VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Project

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1 Resettlement Plan July 2012 VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Project Prepared by Ho Chi Minh City People s Committee Management Authority Of Urban Railway for the Asian Development Bank

2 HO CHI MINH CITY PEOPLE S COMMITTEE MANAGEMENT AUTHORITY OF URBAN RAILWAYS RESETTLEMENT PLAN HO CHI MINH CITY URBAN MASS RAPID TRANSIT LINE 2 PROJECT ON BEHALF OF CHAIRMAN VICE CHAIRMAN Nguyen Van Quoc Ho Chi Minh City July 2012

3 TABLE OF CONTENTS Page LIST OF TABLES iii LIST OF FIGURES iv ABBREVIATIONS v DEFINITION OF TERMS vi EXECUTIVE SUMMARY ix I. INTRODUCTION 1 A. BACKGROUND 1 B. DESCRIPTION OF THE URBAN METRO RAIL TRANSIT ALIGNMENT AND CIVIL WORKS 1 C. MEASURES ADOPTED TO MINIMIZE RESETTLEMENT 2 D. OBJECTIVES OF THE RESETTLEMENT PLAN 2 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 6 A. SOURCE OF DATA ON PROJECT IMPACTS 6 B. CONSTRUCTION LIMIT AND LAND ACQUISITION REQUIREMENTS 6 C. DATA GATHERING INSTRUMENT IN THE INVENTORY OF LOSSES 6 D. CUT-OFF DATE FOR ELIGIBILITY TO PROJECT ENTITLEMENTS 6 E. REPLACEMENT COST STUDY 6 F. AFFECTED FIXED ASSETS 7 G. AFFECTED BUSINESSES AND EMPLOYMENT 15 H. IMPACTED POPULATION 18 III. SOCIO-ECONOMIC PROFILE OF AFFECTED HOUSEHOLDS 21 A. DEMOGRAPHIC INFORMATION 21 B. EMPLOYMENT AND HOUSEHOLD INCOME 24 C. WATER AND SANITATION 25 D. AMENITIES IN THE AFFECTED HOUSEHOLDS 26 E. RELOCATION OPTIONS 27 IV. CONSULTATION AND DISCLOSURE 27 V. GRIEVANCE REDRESS MECHANISM 32 VI. LEGAL AND POLICY FRAMEWORK 33 A. RELEVANT LAWS AND REGULATIONS OF VIET NAM 33 B. ADB POLICY ON INVOLUNTARY RESETTLEMENT 33 C. GAPS ANALYSIS AND PROJECT PRINCIPLES 35 D. OTHER APPLICABLE ADB POLICIES 38 E. PROJECT RESETTLEMENT PRINCIPLES 38 VII. PROJECT ENTITLEMENTS 39 VIII. RESETTLEMENT STRATEGY 56 A. COMPENSATION AND ALLOWANCES OF AFFECTED HOUSEHOLDS 56 B. RESETTLEMENT PLAN UPDATING AND IMPLEMENTATION 57 IX. RESETTLEMENT COSTS 60 A. PROCEDURES FOR FLOW OF FUNDS 60 B. COST ESTIMATES AND UNIT RATE ADJUSTMENT 60 C. IMPLEMENTATION, ADMINISTRATION AND CONTINGENCY COSTS 60 D. ESTIMATED COSTS OF RESETTLEMENT 60 ii

4 X. IMPLEMENTATION ARRANGEMENTS 61 A. HO CHI MINH CITY PEOPLE S COMMITTEE 62 B. MANAGEMENT AUTHORITY OF URBAN RAILWAYS 62 C. DISTRICT COMPENSATION COUNCIL 63 D. WARD PEOPLE S COMMITTEE 63 E. IMPLEMENTATION SCHEDULE OF THE RESETTLEMENT PLAN 64 XI. MONITORING AND EVALUATION 66 A. INTERNAL MONITORING 66 B. EXTERNAL MONITORING AND EVALUATION 67 XII. LIST OF ANNEXES 69 LIST OF TABLES The data presented in the tables of this version of the resettlement plan are estimates to be updated during the updating of the resettlement plan. Table 1: Stations of UMRT Table 2. Summary of Affected Lands... 8 Table 3. Plots of Private Land Owned or Leased by Male-headed Affected Households... 8 Table 4. Plots of Private Land Owned or Leased by Women Respondents... 9 Table 5. Land Losses of Affected Households (m²)...10 Table 6. Count of Affected Main Structures by Use and Severity of Impact...10 Table 7. Male-headed Affected Households that Own and Occupy the Affected Houses and Shops...11 Table 8. Women Respondents who Own and Occupy the Affected Houses and Shops...12 Table 9. Affected Households Renting Affected Houses and Shops...12 Table 10. Floor Area (in m²) of Entirely Affected Main Structures...14 Table 11. Floor Area of Partially Affected Main Structures (m 2 )...14 Table 12. Quantities of Affected Secondary Structures...14 Table 13. Quantities of Affected Public Facilities...15 Table 14. Affected Businesses, Duration of Disruption and Range of Net Monthly Income...17 Table 15 : Summary of Impacts on Residential Housing...18 Table 16: Summary of Impacts on Businesses and Livelihoods...19 Table 17: Summary of Impacts UMRT Line 2 and Spur...20 Table 18: Civil Status of Respondents by Gender...21 Table 19: Distribution of Affected Households by Years in Occupation of Affected Assets...22 Table 20: Distribution of Respondents by Physical Condition and Age...22 Table 21: Ethnic Affiliation of Respondents...22 Table 22: Religious Affiliation of Respondents...23 Table 23: Number of Persons Living with the Affected Households...23 Table 24: Educational Attainment of Male Head of Affected Households...23 Table 25: Educational Attainment of Women Respondents...23 Table 26: Number of Gainfully Employed Persons in the Affected Households...24 Table 27: Primary Livelihood of Male Affected Households Heads...24 Table 28: Primary Livelihood of Women Respondents...24 Table 29: Monthly Income of Affected Households Headed by Males...25 Table 30: Combined Monthly Income of Affected Households of Women Respondents...25 iii

5 Table 31: Main Source of Water for Drinking and Washing...25 Table 32: Toilet Facilities Used by the Affected Households...26 Table 33: Home Appliances of the Affected Households...26 Table 34: Ownership of Transportation...26 Table 35 Relocation Options for 88 Entirely Affected Houses and Shops...27 Table 36: Participants in Post-IOL Public Consultations...28 Table 37: Highlights of Public Meetings...28 Table 39: Entitlement Matrix...41 Table 40: Schedule of Resettlement Activities...66 LIST OF FIGURES Figure 1: Project Location Map... 4 Figure 2: Layout of Depot and Relocation Site... 5 iv

6 CURRENCY EQUIVALENTS (as of January 2012) Currency Unit dong (D) D1.00 = $ $1.00 = D20,800 ABBREVIATIONS ADB Asian Development Bank COI Corridor Of Impact DCB DCC District Compensation Board District Compensation Council DMS Detailed Measurement Survey DPC District People s Committee EIB European Investment Bank EMA External Monitoring Agency ha Hectare HCMC Ho Chi Minh City HCMC-PC Ho Chi Minh City People s Committee IOL Inventory Of Losses IRP Income Restoration Program KfW Kreditanstalt für Wiederaufbau (German Development Bank) km Kilometer LURC Land Use Right Certificate m Meter m 2 square meter MAUR Management Authority of Urban Railways MFF Multi-tranche Financing Facility PMU Project Management Unit PIB Public Information Booklet RCS Replacement Cost Study SES Socioeconomic Survey SPS Safeguard Policy Statement TA Technical Assistance UMRT2 Urban Metro Rapid Transit Line 2 Project WPC Ward Provincial Committee NOTE In this report, $ refers to US dollars unless otherwise stated. v

7 DEFINITION OF TERMS Compensation - This is payment given in cash or in kind to persons or households displaced from fixed assets and sources of livelihood and incomes at replacement cost or at current market rates. Corridor of impact (COI) - This is the area which will be cleared of all structures and obstructions. Cut-off date - Is the day which document approval of invested location to be effected. The District People s Committees (DPC) have responsibility to publicly inform this document approval of invested location and policy of land acquisition to the local communities and affected people. Anyone who occupies or encroaches into the defined boundaries of the Project area after this date will not be compensated for affected assets and incomes. Detailed measurement survey (DMS) Displaced person/ Affected Household - This is the detailed recording of all land and non-land assets of persons or households in the COI that Management Authority of Urban Railways (MAUR) and the District Compensation Boards (DCB) will undertake following final design and demarcation of the areas for the stations, metro line alignment, spur, and the depot. The DMS, together with the result of the replacement cost survey (RCS), as reviewed and approved by the HCMC-PC, will be the basis for preparing the district-level compensation plans and the Project resettlement plan. - In this resettlement plan, displaced persons refers to any person who, on account of changes resulting from the Project, will have his/her (i) standard of living adversely affected; (ii) right, title or interest in any house, land (e.g., residential, commercial, agricultural, and/or grazing land), water resources or any other fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without physical displacement. Private organizations or firms and private and public institutions may also suffer displacement from assets and incomes, but in this resettlement plan, these Project-affected private organization or firms and private and public institutions will be identified separately as affected organizations and institutions. In the case of affected household, it includes affected persons residing under one roof and operating as a single economic unit, who are adversely affected by the Project. Encroachers - People who move into the Project area after the cut-off date and are therefore not eligible to receive compensation or other rehabilitation measures provided by the Project. Encroachers also include persons who have trespassed government land, adjacent to their own land or asset, to which they are not entitled, and derive economic benefit there from. Such act is called Encroachment. vi

8 Entitlement - Refers to a range of measures, such as compensation in cash or in kind, income restoration support, transfer assistance, livelihood substitution, relocation support, etc., which are provided to displaced persons or affected households depending on the type and severity of their losses to restore their economic and social base. Income restoration - This involves re-habilitating the sources of income and livelihoods of severely affected and vulnerable displaced persons and affected households to supplement compensation received for affected assets in order to achieve, at a minimum, full restoration of living standards and quality of life. Inventory of Losses (IOL) Involuntary Resettlement - This is the listing of assets as a preliminary record of affected or lost assets during the preparation of the resettlement plan where all fixed assets (i.e., land used for residence, commerce, agriculture; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; standing crops and trees with commercial value; etc.) and sources of income and livelihood inside the COI are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs calculated. The severity of impact on the affected assets and the severity of impact on the livelihood and productive capacity of the displaced persons and affected households are likewise determined. - It is the displacement of people, not of their own volition but involuntarily, from their homes, assets, sources of income and livelihood in the COI in connection with the Project. Land acquisition - In this Project, it refers to the process whereby a person or household is compelled by the Ho Chi Minh People s Committee through the District Compensation Board and the MAUR to alienate all or part of the land it owns or possesses, to the ownership and possession of the government for the Project in return for compensation at replacement cost. Relocation - This is the physical displacement of a person or affected household from its pre-project place of residence and/or business. Replacement cost - Replacement of lost assets with assets that have similar value (i.e. lands with similar production potential and locational advantages) or cash compensation that includes: (i) current market value; (ii) interest accrued, (iii) LURC transitional costs. In case of structures, replacement cost is based on the unit cost of constructing a new replacement structure at the time of compensation. Replacement Cost Study (RCS) - This refers to the process involved in determining replacement costs of affected assets based on empirical data. Resettlement - Refers to various measures provided to displaced persons or affected households to mitigate any and all adverse social impacts of the Project, including compensation, relocation (where relevant), and rehabilitation as needed. vii

9 Resettlement Plan - This is a time-bound action plan with budget, setting out the resettlement objectives and strategies, entitlements, activities and responsibilities, resettlement monitoring, and resettlement evaluation, all of which are geared towards ensuring that displaced persons and affected households are able to restore or improve their pre-project standards of living. Severely affected displaced persons and affected households - This refers to displaced persons and affected households who will (i) lose 10% or more of their total productive assets, (ii) have to relocate, and/or (iii) lose 10% or more of their total income sources due to the Project. Vulnerable groups - These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized due to the Project and specifically include: (i) households that are headed by women with dependents, (ii) household heads with disabilities, (iii) households falling under the generally accepted indicator for poverty, (iv) elderly households who are landless and with no other means of support, and (v) landless households. viii

10 EXECUTIVE SUMMARY A. Background 1. The Asian Development Bank (ADB) in December 2010 approved Tranche 1 of the Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program (Project 1), referred hereinafter as Urban Metro Rapid Transit Line 2 Project (UMRT2). Project 1 involves, among others, initial works to facilitate the implementation of Project 2, including site preparation works and the construction of initial buildings at the depot in Tan Thoi Nhat Ward. Project 2 (or Tranche 2) of UMRT2 involves the construction of 10 underground and 1 elevated stations on an 11.3 kilometers (km) of urban dual rail line 9.3 km underground, 0.2 km transition, and 1.8 km elevated, including spur line to the depot and the completion of the depot. The cost for carrying out UMRT2 is estimated at $1.37 billion, of which $540 million will be provided by ADB, $313.0 million by the German Government through KfW (German Development Bank), $195.0 million by the European Investment Bank, and $326.5 million by the Government of Viet Nam (the Government). 2. The Government has requested ADB s $540 million share of the UMRT2 total cost to be provided through the Bank s multi-tranche financing facility (MFF). Project 1, amounting to $40 million, is on-going, while preparation for Project 2, amounting to $500 million, is in progress. Concurrence by ADB with this resettlement plan for the 11.3 km metro rail line and spur line, in addition to a resettlement due diligence review plus corrective actions for the depot, is a precondition to the approval of Project 2. The due diligence review plus corrective action plan for the depot is prepared separately from the resettlement plan. B. Scope of Resettlement Impacts 3. A total of 33,597.1 square meter (m 2 ) of private plots of land belonging to 347 affected households, 33 private firms, and a religious institution, in addition to 1,434.2 m 2 of public land, will be acquired in the construction of the underground stations and the spur line to the depot. Private residential plots of land account for 71.8% (or 25,152.5 m 2 ) of all affected land. Of the affected plots of land officially classified as residential, 11,640.9 m 2 belong to corporate businesses. Only m 2 of the affected land is officially classified as commercial. There are 509 affected main structures (i.e., buildings) 216 (42.4%) residences, 217 (42.6%) small shops, 50 (9.8%) commercial buildings, 15 (2.9%) private offices, 10 (2.0%) government buildings, and 1 (0.2%) mosque. Entirely affected main structures include 41 residences, 99 small shops, 2 private offices, and 10 commercial buildings. Affected government buildings include offices of the wards and the police, health centers, and a community counseling center. Some 2,881 persons are employed in 285 affected shops and establishments. Of the affected employees, 231 could lose their jobs permanently because their places of work are entirely affected. C. Legal and Policy Framework 4. The legal and policy framework for compensation, resettlement and rehabilitation under the Project is defined by relevant laws and regulations of the Government and by the 2009 ADB Safeguard Policy Statement (SPS). In 2010, the Government and ADB agreed on a resettlement framework that would guide Project authorities in carrying out resettlement. In brief, the objective of the resettlement framework is to help ensure that resettlement impacts are avoided or mitigated and, if these cannot be avoided, to help ensure that the livelihoods of the affected people are restored and the living standards of poor and vulnerable households are improved. ix

11 D. Project Entitlements 5. Persons or households displaced from assets and livelihoods will be provided compensation at replacement cost, in addition to cash allowances depending on the type and severity of impacts and the socioeconomic situation of the affected. Severely affected persons and vulnerable affected households will likewise be provided with life stabilization support and other forms of rehabilitation assistance, such as marketing support, job-referrals for members of the affected households, credit facilities, etc. E. Ethnicity, Vulnerability and Gender Issues 6. There are 2 affected households that belong to the Cham ethnic group and 1 Chinese affected household. However, none of these are considered as indigenous people as defined within the SPS. While 168 of the women interviewed during the inventory of losses (IOL) claimed to be the household heads, it is doubtful that such big number of affected households could be headed by women. This matter will be verified during the detailed measurement survey (DMS) and updating of the resettlement plan. No affected household was found to be living below the national poverty line. During the updating of the resettlement plan, the census will ascertain affected persons living below the Ho Chi Minh City official poverty line (currently Dong (D) 12 million per annual per capita) which is higher than the official national poverty line. Additional measures are incorporated in the resettlement plan to help ensure that affected households belonging to the vulnerable groups are not further disadvantaged and that, along with the other affected households, they will equally benefit from the Project. F. Participation, Disclosure, and Grievance Redress 7. The affected households were met and interviewed during the conduct of the IOL and socioeconomic survey (SES) in June July Earlier, in April and May 2011, the Management Authority of Urban Railways (MAUR) met with the local government of districts traversed by the Metro Line 2. In these meetings, local governments of concerned districts were briefed on the project and were provided opportunities to voice out their concerns and suggestions. Public meetings were again held in August 2011 in the districts to discuss the results of the impacts survey with the affected households and local officials, and also to discuss Project entitlements, grievance redress procedures, and resettlement options, among others. The grievance redress mechanism has been designed to ensure that the concerns and grievances of displaced persons and affected households are addressed and resolved in a timely and satisfactory manner. Key information in the draft resettlement plan will be disclosed to the displaced persons and affected households by means of public information brochure (PIB) in June 2012 for public disclosure. G. Implementation Arrangements 8. The HCMC-PC has established a project steering committee led by the permanent vice chairman and supported by the Urban Railway Council. The executing agency is the Ho Chi Minh City People s Committee (HCMC-PC), and the main implementing agency is MAUR. The Department of Transport is the implementing agency for the integrated sustainable urban transport component. MAUR was established in 2007 to implement all nine mass transit systems proposed under the Urban Transport Master Plan, with three metro rail transit (MRT) lines under preparation. MAUR has established a project management unit (PMU) 2 for UMRT2. The PMU2 head will ensure compliance with ADB procurement and consulting guidelines and x

12 ADB safeguard policies. The capacity development component of the Project will provide extensive technical, financial, and management training to strengthen MAUR. H. Resettlement Plan Budget 9. The estimated cost of resettlement for UMRT2 is D2,335,980,660,000 (approximately $112,306,762). I. Monitoring 10. MAUR, through the Environment and Resettlement Team of PMU2, will submit quarterly monitoring reports to ADB, KfW and European Investment Bank (EIB). MAUR will hire an external monitor to perform compliance review and assessment. External monitoring and assessment will be carried out on a quarterly basis and the external monitor will submit quarterly monitoring reports to MAUR, ADB, KfW and EIB. All monitoring reports will be uploaded to the ADB website. J. Implementation Schedule 11. The table below presents an indicative schedule of resettlement plan preparation, updating and implementation for Project 2 (Tranche 2), including the implementation of the corrective actions to make resettlement at the depot compliant with the Project resettlement framework. Before MAUR awards any civil works contracts, it will first confirm to ADB in writing that: (i) payment of compensation has been fully disbursed to the displaced persons and affected households, and rehabilitation measures are in place as per the updated resettlement plan agreed between HCMC-PC and ADB; (ii) already-compensated displaced persons and affected households have cleared the area in a timely manner; and, (iii) the area is free from any encumbrances. Indicative Resettlement Schedule Activities Schedule Resettlement Plan preparation June 2011 July 2012 ADB concurrence of draft resettlement plan July 2012 Distribution of Project public information brochure August 2012 Approval by HCMC of construction specifications August 2012 Conduct detailed measurement survey April December 2012 Engage external monitor July 2012 Resettlement plan updating October 2012 January 2013 Submission to and ADB concurrence of updated resettlement plan March 2013 Implementation of the approved updated resettlement plan April 2013 February 2015 Internal monitoring (submission of quarterly reports) June 2012 February 2015 External Monitoring (submission of semi-annual M&E reports) July 2012 February 2015 Post-resettlement evaluation (by the external monitor) August 2015 ADB = Asian Development Bank, HCMC = Ho Chi Minh City, M&E = monitoring and evaluation. xi

13 I. INTRODUCTION A. BACKGROUND 1. The Transport Master Plan for Ho Chi Minh City (HMCM) prepared by the Ho Chi Minh City People s Committee (HCMC-PC) involves a system of six metro lines to be developed until 2020 and will require a total investment of about $5 billion. At present, the implementation of the Urban Metro Rapid Transit (UMRT) Line 1 with support from the Japan Bank for International Cooperation (JBIC) is ongoing. 2. In December 2010, the Asian Development Bank (ADB) approved Tranche 1 of the Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program (Project 1), referred to hereinafter as Urban Metro Rapid Transit Line 2 or UMRT2. Project 1 involves, among others, initial works to facilitate the implementation of Project 2, including site preparation works and the construction of initial buildings at the UMRT2 depot in Tan Thoi Nhat Ward, District 12. Project 2 (or Tranche 2) involves the construction of 10 underground and 1 elevated stations on an 11.3 kilometers (km) of urban dual rail line 9.3 km underground, 0.2 km transition, and 1.8 km elevated, including depot connection and the completion of the depot. The cost for carrying out the UMRT2 is estimated at $1.37 billion, of which $540 million will be provided by ADB, $313.0 million by the German Development Bank (KfW), $195.0 million by the European Investment Bank, and $326.5 million by the Government of Viet Nam (the Government). The HCMC-PC is the executing agency, while the Management Authority for Urban Railways (MAUR) is the main implementing agency. 3. Government has requested ADB s $540 share of the total cost of UMRT2 to be provided through the Bank s multi-tranche financing facility (MFF). Project 1, amounting to $40 million, is on-going, while preparation for Project 2, amounting to $500 million, is in progress. Concurrence by ADB with this resettlement plan, which covers the 11.3 km metro rail line, in addition to the resettlement due diligence review plus corrective actions for the depot, is a pre-condition for the approval of Project 2. B. DESCRIPTION OF THE URBAN METRO RAIL TRANSIT ALIGNMENT AND CIVIL WORKS 4. Starting from the underground station at Ben Thanh in District 1, UMRT2 runs underground for about km before emerging on the ground surface at Tan Phu District via a cut-and-cover transition section of 0.2 km and an elevated railway of 0.8 km that connects to Station 11, which is the only elevated station. From Station 11, UMRT2 is connected to the depot by a km long spur line. (See Figure 1 for the Project location map.) 5. In all, there are 10 underground stations and 1 elevated station. The construction method to be used for the underground stations is cut-and-cover, while the tunnels between stations will be twin-bored tunnels using tunnel boring machines (TBM). The TBM tunnels will generally be deeper between stations. Typical station depth is around 18 meters (m) below the ground surface. The construction area for the underground stations is about 205 m long and 48 m wide. Each tunnel is 6.65 m wide and the distance between each tunnel running in parallel is about 6.65 m. The depth of the tunnel from the ground surface is variable, with the deepest around 30 m from the surface. 6. The depot is located in District 12. Long term, the UMRT2 depot might also be required to serve Metro Line 6 and the proposed extension of UMRT2 to Thu Thiem and An Suong. When fully developed, the depot will have an area of about 26.6 hectares (ha). In the due

14 2 diligence plus corrective action plan, however, only the area required for UMRT2, which is approximately 22 ha, is covered. Of this 22ha, 3.4 ha will be developed as a resettlement site for households displaced from the depot area. (See Figure 2 for the layout of the depot) Table 1: Stations of UMRT2 Approximat e Constructio n Length (m) Approximat e Constructio n Width (m) Distanc e betwee n Station s (m) Depth/ Height from ground surface No. Name of Station District Interchang e 1 Ben Thanh Lines 1 & 4 2 Tao Dan Line 3B 3 Dan Chu 3 & , Hoa Hung 3 & , Le Thi Rieng 3 & Pham Van Hai Tan Binh Bay Hien Tan Binh Line 5 8 Nguyen Hong Tan Binh , Dao 9 Ba Queo Tan Binh & , Line 6 Tan Phu 10 Pham Van Bach Tan Binh & Tan Phu 11 Tan Binh Tan Binh & Tan Phu C. MEASURES ADOPTED TO MINIMIZE RESETTLEMENT 7. All underground stations, including the two tunnels of UMRT2, will be constructed under existing city roads, namely Duong Truong Chinh, Duong Cach Mang Thang Tam, Pham Hong Thai, and Dai lo Ham Nghi. With the exception of both ends of the underground stations where escalators will be constructed, the main body of the stations will be built within the existing planning line a demarcated area from both edges of a road which restricts the construction of buildings even on privately-held lands for safety reasons. A local law on this road safety corridor was promulgated by the City Government on 22 April In locations traversed by the UMRT2, said road safety corridor is 35 m wide (i.e., 17.5 m each way from the existing road centerline). Under said City regulation, no building may be constructed within the 35 m road safety corridor. Moreover, the 0.2 km transition and the 0.8 km elevated railway that connect Station 10 to the elevated Station 11, including Station 11 itself, will be built at the center island of Truong Chinh Street. D. OBJECTIVES OF THE RESETTLEMENT PLAN 8. This resettlement plan has been prepared for the purpose of ensuring that land acquisition and resettlement in UMRT2 are carried out in a manner consistent with the laws of Viet Nam and with the ADB Safeguard Policy Statement (SPS, 2009). Gaps and differences between applicable laws of the country and the SPS have been sorted out through a resettlement framework agreed by the HCMC-PC and ADB in This resettlement plan takes cognizance of the fact that the detailed measurement survey (DMS) was carried out and land acquisition commenced in Tham Luong depot beginning during the preparation of, and continuing after approval of Project 1. A due diligence of how resettlement has been carried out

15 3 in the depot, including additional actions needed to ensure that land acquisition and resettlement thereat are compliant with the agreed Project resettlement framework, has been prepared separately from this resettlement plan. In addition to the Resettlement Plan, an approved Corrective Action Plan is a pre-condition for the approval of Project by ADB. 9. This resettlement plan contains the results of the inventory of losses (IOL) of assets to be acquired, including the socioeconomic survey (SES) of a sample 1 of households affected by the loss of assets, in the construction of the UMRT2 stations and spur line. The results of the IOL and SES and the consultations with the affected households and local government authorities are the principal sources of information for the preparation of this resettlement plan, which includes an initial estimate for carrying out resettlement in the stations and spur line. The information and budget will be validated and finalized during the updating of the resettlement plan through the conduct of a DMS and replacement cost study (RCS) subject to the approval of HCMC-PC and concurrence from ADB. 10. The resettlement impacts associated with the land acquisition in District 12 for the Tham Luong Depot and resettlement site are addressed in a separate resettlement due diligence and Corrective Action Plan (CAP) for the area. The Tham Luong Depot CAP is an involuntary resettlement safeguards document requiring endorsement of the borrower, concurrence from ADB and public disclosure similar to this resettlement plan. 1 Randomly selected sample size of 20% of severely affected households and 10 % of the rest of the affected households.

16 4 Figure 1: Project Location Map

17 5 Figure 2: Layout of Depot and Relocation Site Depot priority area (2.4 hectare) Relocation site Depot Spur line

18 6 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT A. SOURCE OF DATA ON PROJECT IMPACTS 11. An IOL and a census of all affected households, private and public organizations, and institutions affected by the loss of assets were conducted on 14 June July 2011 by a team of local survey assistants with the participation of MAUR staff and local officials from districts and wards traversed by the UMRT2 line. B. CONSTRUCTION LIMIT AND LAND ACQUISITION REQUIREMENTS 12. As mentioned in the preceding chapter, the construction of the 10 underground stations will be done through cut-and-cover method. The ground surface area that will be cleared of all improvements, and therefore acquired by the Project for each of the 10 underground stations has a length of 202 m 205 m and a width of 36 m 48 m. Since the 2 parallel metro line tunnels are underground, no land acquisition and clearing of the ground surface above the tunnels will be done especially because the entire length of the km underground segment of the metro line 2 will be constructed under existing city roads. Ground surface subsidence above the tunnels is not expected to exceed 10 mm as a consequence of tunneling. No land acquisition is likewise needed in the segment of the UMRT2 line between station 10 and station 11 which will be above ground because the same will be constructed on the median island of the wide Tham Luong Road. Similarly, the elevated station 11 will not require land acquisition since this will be constructed above the Tham Luong Road. On the other hand, the approximately 1 km long spur line has a construction limit of 11 m each way from the spur s centerline. All plots of land and improvements in this 22 m x 1,000 m corridor will be acquired by the Project. C. DATA GATHERING INSTRUMENT IN THE INVENTORY OF LOSSES 13. A questionnaire was used in the IOL and in the census of affected households, private and public firms, and institutions affected by the loss of assets and livelihoods. The IOL questionnaire covers 3 areas of concern: (i) basic socioeconomic information on the affected household or identification data in the case of affected private and public firms and institutions; (ii) affected assets and livelihoods of the affected households, private firm, or private or public institution; and, (iii) information on other landholdings of the affected households, including relocation options for those who stand to lose entire houses and shops (See Appendix 1 for the IOL questionnaire). The IOL survey team also used cadastral maps in identifying affected assets and the affected households. D. CUT-OFF DATE FOR ELIGIBILITY TO PROJECT ENTITLEMENTS 14. The cut-off date is the day which document approval of invested location to be effected. The District People s Committees (DPC) have responsibility to publicly inform this document approval of invested location and policy of land acquisition to the local communities and affected people. Anyone who occupies or encroaches into the defined boundaries of the Project area after this date will not be compensated. E. REPLACEMENT COST STUDY 15. In parallel with the conduct of the IOL and census of affected households and affected private or public entities and institutions, an RCS was carried out by an independent appraiser in close collaboration with district and ward officials, and followed under the Ministry of

19 7 Finance s Regulations. The objective of the RCS was to establish compensation rates for land, structures, trees and crops, sufficient for affected households and affected private and public entities and institutions to acquire or purchase a replacement for assets lost to UMRT2 without depreciation and without deductions for taxes, value of salvageable materials, and costs of transaction, including amending land use rights certificates (LURC) and similar governmentissued certificates (See Appendix 2 for the RCS report). 16. Land. All lands affected by UMRT2 are either private land (i.e., covered with an LURC or in the process of being issued an LURC) or public land. The prevailing market rates of affected lands per official classification (i.e., as indicated in the LURC of the landowners) are provided in the table below. As mentioned in paragraph 5, plots of land that will be acquired for the underground stations are mostly inside the road safety corridor. Even if these plots were to be advertised for sale in the open market, nobody would buy them. 17. Structures. As mentioned in paragraph 5, no building could be constructed inside the demarcated road safety corridor, although there are remaining constructions within the boundary (such as commercial structures). 18. The Project resettlement framework stipulates that owners of affected structures will be compensated at 100% of the value of the structure in conformity with the unit prices of a newly built house or structure as per result of replacement cost survey and approved by the HCMC- PC with the condition that the construction did not violate planning laws existing at the time of construction. 19. For the cases of affected houses constructed in violation of planning laws existing at the time of construction and the owner was notified of the violation the affected house will be compensated up to 50% of the structure value for each situation according to Clause 2, Article 26 of Decision No.35/2010/QĐ-UBND on 28 May (Please refer to Entitlement Matrix below for further details.) 20. Trees and crops. There are no affected trees and crops belonging to private individuals or entities. There are trees that will be cut or balled in the construction of Station 1 at the Ben Thanh Market and probably in other parks where underground stations will be built. However said trees belong to the Government of Ho Chi Minh City, the owner of the Project. Mitigation measures with respect to the environment are covered in a separate study. F. AFFECTED FIXED ASSETS 1. Land to be acquired 21. A total of 33,597.1 square meter (m 2 ) of private plots of land belonging to 347 affected households, 33 private firms, and a religious institution, as well as 1,434.2 m 2 of public land, will be acquired in the construction of the underground stations and the spur line to the depot. Private residential plots of land account for 71.8% (or 25,152.5 m 2 ) of all affected land, however, 11,640.9 m 2 of said affected private residential plots of land belong to corporate businesses. Only m 2 of affected land is officially classified as commercial, and this affected land belongs to a business corporation. It should be pointed out that most plots of land traversed by the roads under which the UMRT Line 2 stations and tunnels will be constructed are officially classified as residential land. Their use has not yet been officially converted to commercial land, notwithstanding the fact that shops and rented-out buildings abound on each side of said

20 8 roads. 2 The 7,737.7 m 2 garden land is in the spur line, while the 1,434.2 m 2 affected public land are the front yards of government offices and public schools. Some m 2 of the front yard of a Muslim cemetery/mosque in Ward 10, District 3 will also be acquired. Table 2. Summary of Affected Lands Ward Residential Commercial Garden Land Public Land* Other Ben Thanh District Ward 7 District Ward 10 District ** Ward 11 District 3 2, Ward 12 District Ward 13 District 10 1, Ward 15 District Ward 4 Tan Binh District Ward 5 Tan Binh District Ward 7 Tan Binh District Ward 11 Tan Binh District Ward 14 Tan Binh District Ward 15 Tan Binh District 4, Tan Son Nhi Tan Phu District Tay Thanh Tan Phu District Tan Thoi Nhat District12 10, , Total 25,152.5*** , , % * Public land: for park, government land for offices and public schools. ** Other: land on which a mosque stands. ***11,640.9 m 2 belong to 33 companies. 22. Among the affected plots of land of private affected households, 181 are owned or rented by male-headed affected households: 179 of these plots are officially classified as residential lands, while 2 are officially classified as garden plots. 23. During the IOL and the census of affected households, 168 women respondents claimed to own 171 of the affected plots of land. 3 of the women in District 12 each own garden land. It must be pointed out, however, that not all of the 168 women respondents are actually household heads. During census of affected households, the interviewers simply wrote down the name of the household head that was given to them. The matter of which households are actually headed by women will be looked into during the updating of the resettlement plan. In the interim, information gathered in the socioeconomic survey of randomly selected affected households will be used to make a tentative calculation of the number of women-headed affected households. Table 3. Plots of Private Land Owned or Leased by Male-headed Affected Households Residential Garden Land Ward With LURC LURC in process Rented With LURC LURC in process Rented Ben Thanh District The significance of this information lies in the fact that people, including corporations, in the Project area pay land tax based on the official classification of their land. Residential lands have lower tax value than commercial land. Affected households in the project area have been paying land taxes for residential lands even if they have been using their lands for business purposes. When Government needs to recover land from private individuals, compensation will be computed based on the prevailing market rates as per the official classification of the land to be acquired.

21 9 Residential Garden Land Ward With LURC LURC in process Rented With LURC LURC in process Rented Ward 7 District Ward 10 District Ward 11 District Ward 12 District Ward 13 District Ward 15 District Ward 4 Tan Binh District Ward 5 Tan Binh District Ward 7 Tan Binh District Ward 11 Tan Binh District Ward 14 Tan Binh District Ward 15 Tan Binh District Tan Son Nhi Tan Phu District Tay Thanh Tan Phu District Tan Thoi Nhat District Total LURC = land use right certificate. Table 4. Plots of Private Land Owned or Leased by Women Respondents Residential Garden Land With LURC in With LURC in LURC process Rented LURC process Rented Ward Ben Thanh District Ward 7 District Ward 10 District Ward 11 District Ward 12 District Ward 13 District Ward 15 District Ward 4 Tan Binh District Ward 5 Tan Binh District Ward 7 Tan Binh District Ward 11 Tan Binh District Ward 14 Tan Binh District Ward 15 Tan Binh District Tan Son Nhi Tan Phu District Tay Thanh Tan Phu District Tan Thoi Nhat District Total LURC = land use right certificate. 24. Of the 13,511.6 m 2 residential land owned or leased by affected households, maleheaded affected households own or lease 6,173.4 m 2, while women respondents 3 own or lease 8,338.2 m 2. Also, of the 4,941.2 m 2 affected garden land in the spur line, 1,924.7 m 2 belong to 2 male-headed affected households while 3,016.5 m 2 belong to 3 women respondents. The affected garden plots are not the primary source of livelihood of the 5 3 As mentioned in para. 23, there is reason to believe that the women whose names were taken down as affected households heads during the IOL and census of affected persons may not actually be the household heads.

22 10 affected households. In fact, the garden plots were idle at the time of the IOL. Compensation for affected land will be based on land use legal basis 4. Table 5. Land Losses of Affected Households (m²) Head of Affected Household Residential Commercial Annual Crop Land Garden Land Male 6, ,924.7 Woman Respondents 8, ,016.5 Total 13, , Affected leased land 25. Technically, there are no affected leased lands. All affected lands are either covered by LURCs or have LURCs under process. Renters of affected lands referred to in Table 3 and Table 4 are affected households who are staying or occupying rented structures on 71 plots of residential land. In addition to private affected households, business companies are renting out structures on 18 other plots of residential land. 5 It should be noted that a plot of land can have more than 2 structures rented out. According to the consultation survey findings, monthly rent of structures on these 89 plots ranges from about D6 million to over D20 million. 3. Affected main structures 26. There are 509 main structures (i.e., buildings) that will be affected in the construction of the stations and spur line. Of this number, 216 (42.4%) are residences; 217 (42.6%) are small shops; 50 (9.8%) are commercial buildings; 15 (2.9%) are private offices; 10 (2.0%) are government buildings; and 1 (0.2%) is a mosque. Entirely affected main structures include 41 residences, 99 small shops, 2 private offices, and 10 commercial buildings. On the other hand, partially affected main structures include: 175 residences; 118 small shops; 13 private offices; 40 commercial buildings; 10 government buildings; and a mosque. The mosque would otherwise be partially affected by the Project. Affected government buildings include offices of the wards and the police, health centers, and a community counseling center. Table 6 below presents summary information on impacts on buildings. 27. Of the 216 affected residences, 183 were occupied by their owners, while the other 33 were occupied by renters 6 (see Table 9). Of the 183 homeowners living in the affected residences, 33 will lose their entire houses (see Tables 7 and 8), while 8 of the rented residences will be affected entirely. Of the 217 affected shops, 153 were being operated by the building owners themselves, while 64 were being operated by renters (see Table 9). Of the 153 shop owners operating their shops, 57 are affected by the entire loss of their places of business (see Tables 7 and 8), in addition to 42 renting shop operators. Table 6. Count of Affected Main Structures by Use and Severity of Impact Private House Small Shop Office/ Building Commercial Building Government Building Other Ward Partial Entire Partial Entire Partial Entire Partial Entire Partial Entire Partial Entire Ben Thanh The official categorization of land is based on the land use as specified on the land use rights certificate (LURC). In the cases discussed, the land use as described on the LURC was garden, while in reality it was not used for productive purposes. 5 As mentioned in Table 3 & 4, there are 11,640.9 m 2 of affected plots of land that belong to business companies, though not all of these are rented out. 6 No socioeconomic information was gathered on the owners of affected rented buildings, but their identities had been obtained during the census of the affected households.

23 11 House Small Shop Private Office/ Building Commercial Building Government Building Other Ward Partial Entire Partial Entire Partial Entire Partial Entire Partial Entire Partial Entire District 1 Ward District 3 Ward * 0 District 3 Ward District 3 Ward District 10 Ward District 10 Ward District 10 Ward 4 - Tan Binh District Ward 5 - Tan Binh District Ward 7 - Tan Binh District Ward Tan Binh District Ward Tan Binh District Ward Tan Binh District Tan Son Nhi Tan Phu District Tay Thanh District Tan Thoi Nhat - District 12 Total *Mosque Table 7: Table 7. Male-headed Affected Households that Own and Occupy the Affected Houses and Shops House (Count) Small Shops (Count) Ward Partial Entire Partial Entire Ben Thanh - District Ward 7 - District Ward 10 - District Ward 11 - District Ward 12 - District Ward 13 - District

24 12 House (Count) Small Shops (Count) Ward Partial Entire Partial Entire Ward 15 - District Ward 4 - Tan Binh District Ward 5 - Tan Binh District Ward 7 - Tan Binh District Ward 11 - Tan Binh District Ward 14 - Tan Binh District Ward 15 - Tan Binh District Tan Son Nhi - Tan Phu District Tay Thanh- Tan Phu District Tan Thoi Nhat- District Total Table 8. Women Respondents who Own and Occupy the Affected Houses and Shops House (Count) Small Shops (Count) Ward Partial Entire Partial Entire Ben Thanh - District Ward 7 - District Ward 10 - District Ward 11 - District Ward 12 - District Ward 13 - District Ward 15 - District Ward 4 - Tan Binh District Ward 5 - Tan Binh District Ward 7 - Tan Binh District Ward 11 - Tan Binh District Ward 14 - Tan Binh District Ward 15 - Tan Binh District Tan Son Nhi - Tan Phu District Tay Thanh - Tan Phu District Tan Thoi Nhat - District Total Table 9. Affected Households Renting Affected Houses and Shops House (Count) Small Shops (Count) Ward Male Female Male Female Ben Thanh - District Ward 7 - District Ward 10 - District Ward 11 - District Ward 12 - District Ward 13 - District Ward 15 - District Ward 4 - Tan Binh District Ward 5 - Tan Binh District Ward 7 - Tan Binh District Ward 11 - Tan Binh District Ward 14 - Tan Binh District Ward 15 - Tan Binh District Tan Son Nhi - Tan Phu District Tay Thanh - Tan Phu District Tan Thoi Nhat - District Total

25 28. The aggregate floor area of entirely affected main structures is 6,221 m 2. Small shops account for 45.1% (2,804 m 2 ) of this area, followed by residences (37.5% or 2,334 m 2 ). 13

26 14 Table 10. Floor Area (in m²) of Entirely Affected Main Structures Construction Classification / Grade Main Structure Total Area House , ,334 Small Shop ,702 2,804 Private Office Commercial Building Government Building Total ,500 2,927 6, The combined floor area of partially affected main structures is 15,751 m 2. Residences make up 44.5% (7,006 m 2 ) of this, while small shops make up 23.3% (3,674 m 2 ), and commercial buildings account for 20.9% (3,291 m 2 ). Table 11. Floor Area of Partially Affected Main Structures (m 2 ) Construction Classification / Grade Main Structure Total Area House 0 3,950 2, ,006 Small Shop ,961 3,674 Private Office Commercial Building 0 1,088 1, ,291 Government Building Mosque Total 0 6,905 5,266 3,580 15, Secondary Structures and Public Facilities 30. Affected secondary structures of private households include 20 fences of grade 1 materials (i.e., brick, higher than 1.5 m) with an aggregate length of 1,743 lm; 11 gates of grade 1 materials (i.e., steel and concrete) with an aggregate area of 88 m 2 ; 30 concrete driveways with an aggregate area of 4,610 m2; and 217 bill boards (i.e., lighted box, or led/neon lighted signage) with an aggregate surface area of 4,358 m With regards to public facilities, there are 2 partially affected health clinics (in District 10 affected by Hoa Hung Station and in Tan Binh District affected by Bay Hien Station) and one partially affected health counseling centre (in District 10 affected by Hoa Hung Station). The impacts on these health facilities are included in the iteration of impacts on main structures above. There are 16 affected waiting sheds of grade 1 materials (i.e. concreted column, steel girder, brick wall, rile/tole/fibro roof) with an aggregate floor area of 1,535 m2. Also, 289 electric posts need to be relocated behind the underground stations construction limit. 139 of these concrete or steel posts are more than 10 m in height, while the other 150 posts are 10 m or less in height. Table 12. Quantities of Affected Secondary Structures Billboard Ward Fence Gate Driveway Count Area (m 2 ) Ben Thanh - District Ward 7 - District Ward 10 - District Ward 11 - District Ward 12 - District

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