RESETTLEMENT PLAN (RP) Type of document: Resettlement plan (RP) COC SAN HYDROPOWER PLANT INVESTMENT & CONSTRUCTION PROJECT

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1 RESETTLEMENT PLAN (RP) SFG2158 V3 Type of document: Resettlement plan (RP) COC SAN HYDROPOWER PLANT INVESTMENT & CONSTRUCTION PROJECT In Sa Pa, Bat Xat Districts Lao Cai Province Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Lao Cai Renewable Energy (Vietnam) Joint Stock Company

2 ABRREVIATION AHH Hộ BAH Affected household AP Người BAH Affected person/people CPC UBND xã Commune people s committee DMS Detailed measuring survey DPC UBND huyện District people s committee DRC Hội đồng ĐB-TĐC District resettlement and compensation board EMPF Khung Chính sách Ethnic Minority Policy Framework EMDP Kế hoạch phát triển DTTS Ethnic Minority Development Plan GOV Chính phủ Vietnamese Government HH Hộ Household IOL Inventory of losses LAR Land acquisition and resettlement LURC Giấy CNQSDĐ Land use right certificate MOF Bộ TC Ministry of Finance MOLISA Bộ LĐ-TB-XH Ministry of Labour, Invalids and Social Affairs NGO Tổ chức phi chính phủ Non-governmental organisation HPW CTTĐ Hydropower Work/plant OP 4.12 Operational Policy 4.12 by the World Bank PPC UBND tỉnh Provincial People s Committee RAP Kế hoạch TĐC Resettlement action plan TOR Terms of Reference USD Đô la United State dollar VND Đồng Vietnamese dong WB NHTG (Ngân hàng) World Bank WEIGHT AND INDEX EQUIVALENTS ha Hectare km - Kilometer m - meter ii

3 DEFINITION OF TERMS Affected person (AP/Affected Household) - Refers to any person or persons, household, firm, private or public institution that, on account of changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest from any house, land (including residential, commercial, agricultural, forest and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed, restricted, in other word, adversely affected in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat are adversely affected, with or without displacement. In the case of affected household, it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by the project or any of its components. Cut-off date - This refers to the date prior to which the occupation or use of the project area makes residents in the area recognized as eligible AP. The persons who are not in the census are not eligible for compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the census and the IOL; or (ii) they have lawful requirements on the affected assets after completion of the social census and the IOL and before conduct of the detailed measurement survey (DMS). Detailed Measurement Survey (DMS) - With the aid of the approved detailed engineering design, Detailed Measurement Survey will finalize and/or verify the accuracy and validity the results of inventory of losses (IOL), severity of impacts, and list of APs earlier done during RP preparation. The final cost of resettlement can be determined after completion of the DMS. Entitlement - Refers to a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. which are due to the APs, depending on the type and severity of their losses, to restore their economic and social base. Host community - Means the community already in residence at a proposed resettlement or relocation site. Income restoration - This is the re-establishment of sources of income and livelihood of the affected households. Inventory of loss - This is the process where all fixed assets (i.e., lands used for residence, commerce, agriculture, including ponds; dwelling units; iii

4 (IOL) stalls and shops; secondary structures, such as fences, tombs, wells; trees with commercial value; etc.) and sources of income and livelihood inside the Project right-of-way (ROW) are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs calculated. Additionally, the severity of impact to the affected assets and the severity of impact to the livelihood and productive capacity of APs will be determined. Land acquisition - Refers to the process whereby an individual, household, firm or private institution is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation at replacement costs. Rehabilitation - This refers to additional support provided to APs losing productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of pre-project living standards and quality of life. Relocation - This is the physical relocation of an AP from her/his pre-project place of residence and/or business Replacement Cost Replacement cost Study The term used to determine the value enough to replace affected assets and/or cover transaction costs necessary to replace the affected assets without depreciation for such assets as well as material advantage, taxes and/or travel expenses. - A process related to evaluating alternative replacement cost for land, housing or other assets based on empirical data as follows: (i) Productive land (Agricultural, fishpond, garden, and productionforest) based on market prices that reflect recent land sales, and in the absence of such recent sales, based on productive value; (ii) Residential land based on market prices that reflect recent land sales, and in the absence of such recent land sales, based on similar location attributes; (iii) Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials; (iv) Standing crop equivalent current market value of the crop at the time of compensation; (v) Perennial crops and trees, cash compensation equivalent to current market value given the type, age and productive value iv

5 (future production) at the time of compensation. (vi) Timber trees, based on diameter at breast height at current market prices. Resettlement - This includes all measures taken to mitigate any and all adverse impacts of a project on AP property and/or livelihoods, including compensation, relocation (where relevant), and rehabilitation as needed. Resettlement Plan(RP) - This is a time-bound action plan with budget setting out compensation and resettlement, ethnic minority strategies, objectives, entitlement, actions, responsibilities, monitoring and evaluation. Severely affected households - This refers to affected households who will (i) lose 20% or more of their total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 20% or more of their total income sources due to the Project. Vulnerable groups - These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized from social development by the effects of property loss and land or other project impacts. The resettlement plan (RP) determines vulnerable households specifically include: (i) female headed households with many dependents and without support, (ii) illiterate; headed households; (iii) disabled headed households, (iv) households falling under the generally accepted indicator for poverty promulgated by Ministry of Labour, Invalids and Social Affairs, (v) children and the elderly-headed households who are landless and with no other means of support, and (v) Severely affected households Practical consultation A process (i) is early started right at beginning of the project and consecutively continued during project progress; (ii) which includes timely disclosure of related project information which is understandable and easy to access by the affected people; (iii) is conducted in an environment of no threatening and force or enforcement; (iv) is integrated and met gender sensitive issues, adjusted as per required by the disadvantaged and vulnerable groups; and (v) creates conditions to include related viewpoints of affected people and other stakeholders into decision making process like project design, mitigation measures, sharing interest and development opportunities, and implementation issues. v

6 INDEX EXECUTIVE SUMMARY... ix I. GENERAL INTRODUCTION... 1 A. Overview of Renewable Energy Development Project... 1 B. Coc San Hydropower Plant... 2 C. Objectives of Resettlement Plan... 6 D. Measures to be taken for mitigating impacts caused by the works... 6 II. IMPACT AREA OF COC SAN HYDROPOWER PLANT... 8 A. Impact on land... 8 B. Impacts on crops and trees C. Impacts on works and architectural objects D. Impacts on income and livelihood E. Impacts on vulnerable households III. SOCIO-ECONOMIC INFORMATION OF AFFECTED COMMUNITY A. General socio-economic characteristics in project area B. Socio-economic information of affected community IV. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATI A. Information disclosure B. Public consultation and participation C. Results of information dissemination and Public consultation C. Regulations on compensation, assistance and resettlement by the local authority D. Some regulations applied in compensation, assistance of Coc San Hydropower project VI. RESETTLEMENT, COMPENSATION AND ASSISTANCE STRATEGY A. Legal basis for calculating compensation prices B. Replacement cost identification C. Compensation for impacts and entitlement VII. INSTITUTION ARRANGEMENT AND IMPLEMENTATION SCHEDULE A. Implementation schedule B. Institutional arrangements V. GRIEVANCE REDRESS MECHANISM VI. MONITORING AND REPORTING A. Internal Monitoring B. External Monitoring VIII. BUDGET AND FINANCIAL SCHEDULE vi

7 LIST OF TABLES TableI-1: Main specifications and parameters of Coc San HPP... 4 TableII-1Land area and the number of AHHs in the construction area... 8 TableII-2Classification of affected land acquired by the work (m 2 )... 9 TableII-3: Classification of affected land acquired by the work (m 2 )... 9 TableII-4: Rate of loss of HHs land acquired by the work (m 2 ) TableII-5 Affected land area for annual crops and perennial crops TableIII-1: The Number of Household and Ethnic Minority Household TableIII-2: Education level of surveyed HHs in affected communes (%) TableIII-3Main income source of ethnic minority AHHs TableIII-4: Income per capita of AHHs TableIII-5Average Expenditure of Surveyed HHs Table III-6: The number of school at all levels in Bat Xat district and Sa Pa Table III-7: The number of kindergarten and elementary school in affected villages Table III-8General information on gender rate in the affected communes TableIII-9Labor allocation in families in terms of gender TableIV-1: Concerns of affected community and commitment of the investor TableV-1Entitlement matrix TableVI-1Total compensation for AHHs TableVI-2: Compensation for affected trees, crops TableVI-3: Assistance cost for stabilizing lives, production and training Table IX-1Monitoring and Evaluation Indicators TableX-1 Summary of resettlement costs vii

8 ANNEXES ANNEX 1 ANNEX 2 ANNEX 3 ANNEX 4 ANNEX 5 LIST OF AHs COC SAN HYDROPOWER PROJECT PROJECT INFORMATION BOOKLET (PIB) TERMS OF REFERENCE CONSULTATION MEETING MINUTES SOME PHOTOS OF CONSULTATION MEETINGS viii

9 EXECUTIVE SUMMARY Introduction 1. The general objective of the Renewable Energy Development Project (REDP) is to increase the supply of least-cost electricity to the national grid from renewable energy sources on a commercially sustainable basis in an environmentally and socially sustainable manner. 2. Coc San Hydropower Plant (HPP) use water from Ngoi Dum stream, secondary tributary of Hong River in Lao Cai Province. The stream originates from the mountain which is m in height, flows in the southeast and connects to Hong River in Lao Cai city. Coc San HPP is located in the middle of Ngoi Dum s midstream, between Mong Sen (headwork) and Coc San (plant area). 3. The headwork is far 2 km away from 4D National Road from Lao Cai to Lai Chau, and far 20 km away from Lao Cai city in the southwest. The entire reservoir and headwork route of Coc San HPP are located in three communes which are Coc San, Tong Sanh under Bat Xat District and Trung Chai under Sapa District, Lao Cai Province. 4. Catchment area of Mong Sen dam is 99.6km2, average annual flow at the dam is approximately 4.61m3/second; total average annual flow is approximately 145x 10 6 m3; design flood with frequency of 1% is 1264m3/second; design flood water level with frequency of 1% is m; check flood flow at Mong Sen dam with frequency of 0,2% is 1540m3/second, check flood flow at the plant with frequency of 0.5% is m3/second; check flood water level (p=0.2%) is m; Normal water level (NWL) 7022m; the full volume is 506.2x 10 3 m3; Reservoir area at normal water level is m2, volume of reservoir at NPL is 231,6x 10 3 m3; Useful volume is 121x 10 3 m3; the length of energy route is 5.7km, including 5.68km of tunnel; Installed capacity of the plant is 29.7 MW, including 3 units; average annual output is approximatetly x10 6 kwh, total construction time is 25months, total investment is 46x10 6 USD, excluding cost for clearance compensation. 5. This resettlement plan is prepared to ensure that: (i) Involuntary resettlement must be avoided where possible, or be reduced to the lowest possible extent by selecting appropriate design options, (ii) Where involuntary resettlement is unavoidable, the resettlement activities must be prepared and executed with sustainable development programs and sufficiently provided investment supports, enabling displaced people to benefit from the subproject. The displaced people will be fully consulted and allowed to participate in preparing and implementing activities in Resettlement Plan. Area of impact 6. Coc San HPP will permanently occupy m 2 of land belonging to 116 households and Communal People Committees of three communes: Trung Chai under Sa Pa district; Coc San, Tong Sanh under Bat Xat district (the detailed information on area of ix

10 each type of land and the number of AHHs will be shown in the next sections). There is no impact on architactural works and secondary structures of the households Information dissemination and public consultation 7. A lot of public consultation meetings, discussions with stakeholders, especially local governmental authority and affected people were held January, February 2013, August 2015to disseminate to them sufficient information relating to the project and its activities from preparation to operation stages, compensation and assistance policy, implementation plan, recording the people s opinions or claim as the basis for preparation of this resettlement plan. 8. Public consultation meetings have been organized in Trung Chai, Tong Sanh, Coc San, which are affected by the construction with AHHs in the communes Trung Chai, Tong Sanh, Coc San and local officers. 9. Important information indicated in the Resettlement Plan (RP) shall be publicly provided to the affected HHs through organizing public meeting during the next stage of the works, project information dissemination and public consultation meeting with the local governmental authority and community shall be held regularly at every important stage or at necessary point of time Legal Framework and Entitlement 10. Coc San Hydropower Plant is under Renewable Energy Development Project, therefore, compensation, assistance and resettlement plan for this is prepared based on principles defined in Resettlement Framework agreed between Ministry of Industrial and Trade (MOIT) and World Bank (WB) in 2008 for Renewable Energy Development Project. Policies to be applied in implementation of compensation, assistance and resettlement include (i) involuntary resettlement policy by WB. (ii) The current policies on compensation, assistance and resettlement by the Vietnam Government; and (iii) regulations on compensation, assistance and resettlement by the project in Lao Cai province. 11. One of the key objects of the project is replacement and compensation for the lost properties basing on replacement cost. Compensation implementation and providing alternative assistant forms to the affected people before they move out of their houses, land and properties under the condition that their living conditions are restored at least as the same as that before the project, and the poor, the prone affected people, including affected people in the vulnerable group (e.g. HHs head with disability, poor HHs, ethnic minority HHs, etc.) shall be assisted to increase their socio-economic situation. Institutional Arrangement and Implementation Plan 12. Construction project should be in 2.5 year, including last 6 months of 2013, and recommenced in December 2013, the construction is expected to be completed in 2 nd Quarter of x

11 13. Lao Cai Renewable Energy (Vietnam) Joint Stock Company (formerly Colben Energy (Vietnam) Joint Stock Company) is responsible for all project implementation components, including preparing and implementing RP as well as monitoring, evaluating this RP. Being as a project implementation agency, Lao Cai Renewable Energy (Vietnam) Joint Stock Companywill have following main responsibilities: (i) updating and implementing RP in coordination with related people s committees at levels and provincial and district Compensation, Assistance and Resettlement Board (CARB) and submitting to MOIT and WB for approval; (ii) ensuring government capital available for implementation of RP and availability and sufficiency of funds for resettlement (money for compensation and other assistances). Grievance Mechanism 14. Grievance mechanism in this RP has been built basing on Vietnamese law of disputes, which had been consulted with local authorities and communities in consideration of specific cultural identity and traditional cultural institution of people in the project area. Monitoring and Evaluation 15. Lao Cai Renewable Energy (Vietnam) Joint Stock Company shall provide the services of an independent internal monitoring agency. Therefore, Lao Cai Renewable Energy (Vietnam) Joint Stock Company shall collect and record entire site documents, including the database on affected HH and submit quarterly reports to the project management Unit (MOIT) and WB. 16. External monitoring agency (EMA) shall be implemented by experienced resettlement and social development specialist who are selected by PMU (MOIT). Independent supervision inspection and evaluation shall be conducted yearly; except for the first stage semi-annual supervision may be required. Report prepared by EMA shall be placed in project site office and commune people s committee and posted on website of WB. Internal and external independent monitoring system shall be set up including professional experts who are qualified and experience in the field of resettlement, community development and ethnic minorities, in which, Bai Thuong Hydropower Joint Stock Company shall be responsible for internal monitoring; monthly and quarterly monitoring reports shall be submitted to PMU and WB. The EMA shall be selected for implementing independent monitoring and independent evaluation shall be made on annual basis, except for the first stage semi-annual evaluation may be required. Budget and Disbursement Plan 17. The total estimated cost of compensation and assistance against impacts caused by Coc San HPP is 7,297,977,990VND (equivalent to 311,726USD, foreign exchange rate is VND 22,000) Implementation cost shall be paid by Lao Cai Renewable Energy (Vietnam) Joint Stock Company. xi

12 I. GENERAL INTRODUCTION A. Overview of Renewable Energy Development Project 18. The objective of Renewable Energy Development Project (REDP) is to assist in developing renewable energy sources to supply least-cost electricity to the national electric grid on a commercially sustainable basis in an environmentally and socially sustainable manner. The project includes three components: (1) investment project implementation component, (2) capacity building component, and (3) information channel development component. 19. The investment project implementation component includes (i) commercial banks are allowed to refinance the capital for providing credit to eligible renewable energy projects with capacity of no more than 30MW invested by the private investors, and (ii) technical assistance for capacity building for the participating banks and the sub-project private investor in project preparation, appraisal, financing and implementation of renewable energy projects in compliance with international practices. This component shall be collaborated by Rural Electric and Renewable Energy Project Management Unit (PMU) under MOIT. This component consists of two following sub-components: Providing credit for investment assistance in renewable energy: Private investors shall construct sub-projects of small scale hydropower, wind-to-energy and mass solid waste-to-energy plants with capacity of no more than 30MW in compliance with Renewable Energy Development Project criteria including environmental and social safeguards. The investors commit to contribute their equity of at least 20% of total investment cost of a sub-project and the other 80% shall be borrowed from participated commercial banks. The participating banks selected on competition basis are reponsible for verifying the eligible Renewable Energy subprojects proposed by the investors and providing the loans to the projects that fully meet requirements of participating banks. The participating banks will lend subprojects under commercial term determined by the market and will subject to all the credit risks from the loans. Eligible loans shall be refinanced up to 80% of the loan value to the participating banks or 64% of the total investment cost of the subproject. This means the participating banks shall have to commit to lend at least 16% of the total investment cost for each subproject from their funding source and the investors shall contribute 20% of the total investment cost as their equity. Upon the approval of the request for credit, the participating bank shall receive a refinanced sum from REDP (WB) via the Ministry of Finance (MOF). Such a refinanced sum from REDP shall be financed by WB to MOF under conditions defined by the WB. It is expected that there are about sub-projects to be assisted via refinancing mechanism. When they come into operation, total capacity of these subprojects is expected to be 210MW and supply about 880GWh of annual electric output. Technical assistance for implementation of investment projects: the technical assistance (TA) under component 1 shall assist in general management to REDP project, reviewing eligibility of the refinanced sums and capacity building for 1

13 participating banks, investors and other stakeholders. This TA shall be managed by PMU. TA shall concentrate on guiding sub-project investors to obtain necessary skills to identify viable sub-projects and prepare proposals for the bank loan through loan processing and negotiation. In addition, the TA shall also concentrate on training preparation of viable studies, utilizing design, construction management, operation, maintenance, financial risk management and considering social and environmental safeguard. The participating banks shall be assisted in building capacity of understanding the risks from investment in REDP, supervising the projects to ensure safety, building up credit policies and reviewing sub-project in compliance with these policies. The TA shall also assist PMU in management of REDP. B. Coc San Hydropower Plant Legal base (i) Relevant Agreements 1. Decision No. 526/QĐ-NLDK on 2nd Feb 2005 of Ministry of Industry which is about Small and Medium Hydropower Plant Planning of Lao Cai Province; 2. Decision 2221/QĐ-BCT on 10th April 2010 of MOIT on approval of adjustment for Small and Medium Hydropower Plant Planning of Lao Cai Province; (ii) Agreements about the Project 1. Investment Certificate No , third amendment,which Lao cai PPC licensed Lao Cai Renewable Energy (Vietnam) Joint Stock Company for the construction Chu Linh Coc San Hydropower project in Lao cai under the form of design-build-own-operate(dboo) within 50 years. 2. License of using water surface No. 205/GP-BTNMT which Minister of Natural Resources and Environment issued to Colben Vietnam Energy JSC on 29th Jan 2011; 3. Document No. 43/TB-SCT on 7th May 2009 from Department of Industry and Trade of Lao Cai Province to inform the verification of design for Coc San hydro power plant construction. 4. Construction Certificate No. 295/GPXD which Department of Construction and PPC oflao cai Province issued to Colben Vietnam Energy JSC on 20th April 2010; 5. Construction Certificate No.1692/GPXD which Department of Constructionof Lao Cai Province issued to Lao Cai Renewable Energy Comapny on 18th December 2013 on building transmission lines. 6. Decision No. 107/QĐ-UBND on 15th January 2010 issued by Lao Cai PPC about approving Operation Procedure of Mong Sen reservoir under Coc San HPP in Trung Chai commune (Sa Pa district) and Toong Sanh, Coc San (Bat Xat district) Lao Cai province; 7. Decision No. 2183/UBND CN on 6th November 2008 issued by Lao Cai PPC about approving adjusting installation capacity of Coc San HPP which has been invested by Colben Vietnam Energy JSC. 2

14 8. Official document No. 465/EVNNPC-KDĐN on 25th February 2011 from EVN North Power Corporation on purchasing power from Coc San HPP Lao Cai Province. (iii) Agreement about land 1. Certificates of land use right No. BO UBND - the right to use m2 land in Trung Chai, Toong Sanh and Coc San commune, Lao Cai Province. 2. Land Lease Contract No. 65/HĐTĐ about leasing m2 land in Trung Chai, Toong Sanh and Coc San commune, Lao Cai Province. 3. Certificates of land use right No. BI about the right to use m2 land in Trung Chai, Toong Sanh and Coc San commune, Lao Cai Province. 4. Land Lease Contract No. 58/HĐTĐ about leasing m2 land in Trung Chai, Toong Sanh and Coc San commune, Lao Cai Province. 5. Decision No. 3282/QĐ-UBND about issuing Certificates of land use right, right to use house and other assets associated with land. 6. Decision No. 1665/QĐ-UBND about approving leasing at the second stage, issuing Certificates of land use right, right to use house and other assets associated with land. (iv) Agreement about environment 1. Environmental standards Registration of VCEH System Pte Ltd (Singapore)on July 2007 for Chu Linh Coc San hydropower plant. 2. ConfirmationNo. 23/UBND-GXNof Bat Xat district to confirm environmental protection commitmentregistrations. 3. Confirmation No. 1024/UBND-GXN Committee of Sa Pa district to confirm environmental protection commitment registrations when implementing the construction. 1. Characteristics of the plant 20. Coc San Hydropower Plant (HPP) use water from Ngoi Dum stream, secondary tributary of Hong River in Lao Cai Province. The stream originates from the mountain which is m in height, flows in the southeast and connects to Hong River in Lao Cai city. Coc San HPP is located in the middle of Ngoi Dum s midstream, between Mong Sen (headwork) and Coc San (plant area). 21. The headwork is far 2 km away from National Highway 4D from Lao Cai to Lai Chau, and far 20 km away from Lao Cai city in the southwest. The entire reservoir and headwork route of Coc San HPP are located in three communes which are Coc San, Tong Sanh under Bat Xat District and Trung Chai under Sapa District, Lao Cai Province. 22. Catchment area of Mong Sen dam is 99.6 km2, average annual flow at the dam is approximately 4.61 m3/second; total average annual flow is approximately 145x 10 6 m3; design flood with frequency of 1% is 1264 m3/second; design flood water level with frequency of 1% is m; check flood flow at Mong Sen dam with frequency of 0,2% is 1540m3/second, check flood flow at the plant with frequency of 0.5% is m3/second; check flood water level (p=0.2%) is m; Normal water level (NWL) 3

15 7022m; the full volume is 506.2x 10 3 m3; Reservoir area at normal water level is m2, volume of reservoir at NPL is 231,6x 10 3 m3; Useful volume is 121x 10 3 m3; the length of energy route is 5.7km, including 5.68 km of tunnel; Installation capacity of the plant is 29.7 MW, including 3 units; average annual output is approximatetly x10 6 kwh, total construction time is 25 months, total investment is 46 x10 6 USD, excluding cost for clearance compensation. The main construction items consist of headwork and energy route. The headwork includes weir dam and spillaway damon Ngoi Dum stream. The close energy route includes intake tunnel, intake, surge tank, well, penstock, open-air hydro power plant, discharge the water back to Ngoi Dum stream in the downstream. Reservoir area is in Trung Chai commune, Sa Pa district and the entire energy route is in 2 communes which are Coc San, Tong Sanh, Bat Xat district, Lao Cai province. TableI-1: Main specifications and parameters of Coc San HPP No. Specification Unit Value Note I. Hydrology 1. Catchment area of upstream Km 2 99,6 2. Using hydrological data series year Average annual water volume 10 6 m Average annual water flow m 3 4,61 5. Checking flood flow Mong Sen dam route (p=0.2%) m 3 /s Plant (p=0.5%) m 3 /s Construction diversion flood flow m 3 /s 78,4 From November to March of the following year 7. Alluvium Average annual hovering alluvium 10 3 t 11,73 Average annual concentration kg/ m 3 0,244 II. Reservoir 1. Design flood water level (p=1%) m 705,66 2. Checking flood water level (p=0.2%) m 706,14 4

16 No. Specification Unit Value Note 3. Normal water level (NWL) m Dead water level m Reservoir surface area at NWL 10 3 m 2 45,3 7. Volume of reservoir at NWL 10 3 m 3 231,6 8. Useful volume 10 3 m III. Hydraulic energy 1. Installed capacity MW 29,7 2. Firm capacity (P=85%) MW 3,10 3. Average annual output 10 6 KWh 127,89 4. Time using installation capacity h IV. IV-1 Main works and items Weir and culvert 1. Dam type Concrete gravity 2. Dam background Weathered rock 3. Elevation of Dam Crest m Length of dam crest m Max height of dam crest m 26,0 6. Max flow m 3 /s Type of spillway WES 8. Number of spillway bays Free flow 9. Width of spillway Energy discharge Bottom energy discharge 11. Cross section dimensions of discharge culvert at the bottom m 3,0x3,0 5

17 No. Specification Unit Value Note 12. Cross section dimensions of water intake m 2,5x2,5 13. Crest elevation of culvert m 689,5/691,5 Hồ/ cống IV-2 Energy route 1. Design flow m 3 /s 8,04 2. Type of water intake Body of dam 3. Plan section dimensions of intake m 4,9x23,1x22 LxWxH 4. Dimensions of water intake m 2,5x2,5 5. Length of tunnel m Rock layer around the tunnel II-III, IV-V 7. Hydraulic mode Tunnel with pressure 8. Section type of tunnel Upside down letter U/ circle 9. Tunnel diameter m 2,5x2,7/D2,5 WxH C. Objectives of Resettlement Plan 23. According to guidelines under OP4.12 by World Bank (WB) on involuntary resettlement, for any project, a resettlement plan must be prepared to ensure that: (i) Involuntary resettlement must be avoided where possible, or be reduced to the lowest possible extent by selecting appropriate design options, (ii) Where involuntary resettlement is unavoidable, the resettlement activities must be prepared and executed with sustainable development programs and sufficiently provided investment supports, enabling displaced people to benefit from the subproject. The displaced people will be fully consulted and allowed to participate in preparatory and implementing activities of Resettlement Plan. 24. The displaced people must be supported in terms of their capacity to improve their living conditions and to rehabilitate their living standards higher than or at least equal to before constructing Coc San. D. Measures to be taken for mitigating impacts caused by the works 25. In order to avoid involuntary resettlement or to minimize impacts caused by Coc San HPP construction, there are two location of dam routes have been proposed: Route 1: Upstream route; Route 2: Downstream route. Slecting Upstream route will make maximum use of existing environmental conditions, minimize the volume of stream bank 6

18 to be digged and waterproof concrete. At the same time, it is easier and more convenient to connect the plant to National Highway 4D and inter-commune roads. In comparison to Downsream route, selecting Upstream route is more cost effective and the output is higher. Therefore, Upstream route is selected to implement the construction. 7

19 26. II. IMPACT AREA OF COC SAN HYDROPOWER PLANT 27. Measures to minimize permanent affected land area have been studied and calculated by the investor of Coc San Hydropower Plant when selecting the best alternative. Moreover, many other mitigation measures such as no earth grading for widening the existing road have been proposed; when new road for the plant operation, earth grading can only be done with enough width for movement of vehicles and close monitoring is carried out to control land sliding onto both road sides to minimize affected area; 28. Coc San HPP will permanently occupy 529,418m 2 land of many types in Trung Chai (Sa Pa district), Coc San, Tong Sanh (Bat Xat district). The detailed information on area of each type of land and the number of AHHs will be shown in the next sections. A. Impact on land 29. According to inventory of loss (IOL), there is 529,418 m 2 land of many types that are affected permanently, including 55,680m 2 public land in Bat Xat district which is used for building underground tunnel, 181,806m 2 land of AHHs in Trung Chai commune, 139,518m 2 land of AHHs in Tong Sanh commune, 100,068m2 land of AHHs in Coc San commune, m 2 river and stream land. Table II-1 provide detailed information on affected land area and the number of AHHs in the construction area. TableII-1Land area and the number of AHHs in the construction area No Commune Trung Chai commune Tong Sanh commune Coc San commune Land in Bat Xat district (for underground tunnel) Land in Sa Pa district (for underground tunnel) Area of permanently acquired land Total affected area (m 2 ) Total AHH s Land of AHHs River and stream land 234, , ,806 52, , , , , , , , ,

20 Total 529, , ,392 52, Total area of permanently acquired land is 529,418m2, in which land for rice accounts for 32.6% and land for upland field accounts for 29.4%, the remaining is river land, land for other perennial crops, land of authority office, traffic land. TableII-2Classification of affected land acquired by the work (m 2 ) No. Area of permanently acquired land Type of land Area (m 2 ) Managed by 1 Land for rice Household 2 Upland Household 3 Land for perennial crops Household 4 Forest land Household 5 Pond land Household 6 River and stream land 52,346 CCP 7 Public land 55,680 CCP Total 529, According to inventory of loss (IOL), a part in 529,418m 2 is permanently acquired land. Most of the area is for building headwork: m2 (accounts for 37,84%), land for building tunnel: 55,680m 2 accounts for 10.51%, land for building plant, distribution station, operation management building: 27,496m 2 (accounting for 5.19%); land for 110kv transmission lines: 2,500m 2, accounts for 0.47%, land for building sub-openning of tunnel: 35,422m 2 account for 6.69%,land for building for auxiliary works: 6.707m 2, accounts for 1.26%, land for building site road:78,343 m 2 chiếm 14.79%, land for waste dunp area: 122,890 m 2 (accounts for23.21%). See table (II-3) for classification of affected land acquired by the work. TableII-3: Classification of affected land acquired by the work (m 2 ) No. Items Total affected land area 1 Headwork 200,380 2 Tunnel 55,680 3 Plant, distribution station, operation management building 27, kv transmission lines 2,500 5 sub-openning of the tunnel 35,422 9

21 No. Items Total affected land area 6 auxiliary works 6,707 7 Site road 78,343 8 Waste dunp area 122,890 Total 529, For rate of lost land of each AHH, 11 HHs lose less than 10% of land (accounting for 9.48% of total AHHs), 21 HHs from 10-30% (accounting for 18.10%), 20 HHs from 30-50% (accounting for 17.24%), 31 HHs from 50-70% (accounting for 26.72%) and 33 HHs more than 70% (accounting for 28.45%). TableII-4: Rate of loss of HHs land acquired by the work (m 2 ) No. Commune <=10 % >10% -< 30% 30% - 50% 50% - 70% >70% Total Sa Pa district 1 Trung Chai commune Bat Xat district 2 Coc San commune Tong Sanh commune Total B. Impacts on crops and trees 33. According to the survey results, 235,432m2 perennial crop landwill be affected by the construction (include rice, maize, cassava, and 23,807 other perennial crops (Table II.4). Progress of construction works in the district should have close coordination with affected households so they could harvest the crop. TableII-5 Affected land area for annual crops and perennial crops No. Items Unit Total I II Coc San commune Trung Chai commune Tong Sanh commune Annual crops m 2 235,432 52, ,967 54,504 Perennial crops tree 23,807 12,906 1,052 9,849 10

22 C. Impacts on works and architectural objects 34. Coc San HPP does not affect houses, works and architectural objects of households. None of households has to displace. D. Impacts on income and livelihood 35. Land acquisition, especially land for cultivation will have impact on the livelihoods and income of the households. According to the survey, when Coc San hydropower plant is built, it will affect 116 households due to permanent acquired land in Trung Chai (Sa Pa district). Tong Sanh, Coc San (Bat Xat district). 100% of AHHs is ethnic minorities. E. Impacts on vulnerable households 36. The socio-economic survey at the time of reporting has shown that there is 20 poor households in the total 116 AHHs. These HHs shall be further assisted in compliance with the project guidelines and more details shall be described in the next chapters. 11

23 III. SOCIO-ECONOMIC INFORMATION OF AFFECTED COMMUNITY A. General socio-economic characteristics in project area 37. Coc San HPP is located in Sa Pa and Bat Xat districts, Lao Cai Province. In Sapa, a coomune affected by the construction is Trung Chai; in Bat Xat, two communes affected by the construction are Tong Sanh and Coc San. Lao Cai Province 38. Lao Cai with 6,384 km2 in area is far 300km away from Hanoi to the North.Lao Cai shares borders with China to the north, Yen Bai to the south, Lai Chau Province to the west and Ha Giang province to the east. Lao Cai has one city (Lao Cai city) and eight administrative districts (including both Sa Pa and Bat Xat districts). Important Road (Highway No. 70) and railway connect to the center of the province. National Highway 4D connecting Lao Cai city with Lai Chau province, passing through Sa Pa town, is the main route for tourists to come to Sapa. Bat Xat District 39. Bat Xat district is adjacent to Lao Cai city to the southwest, far 20km away from Lao Cai city. The district has area of 1,062 km2, accounts for 16.6% total area of Lao Cai province. Bat Xat has one town and 22 communes. Agriculture is the key in economy of the district, however, in recent years, the income from tourism is higher and higher. Sa Pa district 40. Sa Pa is far 40km away from Lao Cai city, in the North of Bat Xat district. The district has area of 683 km 2, accounts for 10.06% total area of Lao Cai province. The district has one town (Sa Pa town), 17 communes. Pa Sa town and other neighbour villages are good and famouns destinations in Vietnam. Tourisnm plays an very important role to Sa Pa town and other community in neighbour areas, while the economy is mostly agriculture based in other parts of the district. 41. Trung Chai commune: is the II mountainous area of Sa Pa district. This commune is extremely poor commune in the north of Sa Pa, far 12.2km away from center of the district with area of 0.39km2. The commune has 7 villages, 686 households and 3,773 people. In the commune, there are 4 ethnic minority group living together: H Mong, Dao, Kinh, Tay, in which 484 households are H Mông, 180 households are Dao, 20 households are Kinh and 2 households are Tay. As the commune is on high mountain with difficult traffic, Trung Chai is one of the poorest communes in Sa Pa district. The total number of porr household is 201, accounts for 29.3%. Food production per capita is 332kg/person/year. The economy is mainly based on agriculture. 42. Tong Sanh commune: in the south of Bat Xat district, far 30km away from the center of the district, adjacent to Trung Chai in the south. The commune has 7 villages, 12

24 286 households, 1,754 people. The number of poor household in the commune is 106, accounting for 37.0%. 43. Coc San commune: in the southeast of Bat Xat district, far 20km away from the center of the district, adjacent to Tong Sanh commune in the west. The commune has 13 villages, 125 households, 4,233 people. Giay (accounting for 53%) and Kinh (43%) are main ethnic minority groups living in the commune. As a plain commune of Bat Xat district with favorable natural conditions for agricultural development, Coc San is one of the communes in this district who have ability to strongly develop economy. In 2014, economic growth is 13%, income per capita reaches million VND/person/year, average food consumption per capitais kg/person/year. The number of poor household is 34, accounting for 3.1%. B. Socio-economic information of affected community 1. Affected households are ethnic minorities 44. According to IOL, all 9 affected villages in three communes Trung Chai (Sa Pa district), Coc San, Tong Sanh (Bat Xat district) are ethnic minorities. Table III-1 below shows the number of household and the number of ethnic minority household in each commune. TableIII-1: The Number of Household and Ethnic Minority Household District/Commune Village Ethnic minority group AHHs Sa Pa 43 Trung Chai Vu Lung Sung Dao 20 Po Si Ngai Dao 11 Xin Chai H Mong 8 ChuLin Dao 4 Bat Xat 73 Tong Sanh 38 Chu Cang Ho Dao 33 KyCong Ho Dao 3 Ta Tong Sanh Dao 2 Coc San 35 Luong Giang Giay 11 Luong Do Giay 24 13

25 2. Education level of AHHs 45. Due to universalized Government education program, no case of illiteracy in children (> 18 years-old) has been record in three communes, However, most of elderly women were found to be illiterate and re illiterate since they mostly use their own languages (ethnic languages) and do not have chance to contact with Kinh people. According to ERM s socio economic survey, approximately half of the adults (>18 years old) in Trung Chai and Tong Sanh did not finish elementary school, while the number for Coc San is less than a quarter (see Table III-2). TableIII-2: Education level of surveyed HHs in affected communes (%) Commune No/ unfinished elementary school Graduate from elementary school Graduate from Secondary school Graduate from High school Trung Chai Tong Sanh Coc San Job and income 46. Income of ethnic minority households in project area is mainly from agriculture. Rice, maize, cassava are the main food source for the local people, beside, the people plant other crops, such as vegetables, beans to increase food source and income. Some households, especially Dao ethnic people plant cardamom and forest. Giay ethnic minority households in Coc San can get income from aquaculture because they live in the place near water source. Most of households in project area breed goat, pig, chicken, cattle, horses, and poultry. However, income from livestock is unstable for these households because in reality these households only sell their animals when they need money for critical expenditure. Water buffalos are only for supporting farming. TableIII-3Main income source of ethnic minority AHHs Commune/village Farming (%HH) Livestock(%HH) Fishery (%HH) Planting cardamom (%HH) Afforestation (%HH) Trung Chai Vu Lung Sung

26 Po Si Ngai Xin Chai ChuLin Tong Sanh ChuCangHo KyCong Ho Ta Tong Sanh Coc San Luong Giang Luong Do In addition to farming, some surveyed households do some seasonal jobs for manual labor, such as construction worker, collecting herbs, porters in Lao Cai or border gates. The daily income for these jobs is about 150, ,000 VND which varies by type of specific job. 48. Some households get income by fishing in Dum River. According to the interviews with some village heads, fishing is not a regular activity of the local people and does not provide local people with stable food source. In addition, fish resource in Dum River has been decreasing quickly in recent years because the people use electricity for fishing. 49. The income of AHHs in project area is quite low. The following income per capita of AHHs provides detailed information about income of surveyed households in affected communes. Rice, vegetables and products from livestock are enough only for daily need, they are not included in income estimation of local people. TableIII-4: Income per capita of AHHs Commune Average income/person/month Rate of poor household Trung Chai Tong Sanh Coc San 116, , ,150, People in Coc San commune have the highest income; it is 5 times higher than other two communes. The people in Trung Chai have the lowest income. In Coc San, the poor rate is only 3.1%, meanwhile poor rate in Trung Chai and Tong Sanh are 29.3% and 37%, respectively. The reason is that Coc San commune has advantage about valley and low terrain, land and climate is favorable for developing agriculture. In recent years, 15

27 people in Coc San has transfer from planting rice to breeding fish and planting vegetables, flowers which give more income than planting rice. Trung Chai and Tong Sanh are in mountainous area with poor land, therefore the average income is much lower. 51. The expenditures for daily needs of households vary by income. The expenditure often includes food, clothes, power and water bill, tuition, health care and travel. In Tong Sanh and Trung Chai, the people have just enough food for their family; especially the households having less farming land do not have enough food for their family. Therefore, the people in the two communes spend the most for food. Coc San, due to plain terrain, is a big area of farming with high efficiency and diverse foods in the farm (rice, vegetable, fish ) which meet food need of their family. Due to enough food sources, the expenditure for education of people in Coc San is the highest level in comparison to other communes. Education from pre-school to secondary for Ethnic minorities is supported from the Government. The expenditure for education of surveyed households is mainly for higher education levels (high school, college, university). This proves that they invest more in education above high school. The detailed expenditure of the households is described in Table III-5. TableIII-5Average Expenditure of Surveyed HHs Monthly expenditure Trung Chai Rate (%) Tong Sanh Rate (%) Coc San Rate (%) No. (VND) (VND) (VND) 1 Food(rice, meat and spice) 627, , , Clothes 320, , , Utilities (power, mobile 170, , , phone) Travel fee (petrol, 272, , , motorbike maintenance, public transportation) Education (all levels from 10, , ,084, pre-school to university and vocational education) 6 Health care , , Total expenditure for each 1,399, ,120, ,550, household 8 Expenditure per capita 197, ,000 Total Infrastructure and social service 52. National Highway 4D linking Sa Pa and Lao Cai pass through three communes in Project area. The CCP s headquarter is near National Highway 4D, however, there are only few households living near National Highway 4D... Mong Sen dam is 3km far from National Highway 4D, connects to National Highway 4D by a rocky path. In 9 affected communes, there is no commune near National Highway 4D. Roads to center of affected 16

28 villages in Tong Sanh, Coc San were concreted. Roads to center of villages in Trung Chai are still small, difficult to travel in rainy season. 53. Among all villages, Luong Do, Luong Giang Chu, Cang Ho, and Ta Tong Sanh have national grid electricity. 4 villages in Trung Chai commune and Ky Cong village of Tong Sanh commune do not have national grid electricity. In the village without national grid electricity, most of households use power from power generators which use water from streams near their houses. This source is enough for lighting in the houses and sometimes for television in rainy season when water source is full. In dry season, this power source is only enough for basic lighting. Only some households living far from streams us kerosene lamp. 54. Regarding fuel sources for daily cooking, most of the affected households use firewood as the main energy source, there are only some households using gas. 55. The households use water mainly from small stream on the hill. In some villages, such as Chu Cang Ho (Tong Sanh commune) and Luong Do (Coc San commune), water is transferred to the village by concrete cannel. Meanwhile in other villages, each household use a small plastic pipe to get water from the streams to their houses. In dry season, only some villages have enough clean water, such as Vu Thung Sung village (Trung Chai commune), Chu Cang Ho and Ky Cong Ho (Tong Sanh communes). Only some communes have enough clean water, such as Vu Lung Sung (Trung Chai commune), Chu Cang Ho and Ky Cong Ho (Tong Sanh commune) and Luong Do (Coc San commune). 5. Environmental and hygiene conditions 56. The local people have not cared about sanitation problem due to their low awareness of environmental protection. According to survey results, the people maintain the habit of grazing livestock, 70% of affected households in Coc San commune have built toilets, and 30% AHHs in Tong Sanh commune, Trung Chai has temporary toilets. 57. In the project area, all communes have no waste collecting and disposal system; waste is usually buried in the garden. 6. Education system 58. According the data in 2014, there are 80 pre-schools, elementary schools, secondary schools and high schools in Bat Xat and 67 in Sa Pa district. The number of school in each district is shown in Table III-6. Table III-6: The number of school at all levels in Bat Xat district and Sa Pa District Pre-school Elementary school Secondary school High school Total Sa Pa Bat Xat