ABBREVIATED RESETTLEMENT PLAN

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized MINISTRY OF CONSTRUCTION ADMINISTRATION OF TECHNICAL INFRASTRUCTURE MANAGEMENT BOARD OF TECHNICAL INFRASTRUCTURE DEVELOPMENT PROJECTS Consultant International Co. Ltd Generated by Foxit PDF Creator Foxit Software B-PROJECT KIEN GIANG PROVINCIAL PEOPLE S COMMITTEE KIEN GIANG WATER SUPPLY AND SEWERAGE LIMITED COMPANY VIETNAM URBAN WATER SUPPLY AND WASTEWATER PROJECT ABBREVIATED RESETTLEMENT PLAN PHU QUOC WATER SUPPLY SUB-PROJECT KIEN GIANG PROVINCE Project Owner KIWACO December 2010

2 This report has revised and updated based on the RAP prepared by GHD Pty Ltd. in October 2010 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 1. INTRODUCTION 3 2. Phu-Quoc Sub-Project Project Description Project Components Preparation of the Abbreviated Resettlement Plan 6 3. SCOPE OF LAND ACQUISITION AND RESETTLEMENT Suoi Lon Booster Pumping Station Hilltop Reservoir along road 47 (Duong To commune) Sludge ponds in Cua Duong Commune Hilltop Reservoir in An Thoi Town Temporary impacts during construction LEGAL FRAMEWORK AND ENTITLEMENT POLICY Vietnamese Laws, Decrees, and Circulars Kien Giang Province Regulations on Resettlement World Bank Policy on Involuntary Resettlement Government, World Bank, and VUWSW COMPENSATION POLICY Objectives for Resettlement Principles of Resettlement Cut-off Date and Eligibility Project Entitlements INSTITUTIONAL ARRANGEMENTS The Kien Giang People s Committee The Project Management Unit (PMU) Phu Quoc District People s Committee Town/Commune People s Committee Agency Responsible for External Monitoring Institutional Capacity PUBLIC PARTICIPATION, CONSULTATION, AND GRIEVANCE MECHANISMS Objectives of Public Information and Consultation Consultation during Project Preparation Grievance Redress Procedure MONITORING AND EVALUATION Monitoring Internal Monitoring External Monitoring Cost Estimate and Budget Flow of Funds Adjustment for Inflation Compensation Prices Cost estimates IMPLEMENTATION SCHEDULE 25 December 2010 Page (ii)

3 LIST OF TABLES Table 3-1: Project Impacts... 8 Table 3-2: List of Project Affected HH... 9 Table 4-1: Differences between National Laws and the World Bank Policy and VUWSDPII Policy Table 5-1: Entitlement Matrix Table 9-1: Cost Estimates for the Phu Quoc Sub-Project Table 10-1: Implementation Schedule LIST OF FIGURES Figure 2-1: Location of the Sub-project Works... 7 Annex 1 PAHs inventory Annex 2 Minute of public consultation ABBREVIATIONS ARP BPS CPC DOC DMS DP DPC DRC EA EMA GOV HH IMO KGPPC KIWACO LURC MABUTIP MO MOC MOF ODA PAH PC PIB PMU PPC Abbreviated Resettlement Plan Booster Pumping Station Commune People s Committee Department of Construction Detailed Measurement Survey Displaced Person District People s Committee District Resettlement Committee Executing Agency External Monitoring Agency Government of Vietnam Household Independent Monitoring Organization Kien Giang Provincial People s Committee Kien Giang Water Supply and Drainage One Member Limited Company Land User Rights Certificate Management Board of Technical Infrastructure Development Projects Monitoring Organization Ministry of Construction Ministry of Finance Official Development Assistance Project Affected Household People's Committee Public Information Booklet Project Management Unit Provincial People's Committee December 2010 Page (iii)

4 PRC PSC PWSC RP RPF VND VUWSDP I VUWSDP II VUWSW WB WTP Provincial Resettlement Committee Project Steering Committee Provincial Water Supply Company Resettlement Plan Resettlement Policy Framework Vietnam Dong First Vietnam Urban Water Supply Development Project Second Vietnam Urban Water Supply Development Project World Bank Water Treatment Plant December 2010 Page (iv)

5 Definition of Terms Cut-off-date The date of commencement of census and asset inventory surveys during preparation of the RP. Affected people and local communities will be informed of the cut-off date for each subproject. Persons not covered in the census, because they were not residing, having assets, or deriving an income from the project area, are not eligible for compensation and other entitlements. Eligibility Replacement cost Resettlement Displaced Persons (DPs) Any person who at the cut-of-date was located within the area affected by the project, its sub-components, or other sub-project parts thereof, and would: (a) have formal legal rights to land (including customary and traditional rights recognized under the Vietnamese laws); or (b) not have formal legal rights to land at the time the census begins but have a claim to such land or assets - provided that such claims are recognized under the laws of Vietnam or become recognized through processes identified in the resettlement plan; or (c) not have legal nor recognizable by law rights to the land they are occupying or land have properties/assets within the project areas before the cut-off date. Persons covered under (a) and (b) are provided compensation for the land they lose and other assistance at full replacement cost. Persons covered under (c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set in this RPF, if they occupy the project area prior to the cut-off date. Persons who encroach on the area after the cut-off date are not entitled to compensation or other form of resettlement assistance. All persons in (a), (b) or (c) are provided compensation for loss of assets other than land. Is the term used to determine the amount sufficient to replace lost assets and cover transaction costs. For losses that cannot easily be valued or compensated for in monetary terms (e.g. access to public services, customers, and supplies; or to fishing, grazing, or forest areas), attempts are made to establish access to equivalent and culturally acceptable resources and earning opportunities. When domestic laws do not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standards. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account. Is the general term related to land acquisition and compensation for loss of assets whether it involves actual relocation, loss of land, shelter, assets or other means of livelihood. Persons who are affected by the involuntary taking of land resulting in the relocation or loss of shelter, loss of assets or access to assets, loss of income sources or means of livelihood. December 2010 Page v

6 EXECUTIVE SUMMARY The World Bank (WB) intends to provide a loan for the Vietnam Urban Water Supply and Wastewater Project (VUWSW). The development objective of the VUWSW is to improve water supply, wastewater collection and treatment, and drainage services in urban centers throughout Vietnam. GHD consultants are undertaking the initial project preparation under PHRD Grant No TF The Executing Agency (EA) for the project preparation is the Management Board of Technical Infrastructure Development Projects (MABUTIP) under the Ministry of Construction (MOC). For the project implementation each PPC will be the EA in its province. This Abbreviated Resettlement Plan (ARP) will apply for the Phu Quoc Water Supply Subproject, Kien Giang Province. Phu Quoc is one of the urban centers selected for inclusion in VUWSW. The objective of the proposed Phu Quoc sub-project is to improve the living conditions and economic potential of residents, and create favorable conditions for development of Phu Quoc island as an international and regional tourism center. This objective will be achieved by improving and expanding the existing Duong Dong piped water supply system to meet the forecast water demands to 2020 of Duong Dong town, An Thoi town and Duong To commune. The Phu Quoc sub-project will include the following works i) modification of the raw water intake at Duong Dong Dam to improve water quality; ii) the construction of 3.2 km of new raw water transmission main; iii) improve the existing 3,000m3 capacity raw water reservoir facilities, construct a new lime store and install three new pumps in the raw water pumping station; iv) the rehabilitation and expansion of the existing Duong Dong water treatment plant (WTP) to raise its capacity from 5000m 3 /d to 16,500m 3 /d; v) the construction of about 29km of treated water transmission mains between Duong Dong and An Thoi towns vi) the construction of a booster pumping station; vii) the construction of two sludge ponds; viii) the construction of two hilltop reservoirs and ix) a network of around 80 km of distribution pipelines; Except for the two hilltops reservoirs, the sludge ponds and the booster pumping station all the other sub-project works would not require land acquisition. The proposed raw water reservoir upgrade, the rehabilitation of the raw water pumping station and the WTP expansion would be confined on their existing sites and the transmission and distribution pipelines would be installed in footpaths or road corridors on public land. Due to the measures undertaken to minimize resettlement impacts, less than 4,000 m 2 of land will be acquired. The booster pumping station requires 2,000 m 2 of private vacant land belonging to a large investment company. The two hilltop reservoirs, adjacent to Provincial Road 47 and at An Thoi, require respectively 400 m 2 and m 2 of land. Along Road 47, the reservoir land belongs to a private owner; the land is covered with myrtle trees. At An Thoi, the reservoir is located in forestry land belonging to a state owned forestry company. Finally 700 m 2 of private vacant residential land will be acquired for the two sludge ponds. Around 650 trees will also be affected. No structures will be affected and no displaced persons (DPs) will be severely affected due to the Phu Quoc sub-project. Compensation at replacement cost for affected land and trees will be required. This ARP is based on detailed design conducted by the project preparation consultants, GHD, in The policies and principles adopted for the sub-project have been established based on surveys completed during project preparation, Vietnamese legislation (including Kien Giang Province s regulation on resettlement), and the World Bank s Resettlement Policy OP The provisions and policies of this ARP will form the legal basis for the implementation of resettlement activities for the sub-project. The Kien Giang Provincial People s Committee (KGPPC) will be responsible for approval of this ARP and resettlement-related issues. December 2010 Page 1

7 Compensation unit rates will be updated for land and trees based on replacement cost surveys undertaken after approval of detailed design. The updated ARP will be revised by the PMU at that point. The KGPPC will be responsible for implementing the revised ARP. The total estimated budget for resettlement is around VND million ( USD). December 2010 Page 2

8 1. INTRODUCTION. The development objective of the (VUWSW) is to improve water supply, wastewater collection and treatment, and drainage services in urban centers throughout Vietnam. This objective would be achieved by providing better access to piped water supply, wastewater and drainage services, and by improving the quality of piped water supply and the quality of wastewater discharged to the environment. The Project s success in meeting the objective would be measured through: expansion of piped water supply and drainage coverage; increase in wastewater volume treated; reduced frequency of flooding in urban areas; and improved sustainability of services measured through the water supply company s or drainage company s tariffs and working ratios. The proposed Project has two components: Component 1: Urban Water Supply, Wastewater & Drainage Investments Component 2: Technical Assistance On 28 September 2010, the Government had Decision No 1759/TTg-QHQT re approval of list of subprojects under VUWSWP Phase I Loan from WB based on letter from MPI No 6565/BKH-KTDN dated 16 September The project total investment costs is about USD250 millions where USD200 millions will be loan from WB and USD 50 millions come from counterpart funding. The VWSWP project consists of 3 main aspects as follows: - Water supply: including 7 component projects in the provinces of Quang Ninh, Ninh Binh, Quang Nam, Kien Giang, Lam Dong, Binh Duong and Binh Phuoc. - Wastewater collection and treatment: including 7 component projects in the provinces of Ninh Binh, Nghe An, Thanh Hoa, Quang Tri, Quang Nam, Lam Dong, and Binh Phuoc. - Management Assistance and Central Sector Development will be implemented in the MOC and MPI. This abbreviated Resettlement Plan will apply to Duong Dong and An Thoi district towns in Phu Quoc District - Kien Giang province. December 2010 Page 3

9 2. PHU-QUOC SUB-PROJECT 2.1 Project Description Phu Quoc District comprises a group of islands within the Gulf of Thailand in the west of Kien Giang Province. The main Phu Quoc Island has an area of 568 km 2 and has a favorable natural environment which provides great tourism potential. The main island contains the two district towns, Duong Dong and An Thoi, and six communes. The district capital, Duong Dong, is located midway along the main island s west coast, and An Thoi is located at the southern tip of the island, about 25km from Duong Dong. Duong Dong and the 10km coastal strip to its south contain most of the island s hotels and tourist resorts. Phu Quoc is being developed as an international and regional tourism destination and is expected to grow rapidly over the next 10 years. Government is making substantial infrastructure investments in an international airport and new roads. Duong Dong town is expected to continue its role as the administrative, service, trade, industrial and tourist centre of Phu Quoc island district, while An Thoi town will be a port, commercial service, security and defense centre. Several areas along the west coast and in the south west are expected to develop as new tourist-service urban centers. The objective of the proposed Phu Quoc sub-project is to improve the living conditions and economic potential of residents, and create favorable conditions for development of the island as an international and regional tourism center. This objective will be achieved by improving and expanding the existing Duong Dong piped water supply system to meet the forecast water demands to 2020 of Duong Dong town, An Thoi town and Duong To commune. 2.2 Project Components Raw Water Source Raising of Duong Dong Reservoir provides the only viable raw water source for the Kien Giang Subproject. The Duong Dong Dam Upgrading Project was approved by Kien Giang PPC Decision No. 1825/QD-UBND of August The raising works would include replacement of the existing 1.0m high spillway gate with a new 2.5m high gate. It would increase raw water supply capacity to 16,500m 3 /day. These works are expected to be complete by end A canal conveys raw water to a raw water reservoir from where it is pumped to the 5,000m 3 /d Duong Dong water treatment plant Intake Structure in Duong Dong Lake To improve raw water quality as part of the sub-project, a 1.1m high stainless steel intake will be installed on top of the existing raw water intake to extract reservoir water at 4-5m above the reservoir bed. A float operated gate to control flow through the openings in the existing intake will also be installed. The new intake structure will be located within the existing reservoir site and no land acquisition will be necessary Raw Water Transmission System The capacity of the existing raw water canal requires augmentation to meet the water demand of the sub-project s water supply service area to The canal is used for both urban water supply and irrigation. The additional raw water transmission capacity for Duong Dong water treatment plant will be provided by installing a new raw water gravity pipeline from the existing canal to the raw water reservoir. This will require the installation of 3.2 km of pipeline (560 mm diameter) with design capacity of about 18,000 m 3 /day. The proposed 3.2 km of new raw water transmission main would be installed in the existing earth road corridor and no land acquisition will be necessary Raw Water Reservoir and Raw Water Pump Station December 2010 Page 4

10 The existing 3,000m 3 raw water reservoir is in good condition, but is subject to occasional flooding. To address the flooding problem and increase the capacity of the raw water pumping station to 16,500m 3 /day, the two existing raw water pumps will be replaced by two new raw water pumps and one extra pump will be installed. A new lime storage house will also be built. All the works will take place within the existing raw water reservoir site Water Treatment Plant The water treatment plant will be located at the existing Duong Dong WTP site. The existing WTP site is small, and it would be difficult and expensive to acquire additional land. Therefore, a water treatment process that minimizes land requirements was considered. The rehabilitation of the WTP will include the following works: construction of 3 new rapid filters to provide 16,500 m 3 /day total capacity. The proposed expansion of Duong Dong WTP would be located entirely on WSC land Main Transmission Pipeline The Phu Quoc Sub-project includes the construction of about 29km of treated water transmission mains between Duong Dong and An Thoi towns. These mains will be installed within the technical corridors of new roads which are being designed and constructed by the provincial Department of Transport. The status of the new roads is as follows: About 4km have been designed and constructed; About 9km have been designed, but construction has not commenced; The remaining 16km of roads have not been designed. There would be no need for land acquisition or compensation because the pipeline would be installed in the existing or future road corridor Hilltop Reservoirs Hilltop reservoirs, each of 500 m 3 capacity, would be installed on the hill along the way to An Thoi and on new North-South axis (Provincial road 47). They would comprise steel tanks with anti-corrosion protection. These 2 hilltop reservoirs will require the acquisition of around 900 m 2 of private land Sludge Ponds Sludge ponds will be constructed to settle sludge in the backwash wastewater, prior to discharge to the environment. Originally, these sludge ponds were located at the WTP. However due to a lack of space, they were moved off the site. Sludge ponds will be located about 80m east of the WTP. The proposed site was selected because: (a) it is close to the WTP site; (b) backwash wastewater may be conveyed to the site by gravity pipeline; (c) it is near a stream that will receive settled pond water; (c) the area is sparsely populated, and has low development potential; (d) the site is relatively flat, has stable foundations and is suitable for pond construction. The banks of the ponds will be raised above flood level and grassed to prevent erosion. Excess wastewater from the ponds will be discharged to the adjacent stream. The two sludge ponds will require the acquisition of 700 m 2 of private vacant residential land Suoi Lon booster pumping station A new booster pumping station (BPS) would be constructed near the Suoi Lon stream (Duong To commune). The pumping station building will require the acquisition of 2000 m 2 of private land. The BPS will occupy 90 m 2. Other facilities at the pumping station site would include: a concrete reservoir: 500 m 3, power supply, 860 KVA standby generator, internal access road, gates and fences Distribution Network The sub-project would complete the distribution network in Duong Dong town and install reticulation pipe along the roads and small alleys to ensure access to almost all urban households. A new distribution network would be constructed in An Thoi. The distribution pipelines in Duong To commune would be taken from offtakes along the transmission main. Except for road crossings, all works would be located within new or existing footpaths and no land acquisition is expected. December 2010 Page 5

11 2.3 Preparation of the Abbreviated Resettlement Plan Due to the limited scope of resettlement (only 3 DPs affected and around 3,000 m 2 of land to be acquired) only an Abbreviated Resettlement Plan (ARP) has been prepared. No general socioeconomic survey was conducted, but all DPs were met or contacted to identify their socioeconomic characteristics. The ARP has been prepared as part of the Project Grant PHRD Grant No TF provided through the World Bank to the Government of Vietnam. The ARP has been prepared with the participation of and consultation with key stakeholders, such as DONRE, district authorities and project affected households (PAHs). Fieldwork took place in January 2010 and consultations in June MONRE has also been consulted on this ARP. The overall objective of the ARP is to identify the resettlement impacts that cannot be avoided and develop the mitigation and rehabilitation measures necessary as a result of implementing the Project, according to the WB policy on resettlement. The ARP is also based on the Resettlement Policy Framework (RPF) prepared for the Vietnam Urban Water Supply and Wastewater Project (VUWSW). All PAHs are to be compensated for their losses at replacement cost and provided with rehabilitation measures, when necessary, to assist them to improve or sustain their pre-project living standards and income-generating capacity. December 2010 Page 6

12 Figure 2-1: Location of the Sub-project Works Page 7

13 3. SCOPE OF LAND ACQUISITION AND RESETTLEMENT Land acquisition will be necessary only for the booster pumping station, the two hilltop reservoirs and the sludge ponds. For the other components, the works will take place within the existing facilities of the water company (raw water intake, raw water reservoir, water treatment plant) or within existing or future road corridors or footpath (raw water pipeline, main transmission pipelines and distribution networks). The sub-project will require the permanent acquisition of 3,597.5 m 2 of land. Temporary land acquisition, if any, will be given during project construction. The sub-project will also affect around 660 trees (250 myrtle trees, 400 acacias and eucalyptus; and 10 jackfruit and cashew nuts trees). There is no demolition of houses or structures required. No PAH will be severely affected due to the sub-project. Table 3.1 presents the project impacts regarding land acquisition and resettlement. Component Location Permanent land acquisition Table 3-1: Project Impacts Type of land Tenure Trees Suoi Lon Booster Pumping Station - Du ong To commune m 2 - Vacant land not suitable for cultivation - Private legal land owned by BIM company (private company) Hilltop Reservoir along Road 47 - Du ong To commune Agricultur m 2 al land planted with myrtle trees - Private legal land owned by Mrs Ngo Thi Ngoc Huyen myrtle trees Hilltop Reservoir (An Thoi Town) - An Thoi town - 497, 5 m 2 - Forest land planted with acacias and eucalyptus - Public land managed by State Forestry Company acacias & eucalyptus Sludge ponds Cua Duong commune Residenti m 2 al land planted with some jackfruit and cashew-nuts - Residential land owned by Mr. Nguyen Thanh Phuong - 10 jackfruits and cashew-nuts 3.1 Suoi Lon Booster Pumping Station Approximately 2000 m 2 of land would be required for the construction of the proposed booster pumping station and reservoir, including provision for the future Suoi Lon water treatment plant. The land is vacant and uncultivated. The land belongs to a large private company: Ha Long Investment and Development ( BIM ). BIM is a limited liability company, headquartered in Ha Long City. It owns hundred of ha of land in Phu Quoc for future development. BIM has gained approval to develop the main tourism zone for the Phu Quoc Island. For the affected land no specific purpose is known, the land will be located along the future road. The land is actually vacant and cannot be cultivated (sandy). The loss of 2000 m 2 will have no effect on the future company s projects. Compensation for loss of land will be required. 3.2 Hilltop Reservoir along road 47 (Duong To commune) The reservoir is located along the existing road 47. This reservoir will require an area of 400 m 2. Actually the land is private (belonging to Mrs Ngo Thi Ngoc Huyen). Mrs Huyen is living in HCMC and has other sources of income. Myrtle trees are growing naturally on this area. Myrtles are used to produce a famous wine specific to Phu Quoc Island. December 2010 Page 8

14 The total land holding of the owner is 14,500 m 2. The affected land represents less than 3% of the total land holding. The estimated number of affected trees is 250. The owner plans to develop a guest house or a hotel on this land. The representative of the owner is asking the Project to move the reservoir to the corner of its land holding. The reservoir is currently planned to be located in the middle of the land and could affect their future project (see section 7.2). Compensation for productive land (agriculture land for growing perennial trees) and trees will be required. 3.3 Sludge ponds in Cua Duong Commune Approximately 700 m 2 of vacant land will be required for the construction of two sludge ponds. The affected land is owned by a private owner, Mr. Nguyen Thanh Phuong, living in Duong Dong Town. Ten trees (Jackfruit, Cashew-nut, Acacia) are present on the land. Compensation for residential land and trees will be required. 3.4 Hilltop Reservoir in An Thoi Town The reservoir is located near the urban area of An Thoi town, on a hill where a telecommunication tower is located. The pipeline will follow a small concrete path going to the telecommunication tower. The affected land is managed by the Phu Quoc Protection Forest under the Department of Agriculture and Rural Development of Kien Giang Province. They manage 6,455 ha of forest in Phu Quoc District. The land is considered as public and will not be compensated. The forestry company is allocating the land to private households. The company signed contract with individuals. Individuals commit themselves to plant and protect the forest. They don t have to pay any rent to the forestry company or to share benefits. They can sell the wood which has to be logged selectively. The affected land is actually allocated to a forestry worker, Mr. Ngo Ngoc Oanh, living in quarter No. 2 in An Thoi Town. The total area of forest allocated to Mr Oanh is 8,122 m 2. This represents less than 5% of the total area. The area is planted with acacia and eucalyptus. Mr. Oanh has other sources of income. No compensation for land will be done to the forestry company. Mr. Ngo Ngoc Oanh will receive the compensation for the trees. All PAHs are permanently affected and no PAH needs to be relocated. Table 3-2: List of Project Affected HH Name of PAH Components Occupation of PAH Land Permanently affected Bim Company Mrs Ngo Thi Ngoc Huyen Phu Quoc Protection Forest Management Board Mr. Ngo Ngoc Oanh Mr. Nguyen Thanh Phuong Suoi Lon Booster Pumping Station Hilltop Reservoir near Road #47 An Thoi Hilltop Reservoir Large National Private Investment Company Total land holding % affected m 2 Several ha Negligible Business 400 m m 2 2,8% Forestry Company under the Department of Agriculture & Rural development Forestry worker 495 m 2 6,455 ha in the whole District Negligible 8,122 m 2 4,9% Sludge ponds Trader 700 m 2 2,256.5 m 2 30% (non productive land) Note: Due to limited number of PAHs no separate list has been prepared the information is available in Table 3-2. December 2010 Page 9

15 3.5 Temporary impacts during construction Temporary impacts may occur during construction. The main impacts of the project will be the permanent loss of small areas of land for construction of water supply plant and minor damage to structures, crops and trees, and temporary loss or disruption of the use land caused by construction pipe-lines. December 2010 Page 10

16 4. LEGAL FRAMEWORK AND ENTITLEMENT POLICY This Resettlement Plan is consistent with the various laws, decrees and circulars regulating land acquisition, compensation and resettlement in Vietnam, and World Bank policy on Involuntary Resettlement. 4.1 Vietnamese Laws, Decrees, and Circulars The Constitution of the Socialist Republic of Vietnam, 15 April 1992; the right of citizens to own and protect the ownership of a house Land Law, 26 November 2003, effective 1 July Article 39 Requires disclosure of information to affected people prior to recovery of agricultural and non-agricultural land a minimum of 90 and 180 days respectively Decree No. 181/2004/ND-CP, 29 October 2004, relating to implementing the Land Law Law of Construction effective 01 Jan 2004 by Presidential Order of 26/2003/L-CTN dated 10 December 2003; Compensation and relocation of people affected by ground clearance for investment projects Decree 16/2005/ND-CP; implementation of the Construction Law. Decree No. 188/2004/ND-CP, 16 November 2004, and Decree No. 123/2007/ND-CP specifying methods for land pricing and issuance of land price framework for land categories; Circular No. 145/2007/TT-BTC by MOF; providing guidelines for implementation of the Decree 188/2004/CP. Decree No. 123/2007/ND-CP; amending and supplementing Decree No. 188/2004/ND-CP that gives Provincial People s Committees the authority to set local land prices by establishing ranges for all categories of land. Decree No 182/2004/ND-CP, 29 October 2004; penalty for administrative violation in land issues. Decree No. 198/2004/ND-CP, 03 December 2004; on collection of land tax. Issued guidelines in Circulation No. 117/2004/KT-BTC by MOF. Decree No. 95/2005/ND-CP, 15 July 2005, regulation on property ownership and the right to use urban residential land; Decree No. 08/2005/ND-CP, 24 January 2005 regulation on Urban Planning Management Decree No. 197/2004/ND-CP, 03 December 2004, on compensation, assistance and resettlement when land is recovered by the State (replacing Decree No. 22/CP). Circular No.116/2004/TT-BTC by MOF guiding the implementation of Decree 197. Decree No. 17/2006/ND-CP, 27 January 2006 (amending Decree No. 181/2004/ND-CP and Decree No. 197/2004/ND-CP and other decrees); compensation, assistance and resettlement when land is recovered by the State. Decree No. 69/2009/ND-CP, an amendment to Decree No. 197/2004/ND-CP; supplementary regulations on land use planning, land prices, land acquisition, compensation, support and resettlement. Decree No. 84/2007/ND-CP; supplementary stipulations on the issue of land use rights certificates (LURC), land acquisition, land use right implementation, procedure of compensation, and assistance in the event of land recovery by the state; grievance redress. Degree No. 64/1993/ND-CP, 27 September 1993, regulation on allocating agricultural land to households for long-term use; Ordinance No 34/2007/PL-UBTVQH11 on Exercise of Democracy in Communes, Wards and Townships. Decree No. 172/1999/ND-CP, Article 25, and its 2009 amendment decree. Sites that are currently recognized for cultural and historical preservation and that are situated within the boundaries of waterway safety corridors, should be kept intact according to current legal regulations. Decree No. 131/2006/ND-CP 9 November 2006, regulation on Management and Utilization of ODA (of which international commitments of Government are prevailing and enforceable) Decision No. 48/2008/QD-TTg issued on 3 April 2008 by the Prime Minister, and Common General Guidelines on Feasibility Study Preparation For Official Development Assistance (ODA) Projects Funded by the Five Banks. December 2010 Page 11

17 Under the 2003 Land Law, ownership of land in Viet Nam resides with the State. The State exercises the right to decide the purpose of land use specified in land use planning and land use plans; to regulate the duration of land use; to decide on land allocation; to rent land; to acquire land, and to evaluate land prices. The State can assign and lease land to land users, including individuals, households and organizations. In the case of assigned land, the State delegates to the Provincial People s Committees the authority to grant LURC to land users. With respect to land acquisition, resettlement and compensation, the Land Law makes the following provisions: a. The State reserves the right to recover land for purposes of defense, national security, national interests, public interests, and economic development. Individuals, households and organizations that have or are eligible to be granted land use right certificates for recovered land will receive compensation for the loss of these assets (Article 42[1]). b. Individuals, households and organizations that have or are eligible to be granted land use right certificates for recovered land will receive compensation for the loss of these assets (Article 42[1]). c. Before land is recovered, the user must be informed of the reasons for recovery; the schedule and plans for resettlement, if necessary; and, options for compensation. This must occur at least 3 months prior to the recovery of agricultural land and 6 months prior to the recovery of nonagricultural land (Article 39). d. Compensation for recovered agricultural and rural residential land will be in the form of new land of the same purpose of use or, if no new land is available, cash equivalent to the land use right value of the recovered land (Article 42[2] and [3]). In the latter case, the land use right value is established as the value of similar land under normal market conditions, as determined on an annual basis by PPCs (Article 56). e. Recovery of land from people directly involved in agricultural production but having no land available for continued production will receive cash compensation and, in addition, support from the State to rehabilitate their living conditions, either through training to enable them to shift into new occupations, or through new employment being arranged (Article 42[4]). f. Where the use right value of recovered residential land is greater than that of the land given as compensation, affected people will receive cash equal to the difference in the values (Article 42[3]). g. Resettlement zones will be developed for people having residential land recovered and having to move their places of residence. Resettlement zones will be developed for many projects in the same area and will provide living conditions that are equal to or better than the conditions in the former places of residence. In areas where there is no established resettlement zone, people will receive cash for recovered residential land and priority to purchase or lease State-owned dwellings (Article 42[3]). h. Recovery of land will occur without compensation in the following cases, among others: (i) land is recovered from organizations that use State funds to pay land use levies for assigned land or land rents for leased land, or are assigned land without having to pay land use levies; (ii) recovered land has been illegally encroached or occupied, or the occupants are not eligible to be granted land use right certificates; (iii) recovered land is rented from the State; and, (iv) recovered land is road or canal, or used for cemeteries or graveyards (Article 43[1]). i. Structures and other fixed assets on recovered land will not be compensated in cases where they have been constructed without permission; in contravention of permitted uses in land use plans; or, when structures are located on illegally encroached land (Article 43[2]). j. In the event of temporary recovery of land, for example during construction, upon the expiry of temporary land acquisition the State will return the land and pay compensation for any damages (Article 45). Land Law 2003 defines the principles for the State s evaluation of land prices: a. These should reflect the market price of land use right transfer, in normal market conditions. In the event that in the price offered there is a significant difference between the identified land prices and the local market ones, the price should be adjusted accordingly December 2010 Page 12

18 b. Plots bordering each other that have: i) similar natural, socio-economic, and infrastructure conditions, and ii) similar existing and/or planned type of land use, will have similar land prices; c. Land located in areas on the borders between provinces, cities under direct Central Government s management, that have i) similar natural, socio-economic, and infrastructure conditions, and ii) similar existing and/or planned type of land use, will have similar land prices. Land Law 2003 provides that land prices regulated by the PPC or PC of Cities under the direct Central Government, will be publicly announced on the First of January annually. Land Law 2003 makes a clear statement about the application of the Law. Clause 2 of Article 3 regulates: In the event that International treaties, which the Socialist Republic of Vietnam has signed or acceded, contain provisions different from the provisions of this Law, the provisions of such international treaties shall be applied. Decree No. 197/2004/ND-CP regulates the eligibility and procedures for compensation, assistance and resettlement in the event of State recovery of land. The principles underlying compensation are: (i) recovery of land from eligible persons shall be compensated; (ii) in the event the affected person is not eligible for compensation, consideration will be given to forms of assistance; (iii) compensation for affected land will be in the form new land allocation with the same purpose of use or, if no such land is available, cash compensation equal to the value of land use rights at the time of recovery; and, (iv) outstanding financial liabilities associated with land to be recovered will be deducted from the amount of compensation or assistance money. The Decree and Circular No. 116/2004 TT-BTC set out in detail the types of compensation for different types of users and losses; assistance policies; provisions for individual and group resettlement; and, the roles and responsibilities for implementation of resettlement projects. Decree No. 17/2006/ND-CP amends Decree 197 to strengthen several aspects of the provisions for compensation, assistance and resettlement, including: (i) a requirement to update official PPC prices, as necessary, to reflect market values for affected assets; (ii) life stabilization assistance for poor households that must be provided for not less than three years and not more than ten years; and, (iii) assistance for occupational change and job creation for affected households losing significant portions of their productive assets, as well as for affected households that relocate to resettlement sites. Decree No. 188/2004/ND-CP regulates the methodology for determining land prices and price frames for State recovery of land, as well as for taxation on land use and the transfer of land use rights and for land rents for government lands. It establishes the minimum and maximum prices for different types and categories of land. The principle underlying the determination of land prices is the actual transfer price on the market under normal conditions between a willing seller and buyer without regard to factors such as speculation, changes in planning, forceful transfer or blood relationship. Circular No. 114/2004/TT-BTC elaborates in detail the methods (direct comparison and income methods) for determining land prices. Decree 123/2007/ND-CP amends Decree 188/2007/ND-CP giving the Provincial People s Committees the authority to set local land prices by establishing ranges for all categories of land. Decree 69/2009-ND-CP regulates compensation Payments. Where compensation is made in the form of offering a new piece of land or resettlement land or resettlement house, and there is a difference in value, then the resettled person is entitled to the difference if compensation is greater than the value of the resettlement land or house; the resettled person pays the difference if the support money is less than the value of the resettlement land or house (except in special circumstances). State support includes: (i) removal support, resettlement support when residential land is acquired; (ii) support for life and production restabilization, training support for change of jobs and job creation where agricultural land is acquired; (iii) support for acquisition of agricultural use land in residential areas eg. gardens, ponds; and (iv) other support. The Provincial People s Committee shall specify in detail the rate of support, the area of land of support and the average price of residential land for calculations which are appropriate to local reality. December 2010 Page 13

19 Decree No. 131/2006/ND-CP provides that in case of discrepancy between any provision in an international treaty on Official Development Assistance, to which the Socialist Republic of Viet Nam is a signatory, and the Vietnamese Law, the provision in the international treaty on ODA shall take precedence (Article 2, Item 5). Provincial Government decisions on resettlement and compensation and on land price will be incorporated into the Resettlement Plans. 4.2 Kien Giang Province Regulations on Resettlement Decision No. 31/2009/QĐ-UBND dated 21 December 2009 on compensation, assistance and resettlement in Kien Giang Province. This decision applied the Decree No. 69/2009/ND-CP of the Central Government. Decision No. 03/2010/QĐ-UBND dated 11 February 2010 on compensation, assistance and resettlement in Phu Quoc district. 4.3 World Bank Policy on Involuntary Resettlement The World Bank recognizes that involuntary resettlement may cause severe long-term hardship, impoverishment, and environmental damage unless appropriate measures are carefully planned and carried out. The Bank s Resettlement Policy OP 4.12, includes safeguards to address and mitigate the economic, social, and environmental risks arising from involuntary resettlement. The basic guiding principles of the World Bank s resettlement policy are that: (i) Involuntary resettlement should be avoided where feasible, or minimized after exploring all viable alternatives in project design; (ii) Where resettlement cannot be avoided, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the people displaced by the Project to share in benefits. Displaced Persons should be meaningful consulted and should have opportunities to participate in planning and implementing resettlement programs. (iii) Displaced Persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. The OP 4.10 on lndigenous Peoples, requiring all projects that are affecting indigenous peoples to engage these people in a process of free, prior, and informed consultation; conduct social assessment and to prepare an lndigenous Peoples Plan that will ensure these people to receive social and economic benefits that are culturally appropriate and gender and "inter-generationally" inclusive. The OP 4.11 on Cultural Property, ensuring preservation and seeking to avoid the elimination, of sites having archaeological, paleontological, historical, religious and unique natural values. The Bank declines to assist those projects that will bring damage to cultural property. 4.4 Government, World Bank, and VUWSW Recent Laws, Decrees and Regulations bring the Government of Viet Nam resettlement policies and practices to be more consistent with the World Bank s resettlement policies. In the event of discrepancies between the Borrower s laws, regulations, and procedures and the World Bank's policies and requirements, the latter will prevail. This is in accordance with Decree No. 131/2006/ND-CP, which states that in case of discrepancy between any provision in an international treaty on Official Development Assistance, to which the Socialist Republic of Viet Nam is a signatory, and the Vietnamese Law, the provision in the international treaty on ODA shall take precedence (Article 2, Item 5). December 2010 Page 14

20 The differences between the Government s Laws and Decrees and World Bank Policy with regard to resettlement and compensation for this sub-project, and how to address these gaps are shown in Table 4.1. Table 4-1: Differences between National Laws and the World Bank Policy and VUWSDPII Policy Key Issues National Laws World Bank Policy Project Policy Compensation of land at replacement cost Decree 123/2007 (amending Decree 188/2004), sets price limits of land and authorizes Provincial Peoples Committees to set local land prices by establishing ranges for all categories of land and land prices in each category. The price limit would not be allowed to exceed a bench-mark price by more than 20 per cent nor undercut the benchmark price by more than 20 per cent. However, in remote, isolated areas, or an area with socioeconomically difficult conditions, poor infrastructure, when the actual price of land in the market is lower than minimum price limit in the Decree, the PPC will adjust the specific price to be applied locally and report it to the Ministry of Finance. Compensate or assist all affected persons, including those without title to land, for all their losses at replacement rates. Replacement cost surveys have to be carried out to ensure that project compensation rates for all categories of loss will be equivalent to replacement cost to be updated at the time of resettlement implementation. December 2010 Page 15

21 5. COMPENSATION POLICY 5.1 Objectives for Resettlement The objectives of the Vietnamese legislation governing resettlement and rehabilitation of displaced persons, and that of the World Bank concerning involuntary resettlement, have been adapted for the preparation of this Abbreviated Resettlement Plan (ARP). The objectives are set out below. The policies and principles adopted for the sub-project supersede the provisions of relevant decrees currently in force in Vietnam, wherever a gap exists between the World Bank s OP 4.12 and Vietnamese law. The main objective of the ARP is to ensure that all Displaced Persons (DP's) will be compensated for their losses at replacement cost. 5.2 Principles of Resettlement The principle for resettlement policy in the sub-project will be as follows: (i) Acquisition of land and other assets, and resettlement of people will be minimized as much as possible. (ii) All DPs residing, working, doing business or cultivating land within the recovered area under the Project as of the cut-off-date are entitled to be provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income earning capacity and production levels. Lack of legal rights to the assets lost will not bar the DP from entitlement to such rehabilitation measures. (iii) Compensation for loss of land and trees at replacement cost: (iv) Adequate budgetary support will be fully committed and be made available to cover the costs of land acquisition and resettlement and rehabilitation within the agreed implementation period. Physical resources for resettlement and rehabilitation will be made available as and when required. (v) Civil works contractors will not be issued a notice of possession or a notice to proceed for any sub-project unless the Government has a. Completed, satisfactorily and in accordance with the approved ARP for that sub-project, compensation payments, and b. Entitlements will be provided to DPs no later than one month prior to expected start-up of civil works at the respective project site. (vi) Institutional arrangements will ensure effective and timely design, planning, consultation and implementation of the ARP. 5.3 Cut-off Date and Eligibility For the Project, the cut-off-date for eligibility for entitlement is defined as the completion of the measurement survey on affected land. The survey was completed on 20 January 2010 based on the preliminary scheme design. Should the design be developed further to require more, or different land, the IOL will be updated and the cut-off date revised in accordance. Those whose livelihood activities may be affected by temporary land acquisition as the result of civil works will also receive compensation and assistance. 5.4 Project Entitlements The Entitlement Matrix, presented in Table 5.1, covers the impacts currently identified during project preparation. It covers also the impacts which could arise during the construction period. December 2010 Page 16

22 Table 5-1: Entitlement Matrix Item TYPE OF LOSS APPLICATION DEFINITION OF ENTITLED PERSON COMPENSATION POLICY IMPLEMENTATION ISSUES 1 Permanent loss of arable/vacant land 20% or less of the total landholding is lost. Marginal impact on household income and living standards. Legal user with permanent or legalizable rights to use the affected land. - Bim Company - Mrs Ngo Thi Ngoc Huyen DPs will be entitled to cash compensation for acquired land at 100% of replacement cost; Allowance of 3 times the compensation rate for agricultural land per m 2 (only for cultivated land) 2 Permanent loss of residential land Loss of vacant residential land Legal user with permanent or legalizable rights to use the affected land. - Mr Nguyen Thanh Phuong DPs will be entitled to cash compensation for acquired land at 100% of replacement cost; 3 Loss of standing trees Trees affected - Myrtle trees - Acacias - Eucalyptus Owners of affected trees - Mrs Ngo Thi Ngoc Huyen - Mr. Ngo Ngoc Oanh - Mr Nguyen Thanh Phuong DPs are entitled to compensation in cash at replacement cost equivalent to current market value on the basis of type, age, and productive value. DPs will be given notice several months in advance regarding evacuation. Trees planted after issuance of the deadline will not be compensated. DP has right for using salvageable trees. 4 Temporary impact during construction Temporary loss of land Users of affected land (i) Compensation for affected assets at replacement cost (ii) Restoration of land to former conditions 4 December 2010 Page 17