VIE: Power Transmission Investment Program, Tranche 2 500kV Pleiku-My Phuoc-Cau Bong Transmission Line (Dak Nong Province)

Social Monitoring Report July 2014 VIE: Power Transmission Investment Program, Tranche 2 500kV Pleiku-My Phuoc-Cau Bong Transmission Line (Dak Nong Province) Prepared by Central Vietnam Power Projects Management Board for the National Power Transmission Corporation and the Asian Development Bank. This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

NATIONAL POWER TRANSMISSION CORPORATION CENTRAL VIETNAM POWER PROJECT MANAGEMENT BOARD PLEIKU MY PHUOC CAU BONG 500 KV TRANSMISSION LINE PROJECT SECOND MONITORING REPORT INDEPENDENT MONITORING ON RESETTLEMENT AND ETHNIC MINORITY DAK NONG PROVINCE July 2014

NATIONAL POWER TRANSMISSION CORPORATION CENTRAL VIETNAM POWER PROJECT MANAGEMENT BOARD PLEIKU MY PHUOC CAU BONG 500 KV TRANSMISSION LINE PROJECT SECOND MONITORING REPORT INDEPENDENT MONITORING ON RESETTLEMENT AND ETHNIC MINORITY DAK NONG PROVINCE PROJECT OWNER Central Vietnam Power Projects Management Board IMPELEMENTATION Investment Consultancy and Technology Transfer Co., Ltd Deputy General Director LE CHI CUONG July 2014

TABLE OF CONTENT I. INTRODUCTION... 7 1.1. Objective of the project... 7 1.2. Project scale and scope... 7 II. SUMMARY OF RESETTLEMENT AND ETHNIC MINORITY DEVELOPMENT PLAN (REMDP)... 9 2.1. Objectives of REMDP... 9 2.2. Resettlement impacts of the Project... 9 2.2.1. Impacts on land acquisition... 10 2.2.2. Impacts on trees-crops... 10 2.2.3. Impacts on houses and other structures... 11 2.2.4. Severely Affected Households... 11 2.3. Legal framework... 12 III. INDEPENDENT MONITORING... 14 3.1. Independent monitoring for RP and REMDP... 14 3.2. Objectives and fundamental of the monitoring work... 14 3.3. Monitoring locations... 14 3.4. Monitoring indicators... 15 3.4.1. Monitoring indicators for RP... 15 3.4.2. Monitoring of the implementation of EMDP... 16 3.5. Implementation method... 16 3.5.1. Information collection... 17 3.5.2. Sampling... 17 IV. THE RESULTS/ FINDINGS OF THE REMDP MONITORING... 19 4.1. Implementation progress of the project... 19 4.2. Implementation organization of REMDPs... 21 4.3. Monitoring indicators... 21 4.3.1. Information dissemination... 21 4.3.2. Inventory of damaged assets... 22 4.3.3 Compensation payment... 23 4.3.4. Infrastructures recovery... 25 4.3.5. Impacts during construction period... 25 4.3.6. Providing resettlement locations... 25 INVESTCONSULT GROUP 3

4.3.7. Support for AHs... 26 4.3.8. Gender, Ethnic Minority and Vulnerable Households issues... 27 4.3.9. Satisfaction level... 28 4.4. The difficulties and problems during implementation process... 28 4.5. Grievances and grievances redress... 29 V. CONCLUSION AND RECOMMENDATION... 31 5.1. Conclusion... 31 5.2. Recommendation... 31 ANNEX 1. LIST OF INTERVIEWED OFFICIALS... 33 ANNEX 2. IMAGES OF MONITORING SITE... 34 ANNEX 3. APPROVAL DECISION FOR COMPENSATION PLAN ANDINVENTORY MINUTE... 35 ANNEX 4. SOME PETITIONS OF HOUSEHOLDS... 44 ANNEX 5: SURVEY TOOL... 47 INVESTCONSULT GROUP 4

LIST OF TABLES Table 1: Components of the Project... 8 Table 2: Summary of main features of Pleiku My Phuoc Cau Bong 500 kv Transmission Line... 8 Table 3: Permanent land acquisition in 500 kv Pleiku My Phuoc Cau Bong project... 10 Table 4: Types of affected land (m 2 )... 10 Table 5: Summary of affected trees and crops... 11 Table 6: Summary of affected houses and structures... 11 Table 7: Monitoring locations... 14 Table 8: The number of interviewed AHs... 18 Table 9: Construction progress... 19 Table 10: Forms of information dissemination... 22 Table 11: The completeness in number of AHs property... 24 Table 12: Synthesis of compensation payment (VND)... 25 Total 13: Support policy... 27 Table 14: Satisfaction level... 28 Table 15: Complained issues... 29 INVESTCONSULT GROUP 5

ABBREVIATIONS ADB : Asian Development Bank AHs : Project Affected Households APs : Affected People CLRD : Center for Land Resource Development CPC : Communal People s Committee CPMB : Central Power Management Board DMS : Detailed Measurement Survey DPC : People Committee of District IOL : Inventory of Losses LURC : Land Use Right Certificate MAH : Marginal Affected Households MARD : Ministry of Agriculture and Rural Development NPT : National Power Transmission Corporation PC : People s Committee PECC4 : Power Engineering Consulting Company 4 PPC : People Committee of Province REMDP : Resettlement and Ethnic Minority Development Plan ROWs : Right of Ways RP : Resettlement Plan SAH : Severely Affected Household SPS : Safeguard Policy Statement INVESTCONSULT GROUP 6

I. INTRODUCTION The Government of Vietnam has requested the Asian Development Bank (ADB) to provide a loan to construct new electricity distribution system including a 436.673 km long Pleiku My Phuoc Cau Bong 500kV transmission line from Pleiku to Cau Bong via My Phuoc in southern area of Vietnam. The proponent and Executing Agency for the loan is the National Power Transmission Corporation (NPT). The Central Power CPMB (CPMB) is responsible for the operation of the power system in central Vietnam and will be the Executing Agency of the project. NPT has identified the 500kV Pleiku My Phuoc - Cau Bong transmission line as a high priority project and one of several projects for the purpose of connecting 90% of the population to electricity by 2020 and 100% by 2025. The proposed Pleiku- My Phuoc Cau Bong 500kV transmission line will meet energy demand in the South of Vietnam which is growing at 14% per year and expected to balloon out to 25% by 2015. The construction of 500 kv Pleiku My Phuoc Cau Bong transmission line together with expansion of Pleiku substation will be an enhanced and more reliable energy supply to the Southern provinces in Vietnam, especially for industrial zones in the area. 1.1. Objective of the project - The Pleiku My Phuoc Cau Bong 500kV transmission line Project is a part of the National electricity transmission network which was developed to maintain the power supply that meet the demand of economic growth in the Southern area during 2014-2015. Besides, the Project will ensure the connection of transmission network within Vietnam, Laos and Cambodia by 2015. - The Project also helps to increase the reliability of power supply, reducing the risk of electricity losses. It will also optimize capacity of power plants in order to provide electricity continuously and safely to the sub-loading lines of the South in particular and the whole country in general. 1.2. Project scale and scope The transmission line goes through 6 provinces and cities: Gia Lai, Dak Lak, Dak Nong, Binh Duong, Binh Duong and Ho Chi Minh City. In Dak Nong Province, there are 20 communes have the TL gone through districts of Cu Jut, Dak Mil, Krong No, Dak Song, Tuy Duc and Dak R Lap. The TL in Dak Nong is 115.933km long; 500kV long Pleiku - My Phuoc- Cau Bong transmission line with the length of 436.673 km starts from current Pleiku transformer station in Chu Pah district, Gia Lai province and finishes at Cau Bong transformer station (being in construction period) in Cu Chi district, Ho Chi Minh City. Components of the project in Dak Nong province include as follows: INVESTCONSULT GROUP 7

Table 1: Components of the Project Transmission Line Components Length (km) Starting point Ending point Number of Towers Dak Nong Province Transmission Line Component 115.933 G25-G26 (Picket 1576+09) G50-G51 (Picket 2735+42) 236 Table 2: Summary of main features of Pleiku My Phuoc Cau Bong 500 kv Transmission Line Item Technical Data Length (km) 436.673 - Starting point At 500 kv busbar at Pleiku 500 kv substation - End-point At 500 kv busbar at Cau Bong 500kV substation Right of Way width Earth grounding width Voltage 16m from either side of the centre line 60m from the 16 th meter from the center line 500 kv Number of circuits 2 Conductor Earth wire Optical repeater cable 4xACSR-330/43 OPGW-90 & PHLOX-116 24 fiber lines Suspension towers (number) 808 - Height Average is 65m, the highest is 79m - Area requirement/tower 337.62 m² Tension towers (number) 118 - Height Average is 60m, the highest is 72m - Area requirement/tower 653.4 m² INVESTCONSULT GROUP 8

Route of transmission line in Dak Nong II. SUMMARY OF RESETTLEMENT AND ETHNIC MINORITY DEVELOPMENT PLAN (REMDP) 2.1. Objectives of REMDP Objectives of REMDP are summarized as follows: - REMDP, which was made during project preparation stage, is to minimize negative impacts of the Project on AHs; - Land acquisition and resettlement caused by the Project must be minimized; - Improve or at least maintain living standards of APs in comparison with those prior to the Project; 2.2. Resettlement impacts of the Project Pleiku - My Phuoc - Cau Bong 500 kv transmission line goes through 20 communes/6 districts on the area of Dak Nong province. The project must acquire permanent land of 279 households with 237 tower positions, in which mainly are agricultural land. Project implementation causes impact on 103 houses and 349 other works. INVESTCONSULT GROUP 9

Table 3: Permanent land acquisition in 500 kv Pleiku My Phuoc Cau Bong project No Province Number of APs having acquired land permanently Number of towers Lands to be acquired (m 2 ) No 1 Dak Nong 279 237 108,093 2.2.1. Impacts on land acquisition With 32m width of safety corridor, on total 115.933 km of line route on provincial area, 3,344,356 m 2 of land is under safety corridor, in which 106,855 m 2 will be permanently acquired for the purpose of tower construction. The affected land is classified into agricultural lands, paddy lands for growing rice, forest lands and residential lands. The following table presents project s affected lands. District Agricultural Table 4: Types of affected land (m 2 ) Land distribution in ROW Paddy Land Forest Land Residential Land Total of land area in the ROW Total area of permanently acquired lands 1 Cu Jut 2,727,160 26,121 85,113 55,186 626,583 16,369 2 3 4 5 6 Dak Mil Krong No Dak Song Tuy Duc Dak R Lap 1,560,540 255,465 9,906 3,289,058 4,802 553,237 18,632 5,190,282 738,809 42,618 977,847 33,252 5,509,609 58,414 771,114 23,489 1,690,967 61,439 160,110 5,207 Total 19,967,616 26,121 823,922 222,459 3,344,356 106,855 2.2.2. Impacts on trees-crops Total affected trees are 31,389 in which mainly high productive industry trees including coffee, rubber, cashew, others are fruit trees, timber trees, shade trees, etc. INVESTCONSULT GROUP 10

Table 5: Summary of affected trees and crops No District Industry trees Fruit trees Others Total 1 Cu Jut 1,023 188 1,211 2 Dak Mil 0 60 60 3 Krong No 4,787 18 4,805 4 Dak Song 18,743 3,618 22,361 5 Tuy Duc 0 0 6 Dak R Lap 2,952 2,952 2.2.3. Impacts on houses and other structures Total 27,505 3,884 0 31,389 The project in Dak Nong area has impacts on 103 houses but partially house for guarding field, preserving agricultural materials and products. Besides, line route also impacts on 349 other structures such as kitchen, yard, and house to guard field, bathing room/wc or animal shelter of households. Affected houses are determined according to Decree 106/ND-CP and Decree 81/ND-CP on Protection of Safety corridor of High-Voltage Power Grid Works. No District Table 6: Summary of affected houses and structures Ho use Kit che n No. of affected houses and structures WC/Ba thing room Water tank/ well Animal shelter Ya rd Othe rs Total 1 Cu Jut 45 14 16 13 35 4 16 143 2 Dak Mil 9 2 0-7 - 1 19 3 Krong No 12 6 1 2 16-2 39 4 Dak Song 47 4 5 39 57 4 156 5 Tuy Duc 18 9 3-18 3 2 53 6 Dak R Lap 19 8 1-7 5 2 42 Total 103 86 25 20 122 69 27 452 2.2.4. Severely Affected Households According to REMDP, Severely Affected Households (SAHs) refers to affected households who will lose 10% or more of their total productive land and/or productive assets, have to displace; and/or lose 10% or more of their total income sources due to the Project. The permanent land acquisition seriously affected 16 SAHs, in which including 5 Kinh households and 11 ethnic households. INVESTCONSULT GROUP 11

2.3. Legal framework The legal framework and policies for compensation and resettlement under the Project is defined by the relevant laws issued by the Government of Viet Nam: - 2003 Law on Land, promulgated on November 26, 2003 by Vietnam s National Assembly. - Law on Complaints, approved by the National Assembly in 2011. - Government s Decree No.181/2004/ND-CP, dated October 29, 2004, Guiding the Implementation of the Amended 2003 Law on Land. - Government s Decree No.84/2007/ND-CP, dated May 25, 2007, providing additional guidance on the grant of land use right certificates, land recovery, exercise of land use rights, order and procedures for compensation, support and re-settlement when land is recovered by the State. - Government s Decree 197/2004/ND-CP, dated December 03, 2004, regulating compensation, assistance and resettlement when the State acquires the land. The Decree provides guidance on implementation of land compensation, assets compensation, support and resettlement policy related to land acquisition. - Government s Decree 188/2004/ND-CP, dated November 16, 2004, on methods to identify land price and land price frame for different types of land. - Government s Decree 123/2007/ND-CP, amending and supplementing some articles of Decree 188/2004/ND-CP. - Government s Decree 69/2009/ND-CP, dated August 13 2009, additionally providing for land use planning, land acquisition, compensation, assistance and resettlement in case of land acquisition, regulating the land price, land allocation and lease, and additional requirements related to land use rights. - Government s Decree 106/2005/ND-CP dated August 17, 2005, regulating the protection and safety corridor of high-voltage power grid works. Some articles of this decree was amended and supplemented by Decree 81/2009/ND-CP dated October 12, 2009. - Government s Decision 52/2012/QD-TTg dated November 16, 2012 on employment and vocational training support policies for laborers subject to agricultural land recovery. - Circular 144/2004/TT-BTC, dated November 26 2004, of the Ministry of Finance providing guidelines on the implementation of Government s Decree 188 on land price evaluation. - Circular No. 14/2009/TT-BTNMT of the Ministry of Natural Resources and Environment, detailing the compensation, support and resettlement and order of and procedures for land recovery, allocation and lease. Above Laws and Decrees form legal framework that allows local authorities in province and locality to apply through decrees and regulation in places, in accordance with registration, especially for compensation price and level used for calculating compensation and other support for households affected by land acquisition and resettlement. INVESTCONSULT GROUP 12

- Decision No. 05/2010/QD-UBND dated February 23, 2010 of the PC of Dak Nong Province on Policy of Compensation and Support for People Whose Lands are acquired by the State in Dak Nong Province. - Decision No.12/2011/QD-UBND dated March 01, 2011 of the PC of Dak Nong Province on Amending and Supplementing Some Articles of the Decision No. 05/2010/QD-UBND. - Decision 232012/QD-UBND dated 20/08/2012 of the PC of Dak Nong Province on amending Point B, Clause 6, Article 1 in the Decision 12/2011/QD-UBND which is dated 1/3/2011 of the PC of Dak Nong Province on amending and supplementing some Articles of the Decision 05/2010/QD- UBND dated 23/2/2010; - Decision No. 27/2010/QD-UBND dated 09/0/2010 the PC of Dak Nong Province issuing regulation of compensation and support for land and assets associated to land under protective scale of safe corridor of high-voltage grid; - Decision No. 43/2010/QD-UBND dated December 12, 2010 of the PC of Dak Nong Province on Setting Land Price Brackets for Land Categories in Dak Nong Province in 2011. - Decision No. 35/2011/QD-UBND dated December 28, 2011 of the PC of Dak Nong Province on Setting Land Price Brackets for Land Categories in Dak Nong Province in 2012. - Decision No. 23/2012/QD-UBND dated December 28, 2012 of the PC of Dak Nong Province on Setting Land Price Brackets for Land Categories in Dak Nong Province in 2013. - Decision No.27/2011/QD-UBND dated 01/11/2011 2012 of the PC of Dak Nong Province on regulating compensation price of crop are acquired by the State in Dak Nong province. - Decision No. 18/2010/QD-UBND dated 14/07/2010 of the PC of Dak Nong Province on issuing price levels on newly-constructed house, assess and architectural objectives in Dak Nong province. INVESTCONSULT GROUP 13

III. INDEPENDENT MONITORING 3.1. Independent monitoring for RP and REMDP The implementation of REMDP is a complicated task that requires regular monitoring of CPMB and relevant local authorities. This monitoring process is known as the internal monitoring. Besides internal monitoring, ADB always requires that REMDP implementation is monitored by a professional independent monitoring unit for ensuring regulations in REMDP are properly implemented as approved REMDP, concurrently giving arisen problems during REMDP implementation, then proposing overcome measures. 3.2. Objectives and fundamental of the monitoring work The main objective of the monitoring and consulting service is to make sure the APs of the 500kV Pleiku My Phuoc Cau Bong Project will receive full supports and benefits as stated in approved REMDP. The monitoring activities are conducted in order to: (i) (ii) (iii) (iv) Ensure the rehabilitation and improvement of APs livelihood; Supervise the whole Project to check if the current resettlement activities are aligning with the RP or not. Propose addressing methods if necessary; Assess if the rehabilitation and compensation methods are fully complied with the REMDP, and ADB s SPS (2009 and other amended) or not; Detect arising problems during the implementation of the Project and propose mitigation measures. 3.3. Monitoring locations Monitoring area is divided into 2 places as follows (i) administrative agencies relating to the project and (ii) construction area of the project. Specially: (i) (ii) In office of CPMB, Compensation Committee/CLRD of districts, wards/commune the project goes through In project site, interview AHs In the second monitoring visit, the Consultant unit has worked with representatives of CPMB, CLRD of districts and PC of Wards/Commune: Table 7: Monitoring locations No District Commune 1 Cu Jut Nam Dong, Cu K Nia, Truc Son, Long Son 2 Krong No Dak Sor, Nam Xuan, Tan Thanh 3 Dak Song Dak Hoa, Nam Binh, Nam N Jang, Dak N Drung INVESTCONSULT GROUP 14

3.4. Monitoring indicators During REMDP implementation, the Consultant unit has monitored and assessed based on following indicators 3.4.1. Monitoring indicators for RP RP monitoring indicators includes but not limited to these indicators: a. Monitoring of organizations, units implementing RP - Organizations and units implementing RP (name, number of staffs, job description of each organization, etc). - Related agencies (local authorities, departments and unions, etc). The cooperation mechanism within related agencies, responsibility of each agency, etc. b. Monitoring of compensation payment - Payment in full amount for the assets losses; compensation based on replacement cost; - Payment on time for all AHs (according to RP). c. Monitoring of the reconstruction of civil infrastructures - All basic infrastructure (water supply, drainage system, roads, etc.) need to be built in resettlement areas in a manner that is equal or better than the old ones d. Monitoring of the provision of resettlement places (if any) - Interview APs who is qualified to be resettled in the resettlement places to check if they were consulted on the location of the resettlement places, houses and lands. Supervise to check if the resettlement places are located in environmental sensitive areas such as forest area and flooded area or not; - Supervise the selection of resettlement areas, designs, infrastructures and location of lands (that allows APs to maintain/improve their living); - Supervise the drainage system (if any) and its operation; supervise the waste management activities including the method and process of waste disposal applied in resettlement areas; observe and test smell of waste, aesthetic issues, the gathering of rats, insects and other transmission vectors, etc in the resettlement areas; - Check if APs have been receiving all their benefits on time; - Check if displaced households are consulted at least 03 months before replacement take place ; - And other issues stated in RP and other findings from reality observance. e. Satisfaction level monitoring - Assess the satisfactory level of the APs in terms of different aspects of RP which are monitored and taken note; and - Assess problems of grievance and compensation and time framework( time of settling complaints); - Propose measures for remained problems. g. Monitoring of information publicity and community consultation INVESTCONSULT GROUP 15

- Check if they were consulted or not on issues related to their rights such as compensation rate, policy of rights, location, designs and distribution of land in resettlement areas; - Involve in meeting of people organized by CPMB or Provincial/District s Committee of Compensation to know more about current situation of the implementation of RP as well as newly arose problems to give suggestion on time; - Check information related to RP at local agencies and supervise the dissemination of information to APs. h. Result of the communication activities for the prevention of HIV/AIDS and human trafficking (such as the number of attendants, method, frequency of promotion activities, etc.) i. Living standard - During the implementation, assess and report on the trend of living standard recovery; - Research on basic level of living standard of AHs before and after the resettlement to assess the improvement of APs living standard; - Predict the recovery of AHs income and living standard; - The recovery of SAPs; - Assess the financial supports to AHs as stated in RP; - Monitor the rehabilitation support to SAPs. 3.4.2. Monitoring of the implementation of EMDP The Consultant Unit will monitor content of REMDP from implementation to management. Main monitoring indicator includes: a. Monitoring of compensation payment - Pay in full amount for assets lost and replacement cost; - Pay on time for AHs. b. Satisfaction level - Satisfaction level of AHs to different aspects in REMDP; - Complaints on compensation and duration for its settlement. c. Information publicity and community consultation - Whether AHs get enough information and were consulted on issues related to their rights; - Discover the maintenance in the implementation of REMDP and provide suggestions; 3.5. Implementation method The monitoring is carried out by a combination of document analysis method, quantitative methods (survey by questionnaire) and qualitative methods (in-depth interviews, focus group discussions with the key staff and APs). The Consultant has prepared a questionnaire and in-depth interview guide. The collection of information related to the resettlement will be carried out in the CPMB, the district Compensation Council/ Center for Land Resources Development (CLRD) and the affected households. The evaluation results are compared with the field monitoring results. INVESTCONSULT GROUP 16

3.5.1. Information collection 3.5.1.1. Document analysis Before implementing monitoring work, the Consultant has thoroughly researched following documents: REMDP of the project; Compulsory resettlement policies of ADB (2009); Policies of Vietnam s Government on land acquisition, compensation, support and resettlement as: Documents / memorandum related to REMDP implementation and policy framework for compensation, support and resettlement which ADB were not opposed and was approved by the Prime Minister, etc and Other relevant instruction documents. 3.5.1.2. Qualitative method Monitoring experts exchanged with PMU s leaders and officials in charge of resettlement, officials in charge of land acquisition compensation of district Land development Center to gather information and related data. The in-depth interviews APs are integrated in the interview questionnaire. 3.5.1.3. Quantitative method Monitoring team conducted a survey to gather information and assess the implementation of compensation and resettlement of the project. Based on the list of AHs provided by Land development Centre, consultant randomly selected households to interview. The subjects were interviewed including women, the elderly and other vulnerable groups. 3.5.2. Sampling Second monitoring locations were categorized into: (1) the administrative agencies related to the project and (2) at project areas, namely: - At the office of Central Power Project Management Unit; District Resettlement Committees - Site clearance of Dak Nong and CPCs; - At project area: Interview APs and take photograph f typical cases. Selection and classification of objects Objects that monitoring staffs have to contact and work with in the second monitoring can be classified into 2 main groups: Group 1: Officials that directly or indirectly involve in mitigating impacts on people and the environment, especially officials of construction units. Besides it, it also includes officials of Project Management Unit and local authority. Group 2: households that have assets affected by the construction of project. Sampling According to the contract between the Project Management Unit and the Consultant, the sampling process must involve at least 10% of the AHs along the TL according to compensation plan issued by the authority. INVESTCONSULT GROUP 17

At the second monitoring visit, the Consultant has randomly selected AHs as mentioned in following table 9, ensuring that: (1) All communes in project area will be monitored; (2) 100% of severely affected households are interviewed; (3) AHs interviewed contain of household of ethnic minority and vulnerable group. Number of selected household for second monitoring is as follows: Table 8: The number of interviewed AHs No District Commune No. of households interviewed Severely affected households Marginal affected households Total Kinh Ethnic minorities Kinh Ethnic minorities 1 Cu Jut Nam Dong 2-1 - 3 Cu K Nia - - 1 1 2 Truc Son 2-1 - 3 Long Son - - 2-2 Total 4-6 1 10 2 Krong No Dak Sor 1 - - - 2 Nam Xuan - - 3-3 Tan Thanh 4-1 - 5 Total 5-4 1 10 3 Dak Song Nam N Jang 3-2 - 5 Nam Binh 1-2 - 3 Dak Hoa - - 2 2 4 Dak N Drung - - 2-2 Total 4 8 2 14 Grand Total 13 17 4 34 INVESTCONSULT GROUP 18

IV. THE RESULTS/ FINDINGS OF THE REMDP MONITORING 4.1. Implementation progress of the project Packages Package 07 (G30- G36) There are 4 packages of project on Dak Nong province area that are implemented by 6 construction contractors, up to monitoring time, implementation progress of the packages is as follows: Table 9: Construction progress Construction contractor Joint venture between Installation and Electric construction Joint Stock Company (IEC) and Cico. Length (km) Number of point Digging (VT) Moulding (VT) Tower building Rate of moulding foundation (%) Rate of building tower (%) Number of granted tower Number of completed tower 28,140 58 58 58 58 100% 100% 58 58 Wiring 28.140 Package 08 (G36- G45C) Joint venture between Power Construction Installation Limited Company No.4, AlphaNam and Song Da 12 JSC 36,180 73 73 73 73 100% 100% 73 73 36.180 Package 09 (G45C- G49) Song Da 11 JSC 26,980 52 52 52 52 100% 100% 110 110 26.980 INVESTCONSULT GROUP 19

Packages Construction contractor Length (km) Number of point Digging (VT) Moulding (VT) Tower building Rate of moulding foundation (%) Rate of building tower (%) Number of granted tower Number of completed tower Wiring Package 10 (G49- G52) Song Da 11 JSC 28,360 58 58 58 58 100% 100% 28.360 INVESTCONSULT GROUP 20

4.2. Implementation organization of REMDPs As the Project only acquires land permanently to construct tower foundation and compensates architecture objectives, trees and crops in ROWs; compensation for AHs is divided into 2 implementation periods: (1) Compensation for land and assets on land in towers positions (site clearance for construction) and (2) compensation and support for affected assets under safe corridor of transmission line. Related parties have conducted compensation and site clearance since 2011. At that time, to speed up construction progress, the investor (AMT) paid a part of capital (approximately 70% of compensation plan) for households that were acquired land to build foundation (before the compensation plan was approved) to get ground for construction, other assets will be compensated after the approval of compensation plan. Since 2012, compensation and payment for AHs have been conducted once after the compensation plan was approved. Activities of implementing RP plan for Pleiku- My Phuoc- Cau Bong 500kV transmission line project are deployed by AMT associated with District Compensation and Site Clearance Committee in Dak Nong province as follows: - Organize information dissemination, community consultation; - Build detail compensation plan: Statistics and price application for each household; - Submit detail compensation plan and recommend DPC to issue decision on land and detail property acquisition; - Coordinate with investor on paying compensation for AHs; - Clear safety corridor of power grid as prescribed; - Coordinate with AMT to solve problems, disputes and complaints of AHs about compensation activities; - Synthesis documents and fund for implementation of compensation for site clearance and settlement with AMT. 4.3. Monitoring indicators 4.3.1. Information dissemination Information dissemination is an important part in policy of ADB and Government of Vietnam. It plays an important role in deciding to success of the project in general and activities of compensation and resettlement of each project in private. Information publicity ensures that all AHs understand project information, policy of advantages which help to minimize disputes, complaints during implementation duration and ensure implementation progress of the project. Through working with District Compensation and Site Clearance Committee and, CPCs in project area, information dissemination is properly implemented. Documents of safety policies are sent to affected communes and publicly posted at CPCs office. To prepare inventory and site clearance, CPMB has document sent to PPC to notice land acquisition for building project in province/city area. After receiving decision on establishing District Compensation and Site Clearance Committee, CPMB has worked with DPCs, CPCs to announce construction plan of Works. Publicity dates are regarded as cut-off dates of the project. After plan publicity, officials of CPMB - District Compensation and Site Clearance INVESTCONSULT GROUP 21

Committee and has coordinated with Compensation Committees to organize meetings in each affected communes. Content of meeting concludes: - Notification of the scale of project in communal area; - Notification of compensation policy; - Notification of inventory plan; In the communes, there are about 3 meetings which are implemented in times: Before inventory implementation, inventory completion, after a period of plan publicity. N o 1 Table 10: Forms of information dissemination Forms of information dissemination Organize meeting with local people to inform project Implementation According to REMDP Yes Actual Implemented 2 Dissemination through local loudspeakers Yes Implemented 3 Publicly posting policy framework at commune People s Committee Yes Implemented 4 Instruct grievance process and complaint settlement Yes Implemented The above table shows that activities of information dissemination and publicity are properly implemented according to REMDP. Due to proper implementation of information dissemination to AHs, almost households interviewed think that they understand policies of compensation and support and how to proceed with complaints when necessary. According to the result of the 2 nd monitoring stage, AHs have known about the project information through local loudspeaker system or information posted at CPC office. After holding preliminary project information through the above forms, 100% off AHs are invited to meeting for disseminating information more thoroughly. 4.3.2. Inventory of damaged assets In dissemination meeting held in PC s office, representative of relevant agencies will announce to AHs in time of inventory, concurrently invite AHs representative to participate in inventory monitoring. Agencies participating in inventory conclude: - Owner of damaged assets; - Officials of Board of Compensation, Support and Resettlement/CLRD; - Officials of land measurement unit for households who have affected tower and ROWs (Power Construction JSC., No.4). - Representatives of local government (communes/wards/towns); - Representatives of Investor in locality After measurement and inventory of damaged assets have been completed, all above participants will sign in work minute as a basic for price application of damaged assets. INVESTCONSULT GROUP 22

As records of the Consultant, all AHs have representative participating in monitoring and signing in work minute (referred in Annex 4). Based on inventory minutes in site, Board of Compensation, Support and Resettlement will conduct price application for damaged assets, support amount (if any) for each AH and make compensation plan. Compensation plan will be posted in CPC s office of commune/ward. If AHs have any complaints about compensation plan, may contact to representatives of local government or Board of Compensation, Support and Resettlement for settlement. After parties consent about inventory and price application minutes, they will sign, such minutes will be archived by Compensation and Resettlement Council and AMT 4.3.3 Compensation payment 4.3.3.1. The validity of compensation document Each compensation dossier of AHs concludes many documents, basic documents concluding: (i) Minute of asset inventory; (ii) Minute of situation verification; (iii) Drawings; (iv) Detailed plan of compensation and support of each household; (v) Minute of compensation payment; and (vi) Letter of complaint/recommendation (if any). In addition to the above documents, some other materials/papers are also considered such as compensation plan, decision on approving compensation plan, supplemented compensation and support plan (if any), decisions on settling complaints of local authorities, etc. Validity of compensation documents is assessed through (i) completeness of above administrative documents, (ii) appropriation in terms of time between documents/papers, (iii) completeness of signatures and (iv) accuracy of calculations. Result of random checking of compensation documents of AHs is as follow: - Each document has all above-mentioned papers - Properly calculation based on AHs benefits, correspondent with kinds of affected forms; Time between documents/papers is appropriate - Data of documents is unified - Calculations are accurate - Having all related signatures. - Given the document, compensation for affected assets and supports under the project policy and regulation of the State will be sufficiently shown. 4.3.3.2. Completeness in terms of quantity Completeness in terms of quantity of AHs assets is assessed through (i) comparison between Minutes of asset inventory, compensation calculation worksheet and Minutes of compensation payment, (ii) interviewing AHs. Result of checking and comparing all documents and papers show that: all assets of INVESTCONSULT GROUP 23

AHs that have been inventoried have been calculated sufficiently in compensation calculation worksheet. There are no differences in terms of quantity in the Minutes. The amount of payment for AHs in the Minutes of compensation is totally the same as the approved amount in the Decision of compensation approval. Besides, the Consultant has interviewed some AHs received compensation to assess the completeness in terms of quantity of affected assets. Result of checking documents and interviewing AHs is summarized as follow: Commune Table 11: The completeness in number of AHs property 1. Participate in measurement /inventory 2. Lack of inventoried assets 3. Documents present figures clearly 4. Mistakes in preparing plans 5. Number of AHs received money/not fully paid for affected properties Yes No Yes No Yes No Yes No Yes No Nam Dong 3 0 0 3 3 0 0 3 3 0 Cu K Nia 2 0 0 2 2 0 0 2 2 0 Truc Son 3 0 0 3 3 0 0 3 2 1 Long Son 2 0 0 2 2 0 0 2 2 0 Dak Sor 2 0 0 2 2 0 0 2 2 0 Nam Xuan 3 0 0 3 3 0 0 3 3 0 Tan Thanh 5 0 0 5 5 0 0 5 5 0 Nam N Jang 5 0 0 5 5 0 0 5 5 0 Nam Binh 3 0 0 3 3 0 0 3 3 0 Dak Hoa 4 0 0 4 4 0 0 4 4 0 Dak N Drung 2 0 0 2 2 0 0 2 2 0 Total 34 0 0 34 34 0 0 34 34 1 All checked documents are presented clearly and sufficiently, compensated properties corresponds to inventoried properties. All households interviewed participate in process of property measurement/inventory of AHs before District Compensation Committee makes compensation plan and submit to relevant authorities. 4.3.3.3. Compensation payment By the time of the second monitoring, compensation activities for AHs in Dak Nong province are as follows: INVESTCONSULT GROUP 24

Table 12: Synthesis of compensation payment (VND) No District Total of amount Payment completed Compensation In which Support policy 1 Cu Jut 19,451,562,887 18,451,562,887 18,370,562,887 81,000,000 2 Dak Mil 2,824,275,000 2,824,275,000 3 Dak Song 25,633,593,805 25,633,593,805 25,365,593,805 268,000,000 4 Dak R'Lap 7,507,948,872 7,507,948,872 7,504,948,872 3,000,000 5 Krong No 13,712,766,764 13,712,766,764 13,503,378,644 209,388,120 6 Tuy Duc 12,338,217,713 12,338,217,713 12,087,205,713 251,012,000 Total 81,468,365,041 80,468,365,041 76,831,689,921 812,400,120 There are 62 compensation plans approved relating to items of pole, ROW and damages during construction period on areas of 6 districts in DakNong province. Up to monitoring time, only one AH having house in ROW (in Truc Son commune, Cu Jut district) has not received compensation due to low price unit but accepted to relocate house and architecture objectives for ensuring work construction. Besides, in some positions having high trees (that threaten the safety of transmission line when come into operation) outside the ROW, AMT has discussed with Compensation Council to expand the ROW in these positions. Compensation Councils in the districts have also proposed assistance measures for this land area, of which using capacity is limited. Compensation in market price would be applied for cleared trees. Until now, this issue has not come to a conclusion. 4.3.4. Infrastructures recovery The construction has no impact on infrastructures in locality, mainly temporary impact on agricultural land such as construction road, site to gathering materials and tents for construction workers. For these cases, the contractor negotiated with households that have affected assets for compensation. 4.3.5. Impacts during construction period Digging and moulding tower foundation, constructing tower and pulling transmission line impact partly on agricultural land and trees, crops of local people. All damages will be inventoried and calculated by Construction Unit and AHs, then coordinating with CLRD to implement compensation for AHs. According to that, damages caused by land acquisition for construction of road, material gathering site will be paid by Investor; Construction contractor has responsible for damages of trees and crop during pulling transmission line. Currently, related agencies have been establishing compensation plan for payment of these damage. 4.3.6. Providing resettlement locations Households who must compulsorily resettle (due to land acquisition for tower foundation or having houses in ROW) will be compensated and have monetary support INVESTCONSULT GROUP 25

to organize resettlement on place (on remaining land). In case there is no land to resettle on place, households are compensated in cash to resettle in other places or granted resettlement land if local government has land resource. In the 3 monitoring districts, 6 households, which are affected by involuntary resettlement, are as follows: 02 households including Bien Truc and Hoang Tri Kinh in Truc Son commune and Ha Van Gioi s household in Nam Dong commune, Cu Jut district; Nguyen Thanh Viet s household in Dak Sor commune, Dak Dor district; 2 households including Nong Van Hoan and Hoang Van Tinh in Nam N Jang, Dak Song district 5/6 of AHs mentioned above have received compensation and arranged the resettlement themselves. Household of Mr. Bien Truc has relocated outside the ROW but has not agreed with compensation because of low price unit applied for house, workshop, and structures and device relocation. 4.3.7. Support for AHs Supports under REMDP which are being applied in Dak Nong (based on regulations of the State and PPC) are as follows: 4.3.7.1. Support for land which are decreased the likelihood of using - In case of no acquisition, land area under safe corridor of transmission line results to minimized capacity in using land, AHs will be paid once as follows (Decision No. 27/2010/QD-UBND dated 09/0/2010 the PC of Dak Nong Province issuing regulation of compensation and support for land and assets associated to land under protective scale of safe corridor of high-voltage grid) (i) (ii) For residential land: the support of 25%, 50% or 80% depending on land value at that time; in case of having certificate of land use right or if not, qualify compensation condition for living land regulated in Land Law; For agricultural land: the support of 25% or 50%, depending on if land area is located in living land and eligible for compensation or not. 4.3.7.2. Support for living stabilization - Support for house relocation: the displaced persons are supported in cash with an amount of 3,000,000 VND. - Support of house renting to stable accommodation: The households who must to displace/resettle and have more than 6 people will be supported 1,500,000 VND within 6 months. 4.3.7.3. Support for wounded family, vulnerable households - There are four households under preferrential treatment policies affected by the project, each household receives support with the amount of 2,000,000 VND/household. - Support for poor households or households with particular difficulties have no longer production land with amount of 5,000,000 VND/household, through investigating documents, there are five AHs that have disabled labour-aged persons and these households received support in accordance with the provisions INVESTCONSULT GROUP 26

- Support for households with a working-age adult with a disability with amount of 5,000,000 VND/household. Total No.of AHs which have received supports are synthesized as follows: Total 13: Support policy No. Of AHs have received supports No District Total of amount Family under prefere ntial treatme nt polic y Support for renting house Suppor t for living stabiliz ation Relocati on Suppor t for poor house Households having disability in workingage adult 1 Cu Jut 81,000,000 18 18 2 Dak Song 268,000,000 4 8 70 13 5 3 Dak R'Lap 3,000,000 1 4 Krong No 209,388,120 8 5 9 1 5 Tuy Duc 251,012,000 2 5 Total 812,400,120 4 35 5 99 19 5 Beside above supports, in Dak Song district, 14 households having wire under ROW constructed by their selves have been supported 40% of wiring cost equivalent to 4,000,000 VND/household; there is one household which has received infrastructure investment for resettlement household according to Item 2, Article 10, Decision No. 05 dated February 23, 2010 (equivalent to 30,000,000 VND). By checking compensation plan and interviewing the staff and AHs, the Consultant has found that the assistances for AHs of the Project have been applied in accordance with current regulations of the State and the PC of Dak Nong province. 4.3.8. Gender, Ethnic Minority and Vulnerable Households issues 4.3.8.1 Gender issues INVESTCONSULT GROUP 27

Through community meeting miinutes and list of participants in LFDC and through interviewing some affected females, the consultant confirms that: - Females in affected households participated in project implementation meetings; - In the inventory process, females in households participated in this process with the staff from LFDC. 4.3.8.2. Ethnic Minority Households EM Action Plan was implemented according to REMDP from the preparation to implementation step. Accordingly, the affected EM households were announced about the policies, benefits and choices of relocation, consulted fully about the detailed inventory results. 4.3.8.3. Vulnerable Groups The project has 24 vulnerable households (poor households and households with disabled persons) which have affected assets, beside the compensation according to provisions, these households are supported 5,000,000 VND/household. 4.3.9. Satisfaction level According to assessment of the Consultant team, almost interviewed households satisfy with compensation and support plan. Some households do not agree with compensation price of land, crop or support limit for agricultural land. However, after checking and clarify the requirement of each household, PCs of districts have concluded that approved compensation plans of these household were made in accordance with regulation of the Government and PC of Dak Nong province. After that, the households received compensation according to approved compensation plan. The satisfaction rate of households is aggregated in following table: No Commune Table 14: Satisfaction level Satisfaction level Satisfied Not satisfied No opinion 1 Nam Dong 2 1 0 2 Cu K Nia 2 0 0 3 Truc Son 2 1 0 4 Long Son 2 0 0 5 Dak Sor 1 1 0 6 Nam Xuan 3 0 0 7 Tan Thanh 4 0 1 8 Nam N Jang 3 0 2 9 Nam Binh 3 0 0 10 Dak Hoa 4 0 0 11 Dak N Drung 2 0 0 Total 28 3 3 4.4. The difficulties and problems during implementation process INVESTCONSULT GROUP 28

In general, all households supporting project implementation are aware of the national key project which brings socio-economic benefit. However, problems are remained during implementation, mainly as compensation price. In AHs opinion, compensation price, especially for agricultural trees, is calculated unreasonably, not in accordance with proposed investment value. In general, as recordings of the Consultant, recommendation and complaints of AHs (orally and in writing) are the compensation price are unreasonable or low price but they do not propose or verify market price compared with compensation price issued by PPC. Specific difficulties during implementation in locality are as follows: - In case of residential land having houses under ROW: According to project regulations, land acquisition is only implemented for the towers foundations; for the ROWs, houses must be displaced if they located under the corridor. This fact brings disadvantages to local people and, at the same time, to the Project implementation, as recognized by the Consultant and opinions of officials in charge of site clearance. In particular, AHs has only received compensation for structures under the ROW. The residential land areas, which is not acquired, would have their use purpose changed into production land (owners will pay fee of changing purpose of land use) and received support for limitation of land use capacity. In our opinion, it must be compulsive resettlement in the case. However, unless the local area has sufficient source of land or available resettlement area for AHs, the compensation and assistances would not be sufficient to establish new residence that at least have equivalent condition to the previous. - In case of assistance for living and production stabilization when land is acquired: Article 13 Decision No. 05/2010/QD-UBND dated February 23, 2010 regulated assistance for living and production stabilization for households, individuals which directly participate in agricultural production when the State acquires agricultural land. Accordingly, the minimum rate of acquisition in order to receive assistances is 1000 m 2 for paddy land and 3000m 2 for agricultural land growing annual crop (Land acquired for the Project is mainly annual crop land). In Mr. Nguyen Nhat Su s opinion (Deputy Director of CLRD of Krong No District), the regulation of minimum rate of acquired land mentioned above causes difficulties for staff to implement as well as disadvantages for APs. 4.5. Grievances and grievances redress Complaints and questions relating to any aspects in implementation of compensation, support and resettlement will be solved in accordance with current regulations of Vietnam. Grievances procedure and redressing measures of the Project complies with steps outlined in the initial REMDP reports. Grievances issues in Dak Nong province mainly relate to compensation price on land, trees or crops. Some households send petitions to CPC and CLRD, concurrently the Centre also has written reply to households recommendation, particularly as follows: Table 15: Complained issues No Commune, district Name of households Recommendation content Recommendation settlement 1 Truc Son, Bien Truc The compensation CLRD has Dispatch no. 65/ INVESTCONSULT GROUP 29

No Commune, district Name of households Recommendation content Recommendation settlement Cu Jut rates for structures and assets are unreasonable CV- HDBTGPMB dated July 16, 2014 replying to Mr. Bien Truc about complaint and recommendation of his household. According to that, price application is implemented in accordance with regulation of the State and province. 2 Nam Dong, Cu Jut Nguyen Van Dau Compensation value is not matched to draft of compensation plan CLRD has Dispatch no. 1087/CV-HDBTGPMB dated May 26, 2014 replying to complaint and recommendation of Mr. Dau s household about detail measurement. His house is located outside the power grid and would not be demolished so it would not be compensated. Therefore, value of compensation assistance is lower than the draft compensation plan is right. 3 Nam N Jang, Dak Song Pham Van Huong Land, structures and trees are not compensated. CLRD has Dispatch No. 24/CV-HDBTGPMB dated 14 April 2014 replying to complaints and recommendation of Mr. Huong s household. According to the result after checking in site determined by CLRD, the local Forest Protection Unit, Office of Natural Resource and Environment in the district and PC of Nam N Jang commune, land area under the ROW of the power grid belongs to forest land in highway No.14 which is encroached by local people must be cleared following the Law on Forest Protection INVESTCONSULT GROUP 30

No Commune, district Name of households Recommendation content Recommendation settlement and Development Therefore, his household has insufficient condition of receiving compensation based on current regulation. According to assessment of the consultants, the complaining and resolving complaints took place with the right process and procedure. To the monitoring period, Mr. Bien Truc s household had not been satisfied with the responses of LFDC and continued complaining. The consultancy unit witl update this complaint s solution process in the next monitoring reports. V. CONCLUSION AND RECOMMENDATION 5.1. Conclusion From analysis mention above, REMDP implementation in districts of Dak Nong province basically complies with approved REMDP. The Consultant has some comments on implementation activities as follows: - Structure of implementation organization: Relevant agencies as prescribed in REMDP perform well their duties. It ensures that project implementation is carried out conveniently; - Project information, compensation policies, complaint process and settlement are disseminated sufficiently in activities of information public to AHs. Therefore, no household has complaints due to thoroughly understanding project information; - Property inventory, compensation planning and payment are implemented with high agreement of almost AHs. Almost interviewed households said that their properties are inventoried to making plan and sufficiently paid. It shows that the completeness and timeliness of compensation are complied; - Compensation price: It is sensitive problem and always reason for complaints in many projects. To 500kV Pleiku My Phuoc- Cau Bong transmission line project, analyzing and comparing applied price with price mentioned in REMDP shows that the compensation price is applied as prescribed by Dak Nong province; - Complaint situation and settlement: All questions, complaints of households in officially or verbally manner are verified or solved by REMDP implementing agency according to regulated procedures. 5.2. Recommendation In general, implementation activities of REMDPs are met required demand. However, to ensure to well implement REMDPs activities and general progress of all projects, the Consultant unit has some following recommendations: - CLRD and relevant agencies need to accelerate progress of measurement, inventory and compensation planning, submit compensation approval and payment for items of land area supplement, corridor expanding or tree cutting in order to avoid dissatisfaction of APs due to late compensation; - For the households must compulsorily resettle, recommend CLRD coordinates INVESTCONSULT GROUP 31

with relevant partners to make advocacy or solve relocation for ensuring safety during operation. - For the households have recommendation that the measurement, inventory and construction time of works on land are not proper, etc, it is suggested that CLRD coordinates with relevant agencies to recheck and premeasured in order to have facility to reply/solve recommendation satisfactorily. INVESTCONSULT GROUP 32

ANNEX 1. LIST OF INTERVIEWED OFFICIALS No Official in charge Position 1 Central Power Projects Management Board Mr. Le Dinh Quang Mr. Le Van Hieu Mr.s Vo Nhat Huy Mr. Tran Hoai Bao Mr. Nguyen Truong Son Deputy Director Head of compensation office Official of evaluation office Compensation official in site Compensation official in site 2 CLRD in Cu Jut district Mr. Ta Buu Duc Head of Economic- Infrastructure Office, Deputy Chairman of Compensation Council 3 CLRD in Krong No Mr. Nguyen Nhat Su Deputy General 4 CLRD in Dak Song district Mr. Ho Quoc Lap Ms. Dinh Thi Hong General director Official of CLRD INVESTCONSULT GROUP 33

ANNEX 2. IMAGES OF MONITORING SITE Mr. Bien Truc s household Mr. Hoang Tri Kinh s household Interviewing AHs INVESTCONSULT GROUP 34

ANNEX 3. APPROVAL DECISION FOR COMPENSATION PLAN ANDINVENTORY MINUTE INVESTCONSULT GROUP 35

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ANNEX 4. SOME PETITIONS OF HOUSEHOLDS INVESTCONSULT GROUP 44

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