen Van Khoi instructed Tu Liem PC to actively coordinate with Ha Noi Department of Transport, Department of Industry and Trade, Department of Information and Communications, Ha Noi Electricity Corporation, Tu Liem Electricity and other related agencies to complete the procedures for relocations electricity and communication lines prior February In addition to this, Tu Liem DPC was instructed to complete the resettlement works for the remaining sections and to hand over the clear site for Department of Transport in January The resettlement progress was briefed as followed: a. May 2008: Ha Noi PC issued project land acquisition decision and assigned Tu Liem DPC, District Land Fund Development Center to implement the sub-project of resettlement for the NH 32 Improvement Project (Cau Dien- Nhon Section. b. 18 August 2008: Compensation, Assistance and Resettlement Committee was founded to implement the sub-project of resettlement for the NH 32 Improvement Project (Cau Dien- Nhon Section). c. 29 July 2009: Ha Noi PC announced the resettlement policy for the project. d. 19 May 2010: Ha Noi PC issued Letter No. 3485/UBND-TBMT to settle some pending issues in resettlement policy for the project. e. 5 July 2010 : Ha Noi PC approved the project resettlement plan f. June 2011, Tu Liem DPC issued Decision on amendment and substitute of the resettlement plan. 44. Resettlement works for this project have been complicated and sensitive issues arose. There are significant pending issues on social impacts as a result of resettlement. An example is that land administration and land ownership for the remaining areas of affected HHs by this project has not been clear. As reported by some mass media and through direct interviews with the affected HHs, the remaining areas shall be managed by Phu Dien Commune PC since these affected HHs recently encroached the land and constructed the houses illegally. For this reason, they are not provided electricity and house plate numbers. However the problem here is that the remaining areas shall be acquired then managed by the local commune, not for a specific project. On the other hand, some of the HHs have documentation proving they used the land from the year 1993, Direct interviews conducted by the Consultant, together with site measurements, the scope of land clearance for pavement is 7.5 m, as the project design. The land for

13 pavement of NH 32 has been clear, with the affected HHs holding the DMS, compensation plan and compensation money. No more enquiries or grievances on the compensation are heard, just some opinions on the resettlement site, such as they have not been allocated the lot in the resettlement site. 46. Residences in the areas affected by Station 3 ( from House No. 48 to No. 106) recommended that public information boards need to be installed properly so that they can be aware of the project information, implementation schedule, the project technical characteristics of the Metro Project as well as the design overview of Station 3. Residences also express their desire to join in public consultation meetings to hear the social and environmental impacts of the project. So far, they know about project information through unofficial channels as no project information booklet has been delivered to the affected community. In case the local authority would acquire the remaining areas, they should know the purpose of this acquisition and they are prepared for this. 47. At the meeting with Tu Liem DPC on 12 April 2013, Tu Liem DPC reconfirmed that resettlement works for NH 32 at the section of Station 3 have been completed and payments have been made to all affected HHs. Sites were handed over and no more grievances have been recorded. 48. In response to comments by ADB s Consultant and ADB concern in connection with Station No. 3, Tu Liem DPC re- stated the above confirmations and authorized Tu Liem Land Fund Development to reply to ADB in writing by letter 99/BBT-GPMB, stating that i) the resettlement works for NH 32 have been fully completed, including the section from km km km; ii) compensation payment and relocation assistance have been paid fully to the affected HHs; and iii) hand- over of the site within the ROW to Department of Transport was conducted. 49. In connection with resettlement sites, the planned resettlement sites in Xuan Phuong and Phu Dien Communes for the project have been approved by Tu Liem DPC in Resettlement Plan. Tu Liem DPC is planning to conduct meetings on allocations of resettlement sites to the affected HHs. 50. For the remaining areas not yet to be acquired : It is clearly stated in the land acquisition decision that after receiving the land allocated in the resettlement sites, affected HHs would hand over the remaining areas for the commune management since these areas are public land and would be managed by local authorities. 51. So it can be seen that in theory, the site for NH 32 has been cleared and handed over to the project owner. However, some HHs surrounding the project area constructed business shops right next to the ROW, as such, when the construction for Station No 3 is started, about 12 to 14 HHs at the two sides of the access road shall be affected. This issue shall be resolved by the local authorities in close cooperation with the contractors in accordance with the project EMP. 52. In a broader view, any other project in the section of NH 32 widening and Station No. 3 shall face many challenges and obstacles as residences in this area are not granted with land and house ownership. The local government has not granted legal confirmations for their long time residences while they have been settled here from Agreements on land acquisitions between the local authorities and residences shall be far from easy and needs more discussions in the future.

14 ANNEX 1: List of People Met No. Name Agency/ Organizations Position 1 Mr. Hoang Kim Anh MRB Vice Director 2 Mr. Tuan Anh Land Preparation Dept. MRB Staff 3 Mr. Nguyen TrungNghia TuLiem Center for Land Fund Vice Director Development 4 Mr. Tran Van Dung TuLiem Center for Land Fund Staff Development 5 Mr. Bui DinhQuyet Xuan Phuong Commune PC Chairman 6 Ms. Nguyen ThiDieu Xuan Phuong Commune PC Cadastral Staff 7 Mr. Nguyen The Ngoc Xuan Phuong Commune Chairman Farmer Association 8 Mr. Bui TrungHoa TayTuu PC Chairman 9 Mr. Nguyen Van Viet Fatherland Front Unit Deputy Chairman 10 Mr. Nguyen Viet Manh Xuan Phuong Commune Chairman Farmer Association 11 Ms. Nguyen Thi Phuong Women Association Chairwoman 12 Mr. Nguyen van Sy Minh Khai Commune PC Chairman 13 Mr. Nguyen Van Tha Fatherland Front Unit Chairman 14 Mr. Nguyen Van Quyen Commune Farmer Association Chairman 15 Ms. Nguyen Mai Huong Women Association Chairwoman 16 Ms. Mai Economic Dpt Tu Liem PC Head of Department 17 Mr. Dao Van Luan Group No 2, Phu Dien AP commune 18 Mr. Bui Duy Khan Group No 2, Phu Dien AP commune 19 Mr. Thanh DSCC Tu Liem Head of Department 20 Ms. Khuc Thi Thuy Van EGIS, DRCC Center Resettlement consultant 21 Mr. Nguy Nhu Nguyen MRB Vice chair

15 ANNEX 2: Briefings on Meetings with Tay Tuu, Minh Khai and Xuan Phuong Commune PCs The Consultant Team held discussions with TayTuu and Minh Khai Commune PCs and interviewed some of the affected HHs in the communes. The followings are briefings of the discussions. TayTuu Commune PC and its political and social association / agencies Resettlement site location: The commune PC was not informed and consulted on the selected location for construction of DD 1 resettlement site in Xuan Phuong Commune and this causes difficulties for the local PC to response to the queries from HHs on where and when they will be relocated to resettlement site. The PC proposed higher authorities to confirm the resettlement site location and completion schedule for them to provide information to affected HHs. They also expressed concerns over the location of the resettlement site to be in a different commune, i.e Xuan Phuong Commune. The change may have impacts on income generating activities of affected HHs who involved in flower planting in TayTuu commune. Also, they proposed to settle smoothly other administrative and residence register procedures for the affected HHs after relocation to Xuan Phuong Commune. Impacts on environment The Commune PC expressed its priority concern over the impacts of the Depot, both phase I and phase II, on irrigation channel in the commune. As for the Depot phase I, the construction of the depot intercepted the channel that served for irrigation purpose for production activities of people in the locality. The PC sent complaint and suggestions to higher authorities but neither technical solution to address this impact nor compensation/assistance for the loss of productivity and disruption of planting activities have been made so far. So the PC strongly recommends proper mitigation methods be applied in this Depot phase 2 to reduce impacts to planting activities in the commune. Supplementary Assistance Plan The PC and Farmer Association proposed some of the income restoration support to affected HHs in TayTuu commune, in consideration of the main income generating activities in the commune to be flower planting. - Building cold storages for flower preservation - Feasible Job creation and change training and assistance - Support on flower seed creation/ micro-organism developing research to increase the locality s proactive planting activities and increase productivity. - Credit for set up income generating activities in the Xuan Phuong resettlement area. Affected HHs Mr. Nguyen Khac Tang - No support for loss of land under Depot Phase I so far

16 - Request for land allocation in resettlement area for married sons/daughters living in the same house. - No objection to the land acquisition but request for Additional support for loss of income from renting house. - Location of resettlement area and construction schedule, when to be allocated. Mr. Nguyen TuTuc - No information on where to be relocated. No objection to the land acquisition but request for confirmation on location of resettlement area and construction schedule, when to be allocated. Mr. Le Quang Hieu - No objection to the land acquisition but request for confirmation on location of resettlement area and construction schedule, when to be allocated - Concern about livelihood measures when moving to the resettlement area - Construction of Depot phase I intercepted the commune irrigational system and local people could not continue production activities. Minh Khai Commune PC and its political and social association/ agencies Impact by Depot phase I: 72 HHs were affected and now all of them no longer involved in agricultural production activities. With the compensation money, affected HHs invested in building houses for rents and got higher earnings. Together with the commune social and economic development, living standards of residences have been much improved. Access Line: 9 HHs are affected with very little impact and no vulnerable case. Resettlement site location was informed to the affected HHs (assumedly 2 HHs) and they agreed on the location. Income restoration is not a big problem as the commune is located in convenience access to roads, industrial zones and schools with various chances for income generating activities. The commune is having plan to set up training course for management of houses for rent. Xuan Phuong Commune PC and its political and social association/ agencies - The selection of the DD 1 resettlement site in Xuan Phuong commune is with the Xuan Phuong Town area to the North West and 50 m wide Le Duc Tho to the South East. Living conditions in Xuan Phuong resettlement site are much better than the original place of residences of affected HHs. - Cultural characteristics of communes in TuLiem district are basically the same. Similar relocations have been conducted in the locality. The Xuan Phuong commune always creates favorable conditions for relocated HHs to reside in the new location. - HHs affected by the construction of the DD 1 resettlement site have changed their income activities to small business and services, so acquisition of agricultural land shall have no significant impacts. No vulnerable case is found. - Affected area for DD2 resettlement site is 100 % agricultural land. - Both resettlement sites are expected to have no impacts on environment, to improve living conditions of affected HHs