Socialist Republic of Vietnam Quang Ninh Provincial People s Committee

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Socialist Republic of Vietnam Quang Ninh Provincial People s Committee HA LONG CITY AND CAM PHA DRAINAGE AND SANITATION PROJECT MANAGEMENT UNIT 4 Cao Xanh Road, Ha Long City, Quang Ninh Province, Vietnam HA LONG CITY AND CAM PHA TOWN DRAINAGE AND SANITATION PROJECT - PHASE II Loan Agreement No. 3211-VN RESETTLEMENT ACTION PLAN (FINAL) May 2005 RP10 Vol.6 BLACK & VEATCH (INTERNATIONAL) in Joint Venture with BAC BO WATER & ENVIRONMENT JOINT STOCK COMPANY - WECO i

Table of Content I. INTRODUCTION......1 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT... 2 III. Socio-economic information......4 3.1. Source of information...... 4 3.2. Impacts on land and structures...4 3.3. Socio-economic characteristics of PAPs:...4 3.4. Education... 5 3.5. Occupation:... 6 3.6. Incomes and living standards... 7 IV. LEGAL FRAMEWORK......9 4.1. World Bank Policy on Involuntary Resettlement... 9 4.2. Relevant Vietnamese laws and bylaws... 9 V. compensation policy......13 5.1. Objectives of resettlement... 13 5.2. Project affected people.... 13 5.3. Resettlement impacts... 13 5.4. Compensation Policy.... 14 VI. INSTITUTIONAL ARRANGEMENTS... 19 6.1. Provincial People s Committee (PPC)... 19 ii

6.2. The Quang Ninh PMU... 19. 6.3. District People Committee (DPC)... 20 6.4. Town s/district s Resettlement Committees (DRCs)... 20 6.5. Agency Responsible for External Monitoring... 20 VII. Public consultation and grievance addressal...21 7.1. Public consultation in project preparation stage...21 7.2. Consultation Proposed During Implementation...22 7.3. Grievance mechanism...24 VIII. Implementation schedule......26 X. Cost and BUDGET......28 9.1. Compensation prices... 28 9.2. Cost Estimate... 28 9.3.. Total cost for resettlement implementation... 30. X. MONITORING AND EVALUATION......31 10.1. Monitoring...31 10.2. Internal Monitoring... 31 10.3. External Monitoring...32 10.4. Monitoring Methodology... 32 10.5. Evaluation.... 33 Annex 1: ENTITLEMENT MATRIX... 34 ANNEXES Abbreviations GOVN IDA DSC DMS IMO PAP PPC DPC CPC PMU PRC DRC RCs RAP Government of Vietnam International Development Association Drainage and sanitation Companies Detailed Measurement Survey Independent Monitoring Organisation Project Affected People Provincial People s Committee District People's Committee Commune People s Committee Project Management Unit Provincial Resettlement Committee District Resettlement Committee Resettlement Committees Resettlement Action Plan iii

RPF Resettlement Policy Framework iv

Definition of Terms Cut-of-date Eligibility Replacement cost Resettlement Project Affected Person The date of completion of inventory of losses during preparation of the RAP. Affected people and local communities will be informed of the cut-off date for each Project component, and that anyone moving into the Project Area after that date will not be entitled to compensation and assistance under the Project. any person who at the cut-of-date was located within the area affected by the project, its sub-components, or other subproject parts thereof, and would have their: (i) standards of living adversely affected, (ii) rights, titles, or claim in any land (agricultural, grazing or forest), house or structure (be it residential, commercial permanent or temporary), or (iii) production assets such as business, occupation, place of work, residence, or habitat, or (iv) access to assets adversely affected (e.g. fishing rights). Eligibility is irrespective of: (a) formal legal rights to land, or (b) customary claim to land or asset, or (c) having no recognizable legal right or claim to the land they are occupying. is the term used to determine the amount sufficient to replace lost assets and cover transaction costs. For loses that cannot easily be valued or compensated for in monetary terms (e.g. access to public services, customers, and supplies; or to fishing, grazing, or forest areas), attempts are made to establish access to equivalent and culturally acceptable resources and earning opportunities. When domestic laws do not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standards. is the general term related to land acquisition and compensation for loss of asset whether it involves actual relocation, loss of land, shelter, assets or other means of livelihood. who has land acquisition and/or on land loss assets and other negative affected by actions of project implementation v

I. INTRODUCTION 1. Consistent with Government strategy of developing the sanitation and drainage components of urban infrastructure in Vietnam in the period 2001 to 2010, Quang Ninh is included in a three cities programme in a World Bank (IDA) funded sanitation project, together with two other cities such as Danang and Hai Phong. 2. The project aims to reduce flloding, improve the environment, promote economic development, and strengthen the institutional capacity of the sanitation and drainage companies. To achieve these objectives, the project includes 4 components: (i) drainage improvement, i.e. rehabilitation, upgrading and construction of drains and channels; (ii) sewerage and sewage treatment, involving development of new sewers, septic tank improvement, wastewater treatment; (iii) solid waste management, which includes waste collection and transfer, upgrade and construct landfills; and, (iv) institutional strengthening. 3. The Project loan was approved and came into effectiveness in 1999, its construction works commenced in 2000 and are expected to be completed by the end of this year, 2004. This stage subsequently became known as Phase I. 4. As result of lower than expected bids for some Phase I packages of the Quang Ninh Drainage and Sanitation project, considerable fund remained available for a second phase of improvements. On 22 April 2003, Quang Ninh People Committee issued decision Ref No 1260/QD-UB which confirmed the amount available for the Phase II as U$D 12,643,000. 5. The Phase II of the project includes the following physical, proposed follow up works: In Hon Gai: - Construct Wastewater Treatment Plant, - Combined sewers, - Separate sewers, - Seweage pumping mains, - Seweage pumping station, - Rehabilitation of tidal gates, - Rehabilitation of canals and drains; In Bai Chay: - Combined sewers, - Rehabilitation of streams; In Cam Pha: - Rehabilitation of streams; 6. Among the above mentionned works of the Phase II, construction and rehabilitation of combined and separate sewers, seweage pumping mains and stations as well as rehabilitation of tidal gates in Hongai and combined sewers in Bai Chay likely do not cause resettlement impacts as they either base on respective exising works or will locate on the public land. The remained works including construction of Wastewater Treatment Plant and rehabilitation of canals and drains in Hon Gai; Rehabilitation of streams in Bai Chay and rehabilitation of streams in Cam Pha will anticipate permanent or temporary acquisition of land and loss of assets and properties attached, imposing resettlement impacts to the local population. 7. Based on results of preliminary inventories of losses and census survey of project affected people, this RAP is prepared for guiding implementation of compensation for all related losses and rehabilitation of people affected by the Phase II of the Quang Ninh Drainage and Sanitation Project. After its approval by Quang Ninh PPC and achieving of no objection from the WB, the RAP will obtain legal status and guide all resettlement activities of the project s Phase 2 1

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 8. The Phase 2 of Quang Ninh subproject involves Cam Pha town and Hon Gai and Bai Chay of Ha Long city. 9. During process of technical designing, many efforts have been given by Consultants in cooperation with Quang Ninh PMU and local authorities, alternative options have been considered, mitigation measures have been adopted to reduce negative impacts on local properties and people, which would be potentially caused by development of the subproject physical infrastructure. Mitigation measures taken to reduce the scale of resettlement impacts include followings: (i) (ii) (iii) (iv) (v) The laying of pipes, raising mains, interceptor sewers..., wherever possible, has been designed in sidewalks, right of ways or in the areas of road corridor to avoid land acquisition and impacts on local assets. Slight adjustment of the existing sewers and drains alignment to reduce level of loss of properties and impacts on the local population. Sometimes, wherever possible, considerable realignments of drains and sewers have been taken to avoid relocation of the population; To reduce negative impacts caused by land acquisition for construction of sewers pumping stations and installation of WWTP, priorities have been given to select public land or land of lower economic value, in the as much as less populated areas. Selection of location of proposed access roads along the canals in Cam Pha and Bai Chay and location for Ha Khanh WWTP to the side that causes fewer property impacts and losses, or realignment of the proposed canal bank to avoid or reduce scale of resettlement; Removing off certain section of project s proposed access roads has avoided relocation of several potentially relocating PAPs and reduce level of impacts and number of PAPs in Quang Hanh (the Stream Km8), Cam Thinh ward (the Eastern Stream of Mechanical Enterprise) and Cam Thach wards (Cay Si stream) of Cam Pha town. 10. According to resuits of Census and inventory of affected assets, it is anticipated that the Phase II of Quang Ninh project will impact about 346,747 m2 of land, of which 332,471 m2 will be acquired permanently (179,972 m2 of private and 152,499 m2 of public or other special use land) and only 308 m2 will be acquired temporarily (Table 1). There are 24,796 m2 of residential land and 149,144 m2 of gardern and agricultural land will be affected by the project s phase 2. In total, about 11,233 m2 of house and secondary structures, 2009 m2 of animal stable, 10,999 m2 of brick protection walls will be affected (See more details in Annexes 1-3). Table 1: Scope of land acquisition by Quang Ninh Drainage and Sanitation project Phase 2 No 1 Permanent loss of land (m2) Tem porary loss of land (m2) Location Garden/agri Public/speci Reside Residential cultural al use land Subtotal ntial Garden/a Total gricult. Subtotal Bai Chay 0 303 0 303 0 0 0 303 2

No 2 3 Permanent loss of land (m2) Tem porary loss of land (m2) Location Garden/agri Public/speci Residential cultural al use land Subtotal ntial Garden/a Total gricult. Subtotal Hon Gai 19,075 146,626 152,499 318,200 0 308 308 318,508 Cam Pha 6,691 7,277 0 13,968 0 0 0 27,936 Total 25,766 154,206 152,499 332,471 0 0 308 346,747 Source: Results of inventory of losses and census survey of project s affected people, conducted by resettlement consultants in cooperation with local authorities and Quang Ninh PMU in October- November of 2004 11. The total number of households to be potentially affected by the project is 520, with 2,079 persons. Among the affected households, the subproject poses severe impacts on 123 households: about 117 households will have to be relocated to the new place, 6 households will rebuild their main house on remaining land and 55 HHs, besides of relocation, will also loose 20% or more of total agricultural landholdings. There are 7 households lose their rented lodgements. The subproject will marginally affect 397 households, either losing garden land, brick protection walls, access bridges or some trees. A summary of resettlement impacts on PAPs for the Phase 2 of the project is presented in the Table 2 below. Table 2: Types of resettlement impacts of Quang Ninh Drainage and Sanitation project Phase 2 PAPs PAPs losing houses/structures lossing land Of Tota wh.: Busine Losing l Relo Reor Rent Severel ss/com trees/c PAPs Total cate gani hous total y mercia rops d zed es affedte l d Bai chay 20 14 0 19 0 1 0 0 3 Channels 42 5 0 41 0 0 0 2 8 Ha Khanh WWTP 118 118 55 115 104 0 4 110 Hon Gai Subtotal 160 123 55 156 104 0 4 2 118 Quang Hanh 46 31 0 43 1 0 1 43 Cam Thach 114 107 0 98 6 0 3 3 70 Cam Son 40 31 0 33 1 1 1 2 33 Cam Phu 14 12 0 11 0 3 0 0 11 Cam Thinh 125 114 0 121 5 1 3 43 Cam Pha subtotal 339 295 0 306 13 5 8 5 200 Total 520 432 55 481 117 6 12 7 321 Source: Results of inventory of losses and census survey of project s affected people, conducted by resettlement consultants in cooperation with with local authorities and Quang Ninh PMU in October- November of 2004 12. In project implementation stage, following putting land marks claiming the project recovered areas, this RP will be updated by Quang Ninh PMU to update information on PAPs and their losses through DMS which serve as legal basis for compensation payment 3

for affected people. A close cooperation between the PMU and local authorities and related departments/agencies will be necessary to complete the different resettlement activities successfully. III. SOCIO-ECONOMIC INFORMATION 3.1. Source of information 13. Socioeconomic information of this RAP has come from several sources: (i) results of inventory of loss for 100% of affected households of Quang Ninh Project; (ii) results of socioeconomic household survey of from 15% and more marginally affected and more thana 50% of relocated HHs and severely affected farmers losing more than 20% of their total agricultural holding and consultation with the them; (iii) results of formal and unformal meetings and group disscussions with local authorities and social groups in project impacted areas. All these surveys were held by resettlement consultants in the October and November of 2004, in cooperation with Quang Ninh PMU and local authorities. There were special interviews with groups of severely affected people to collect data on (i) specific resettlement needs of relocating/severely affected and vulnerable groups of PAPs, (ii) resettlement concerns and preferences of affected families, and (iii) measures to minimize negative impacts. 3.2. Impacts on land and structures 14. Rehabilitation and/or construction of drainage and sewereage systems generally pose of linear character land acquisition impacts that mostly are marginal. However, the proposed construction of WWTP with its buffer zone and serewage/drainage accsess roads require considerable land for development. Thus, construction of the WWTP alone will require about 29.3 ha of land, of which the plant s core area only recovers 7.0 ha belonged to 16 HHs (with 4 HHs subjecting relocation) and 1 cool mining enteprise to be affected, while the WWTP s buffer zone will require further 22.3 ha, causing relocation impacts to additional 100 HHs. In total, there 18.0 ha of private land use rights will be acquired. Meanwhile, development of drainage and sewereage channels system will replace certain 12 HHs from their existing sites. In total, as mentioned above, there are 520 HHs with 2079 people will be impacted by the project, among which 117 HHs have to be relocated, 6 HHs have to rebuild houses on remaing land behind, 12 relocated HHs will also lose their commercial land, 7 PAPs losing their rented housing, 55 HHs having their agricultural income severely affected. 3.3. Socio-economic characteristics of PAPs: Demographic features: 15. In cooperation with the PMU and with assistance of local authorities, the consultant have conducted census of all affected people and their sample socio-economic survey, paying special attention on severely affected HHs, including severely affected farmers and relocated PAPs. The survey was carried out during the November-December, 2004. According to results of the surveys of PAPs, almost all the HHs (99.6%) are of Kinh ethnic group. Exception is made only 2 HHs who are from Dao ethnic minority group) 16. The Tables 3 and 4 below provides general demographic data of the PAPs and of their household s heads. The average household s size of the affected population is of 4.1 person/hh, with the male ratio is of 52.6% of the total population, and chiledren under 18 years old consist of 22.3 of the popultaion. The average number of labor of HHs is of 2.4 pers/hh. Table 3: General demographic information of PAPs, Quang Ninh project Phase 2 4

Total number of PAPs Population (pers.) Average HH size (pers/hh) Male ratiio to total PAPs popultation (%) Average number of labors (labor/hh) Ratio of children < 18 to total population (%) 1 Bai Chay 20 85 4.5 56.6 2.6 26.3 2 Hon Gai 158 575 3.7 50.9 2.5 24.7 3 Cam Pha 342 1419 4.1 53.1 2.2 21.2 Total 520 2079 4.1 52.6 2.4 22.3 Source: Results of inventory of losses and census survey of project s affected people, conducted by resettlement consultants in cooperation with local authorities and Quang Ninh PMU in October- November of 2004 17. There are 75.% of HHs headed by male and only 25% left by female. The average age of the households heads (HHH) of all the PAPs is 50.5. The age of the HHHs of PAPs in Bai Chay is higher than the average ones for Cam Pha and Hon Gai towns (see Table 4 ) Table 4: Demographic characteristics of Heads of households affected by Quang Ninh Drainage and Sanitation project Phase 2 Location Total number of PAPs Male to total number of HHHs (%) Female to total number of HHHs (%) Average age (years) Average education (school years/hhh) Illiteracy rate ( total HHHs) Average age of illiterated (years) 1 Bai Chay 20 70.8 29.2 61.9 10.6 0.0-2 Hon Gai 158 78.5 21.5 48.2 8.8 4.1 56 3 Cam Pha 342 73.4 26.6 51.0 9.3 2.7 68.0 Total 520 75.0 25.5 50.5 9.2 1.9 63.7 Source: Results of inventory of losses and census survey of project s affected people, conducted by resettlement consultants in cooperation with local authorities and Quang Ninh PMU in October- November of 2004 3.4. Education 18. In general, the average education level of PAPs is considerable high, equal 9.3 of schooling years among those havingn t got high education. The education of the HHHs in Bai Chay is higher than the total average ones. Illiteracy rate is quite low, equal to 1.9% for the whole project s affected communities. Illiteracy is found mostly among the people aged above 60, where their average age is 63.7 as shown in the Table 4. However, in Ha Khanh commune of Han Gai, the illiteracy exists among some people between 40 and 60 years old. About 4.4% of the HHHs have high education. Table 5: Average Education level of HHHs of PAPs, Quang Ninh Drainage and Sanitation Project Phase 2 Schooling Total Bai Chay Hon Gai Cam Pha grades Average High education 26.3 5.9 4.7 6.0 12 grade 31.6 24.4 29.1 27.9 12<&<9 0.0 3.7 5.4 4.7 9 grade 21.1 40.7 41.8 40.6 Lower than <9 21.1 22.2 16.1 18.1 Illiterate 0.0 3.0 2.8 2.8 Total 100.0 100.0 100.0 100.0 5

19. Results of sample HH s socio-economic survey again confirm the relative high education level of the affected population, where the average schooling attendance years is equal (see Annex 4). Like the common situation of the country, the Illiteracy doesn t exist among the young generation of affected people. 3.5. Occupation: 20. Cam Pha, Hon Gai and Bai Chay all are urban areas. The main industries of Quang Ninh in general, and the towns/city in particular, include cool mining, shipping, tourism, and trade. The non-agricultural activities provide sources incomes for almost all affected households. The cool-mining and related industries provides employment and incomes for main part of its population. Cam Pha is the heart of the inductry. It likely describe why the occupation in state enterpises and retired income consist the most part of the surveyed PAPs. Tourism and tourism-related activities contribute very important shares in the local economy, especially for Bai Chay ward. Hon Gai is an important commercial center not only of the province, but also of the Northern Coastal region. Agricultural activities contribute a very modest part of HHs income among the affected population, or generally do not play the role. Exception is the case of Ha Khanh ward, where the WWTP is proposed. In Ha Khanh, a recently urbanized ward of Hon Gai, where swamp land is more or less left for cultivation and farming, a considerable part of local HHs still are engaged in agriculture (involving 26.5% of their active labors). They are specialized on production of vegetables and green spices, pig and fish raising, serving demand of the local towns including Ha Long city (Hon Gai, Bai Chay) and Cam Pha. For many PAPs of Ha Khanh, besides of non-farm sources, cultivation in residential garden serves as important source of household s green diet, which usually has missed in their employment or income source records. The envisaged displacement of PAPs from the core area and buffer zone of the proposed WWTP will pose severe impacts on considerable number of Ha Khanh PAPs. 21. The Table 6 and 7 below clearly present about the main economic activites of the affected population and their HHHs. More information on economic activities is provided in Annex 3. Table 6: Occupation of HH Heads PAPs, Quang Ninh Drainage and Sanitation Project Phase 2 State workers / employe e Hired/se lf employee s Service /commer cial Retired House keeper/d isables Agricult ural Handicra ft Drive rs Total BChay 43.8 25.0 12.5 0.0 0.0 0.0 12.5 6.3 100.0 Subtotal 11.8 23.5 5.9 47.1 5.9 0.0 5.9 0.0 100.0 11.8 23.5 5.9 47.1 5.9 0.0 5.9 0.0 100.0 HGai Channels 25.7 26.7 8.9 22.8 5.9 9.9 0.0 0.0 100.0 HKhanh 29.0 22.9 13.7 19.8 5.3 7.6 0.8 0.8 100.0 Subtotal 29.0 22.9 13.7 19.8 7.6 7.6 0.8 0.8 100.0 QHanh 28.3 6.1 5.1 44.4 11.1 1.0 1.0 3.0 100.0 Thach 55.6 8.3 2.8 11.1 11.1 0.0 0.0 11. 1 100.0 CSon 36.4 9.1 9.1 36.4 9.1 0.0 0.0 0.0 100.0 Cphu 46.7 8.2 4.1 26.2 10.7 0.8 2.5 0.8 100.0 CThinh 39.2 6.8 6.1 31.4 11.7 0.6 1.6 2.6 100.0 Subtotal 39.2 6.8 6.1 31.4 13.9 0.6 1.6 2.6 100.0 Total 36.4 12.1 8.6 27.0 11.6 2.6 1.8 2.2 100.0 6

Source: Results of census and socio-economic survey of project s affected people, conducted by resettlement consultants in cooperation with local authorities and Quang Ninh PMU in October- November of 2004 Table 7: Incomes sources of members of working ages and above of PAPs, Quang Ninh Drainage and Sanitation Project Phase 2 (1) State workers / employe e Hired/se lf employee s Service /commer cial Retire d (4) House keeper/ disable s Agricul tural Handicr aft Driver s (1+4) Bai Chay 52.9 35.3 23.5 47.1 5.9 0.0 17.6 5.9 100.0 Subtotal 52.9 35.3 23.5 47.1 5.9 0.0 17.6 5.9 100.0 Hon Gai drains/sew 58.3 27.8 50.0 11.1 5.6 2.8 2.8 11.1 69.4 ers Ha Khanh WWTP 43.1 37.3 20.6 26.5 17.6 26.5 26.5 0.0 69.6 Subtotal 47.1 34.8 28.3 22.5 14.5 20.3 20.3 2.9 69.6 Quang Hanh 58.1 16.3 23.3 37.2 25.6 2.3 2.3 2.3 95.3 Cam Thach 50.9 25.5 17.9 51.9 17.9 6.6 6.6 7.5 102.8 Cam Son 80.6 30.6 2.8 16.7 11.1 0.0 0.0 19.4 97.2 Cam phu 50.0 16.7 8.3 33.3 8.3 0.0 0.0 0.0 83.3 Cam Thinh 69.4 25.0 13.7 28.2 26.6 2.4 2.4 1.6 97.6 Subtotal 62.3 24.3 15.0 36.1 21.2 3.4 3.4 5.6 98.4 Total 57.6 27.7 19.1 32.6 18.7 8.2 8.2 4.8 90.1 Source: Results of census and socio-economic survey of project s affected people, conducted by resettlement consultants in cooperation with local authorities and Quang Ninh PMU in October- November of 2004 3.6. Incomes and living standards: 22. Thank to dynamic economic development and related availability non-farm employment in project towns, the average income level of the area is satisfied moderate. This is reflected in results of the socio-economic survey of the PAPs, conducted by consultant during the RAP preparation. Total Average monthly income per capita for all PAPs surveyed is of 529,000 VND (See Table 8). There only 2 HHs among the total 129 HHs surveyed have average per capita income between 100,000-200,000 VND/pers/month. Meanwhile, there 10 PAPs (7.7%) have average monthly income per person is higher than 1,000,000VND/pers.month. The Table 9 presents distribution of PAPs according to income levels by project wards. (See more details in Annex 4 and 5) Table 8: Average income of Surveyed PAPs of Quang Ninh Project Phase 2 Subto Bai HGai Chay chann HKhanh tal Q.Hanh C.Tha C.Son C.Phu C.Thi Subtot ch nh al HGai Total Sampling (HHs) 3 8 51 59 13 25 12 3 14 67 129 1. Average monthly HH 2,70 2,42 2,21 1,81 2,20 2,11 2,80 2,10 2,17 income 2,187 2,120 0 2 7 5 7 7 0 6 8 (1000VND/HH ) 2. 1. 540 495 563 547 471 510 520 469 532 507 529 7

Average monthly percaita income (1000VND/pe r) Source: Results of census and socio-economic survey of project s affected people, conducted by resettlement consultants in cooperation with local authorities and Quang Ninh PMU in October- November of 2004 Table 9: Income levels of Surveyed PAPs of Quang Ninh Project Phase 2, by ward ( total HHs surveyed) Average income (1000VND) Sample size Bai Chay HGai chann HKhanh Q.Hanh C.Thac h C.Son C.Phu C.Thin h 3 8 51 13 25 12 3 14 (HHs) a) <100 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 b) 100-200 0.0 0.0 3.9 0.0 0.0 8.3 0.0 0.0 c) 200-300 0.0 12.5 11.8 7.7 8.0 0.0 0.0 0.0 d) 300-500 33.3 37.5 33.3 69.2 36.0 41.7 66.7 50.0 e) 500-66.7 1000 50.0 37.3 15.4 52.0 50.0 33.3 42.9 e) 1000-1500 0.0 0.0 11.8 7.7 4.0 0.0 0.0 7.1 f) 1500-2000 0.0 0.0 2.0 0.0 0.0 0.0 0.0 0.0 i) > 2000 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total: 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: Results of census and socio-economic survey of project s affected people, conducted by resettlement consultants in cooperation with local authorities and Quang Ninh PMU in October- November of 2004 23. All the PAPs surveyed have semi- or permanent houses. The ratio of HHs having permanent house and flushing toilets as well access to tape safe water is found higher in Bai Chay and Hon Gai inner wards than in Ha Khanh of Hon Gai and wards of Cam Pha towns. The access to safe water is short in Ha Khanh, where water pollution is widespread and causing serious health problem for local population, especially for the hamlet 3 which is closer to the pollution sources. (See Annexe 6) 24. Possession of relatively valuable assets by the PAPs surveyed also confirmed about general average and above average living standards of the population. All HHs have access to electricity. Different levels of living standards could be easily discovered with possession of telephone, washing machine or consumption of gas for cooking... (See Table 10) Table 10: Possession of assets by surveyed PAPs of Quang Ninh project Phase 2 (%) HH s assets Bai HGai C.Thac C.Thin HKhanh Q.Hanh C.Son C.Phu Chay chann h h 1.Bicycles: 100.0 30.0 80.8 84.6 60.0 91.7 66.7 92.9 2. Motobikes: 100.0 90.0 51.9 61.5 56.0 75.0 33.3 50.0 3. Car/truck: 0.0 0.0 1.9 7.7 8.0 0.0 0.0 0.0 4.Condition 0.0 aire: 10.0 0.0 0.0 0.0 0.0 0.0 0.0 5. Washing 0.0 machine: 20.0 1.9 0.0 8.0 8.3 0.0 14.3 6. 0.0 Furniture: 20.0 23.1 0.0 20.0 83.3 0.0 0.0 7. 100.0 40.0 88.5 92.3 84.0 100.0 33.3 85.7 8

Television: 8. Telephone: 67.0 40.0 19.2 53.8 44.0 75.0 33.3 64.3 9. Video: 100.0 80.0 65.4 76.9 56.0 91.7 0.0 100.0 10. 0.0 Computer: 0.0 0.0 0.0 4.0 16.7 0.0 0.0 11. Rice 100.0 cooker: 75.0 76.9 53.8 32.0 91.7 0.0 78.6 12. Refrigerato 100.0 60.0 r: 9.6 15.4 28.0 16.7 0.0 0.0 9

IV. LEGAL FRAMEWORK 4.1. World Bank Policy on Involuntary Resettlement 25. The World Bank experience indicates that involuntary resettlement under development projects, if unmitigated, often give rise to severe economic, social, and environmental risks: production systems are dismantled; people face impoverishment when their productive assets or income sources are lost; people are relocated to environments where their productive skills may be less applicable and the competition for resources greater; community institutions and social networks are weakened; kin groups are dispersed; cultural identity, traditional authority, and the potential for mutual help are diminished or lost. Thus the World Bank policy regulated by OD 4.30 includes safeguards to address and mitigate these impoverishment risks. 26. The basic guiding principle of the World Bank resettlement policy is that: (a) Involuntary resettlement should be avoided where feasible, or minimized exploring all viable alternative in project design; (b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the person displaced by the Project to share in profit benefit. Displaced persons should be meaningful consulted and should have opportunities to participate in planning and implementing resettlement programs. (c) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to predisplacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. 27. The main objective of WB s Policy on Involuntary Resettlement is to ensure that PAPs should be assisted to improve their living standards, income level and income generating capacity, or at least would be as well off as without the project. The policy stipulates that lack of legal certificate on land will not be an obstacle for a part of affected people to be entitled to compensation and rehabilitation. The policy requires that compensation for all losses should be made at replacement cost, without depreciation and deduction of savage materials. 4.2. Relevant Vietnamese laws and bylaws 28. In recent years, especially in 2003 and 2004, the Government has formulated several rules and regulations to protect the interests of displaced persons. Relevant Laws and bylaws that govern various aspects of land acquisition and resettlement include: (i) The Constitution of the Socialist Republic of Viet Nam, dated 15 Apr 1992. (ii) The New Land Law, dated on 26 November 2003, replaced the Land Law of 1993 (iii) The Decree 181/2004/ND-CP, dated 29 October 1004, providing guidelines for implementation of the New Land Law 2003. (iv) Decree 188/ND-CP, dated 16 November 2004, providing methods of evaluation of land prices and the frame for the prices of various categories of land. (v) The Circular No 114/2004/TT-BTC issued by MOF on 26 November 2004, providing guidelines for implementation of the Decree No188/ND-CP (vi) Decree 197/CP, dated 3 December 2004, on compensation, assistance and resettlement in case of the Government recover land for the national and public interest. And issued guidelines in Circular No116/TT-BTC by the MOF, 7 December 2004, for implementation of the Decree No197/ND-CP 10

(vii) (viii) Decree 64/CP, dated 27 September 1993, on the distribution of agricultural land to households for long-term use. Circular No.05-BXD/DT, dated 9 February 1993, on the IOL classification of house types. 29. The New Land Law 2003, regarding the land use rights and land acquisition, contains a number of new provisions and approaches, closer to the WB s resettlement objectives and principles, which could be summarize as follows: i) Land Law 2003 gives new provisions toward land ownership: - The State retains its prominent rights for land: right to decide purposes of land use through land use planning, land use plans; regulate duration of land use, land allocation, give land for rent, acquision of land, evaluate land prices. - State retains its right to benefit from land through land financial policy, including right for regulating the value added of the land that is not a result of the land user s investment. ii) The Land Law 2003 provides new regulations on land acquisition and land compensation, resettlement of people losing the acquired land: - The State acquires land for purposes of Defence, National Security, National Interests, Public Interests, Economic development. - At least ninety days before land recovery, for agricultural land, and one hundred and eighty days, for non-agricultural land, the competent State agencies shall have to notify the persons having land to be recovered about purpose of land acquisition, time and plan of relocation, overall plan of compensation, land clearance and resettlement. - Compensation for land is based on the type of land use existed at the time the Decision on the land acquisition is issued. - The persons losing the acquired land shall be compensated with the assignment of new land of the same land use purposes; if there no land available for compensations, the affected persons shall be compensated with the value of land use right existed at the time of issuance of decisions on land acquisition. - Provincial PCs, PCs of Cities under direct Central Government prepare and should carry out resettlement projects before acquiring land for compensation with provision of dwelling house, residential land to affected persons who lose residential land and have to be relocated. Resettlement Sites should have at least equal or better conditions than the former ones. - In cases there no resettlement sites available, the affected persons shall be compensated in cash and given priority to purchase or lease dwelling houses under the State s ownership, for urban areas; be compensated with residential land, for rural areas; in cases if the value of land use right of the recovered land is higher than that of the land compensated, the affected persons shall be compensated for such differences in cash. - In case of recovering productive land of households and/or individuals who are directly engaged in production, but there no land available for compensation to continue production, then besides of cash compensations, the affected persons shall also be assisted by the State for rehabilitation of their living conditions, for training to shift into new occupations, or be arranged for new employment. iii) Land Law 2003 has defined principles for State s evaluation of land prices: - Reflecting market price of land use right transfer, in normal market conditions; in case of existence of great difference between the identified land prices and the local market ones, it should be adjusted accordingly - the bordering each other plots, having similar natural, socio-economical, infrastructure conditions, being under similar existing and planned type of land use, will have similar land prices; 11

- land located in areas bordering between provinces, cities under Central Government, having similar natural, socio-economical, infrastructure conditions, under similar existing and planned type of land use, will have similar land prices; iv) Land Law 2003 provides: land prices regulated by PPC or PC of Cities under direct Central Government, will be publicly announced every the First of January annually. v) Lan Law 2003 clearly states about application of the Law, in which the Clause 2 of Article 3 regulates: - In case if International treaties, which the Socialist Republic of Vietnam has signed or acceded, contain provisions different from the provisions of this Law, the provisions of such international treaties shall be applied. Decree 197/CP 30. In this December, the 3rd, 2004, the Government has issued the Decree No 197/ND- CP providing policy on compensation, assistance and resettlement in case the Government recover land, replacing the Decree No/1998/CP. The Government has also issued guidelines for the implementation of this Decree (116/2004/TT-BTC). Along with the New Land Law 2004, the Decree 197/CP is one long more step approaching closer to the WB s policy on Involuntary Resettlement. The main new contents of compensation and resettlement policy of the Decree 197/CP includes follows: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) The Government limits its scope of compensation, assistance and resettlement, encouraging private project developer/investor itself to negotiate with affected people on compensation and resettlement; Assign PPCs to prepare and implement resettlement projects to compensate relocating people with housing or residential land before acquisition of their land. The Government unified compensate the recovered land with the price announced by the local PPC on the first day of the year, as governed by the Land Law 2003. The land price is reflecting market price of land use rights transfer in normal market conditions; The affected person losing land will be compensated with the land of the same land use purpose. In case there no land is available for land for land compensation, he/she will be compensated at the price reflecting the land use value at the time the Decision on land acquisition is issued; Compensation for residential land is based on the actual land use; Regarding the agricultural land scattered in urban residential area and residential garden land and pond, besides of compensation for them as for agricultural land, there also will be given assistance equal from 20 to 50% of the actual value of the residential land of the same plot; Affected houses and structures attached to the acquired land are compensated at replacement cost without depreciation and deduction of salvage materials; Affected crops and trees are compensated at market and replacement cost respectively; Involuntary relocated person can choose one of the three relocation option: (a) compensated with housing; (b) compensated with assignment of a new residential plot; (c) compensated in cash for self relocation. Assigned by PPC resettlement implementation unit has to inform affected person on proposed relocation options and publicly announced the options at their office and at local commune/ward People Committee where the project recovers the land and at resettlement site at least 20 days before the competent authority approve the resettlement option; 12

(xi) (xii) (xiii) Rehabilitation assistance measures should be provided to the severely affected persons, including relocated people and those having income generating capacity affected; The rights and obligation of affected persons for compensation and resettlement; Enforce implementation of the Decision on land acquisition to the case of violation. 31. Generally the Land Law 2003 and Decree 197/CP almost meet the objectives of WB s policy on involuntary resettlement. 13

V. compensation policy 5.1. Objectives of resettlement 32. The main objective of this Resettlement Plan (RP) is to ensure that all Project Affected Persons (PAP s) will be compensated for their losses at replacement cost and provided with rehabilitation measures to assist them to improve, or at least maintain, their pre-project living standards and income earning capacity. 33. The RP is based on (i) a census and inventory of affected assets and properties of 100% of PAPs in the areas affected by the project s physical components; (ii) on a socioeconomic survey with 50% of potentially relocating and severely PAPs and from 15% to 20% of all other, marginally affected PAPs, (iii) group discussions with PAPs, and (iv) consultation with local authorities and other concerned stakeholders. 34.. The policies and principles adopted for compensation, relocation, and rehabilitation of the project affected people of the Project Phase II have been developed in accordance with the Resettlement Policy Framework approved by the Vietnam Government and WB on the project Appraisal.. It is based on results of surveys and followed Vietnam's legislation and the World Bank Operational Directives: OD 4.30 on Involuntary Resettlement, OD 4.20 on Indigenous People and OPN 11.03 on Cultural Property. Wherever a gap exists between WB s Policy on Involuntary Resettlement and Vietnamese law, the policies and principles adopted for the Project supersede the provisions of relevant decrees currently in force in Viet Nam 35. After the RAP s improvement of by Quang Ninh PPC and no objection from WB, the provisions and policies of this RAP will form the legal basis for the implementation of resettlement activities for the Phase II of Quang Ninh Drainage and Sanitation project. 5.2. Project affected people 36. A PAP is any person or persons, household, a firm or private institution, who, as of the cut-off date of the Project or any of its subcomponents or parts thereof, would have their: (i) (ii) (iii) Right, title or interest in any house, land (including residential, commercial, agricultural, forest and grazing land) or any other fixed or moveable asset acquired or possessed or otherwise adversely affected, in full or in part, permanently or temporarily; and/or Business, occupation, work, place of residence or habitat adversely affected, with or without displacement; and/or Standard of living adversely affected. 37. The cut-off date of eligibility for entitlement is the 14 December 2004, the date of completion of the inventory of losses survey for Quang Ninh project. 5.3. Resettlement impacts 38. As mentioned above, the Quang Ninh project will cause impacts on 520 HHs (with 2079 people) and 14 collective units. So far the most PAPs haven t got land use certificates, thus in many cases, it is still unclear about the legality of land use rights of the PAPs, especially regarding the cases of illegal encroachment on the public land. There 121 HHs are severely affected, among which 116 HHs have to be relocate to new site, HHs have to rebuild their main houses on the remaining land, 13 HHs have their business affected and 55 HHs (215 persons) will lose more than 20% of their agricultural holding. About other structure is impacted. The scope of land acquisition and resettlement impacts are summarized as follows (see Annexes 2.1-2.3): 14

Permanent land acquisition: - 25,766 m2 of residential housing land will be lost - 159,989 m2 of residential garden land and agricultural, including land under annual and perennial crops, and ponds will be impacted Temporary land acquisition: - 308 m2 of residential land will be temporarily affected during construction Loss of attached properties/assets includes: - 2,536 m2 of permanent, 8,194 m2 of semi-permanent and 503 m2 of temporary houses and secondary structures - 2009 m2 of animal stables/shells of temporary structures - 10,999 m2 of external semi-fabricated wall - 4,018 m2 of cemented yards, - 442 m2 of access concreted bridges, - 25 digger wells, 610 m3 of concreted water tanks, - 864 m2 of annual crops will be impacted, - 4692 fruit trees and 98 forest and other trees. 5.4. Compensation Policy 5.4.1. Compensation for Permanent Loss of Agricultural Land 39. There are 117 PAPs permanently losing garden and/or agricultural land with the long term or legalizable and temporary or leased use rights. No case of illegal land user to the land affected. Among them, there 55 PAPs (Ha Khanh ward of Hon Gai town) lose more than 20% of their productive holding. Compensation policy for the affected area will be provided as following: (a) The general mechanism for compensation of lost agricultural land will be through provision of "land for land" arrangements of equal productive capacity, satisfactory to the PAP. If land compensation size is smaller or lower quality, PAPs will be entitled to compensation on cash equivalent the differences. However, if land is not available or the PAPs prefer to receive cash compensation, then the following applies: Legal and legalizable land users: (i) if the portion of the land to be lost represents 20% or less of the total area of the landholding, and the remaining land is still a viable economic holding, cash compensation for the lost area (or for the entire affected plot if the remaining area of the plot is not economically viable), at full replacement cost, may be provided to the PAP, or (ii) if more than 20% of a household s agricultural land is acquired, then in addition to cash compensation at full replacement cost for the lost area (or for the entire affected plot if the remaining area of the plot is not economically viable), the Project will provide a rehabilitation allowance of value not less than VND 3.000.000/HH for traning/retraining and intensifying of the existing occupation or shifting to new ones, combining with technical assistance such as agricultural extention, credit The forms of assistance should be consulted closely with the entitled PAPs to ensure appropriate and effective measures assisting the PAPs to restore their income generating capacity and income levels. It would be in combination with extension/ relevant technical assistance to help the poor and disadvantaged farmers to improve their farming productivity/ production capacity. 15

(b) Users with temporary or leased rights to use land: The PAPs will be compensated at the amount corresponding to the remained investment in the land or % of land replacement cost. If the value of remained investment is greater than 30% of its replacement cost, the Resettlement Committee will review the case by case and adjust accordingly. Land Users Without recognized Rights to Use Land (i) In lieu of compensation for land, the PAPs will receive assistance corresponding 60% of land replacement cost. (ii) For poor and vulnerable, severely affected farmers, including landless, as priority, allocation of arable land equal per capita arable land in commune as regulated by Decree 64/1993/CP, OR, if there no land available for allocation or, on the PAPs request as informed choce, in addition to above, a rehabilitation/training assistance not less than 3,000,000 VND/HH will be provided to ensure the PAPs are able at least to restore or improve their income levels and living standards. In case when the affected persons utilizes the public land (of Right of Way or in protection areas of hydraulic works), that subjects to be recovered under the project, with conditions to return, on request, the land to the Government, they (PAPs) will not be compensated for this public land, but will be compensated for crops and trees at full market prices. PAPs will be compensated for the loss of standing crops and fruit or industrial trees at market price. Productive trees will be compensated at replacement cost. 4.5. Compensation Policy for Residential Land 40. PAPs are entitled to follows: PAPs losing residential land without structures: Compensation for loss of land in cash at replacement cost PAPs losing residential land with structures built thereon and the remaining land is sufficient to rebuild on (reorganizing PAP): (a) Compensation for loss of land in cash at (i) replacement cost to the legal land users; (ii) the amount corresponding the remained investment on the land to the users having no legal land use rights. (b) Compensation for affected structures at full replacement cost. (c) If house/structure is partially affected, repairing cost to restore it to former or better conditions. (d) If PAPs have to rebuild the main house, they will receive: (i) transportation allowance not less than 500,000 VND/HH to move their salvaged materials, assets...; (ii) subsistence living allowances equivalent 30 kg of rice per each HH s member per month for 3 months. PAPs losing residential land with structures built thereon and without remaining land sufficient to rebuild on (relocating PAP): (1) The land compensation policy is as follows: (i) The PAPs, who have legal or legalizable rights to the affected land, can opt to one of the followings: (a) The provision of replacement residential land of equivalent size, at a location acceptable to the PAPs with full land title without any cost; An amount of cash sufficient to develop basic infrastructure, including access road, access to electricity, to water supply, drainage, which at least are equal to 16

conditions existed at the former location, OR these facilities will be provided/developed by the project. OR, on request as the DP s fully informed choice, (b) Cash compensation for entire residential land at full replacement cost, (ii) The PAPs, who do not have legal or legalizable rights to the affected land, are entitled to the followings: (a) Regarding the PAPs who already have residence somewhere else in the same ward/commune as where they are affected, the project will provide an assistance amount corresponding the remained investment on the land, or equal 30% of land replacement cost. (b) Regarding the poor or vulnerable PAPs who have no other residential land in the same as their affected ward/commune, the project will provide (i) a residential plot of minimal size at a common RSs or an individual resettlement site, with full titled to the land; or, (ii) on request of the DPs, as their informed choice, an assistance amount corrensponding 60% of the land replacement cost for them to rearrange relocation by themselves. (2) Compensation for affected structures at full replacement cost; AND, (3) Rehabilitation allowances, including (i) transportation allowance from 1,000,000 to 3,000,000 VND per HH; (ii) subsistence living allowance equivalent 30 kg of rice per each HH member per month for 6 months 5.4.3. Compensation Policy for Loss of Houses/Structures Loss of Houses/Structures: 41. PAPs losing houses and/or other structures will be entitled to the following: (i) Compensation in cash for all affected structures will be provided at 100% of the full replacement cost of house/structures affected for materials and labour. The amount will be sufficient to rebuild a structure the same as the former one at current market prices. (ii) If house/structure is partially affected, the Project will provide a house/structure repairing cost, in addition, to PAPs to restore it to former or better conditions. (iii) Compensation and assistance will be provided in the form of cash. No deductions will be made for depreciation or salvageable materials. (iv) The calculation of rates will be based on the actual affected area and not the useable area. Tenants, who have leased a house for residential purposes will be provided an assistance equal remaining renting contracted value, but not exceeds renting value for three months, and transportation allowance for moving assets, as well assisted in identifying alternative accommodation. 5.4.4. Compensation for loss of Standing Crops and Trees 42. For annual and perennial standing crops, regardless of the legal status of the land, compensation will be paid to households who cultivate the land, according to the full market value of the affected crops and/or at replacement cost for affected perennial trees. 5.4.5. Compensation Policy for Loss of Income and/or Business/Productive Assets 43. The mechanism for compensating will be: 17