SOCIAL SAFEGUARD MANUAL

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized SOCIALIST REPUBLIC OF VIETNAM HO CHI MlNH CITY'S INFRASTRUCTURE DEVELOPMENT FUND ******** HlFU DEVELOPMENT PROJECT (HDP) SOCIAL SAFEGUARD MANUAL HCM city, March 2007

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3 SOCIALIST REPUBLIC OF VIETNAM HO CHI MlNH CITY'S INFRASTRUCTURE DEVELOPMENT FUND ******** HlFU DEVELOPMENT PROJECT (HDP) SOCIAL SAFEGUARD MANUAL HCM city, March 2007

4 Manual on Social Safeguards. "HlFU Development Project". March. 2eh 2007 CONTENTS A. GENERAL... 1 I. INTRODUCTION... 1 I1. OBJECTIVES OF MANUAL DEFINITIONS... 2 IV. SOClA L SAFEGUARD POLICIES SOCIAL SAFEGUARD POLICIES OF WORLD BANK SOCIAL SAFEGUARD POLICIES OF VlET NAM... 3 V. REQUIREMENTS ON IMPLEMENTATION OF SOClA L SAFEGUARD POLICIES IN PROJECTS USING LOAN OF WORLD BANK V. I. THE PRINCIPLES 4 B. RESPONSIBILITIES AND STEPS FOR IMPLEMENTATION OF SOCIAL SAFEGUARD POLICIES IN PROJECTS USING THE HDP'S LOAN... 5 I. THE HIFU RESPONSIBILITIES TASKS Preparation of Social safeguard Policy Frameworks I I. Preparation of Resettlement Policy Framework of project Preparation of Ethnic Minority Planning Framework Submision of Social safeguard Policy Frame works for approval 6 2. Screening of project proposals for getting loans for investment Scoping requirements on preparation of social safeguard action plans I. Request of preparation of Resettlement Plan Request preparation of Ethnic minority plan Submission of Social safeguard action plans for aproval Apraisal of the project Monitoring implementation of Social safeguards policies I. Monitoring responsibilities Monitoring objectives Monitoring contents Mon~tor~ng md~cators Monitoring.. methods Monrtorrng schedule Repotting Selection and hiring independent resettlement monitoring consultant Technical assistance for building of Social safeguard capacity INVESTOR RESPONSlBlLlTlES... 12

5 Manual on Social Safeguards, "HIFU Development ProjectJ', March, 20h TASKS Preparation of proposed project documents Preparation of social safeguard action plans I. Preparation of Resettlement Plan Preparation of Ethnic Minority Plan Sumission for approval and clearance of Social safeguards action plans lmplementation of Social safeguard action plans I. Procedures requirements for projecst having compensation and resettlement paid by the private sector , lmplementation of Resettlement Plan in projects where state implement compensation and resettlement activities Monitoring of implementation of Social safeguard action plans I. Monitoring responsibilities , Monitoring objectives Monrtor~ng mdrcators ,, , Monitoring methodology ,....., Cooperation with independent monitoring organization/consultant Reporting on results implementing social safeguard action plans I. Reporting responsibilties Reporting schedule ,...., ,......, Reporting contents , , C. ANNEXES Annex 1 : Involuntary Resettlement Policy of World Bank: OP4.12 Annex 2: Policy on Indigenous People of World Bank: OP4.10 Annex 3: Policy on Cultural Properties of World Bank: OP Annex 4: Integrate social safeguard policies of World Bank into the HDP Annex 5: HDPOs Resettlement Policy Framework Annex 6: Terms of Reference for Independent resettlement monitoring Annex 7: HDPOs Ethnic Minority Planning Framework

6 Manual on Social Safeguards, "HIFU Development Project': March, 2Uh 2007 Page 1 A. GENERAL I. INTRODUCTION 1. The Government of Vietnam has requested the World Bank, through IDA, to sponsor the Project OLocal Development lnvestment Fund0 (LDIF). The ProjectOs objectives are to assist for policy, legal and institutional improvements, enhancement of LDlFOs operational capacity to improve efficiency of lending investment and increase participation of private sector in municipal infrastructure development, improve operational flexibility of LDlFsCl and make long-term capital available for municipal infrastructure projects, while reducing their contingent economical, social and environment risks. 2. Within the ProjectOs framework (context), to participate the Project, the selected Local lnvestment Funds should satisfy requirements on their capacity in management of investment capital as well as in capacity to avoid or mitigate contingent risks. It was planned that the OLocal Development lnvestment Fund Project0 will be started in the year Among the Local Development lnvestment Funds currently operated in Viet Nam, the Infrastructures Development Fund of Ho Chi Minh city (HIFU) is the most advanced and the best operated Fund and is considered to be well-prepared for absorbing (implement) the Project. The HlFU Management and HCM cityus People0 Committee has agreed to adopt the set of key policy and operational reforms which have been prepared under the LDIFP, a larger, national-level Bank project, into the HlFU practice as a pilot one. 4. Facing acute demands of economic and social development of Ho Chi Minh city towards development of infrastructure, improvement of institutional financial management, demands for investment capital and increasing participation of the private sector..., and to speed up implementation progress of executing projects, the Viet Nam Government has requested the World Bank to support for Ho Chi Minh city a separate project under the name of UHlFU Development Project q (HDP), to be invested in early The HDP will demonstrate the LDIFP concept on a pilot basis in HCMC, and greatly contribute to the success of LDIFP and the national-level policies, incentives and operational improvement measures that Bank will sponsor. 5. To assist the HlFU to speed up preparation of its capacity carrying out social safeguards responsibilities in accordance with standards of World Bank, the OManual on Social safeguard policies0, is prepared to provide the HlFU and its investors-borrowers under the HDP with knowledge on social safeguard policies and requirements of the Bank, as well as their responsibilities on ensuring implementation of social safeguard policies in process of their projectos preparation and implementation OBJECTIVES OF MANUAL 6. Objectives of the Manual on Social Safeguard Policies are to provide with guidelines, clarifying responsibilities of HlFU as well as of its investors-borrowers, and required procedures, to incorporate Social safeguard policies into process of selecting, appraising and monitoring the investment projects in the lending operational practice of the HIFU.

7 Manual on Social Safeguards, "HIFU Developmenf Project", March, 2Gh 2007 Page 2 Ill. DEFINITIONS Social safeguard policies 7. The policies to ensure that all activities or investment projects sponsored by the Bank should be appropriate to the culture of the local communities and beneficiaries. Meanwhile, they should also avoid any adverse impacts on the local population. In cases, if the activities or project investments canc7t avoid negative impacts, social safeguard policies of the Bank require that the investors/developers should consider all alternatives to mitigate them to the least and adopt assistance measures to help their DPs to restoring their living standards at least equal to previous level or preferably better as without the project. Screening 8. Screening is to check out to decide whether or not it needs social assessment and preparation of action plans for ensuring social safeguards requirements, based on the information on the Project and description of the ProjectOs impacted area. Scoping 9. A decision on set of issues, impacts of the project that need to be clarified, studied, mitigating measures to be analyzed, research methods, tools and steps to be used or implemented. Terms of References (TOR) 10. The document indicating technical requirements, contents, procedures and professional input requirements for engaging assignments. Resettlement 11. The common term related to land acquisition and compensation for properties/assets loss, whether or not it be relocation, loss of land, loss of dwellings, assets, income or means of livelihoods. Replacement cost 12. The term used to define the value sufficient for replacing the lost assets/properties and covering all anticipated transition fees. When domestic regulations, provisions do not satisfy requirements on compensation at replacement costs, the compensation governed by domestic laws, sub-laws will be complemented with necessary assistance measures to satisfy compensation standards at replacement costs. Cut-off Date 13. According to World Bank, the Cut-off Date is the date starting or completing inventory of affected land and assets during preparation of Resettlement Plan, when the DPs and local communities are informed on the Cut-off Date and also informed that any person encroaching into the Project area after the Cut-off date will not be compensated or assisted. In Viet Nam, the Cut-off date is the day issuing the Decision on land acquisition or land use plans or planning scheme. Monitoring 14. Repeated process, in time and space, counting or quantifying social elements or components to supervise their change, following planned schedule. It aims to review whether or not implementation of social safeguard plans ensure objectives of these plans o be met.

8 Manual on Social Safeguards, "HlFU Development Project", March, 20h 2007 Page 3 Evaluation 15. A review, at regulated time, on social impacts of investment activities and mitigation of negative social impacts, assess whether the objectives of social safeguard action plans are met. Cultural Properties: 16. Material products (Tangible Cultural Properties) or spiritual products (Intangible Cultural Properties) of historic and cultural significance. Ethnic minorities 17. The term addressing vulnerable groups having political, economical, social and cultural/traditional characteristics distinct from majority group. They have own language different from official national or regional languages. IV. SOCIAL SAFEGUARD POLICIES 4.7. SOCIAL SAFEGUARD POLICIES OF WORLD BANK include: (See Annexes 1, 2, 3 (i) Involuntary Resettlement Policy OP 4.12 (ii) Policy on Indigenous People (Ethnic Minorities) OP (iii) Policy on Cultural Properties OP SOCIAL SAFEGUARD POLICIES OF VlET NAM include: (i) Land Law 2003 (ii) Decree No197/2004/ND-CP, dated on December, 3rd 2004, on compensation, assistance and resettlement in case if the State recover the land for national security, defence, public interests; Circulation No1 16I2004lTT-BTC, of MOF providing guidelines for implementation of Decree No lCP; Circulation No 69/2006/TT-BTC, on August, 2nd 2006, amending some provisions of the Circulation NO 1 16/2004lTT-BTC. (iii) Decree 17/2006/Nf>-CP, dated on January, 27th 2006, amending, adding some provisions of Decrees guiding implementation of Land Law and Decree No187/2004/ND-CP on transforming state companies into stock ones. (iv) Constitution of Socialist Republic of Vietnam, dated on April, 15th 1992: Article 5 of the Constitution says: "The Socialist Republic of Vietnam is a united nation having many nationalities. The State implements a policy of equality and unity and supports the cultures of all nationalities and prohibits discrimination and separation. Each nationality has the right to use its own language and characters to preserve their culture and to improve its own traditions and customs. The State carries out a policy to develop thoroughly and gradually improve the quality of life of ethnic minorities in Vietnam physically and culturally." (v) Law on Cultural Properties, 2001 V. REQUIREMENTS ON IMPLEMENTATION OF SOCIAL SAFEGUARD POLICIES IN PROJECTS USING LOAN OF WORLD BANK 18. One of main operational principles of World Bank is requirement posed on the projects using loan of the Bank, in these case the projects using credits provided by

9 Manual on Social Safeguards, "HIFU Development Project", March, 20h 2007 Page 4 HCM cityos Infrastructure Development Fund, within the HDP, to strictly follow social safeguard policies of the Bank. 19. Due to existence of some differences of policies related to social safeguards between Government of Viet Nam and of World Bank (if itos not in legal documents, then itos very common in practice, especially at provincial level), thus it needs to identify them and propose measures to overcome the gaps in very early stage, at beginning of the project preparation. The legal framework for waiving of some provisions of Viet Nam Laws or underlaws that are not met standards of World Bank, to satisfy the BankOs requirements, is legally provided in VietnamOs laws and underlaw documents, including Land Law 2003, Decree No197/2004/NO-CP on compensation, assistance and resettlement and Decree No131/2006/CP (replacing Decree 17/2001/ND-CP) on utilization and management of ODA. 20. The proposed measures, in fact the waivers, are applied for the OHlFU Development Project0 to overcome the gaps, should be accurately discussed and agreed between the Bank and Government of Viet Nam during appraisal and negotiation on the Project and should be officially included in the Project Agreement Document. To participate the Project, HCM cityospc has to commit following principles and policy regulations provided by the Project. 21. Once the Project is agreed and approved by the Bank and Government of Viet Nam, the policy of the Project will be legal basis for its implementation. In case if there policy gaps between Viet Nam laws and of the Bank exists, the policy of the Project (the HDP) will be applied. (See Annex 4) 22. Regarding the proposed projects borrowing credits within the HDP that have yet land available, without necessity of land acquisition, or itsttheir compensation, assistance and resettlement for acquired land having been completed before investorllls submission of the projectns documents to the HIFU, the both parties, investors and HIFU, donor have to follow guidelines, procedures of this manual. However, it needs to clearly state about non-existence of land acquisition in the project proposal document. 23. In case if at the time of submission of projectns proposal, all compensation and resettlement activities have been completed, but there still remain certain unsolved resettlement issues, then the investors are required to report to the HIFU about problems, measures to overcome and responsibilities and feasible schedule of clearing the issues. The HIFU should take it into account and monitor their outcomes before releasing the credit as scheduled. I THE PRINCIPLES (a) Social safeguard issues should be paid attention and actions in very early stages of project preparation. (b) Social impact assessment and implementation of social safeguard policies should be based on wide public consultation with DPs and other stakeholders. (c) In case a project creates resettlement impacts and/or affects ethnic minorities, it has to prepare Resettlement Plans and Ethnic Minority Plans and consider them as a non-separate part of the project. (d) The cost of social impact assessment and cost implementing social safeguard policies should be included into total cost and benefits of the project. (e) A projects anticipating land acquisition and/or impacting ethnic minorities has to prepare budget sufficiently and timely, ensuring smooth and successful implementation of social safeguard policies.

10 Manual on Social Safeguards, "HIFU Development Project", March, 20h 2007 Page 5 B. RESPONSIBILITIES AND STEPS FOR IMPLEMENTATION OF SOCIAL SAFEGUARD POLICIES IN PROJECTS USING THE HDP'S LOAN (See Annex 4 on incorporating of social safeguard policies of World Bank into lending and investment practice within the HDP) I. THE HIFU 1.7, RESPONSlBlLlTlES 24. The HIFU, on behalf of HCM cityus PC, is the direct partner of World Bank, responsible for management of the project loan as well as has overall responsibilities for compliance of all commitments agreed in the project Agreement document signed between Government of Vietnam and World Bank, including commitments on social safeguards policies TASKS 25. Tasks of HlFU include: (i) Prepare Social safeguard Policy Frameworks (Resettlement Policy Framework and Ethnic Minority Planning Strategy) common for the whole Project and submit to the Government for approval and World Bank for no objection. (ii) Execute overall supervision on credit use as well as on implementation of commitments made by the Government to the Bank, including commitments on social safeguard policies. (iii) Provide necessary technical assistance to potential investors-borrowers. 26. To fulfill its responsibilities on ensuring social safeguards policies, HlFU will incorporate requirements of social safeguard policies into process of its lending activities and management of its credits, including screening, selecting, appraising, releasing of credits and monitoring credit use towards the investment projects funded by HlFU within the HDP. (See Annex 4) 1. Preparation of Social safeguard Policy Frameworks Preparation of Resettlement Policy Framework of project 27. To prepare for signing Agreement on the HDP between Government of Vietnam and World Bank, HlFU has to prepare a Resettlement Policy Framework for its HDP as a whole. (See Annex 5) 28. This Resettlement Policy Framework will be serving as legal basis for preparation and implementation of Resettlement Plans for all sub-projects taking loan form the HDP Preparation of Ethnic Minority Planning Framework 29. Besides of preparation of Resettlement Policy Framework, HlFU will have to also prepare Ethnic Minority Planning Framework for the entire HDP. (See Annex 7) 30. This Ethnic Minority Planning Framework will be a legal basis for preparation and implementation of Ethnic Minority Plans for sub-projects taking credits from the L Social safeguard policy frameworks include two types: Resettlement Policy Framework and Ethnic ~Winority (Indigenous People) Planning Framework

11 Manual on Social Safeguards, "HIFU Development Project", March, 2Gh 2007 Page 6 HDP in case if they are executed in the areas where ethnic minorities form communities, and may pose positive or negative impacts on them Submission of Social safeguard Policy Frameworks for approval 31. HlFU has to obtain feedback from HCMcityOsPC and the Government on Social safeguard Policy Frameworks then submit to the World Bank for no objection before submission to the Prime Minister for official approval. It s a precondition for the Bank appraisal of the HDP as of a program type project. 32. HCMcityOsPC should commit on ensuring compliance of provisions of these Policy Frameworks as conditions guaranteeing HlFU to joint the HlFU Development Project (HDP). 2. Screening of project proposals for getting loans for investment a 33. On receiving of project proposal documents, HlFU has to carry out screening and classification of proposals from points of views of social safeguard policies. 34. To carry out screening and make decision on whether or not a proposed project has to proceed procedures preparing social safeguards action plans, HlFU will require investors to provide information briefing on the project, its components, activities, scope, description on the areas where the project may take place and impact. 35. These projectos initial information should allow HlFU to answer following questions to screen the project: - Is the project located in or passing through area of protected Cultural Properties or not? - Is there any component of the project related to land acquisition or not? - If yes, it needs to identify what are they? Do they acquire new land? Where? How much land it will acquire? - To what extend the project will pose land acquisition and resettlement impacts? - Are there in the project impacted or influenced area of the Project ethnic minorities? 36. Based on information describing the project and its impacted areas, HlFU will decide to send expert to make initial social assessment the project to classify it based on its types and levels of social impacts as follows: - The Project do not pose resettlement impacts - The Project poses significant resettlement impacts2 - The Project poses insignificant resettlement impacts2 - The Project do not pose impacts on ethnic minorities, and - The Project poses impacts on ethnic minorities - The Project do not pose impacts on Cultural Properties - The Project poses impacts on Cultural Properties 37. Depending on scales and levels of social impacts of the project as classified above, HlFU will require investor-borrower to prepare one or two of the documents listed as follows: Resettlement impacts are considered to be severe if there are equal or more than 200 people experiencing significant impacts caused by the project. Significant impacts include displacement or relocation of dwelling or loss of more than 10% of productive assets of household. Below these thresholds, resettlement impacts are considered insignificant.

12 Manual on Social Safeguards, "HIFU Development Project", March, 2Oh 2007 Page 7 - Abbreviate Resettlement Plan (if resettlement impacts insignificant) - Full Resettlement Plan (if resettlement impacts are significant) - Ethnic Minority Plan (if the project causes impacts on ethnic minorities) 38. If at time submitting projectos proposal to HlFU for credit, the projectos compensation and resettlement activities were implemented, but there still remained certain unsolved issues, then, as mentioned above, the investor have to report to HIFU, providing it with following information (Report on projectos remained resettlement issues): - Total area acquired by the proposed project by types of land use - Total number of DPs, indicating number of relocated DPs and number DPs having income sources to be severely affected - Specific remained resettlement issues, problems, their reasons - Measures to resolve problems - Responsibilities for solving remained issues - Deadline for solving remained problems. Based on this report, HlFU will assess appropriateness and feasibility of the measures proposed by investor to appraise the projectos proposal documents. HlFU will supervise and will only release credit for investor if the latter complete solution of problems in accordance with schedule agreed between investor with the HIFU. 39. Due to impacts on Cultural Properties will be detailed in Environment Impact Assessment report, this manual will only focus on implementation of social safeguard policies from the point of land acquisition and compliance of principles protecting cultural properties. 2. Scoping requirements on preparation of social safeguard action plans3 40. If results of screening show that the project contains potential social impacts on local population and their communities, HlFU will require investor to prepare social safeguards action plans (Resettlement Plan and/or Ethnic minority plan, if relevant) and submit to HlFU for appraisal together with appraisal of the project proposal documents Request of preparation of Resettlement Plan 41. If results of screening of the project will pose resettlement impacts, HlFU will require investor to prepare a OResettlement PlanO. 42. If at the moment of submitting project proposal documents to HlFU for approval of credit, all the project components, their scale and location have been identified and it could make accurate assessment of types and scale of social impacts caused by the proposed project, HlFU will require investor to prepare a Resettlement Plan for the proposal as a whole to submit for HlFUUs approval together with approval of other related project documents. This could happen when a project is planned to be implemented in one phase or when the project plans to be implemented in phases but at the moment of submission its documents, all information on its land acquisition is available as the case above. Social Safeguard Action Plans includes of two types plans - Resettlement Plan and Ethnic Minority Plan

13 ~ Manual on Social Safeguards, "HIFU Development Project", March, 201h 2007 Page In case at moment of submitting project proposal documents to HlFU for approval, the scope, scale of land acquisition and resettlement impacts of projectos next phases are still not identified, the investor have to prepare a Resettlement Plan for those project components of the submitted phase I to HIFU. In each next phases of the project, before its appraisal, the investor has to prepare Resettlement Plan for respective project components for HlFUUs clearance. 44. If results of social impact assessment show that resettlement impacts of the Project are significant, the investor have to prepare a full Resettlement Plan to submit at its appraisal. If the project causes insignificant resettlement impacts, the investor has to prepare an abbreviate Resettlement Plan before its appraisal. (See requirements for full or abbreviate Resettlement Plan in Part II, where it focuses on responsibilities, tasks of investor Request preparation of Ethnic minority plan 45. If the proposed project requesting credit may impact on area with ethnic minorities living in groups, HlFU will request investor to prepare social impact assessment on ethnic minorities and Ethnic minorities plan. (See requirements towards Ethnic Minority Plan in Part II, where it focuses on responsibilities, tasks of the investor) Submission of Social safeguard action plans for approval 46. Resettlement Plan and/or Ethnic Minority Plans should be submitted to HCMcityOs PC for approval as a precondition for HlFUOs appraisal the project proposed for loan from the 3. Appraisal of the project 47. According to World Bank, HlFU will appraise social safeguards action plans (resettlement plan and Ethnic minorities plan) that investors were asked to prepare, depending on scale, level of social impacts of the proposed project, as precondition for its appraisal. 48. To prepare for Credit Convention between Vietnam Government and the World Bank on the HDP, besides of projectus Resettlement Policy Framework and Ethnic Minority Planning Framework, all the proposals selected for HDPOs funding in the first year, involving resettlement impacts or impacts on ethnic minorities, will have to prepare and submit respective action planls to the Government and World Bank for clearance. 49. During consequent years, HlFU have to submit to the Bank social safeguard action plans of its funded relevant projects till the World Bank accept for HlFU to take off full responsibilities for appraisal of social safeguard action plans of its funded, HDPOs, projects. 4. Monitoring implementation of Social safeguards policies 50. The main activities of HlFUOs credit operations is to release capital loan for its funded projects after their credit proposals being approved. HlFU will integrate its supen/ision, monitoring of implementation by investor Social safeguards action plans in accordance with agreed schedule between HlFU and investor.

14 Manual on Social Safeguards, "HIFU Development Project", March, 2Vh 2007 Page Monitoring responsibilities 51. Monitoring responsibilities of HlFU towards implementation of social safeguard action plans by investors mainly focus on supervision, monitoring and check and clear over, in principles, results implementing concrete compensation and resettlement activities or results implementing concrete Ethnic Minority Plan at each stage releasing credit for respective project, in accordance with implementation schedule of social safeguards action plans and plan of credit release, agreed between Investor and the HIFU. However, HlFU is the main body who is responsible to HCMC PC, Vietnam Government and the bank, while it confirms compliance executed by investor of social safeguard policies for releasing HDPOs credit Monitoring objectives 52. Main HlFUOs monitoring objective is to ensure that all commitments on Social safeguard policies are followed in practice and the people affected by the project are fully provided with compensation, rehabilitation assistance measures to restore their income generating capacity and living standards at least equal prior-project leval or preferably better, as well as to ensure that the projectos DPs are able maintaining their social relations in ways appropriate to their culture and traditions Monitoring contents 53. Monitoring content perfomed by the HlFU towards Social safeguard policies including: Does the investor and local authorities appoint any their staff for implementation of social safeguards activities. It is based on followings indicators (for project involving resettplement impacts): - Does the investor devote at least one full time or part time staff for this task? - Is the asigned staff experienced on compensation and resettlement? Does heishe have good understanding or experiences on WB resettlement policy? - If the assigned social safeguard staff is not experienced on resettlement issues, then the question is whether helshe has been trained on VNOs and WB resettlement policies? - Is the background of the staff social sciences or anthropologies? If the investor or local related autorities devote at least one staff, specialized on social sciences, or experienced on resettlement issues, then it could be considered as satisfies minimum requirements. Are there social safeguard activities implemented in accordance with its projectds agreed schedule releasing credit? Do the investor follow the policies or provisions set by their social safeguard action plans (Resettlement PlanIEthnic minority plan)? Are the projectds DPs well and fully informed and consulted? It is based on followings indicators (for project involving resettplement impacts): - All (100%) the DPs should be informed on the project, its policy, the compensation and resettlement plan of the project; - All DPs should be fully provided with resettlement documents related to them, for example, the HHOs DMS form filled, compensation option, receipt of compensation payment... - DPs should be consulted on compensation, rehabilitation assistance modes and resettlement. their needs, wishes and priorities..

15 Manual on Social Safeguards, "HIFU Development Project", March, 20'h 2007 Page 10 - All the groups of relocated and other severely affected DPs should be consulted on relocation and rehabilitation options. Are there objectives of Social safeguard plans met? a 4.4. Monitoring indicators 54. Monitoring indicators on implementation of social safeguard policies that HlFU is reponsible for include: (i) (ii) (iii) (iv) (v) (vi) Compensation payment: (a) Are there full compensation packages paid to DPs before land clearance; (b) Are there the full compensation payment enough for replacement of lost assetslproperties. Technical assistance, relocation, assistance allowance and relocation assistance given to the reorganized DPs who have to build their main house on remaining land, or who have to rebuild new houses in resettlement site arranged by the project.. Rehabilitation assistance to severely affected DPs who lose or have impacted income sources. Consultation and information disclosure on compensation policies.. Are there DPOs grievances resolved? Are there any remained unsolved issues requiring action of authorities of different levels? Are there resettlement activities integrated with and completed before investor start their civil work at respective site? 4.5. Monitoring methods 55. The HlFUOs activities monitoring implementation of Resettlement Plans andlor Ethnic Minority Plan (if relevant) will based on following main sources of information: a. In-office monitoring, based on study of periodic monitoring reports submitted by investors and independent monitoring consultant to HlFU on (i) Results of internal resettlement monitoring conducted by investor and (ii) Independent monitoring report on implementation of social safeguard policies in the projects involving social impacts. b. On site, field random check made by HlFU towards implementation of social safeguard policies of the projects funded by the HDP to confirm accurateness of information reported by investor and independent monitoring consultant, before its release of credit as planned 56. HlFU will only release fund if planned resettlement activities of projectns respective stage have been carried out in accordance with its commited provisions. In oposite case, the investor will be required to complete the agreed activities before HIFUlJs releasing of credit to them Monitoring schedule 57. HlFU implement periodic and non-periodic monitoring of fulfilment of social safeguard provisions of its funded projects. 58. Periodic monitoring activities of HlFU are conducted on 6-month basis to overview the progress of social safeguard policies implementation made by all its HDP sponsored projects involving land auisition and resettlement impacts, or affecting ethnic minorities, at time of HlFUCls periodic 6-month reporting.

16 Manual on Social Safeguards, "HIFU Development Project", March, 2eh 2007 Page 1 I 59. Non-periodic monitoring of HlFU on social safeguard implementation is conducted in accordance with concrete credit release plans agreed between HlFU and its specific investors 60. The clarification of integration between compensation and resettlement activities and credit-release plan is a very important part of each Resettlement Plan of project preparation and should be detailed in projectns implementation planning in its implementation stage. This will contribute for early agreement between HlFU and investor on main monitoring aspects that investor is responsible to report to HlFU and that are what HlFU have to monitoring on of the project in each its stage releasing of the fund Reporting 61. HlFU have to submit periodic monitoring report to the World Bank where the HlFUUs highest leaders are responsible for its contents on status of social safeguard policies implementation made by its, HDP, funded projects, as an integrated part of HIFUUs periodic reports sent to the Bank. 62. Monitoring report on social safeguard implementation of HlFU should address the followings: a. Consolidate number of DPs by project and by types of impacts, and by progress of compensation implementation, relocation and income rehabilitation in each HlFU sponsored project. b. Consolidate HlFU allocated compensation and resettlement amount and amount paid for these activities. c. Overview status of compliance made by investors towards policy provisions of Resettlement Plans and Ethnic Minority Plan (if exists) of all HIFUIHDP funded projects at report periods. d. Overview status of integration between compensation, resettlement activities and civil works implementation. e. Results of solving of problems identified or remained from previous monitoring round, and newly emerged issues, if relevant; f. Indicate proposed measures for solving identified, remained issues, and planned schedule remedying them; g. HlFUUs assessment on whether or not social safeguard policies of its funded projects are met. 63. HIFU should know steps of implemetation of projectos resettlement plan to supervise, monitor its implementation by investor when HlFU plan to release its credit to investor. (See resettlement implementation arrangement in Decision No lQD-UBND of HCM cityuspc). 5. Selection and hiring independent resettlement monitoring consultant 64. Social safeguard policy of World Bank requires independent monitoring of implementation of Social safeguards action plans of projects using credits of the Bank. 65. To ensure accuracy of results of independent resettlement monitoring, HlFU will responsible for selecting and signing contract with one or more independent consultants, specialized on anthropology or social sciences, capable, to carry out independent monitoring activities for one or more its sponsored projects which

17 Manual on Social Safeguards, "HIFU Development Project", March, 2gh 2007 Page 12 involve land acquisition and resettlement impacts. Terms of Reference for Independent monitoring of resettlement plan implementation is given in Annex On principles, the monitoring cost paid to independent monitoring consultant on social safeguards should be a part of total cost of the Project funded by HlFU that involve social, resettlement impacts. However, at early stage of the HDP, when investors, especial domestic, local private investors, still are not familiar with requirements on social safeguard implementation raised by International donors and moreover are strange with responsibility to pay for similar social safeguard activities, hence to use a part of its lending profits maintained at HlFU for independent social safeguardlresettlement monitoring seems to be appropriate which, in our opinions, could increase attractiveness of credits to investors. This financiallbudget issue should be accurately discussed between the Bank and the Fund (HIFU). 6. Technical assistance for building of Social safeguard capacity 67. Social safeguard policies of World Bank and their implementation procedure requirements are new, unfamiliar to HlFU and the most of domestic developers, economic organizations, and private investors in Viet Nam in general and in its municipals as particular. Thus, in first stage of the HDPOs implementation, HlFU and investors will very need training to improve their awareness on social safeguard policies as well as technical assistance to fulfill required procedures and smooth implementation of social safeguard provisions approved of investment project In next, mid- and long-term stages of the HDP, HlFU have to build its social capacity and responsible for providing of necessary technical assistance to its projectos developers for their ensuring social safeguards during process of their project implementation. 68. To fulfill this responsibility, HlFU have to assess social safeguard capacity of its investors-borrowers, carry out assessment of their training, capacity building needs, on social safeguard policies, requirements, procedures ensuring social safeguards. Based on this, HlFU will prepare strategy and plan for training and provision of technical assistance, consulting service to its funded investors-borrowers on issues related to preparation and implementation of social safeguards activities in the projectns cycle. 11. INVESTOR 69. Investor, or in other words, projectos investor, using credits of World Bank within the OHlFU Development Project0 (or the HDP) is responsible for executing or supervising all activities to ensure social safeguards in its development investment process. 70. ProjectOs investors have to provide to HlFU all required information, documents as well as prepare all required procedures and implement all activities related to social safeguards of their project sponsoredlfunded within the HDP. (See Annex 4) TASKS 71. Investor should fulfill the following tasks:

18 Manual on Social Safeguards, "HIFU Development Project", March, 2Uh 2007 Page 13 (i) (ii) At time requesting credit from the Fund, investor have to provide to HlFU necessary documents, on request, showing about whether or not it causes land acquisition and resettlement impacts and possibility of its impacts on ethnic minorities. If the proposed project implicates resettlement impacts and/or affect ethnic minorities, investor will have to: a. Prepare Resettlement Plan andlor Ethnic minority plan; b. Submit these plans for review and approval. The preparation of such social safeguard action plans should be taken in early stage of the project preparation. (iii) If the proposed project is accepted by HIFU, investor is responsible for implementation and/or supervision of their respective social safeguard action plans. Compliance executed by projectns investors towards principles and policy provisions of the projectns approved social safeguard action plans is precondition for HlFUUs releasing credit. (iv) Investors is responsible for submitting short quarterly report and periodic reports to HlFU on status, progress, social safeguard implementation outcomes and issues remained or newly emerged during implementation of social safeguard action plans as an integrated part of their periodic reports that they have to submit to HIFU. (v) ProjectOs investor is responsible for cooperation and facilitating all conditions for independent monitoring consultant to access all related materials, information as well as to contact with its DPs and their communities for fulfilling independent monitoring responsibilities for the project. 1. Preparation of proposed project documents 72. As mentioned above, at time of preparation of project proposal documents to submit the HlFU for requesting credit, besides of common information required for borrowing credit, investor have to provide to HlFU initial information to allow HlFU conducting screening of the project proposal on its potential social, resettlement impacts and level of severity, to scoping issues, types of documents/reports on social safeguard preparation that investor have to submit to HlFU before its appraisal of the project. 73. The information provided by investor should allow to answer following questions: - Is the propose project located or passing through the area of protected cultural properties? - Are there any project components involving land acquisition? - If yes, it should to identify what are they, do they require land being in use, how much land they require? - At what extend or level does the proposed project cause resettlement impacts? - Are there in the project proposed areas ethnic minorities?

19 Manual on Social Safeguards, "HIFU Developmenf Project", March, 20h 2007 Page Preparation of social safeguard action plans 74. If the proposed project latent social impacts, the investor has to prepare respective social safeguard action plans such as Resettlement Plan and/or Ethnic Minority Plan Preparation of Resettlement Plan 75. If results of social impact assessment show that the projectus resettlement impacts are significant, then the investor has to prepare full Resettlement Plan before its appraisal. A full Resettlement Plan includes followings: (0 (i i) (i i i) (iv) (v) (vi) (vii) (viii) (ix) 00 (xi) (xii) (xiii) (xiv) (xv) Brief description of the project; Potential resettlement impacts of the project; Resettlement objectives; Socio-economic survey; Legal policy framework; Eligibility; Evaluation and compensation for affected properties; Selection, preparation of resettlement site and relocation; House construction, Infrastructures and social services Environment protection and management; Organizational responsibilities; Public participation, consultation and reddressal mechanism; lmplementation schedule; Cost and budget; Monitoring and evaluation 76. If the project will only pose insignificant resettlement impacts, then the investor have to only prepare an abbreviated Resettlement Plan before its appraisal. This plan should at least address the followings: (i) Census of DPs and inventory of all losses; (ii) Describe compensation mechanism and rehabilitation assistance measures adopted; (iii) Responsibilities of implementation agencies, and (iv) Implementation schedule and budget 77. Investor will prepare Resettlement Plan for the proposed project requesting for HIFU credit, based on objectives, principles, policies and provisions of the Resettlement Policy Framework approved for the HDP. (See Annex 5) Preparation of Ethnic Minority Plan 78. If results of social impact assessment show that the project anticipates impacts on ethnic minorities, the investor have to prepare Ethnic Minority Strategy before its appraisal, based on the HDPUs approved Ethnic Minority Planning Framework. (See Annex 2 (Annex B of OP4. I?), Annexes 7). 79. Ethnic Minority Strategy should include followings: i. Legal and institutional framework applied for ethnic minorities

20 Manual on Social Safeguards, "HIFU Development Project", March, 2eh 2007 Page 15 ii. Baseline information; iii. Information on local land use systems; iv. Summarized results of SIA v. Summarized results of public consultation conducted during preparation of the proposed project; vi. Strategy for consultation with and participation of affected ethnic minorities during project implementation; vii. Action plans and measures for ensuring that the ethnic minorities share projectos equal social and economical benefits in ways appropriate to their culture; viii.appropriate action plan with measures mitigating negative impacts on ethnic minorities, if relevant; ix. Mechanism for addressing complaints, grievances; x. Mechanism for monitoring and evaluation xi. Cost estimate and budget plan for the EMP 2.4. Submission for approval and clearance of Social safeguards action plans 80. Social safeguards action plans, including Resettlement Plan and/or Ethnic Minority Plan, if required, have to be submitted to HCMCityUsPC for approval and to World Bank for clearance. This is a condition for appraisal of the projectus proposal. 81. Procedures, steps for submission of documents to relevant competent authorities for obtaining no objection or approval of social safeguards plans are as follows: a. First of all, investor has to submit its Resettlement Plan and/or Ethnic Minority Plan they prepared to HlFU for appraisal together with its main projectos requesting credit documents. These plans will be reviewed, cleared by HIFU regarding its contents and policies that the plans should address: b. Investor has to cooperate with HlFU to submit to HCM cityos their Resettlement Plan and Ethnic Minority Plan (if required) for review. c. HlFU have to submit to the Bank the final draft of such Resettlement Plan and Ethnic Minority Plan (if required) for obtaining no objection, after these plans being reviewed and adjusted based on comments of HCM cityuspc. d. Investor, in cooperation with the fund, to submit the final Resettlement Plan and/or Ethnic Minority Plan to HCM cityospc for official approval, after they got WBUs no objection. 82. As soon as HlFU will be able to appraise and monitor social safeguard action plans and be trusted by World Bank, then projectus investor has to only submit their social safeguards plans to HIFU and HCM cityospc for approval, without need for the BankOs direct clearance. 3. Implementation of Social safeguard action plans 83. After the projectus respective social safeguard action plans being approved and the project credit proposal is being approved, investor will be responsible for daily execution and monitoring of these social safeguards plans. 84. The forms of institutional arrangement of compensation and resettlement implementation activities are factors determining set of requirements and steps for

21 Manual on Social Safeguards, "HIFU Development Project", March, 20'h 2007 Page 16 a their implementation in the investment project. It could distinguish 2 forms of institutional arrangement of compensation and resettlement activities of projects funded by HIFU, corresponding the specifics of project investment: a. The production, business projects of enteprisers, economic organizations, with the compensation and resettlement budget paid by private investors, economic organizations, while they can agree with their DPs on compensation and resettlement; b. The investment projects developing public infrastructure, with state compensation and resettlement budget or the projects of private investors but their compensation and resettlement activities are implemented by the state. 85. In any mentioned above cases, investors should have to ensure policy objectives of the Bank that DPs could improve or at least to retore their prior-project level living standards. 86. The steps and procedures of compensation and resettlement activities of infrastructure development projects involving land acquisition impacts, corresponding their institutional implementation forms, are as follows: 3.1. Procedures requirements for projects having compensation and resettlement paid by the private sector 87. If the compensation and resettlement budget is of the private sector and its investor can be able to negotiate with their affected land users or DPs on compensation and relocation options and implementation schedule, then they donut need to follow procedures regulated by the Decree 197l2004lCP. 88. However, even in case that private investor can negotiate with their DPs, investor still is responsible for reporting to HIFU on the project compensation implementation plan, schedule and their results. Information on status, implementation progress, results of the project compensation, assistance payment and relocation that investor have to report to HIFU includes: - lmplementation plan and schedule of compensation and land acquisition activities of the project ; Plan and results of cooperation between compensation and resettlement activities and schedule of civil works ; - Summary on total number of DPs by impact types and relocation options; - DPs satisfaction on compensation and resettlement ; - Remained issues and measures, time for overcoming them 89. In case if the negotiation with DPs on compensation and resettlement could not be reached, investor can sign contract with the cityos land development organization or directly with resettlement committees to carry out project resettlement activities, based on implementation organization procedures regulated by the Decree 197/2004/CP, similar to the case of compensation and resettlement budget taken from the government lmplementation of Resettlement Plan in projects where state implement compensation and resettlement activities 90. If a project compensation and resettlement budget is of state, or if itus of private investors but the activities are implemented by the state, then all implementation