Resettlement and Ethnic Minority Development Plan (REMDP)

Resettlement and Ethnic Minority Development Plan (REMDP) Document Stage: Final 20 July 2010 GMS: Kunming-Hai Phong Transport Corridor - Noi Bai- Lao Cai Highway Project Bao Thang District, Lao Cai Province Prepared by: Vietnam Expressway Corporation i

CURRENCY EQUIVALENTS (As of December 2008) Currency Unit Vietnamese Dong (VND) - US Dollar ($) $1.00 = VND16,500 ABBREVIATIONS ADB - Asian Development Bank AP/AH - affected person/affected household CARB - Compensation, Assistance, and Resettlement Board CEM - Committee for Ethnic Minorities CPC - Commune Peoples Committee CSDP - Center for Support of Social Development Programs DCARB - District Compensation, Assistance, Resettlement Board DMS - Detailed Measurement Survey DPC - District Peoples Committee DPI - Department of Planning and Investment EA - Executing Agency EM - Ethnic Minority EMA - external monitoring agency EPMU - Expressway Project Management Unit HIV / human immunodeficiency virus/ - AIDS acquired immune deficiency syndrome IOL - Inventory of Losses IRP - Income Restoration Program LA-PMU - Land Acquisition Project Management Unit LURC - Land Use Rights Certificate MOF - Ministry of Finance MARD - Ministry of Agriculture and Rural Development MOT - Ministry of Transport NTP - Notice to Proceed PCARB - Provincial Compensation, Assistance, Resettlement Board PPC - Province Peoples Committee RCS - Replacement Cost Study ROW - Right-of-Way REMDP - Resettlement and Ethnic Minority Development Plan SES - Socioeconomic Survey VEC - Vietnam Expressway Corporation VND - Vietnamese dong VWU - Viet Nam Women s Union WEIGHTS AND MEASURES Ha - Hectare Km - Kilometer M - Meter ii

Affected person/affected household (AP/AH) Cut-off date Detailed Measurement Survey (DMS) Entitlement Host community Income restoration Inventory of Losses (IOL) Land acquisition DEFINITION OF TERMS - Refers to any person or persons, household, firm, private or public institution that, on account of changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (including residential, commercial, agricultural, forest and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without displacement. In the case of affected household, it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components. - This refers to the date prior to which the occupation or use of the project area makes residents/users of the same eligible to be categorized as AP. In this Project, the cut-off date coincides with the period the census of affected persons and the inventory of losses (IOL) that were conducted in April to June 2007. Persons not covered in the census are not eligible for compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the census and the IOL; or (ii) they have lawfully acquired the affected assets following completion of the census and the IOL and prior to the conduct of the detailed measurement survey (DMS). - With the aid of the approved detailed engineering design, this activity involves the finalization and/or validation of the results of the inventory of losses (IOL), severity of impacts, and list of APs earlier done during REMDP preparation. The final cost of resettlement can be determined following completion of the DMS. For Bao Thang district, the DMS was conducted between April and August 2008. - Refers to a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. which are due to the APs, depending on the type and severity of their losses, to restore their economic and social base. - Means the community already in residence at a proposed resettlement or relocation site. - This is the re-establishment of sources of income and livelihood of the affected households. - This is the process where all fixed assets (i.e., lands used for residence, commerce, agriculture, including ponds; dwelling units; stalls and shops; secondary structures, such as fences, tombs, wells; trees with commercial value; etc.) and sources of income and livelihood inside the Project right-of-way (ROW) are identified, measured, their owners identified, their exact location pinpointed, and their replacement costs calculated. Additionally, the severity of impact to the affected assets and the severity of impact to the livelihood and productive capacity of APs will be determined. - Refers to the process whereby an individual, household, firm or iii

Rehabilitation Relocation Replacement cost Replacement Study Resettlement Resettlement and Ethnic Minority Development Plan Severely affected households Cost private institution is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation at replacement costs. - This refers to additional support provided to APs losing productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life. - This is the physical relocation of an AP from her/his pre-project place of residence and/or business. - This is the amount calculated before displacement which is needed to replace an affected asset without deductions for taxes, and/or costs of transaction as follows: (i) Productive land (Agricultural, fishpond, garden, forest) based on market prices that reflect recent land sales, and in the absence of such recent sales, based on productive value; (ii) Residential land based on market prices that reflect recent land sales, and in the absence of such recent land sales, based on similar location attributes; (iii) Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials; (iv) Standing crops equivalent current market value of the crop at the time of compensation; (v) Perennial crops and trees, cash compensation equivalent to current market value given the type, age and productive value (future production) at the time of compensation. (vi) Timber trees, based on diameter at breast height at current market prices. - This refers to the process involved in determining replacement costs of affected assets based on empirical data. - This includes all measures taken to mitigate any and all adverse impacts of a project on AP property and/or livelihoods, including compensation, relocation (where relevant), and rehabilitation as needed. - This is a time-bound action plan with budget setting out compensation and resettlement strategies, objectives, entitlement, actions, responsibilities, monitoring and evaluation. - This refers to affected households who will (i) lose 10% or more of their total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the Project. Vulnerable groups - These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) female headed households with dependents, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support, and (v) landless households, (vi) indigenous people or ethnic minorities. iv

TABLE OF CONTENTS I. INTRODUCTION 13 A. Background... 13 B. Project Location and Impact Areas... 13 C. Civil Works to be undertaken... 13 D. Measures Taken to Minimize Impacts... 14 E. Objectives of the updated district-level REMDP... 14 II. PROJECT IMPACTS 15 A. Affected Land... 15 B. Affected Main Structures... 16 C. Affected Secondary Structures... 17 D. Affected Crops and Trees... 18 E. Business Disruption and Income Loss... 19 F. Public Facilities... 19 A. Summary of Impacts... 19 III. GENERAL SOCIO-ECONOMIC PROFILE 21 A. Composition of the AHs... 21 B. Profile of the Sample AHs... 21 C. Ethnicity and Gender of the Heads of Sample AHs... 21 D. Educational Attainment of the Heads of Sample AHs... 21 IV. ENTITLEMENTS 24 V. RESETTLEMENT STRATEGY 38 A. Affected Land... 38 B. Affected Main Structures (Houses, Buildings)... 39 C. Loss of Secondary Structures... 40 D. Loss of Public Facilities... 40 E. Compensation for Standing Crops and Trees... 40 F. Affected Businesses and Income Loss... 42 G. Affected Vulnerable AHs... 42 H. Income Restoration Program... 42 I. Relocation Arrangements... 44 J. Temporary Impacts... 45 K. Unforeseen Impacts... 45 L. Ethnic Minorities... 45 M. Gender Issues... 46 VI. ORGANIZATIONAL FRAMEWORK 48 A. Vietnam Expressway Corporation... 48 B. Provincial People s Committee... 49 C. Province Compensation and Resettlement Board... 50 D. District People s Committee (DPC)... 51 E. District Steering Committee (DSC)... 51 F. Commune People s Committee (CPC)... 51 G. Consultants... 51 H. Indicative Implementation Schedule of the REMDP... 52 VII. PUBLIC PARTICIPATION AND CONSULTATION 54 VIII. GRIEVANCE REDRESS 56 A. First Stage, Commune People s Committee... 56 B Second Stage, District People s Committee... 56 v

C. Third Stage, Provincial People s Committee... 56 D. Final Stage, the Court of Law Arbitrates... 56 IX. MONITORING AND EVALUATION 57 A. Internal Monitoring... 57 B. External Monitoring... 57 X. COSTS AND BUDGET 59 A. Procedures for Flow of Funds... 59 B. Cost Estimates and Inflation Adjustment... 59 C. Implementation, Administration and Contingency Costs... 59 D. Estimated Costs of Resettlement... 59 vi

LIST OF TABLES Table I-1 - ES1 Resettlement Schedule... xi Table II-1 Distribution of Land Lossed of affected Households ( in m 2 )... 15 Table II-2 Distribution of Land Losses of AHs by Gender... 16 Table II-3 Reconstruction Preferences of AHs Losing Entire Houses... 16 Table II-4 Floor Area of Wholly Affected Houses by Grade... 17 Table II-5 Quantities of Affected Secondary Structure.... 17 Table II-6 Area of Productive Land Used for Annual Crops (in m 2 )... 18 Table II-7 Inventory of Affected Perennial Trees... 18 Table II-8 Inventory of Affected timber Trees... 18 Table II-9 Summary of Impacts... 19 Table III-1 Composition of the Affected Households... 21 Table III-2 Sample Size per Commune... 21 Table III-3 Main Occupation of House-hold Heads... 22 Table III-4 Average Monthly Household Income AH (in VND)... 22 Table III-5 Main Sources of Water for Cooking and Washing... 23 Table III-6 Toilet Facilities of the AHs... 23 Table III-7 Sources of Energy for Lighting... 23 Table IV-1 Entitlement Matrix... 27 Table V-1 Replacement Cost of Affected Land (in US$)... 38 Table V-2 Replacement Cost (in US$) of Totally affected Houses by Grade... 39 Table V-3 Cash Allowances (in US$) for AHs Losing Entire Houses... 40 Table V-4 Replacement cost (in US$) of affected secondary structures... 40 Table V-5 Market value (in US$) of standing crops... 41 Table V-6 Compensation amount (in US$) of Perennial Trees... 41 Table V-7 Compensation amount (in US$) of Timber Trees... 41 Table V-8 Projects in Lao Cai province... 43 Table V-9 Listing of Vocational Training Centers in Lao Cai City... 43 Table V-10 Income Restoration Program Budget... 44 Table VI-1 Indicative Schedule of Resettlement Activities for Bao Thang district... 52 Table VII-1 Roles and Responsibilities of Key Stakeholders in the REMDP... 54 Table X-1 Summary of Resettlement costs (in US$)... 60 vii

LIST OF FIGURES Figure VI-1 Noi Bai Lao Cai Highway Organizational Structure for Resettlement Work.. 49 Figure VI-2 Updated REMDP Preparation and Implementation Organizational Framework. 50 LIST OF APPENDICES Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 Appendix 8 Appendix 9 Appendix 10 Listing of PCARB, DCARB, LAPMU and RTF Members Detailed Measurement Survey (DMS) Forms Master List of Affected Households Detailed Information on the Relocation Sites Replacement Cost Study Report CSDP Report on the Income Restoration Project (IRP) IRP Framework Records of Public Meeting Project Information Booklet (PIB) Terms of Reference for the External Monitoring Agency (EMA) viii

EXECUTIVE SUMMARY A. Scope of Land Acquisition and Resettlement Impacts 1. The GMS: Kunming-Hai Phong Transport Corridor - Noi Bai-Lao Cai Highway Project (the Project ) involves during its first phase the construction of a new 244 km highway to be open for traffic by 2012. The highway will start near the Noi Bai International Airport in the District of Soc Son, Ha Noi City, crossing the provinces of Vinh Phuc, Phu Tho, Yen Bai and Lao Cai, before terminating at the border with China at Lao Cai. The highway will traverse 76 communes in 18 districts. The scope of the project during its first phase includes the construction of 4 lanes (i.e., 2 lanes each way) from Noi Bai to Yen Bai and 2 lanes (i.e., 1 lane each way) from Yen Bai to Lao Cai. About 5 to 7 years following completion of the first phase, Government plans to add 2 lanes for the entire length of the highway during the highway s second phase of construction. This updated resettlement and ethnic minority development plan (REMDP) is for the Bao Thang district, in Lao Cai province. 2. To reduce overall resettlement impacts, the right of way (ROW) for the highway s ultimate configuration of typically 50 m in width will be acquired during the first phase. Government anticipates major changes in land use in the Project area due to rapid economic development induced by the Project and, unless the full width of the ROW is acquired in the first phase, additional resettlement work will be carried out during the highway s second phase of construction. Acquiring the full ROW during the first phase will also ensure that land acquisition and resettlement impacts could be planned and implemented better in line with ADB s social safeguards policies. 3. The detailed measurement survey (DMS) conducted in April-October 2008 confirmed that 2,501,271.1 m 2 of landholdings belonging to 1,423 affected households (AHs) and 1CPC would be acquired by the project. Productive land, such as annual cropland, perennial (fruit-bearing) tree land, and forestland, total 2,498,798.1 m 2 (99.9 % of total area of land affected). Non-productive land, such as residential land, non-agricultural land, and other land (e.g. waterways, footpaths, and graveyards), total 2,473 m 2 ( 0.01%). The 1,423 AHs hold Land Use Rights Certificate (LURC) for their affected lands. 4. A total of 336 AHs will have to relocate. These AHs have agreed with project authorities to relocate in Six relocation sites (Son Ha, Son Hai, Xuan Giao and Gia Phu Commune) to be developed by the project. Affected secondary structures include 279 kitchens, 357 toilets, 379 animal sheds, 65 fences, 334 multi purpose concrete pavement, 393 wells, 323 cisterns and 87 graves. 5. The Project will acquire 49,783 perennial trees and 207,843 timber trees. At the time of updating the REMDP, the DCARB has not yet completed the DMS of public utilities. All public utilities and structures will be replaced and/restored by the civil works contractor, the cost of which will be borne by the project but not to be taken from the resettlement budget, with minimal disruption in services. 6. A total of 1423 households in the District (approximately 4980 persons based on an average household size of 3.5) are adversely affected, including sources of livelihood. B. Legal and Policy Framework 7. The Project resettlement policy and entitlements have been developed from the laws of the Government of the Socialist Republic of Viet Nam, principally the Constitution (1992) that confirms the right of citizens to own and protect the ownership of a house; Land Law No. 13/2003/QH11, providing Viet Nam with a comprehensive land administration law; Decree No. 197/2004/ND-CP, on compensation, rehabilitation and resettlement in the event of land recovery by the State, as amended by Decree No. 17/2006/ND-CP; Decrees No. 188/2004/ND-CP and 123/2007/ND-CP, specifying the methods for land pricing and land price frameworks in the event of land recovery by the State; and ADB s Policy on Involuntary ix

Resettlement (1995), guided by Operations Manual on Involuntary Resettlement (OM/F2, 2006). Provisions and principles adopted in this Project will supplement the provisions of relevant decrees currently in force in Viet Nam wherever a gap exists, consistent with Decree No. 131/2006/ND-CP which provides that in case of discrepancy between any provision in an international treaty on Official Development Assistance, to which the Socialist Republic of Viet Nam is a signatory, and the Vietnamese Law, the provision in the international treaty on ODA shall take precedence (Article 2, Item 5). C. Project Entitlements 8. One key policy objective of the Project is to replace and compensate lost assets based on the principle of replacement cost. Compensation and various forms of assistance will be provided and income restoration programs will be put in place prior to displacement of AH from their houses, land, and other assets, in a way that will ensure that their standards of living are at least restored to their pre-project levels, and that those in the category of vulnerable groups (such as poor households, ethnic minority households, etc.) are assisted to help improve their socio - economic status. D. Ethnicity, and Gender Issues 9. Some 12.64 % (180 AHs) in Bao Thang district are ethnic minorities. In addition, 40 AHs (2.81%) were female-headed, 14 AHs (0.98 %) were headed by disability, 45 AHs (3.16 %) were poor and while 33 AHs (2.31%) were headed by the elderly. 10. Particular attention will be given to the specific needs and concerns of these vulnerable AHs. Ethnic minority and gender strategies are included in the updated Bao Thang district REMDP, which mandates the active participation of women and ethnic minorities during public consultation and Project monitoring; representation of women and ethnic minorities in resettlement committees; and capacity-building for women and ethnic minorities. Monitoring indicators by gender and ethnic minority have been developed, and the external monitoring agency will include a female staff. E. Participation and Grievance Redress 11. Consultations, public meetings and village discussions with the AHs and local officials were carried out at various occasions during the updating of the district REMDP. Keeping the AHs informed and having them involved will continue during the implementation of the updated REMDP in line with the Project s participatory approach. Grievance mechanism has been designed to ensure that AHs complaints and grievances are addressed and resolved in a timely and satisfactory manner. AHs will be made fully aware of their rights verbally and in writing during consultations and at the time of compensation and resettlement. F. Income Restoration and Relocation Strategies 12. The DMS has identified 646 AHs in that will be severely affected with the loss of 10% or more of their productive assets. The AHs, district and commune authorities, VEC, TA Loan consultants, and ADB resettlement consultants will design the income restoration program (IRP) as a collective effort. Project authorities have agreed on a framework on how to proceed with the planning and implementation of the IRP. Since the conceptualization of the IRP for the district will involve a series of workshops and consultations with the AHs and will thus take time to finish, the agreed specific income restoration activities of the AHs and updates on their implementation will be included in the monthly progress report on resettlement that will be submitted by the PMU to VEC and ADB. The agreed IRP for the district will be evaluated every six months to ensure the attainment of the objectives of the program. Modifications in the program will be made as and when necessary 13. As mentioned above, 336 AHs out of 352 AHs who will lose entire houses have decided to relocate in 6 relocation sites (Son Ha, Son Hai, Xuan Giao and Gia Phu commune) in of Bao Thang district. The relocating AHs will not be displaced until the relocation sites are ready for occupancy. x

G. Implementation Arrangements 14. VEC, through the Expressway Project Management Unit (EPMU), is overall responsible for the satisfactory implementation of resettlement. A Social and Resettlement Unit in the EMPU has been created to provide guidance to the DCARB. For this reason, personnel from the EPMU will represent VEC in the CARB. 15. The Provincial and district CARBs, through the Land Acquisition and Project Management Unit (LAPMU), and with guidance from VEC and with assistance from the TA Loan consultants, spearheaded the updating of the district REMDP. The CARBs will likewise spearhead its implementation. The Vice Chairman of the respective Provincial and District People s Committees head the CARBS. Members come from various departments and representatives of local organizations and the AHs. 16. The Project consultants will assist the EPMU and the CARBs in ensuring that resettlement is carried out according to the social safeguards laid out in the loan agreement. In this regard, said consultants will provide the necessary training and capacity-building interventions to VEC and the CARBs. 17. Upon completion of the contract of the TA Loan consultants on 31 May 2010, their tasks relative to resettlement will be handed over to the Project supervision consultants (PSC). However, within 1 month prior to the demobilization of the TA Loan consultants, the PSC will set up a social development/resettlement team similar to that of the TA Loan consultants to ensure continuity of assistance to VEC and the CARBs. 18. This updated District REMDP will be submitted by VEC to ADB for review and approval. Land acquisition and relocation of AHs in the district will not commence until this updated REMDP has been approved by ADB. Moreover, VEC will not allow construction activities to commence in a given section of the project highway until compensation payment and the relocation of AHs to new sites have been satisfactorily completed, agreed income restoration program is in place, and that the specific section is free of all encumbrances. Table I-1 - ES1 Resettlement Schedule Activities Schedule Notification of local population about PPC decision on land April October 2008 recovery, conduct of DMS, updating of unit costs of affected assets, and holding of public consultations Updating of the district REMDP January 2009 March 2010 Planning of the income restoration program (IRP) December 2008 - September 2009 Submission and ADB approval of district REMDP March 2010 Posting of summary of approved district REMDP in local March- April 2010 government offices and distribution of revised public information booklet; posting of district REMDP on ADB website Implementation of the IRP April 2010 2013 Payment of compensation for affected assets March - April 2010 Development of relocation sites March - April 2010 Shifting of AHs to relocation sites May 2010 Start of civil works June 2010 Internal Monitoring (with quarterly progress reports) December 2008 2011 External Monitoring (with quarterly and bi-annual reports) December 2008 2011 H. Monitoring, REMDP Budget and Implementation Schedule 19. VEC will be overall responsible for internal monitoring of resettlement activities. Progress reports will be submitted to ADB on a quarterly basis. 20. An external monitoring agency (EMA) has been hired by VEC starting in December 2008. The EMA has submitted to VEC an inception report 1 month following its mobilization. The EMA will likewise submit quarterly and semi-annual reports on the progress of REMDP xi

updating and implementation for all the districts and will make recommendations as needed. VEC will provide a copy of these monitoring reports to ADB. The EMA is tasked to conduct a post-resettlement implementation evaluation 6 to 12 months after completion of resettlement activities for the entire Project highway. 21. The total cost of resettlement in Bao Thang district is $ US 13,475,544.2 This includes compensation and allowances, implementation of an income restoration program for SAHs, relocation site development, operational/administrative expenses, and contingencies. VEC will ensure the timely provision of funds for resettlement to meet any unforeseen obligations in excess of the resettlement budget estimates in order to satisfy the requirements and objectives of resettlement. A supplementary compensation plan covering additional allowances to households losing 10% or more their productive land will be submitted to ADB for concurrence within 3 months. These households will not be required to clear their land or relocate to new sites until they receive their full entitlements. I. Disclosure of Resettlement and Ethnic Minority Development Planning and Monitoring Documents 22. Key information on the updated Bao Thang district REMDP has been disclosed to the AHs through the holding of initial disclosure meetings to present the results of the DMS and to discuss resettlement options. Previous to this, the distribution of public information booklets (PIB) in the local language was done in August 2007 during project processing. The posting at provincial, district and commune offices of the draft summary updated Bao Thang district REMDP and the uploading on the ADB website of the draft updated Bao Thang district REMDP will be done in March 2010. Once the draft updated Bao Thang district REMDP is approved by ADB, the final updated Bao Thang district REMDP will again be disclosed to the APs with the distribution of an amended PIB, as needed. The approved updated Bao Thang district summary District REMDP will be posted at local government offices and the full approved Bao Thang district REMDP uploaded on the ADB website. Social monitoring reports will be made available to the AHs and will be submitted to ADB for web posting. xii

I. INTRODUCTION A. Background 1. The Asian Development Bank (ADB) on 14 December 2007 approved a loan of $1,096 million to help finance the GMS: Kunming-Hai Phong Transport Corridor: Noi Bai-Lao Cai Highway Project 1 (the Project ). The Vietnam Expressway Corporation (VEC) of the Ministry of Transport (MOT) is the Executing Agency. Project planning documents that were prepared by a consortium of consulting firms 2 engaged by VEC during appraisal and loan approval included (i) detailed engineering design; (ii) economic and financial assessment; and (iii) a resettlement and ethnic minority development plan (REMDP). Consistent with the Memorandum of Understanding (MOU) signed by VEC and ADB at the conclusion of the Loan Fact-finding Mission of 26 June 2007 11 July 2007, this district-level REMDP has been updated based on the results of the detailed measurement survey (DMS) that was done in April to October 2008 in Bao Thang district, Lao Cai Province. This updated districtlevel REMDP is being submitted to ADB for approval before its implementation. 2. This updated district REMDP provides a detailed account of the adverse impacts of the project on the physical, economic, and socio-cultural assets of affected persons and households (APs and AHs) and the corresponding measures Government will carry out to mitigate said adverse impacts with the view of helping restore or even improve the AHs pre- Project standards of living. This is consistent with the Project resettlement policy and the social safeguards laid out in the loan agreement. B. Project Location and Impact Areas 3. The Project highway starts near the Noi Bai International Airport in the District of Soc Son, Ha Noi City, passing through the provinces of Vinh Phuc, Phu Tho, Yen Bai and Lao Cai, before terminating at the border with China at Bao Thang district. A total of 76 communes distributed in 18 districts are traversed by the approximately 244 km Project highway. In Bao Thang district, the Project highway will run for approximately 24.155 km through Son Ha commune, Son Hai commune, Xuan Giao commune and Gia Phu commune. C. Civil Works to be undertaken 4. Government plans to carry out the construction of the highway in two phases. During Phase 1, which is the scope of this Project, 4 lanes (i.e., 2 lanes each way) will be constructed from Noi Bai to Yen Bai, while 2 lanes (i.e., 1 lane each way) will be constructed from Yen Bai to Lao Cai. In future (second phase of the highway construction), Government plans to widen the Noi Bai-Yen Bai Section into 6 lanes, and the Yen Bai-Lao Cai Section into 4 lanes. In light of this plan, a right-of-way (ROW) of typically 50 m width 3 will be acquired during Phase 1 of the Project. Government anticipates major changes in land use 1 Project Number 33307-04 and Loan Number 2391/2392, the amount for which is sourced from the Bank s Ordinary Capital Resources and from Asian Development Fund. 2 Headed by the Pacific Consultants International (PCI), the other members of the consortium were Pacific Consultants International Asia, Inc.; Asian Pacific Engineering Consultants; and HAFICO Group Corporation. 3 In deep cutting or high embankment areas the ROW is wider. The ROW in any point of the proposed expressway will be finally determined following completion of the detailed engineering design. A detailed measurement survey of affected fixed assets will then be conducted and the REMDP will be updated accordingly. 13

in the areas traversed by the Project due to rapid economic development expected to be induced by the Project. Unless the full width of the ROW is acquired in the first phase, additional resettlement work will be carried out during the highway s second phase of construction. Acquiring the full ROW during the first phase will help ensure that land acquisition and resettlement impacts are better planned and implemented in line with ADB s social safeguards policies. 5. The Noi Bai Yen Bai Section is approximately 121 km long, while the Yen Bai Lao Cai Section is approximately 123 km long. The construction limit for the roadway is variable, from a minimum of 27 m to a maximum of about 36 m. Adding allowance for embankment or cut slopes and a setback area of 5 m on each side, the ROW requirement for the highway is set at a minimum of 50 m. 6. The Bao Thang district section of the expressway is 24.155 km long. It starts from STA 218+173 and runs to STA 242+328. Major structures to be built in Bao Thang district section include 1 interchange, 39 underpasses, 9 main bridge and 1 service area in the phase 1. D. Measures Taken to Minimize Impacts 7. Efforts to minimize the adverse social impacts of the Project highway include the shifting of the proposed road alignment at various points to avoid human settlements, public facilities, water bodies, and hilly areas. Likewise, the need for borrow pits in the construction of embankments will be minimized and the Project will, whenever feasible, use materials from cuts and slope excavations. 8. During the census of affected people (APs) and the inventory of losses (IOL) in April and June 2007 and again during the DMS in April - October 2008, AHs have been advised (through public meetings and consultations) not to introduce new fixed structures within the ROW and/or widen and further develop structures that have been documented during the IOL and DMS. A public information booklet (PIB) that explains, among others, the policy on cut-off date for eligibility, has been distributed to the AHs and local governments during the preparation of the 2007 REMDP. Said PIB will be revised and distributed to the AHs and local governments, as needed, following ADB s approval of the updated district REMDP. 9. Other than the aforementioned, Government will ensure that the acquisition of assets, payment of compensation, and the resettlement and rehabilitation of AHs, except for longterm income restoration activities, will be completed prior to the issuance of notice to proceed (NTP) to start construction works in the District. E. Objectives of the updated district-level REMDP 10. This updated district REMDP should be read in conjunction with the REMDP that was prepared and approved in 2007 by the Government during Project appraisal and loan approval. This updated district REMDP and the 2007 REMDP are basically the same, except that (i) the information herein are based on verified inventory of affected assets of the AHs per DMS conducted in April - October 2008, while the 2007 REMDP was based on preliminary information on the ROW and Project corridor of impact (COI); and (ii) the updated District REMDP does not elaborate any more on the legal aspects, policy and procedural guidelines for asset acquisition, compensation, resettlement, since these are adequately discussed in the 2007 REMDP. Both versions of the REMDP, however, provide for (i) a time-bound action plan and budget for resettlement which is aimed at helping ensure that the social and economic well-being of the AP/AHs in the District is protected, their economic situation is improved or at least restored to pre-project level and (ii) assurances that ethnic minority (EM) AHs and other vulnerable AP/AHs in the district are not marginalized during resettlement planning and implementation, and that they receive full benefits relative to compensation, relocation and rehabilitation as required by the project resettlement policy. 14

II. PROJECT IMPACTS The detailed measurement survey (DMS) conducted by the Land Acquisition Steering Committee (more commonly known as the Province Compensation, Assistance, and Resettlement Board or PCARB) in April October 2008 confirmed that a total of 1423 AHs in Bao Thang district are affected by the loss of assets and sources of livelihood in the construction of the Project highway. (Appendix 1 contains the decision of the provincial government creating the PCARB, district CARB, the Land Acquisition Project Management Unit or LAPMU, and the resettlement task force of RTF). A number of these AHs will lose more than 1 type of assets, such as land, structures, crops and trees. All 1423 AHs will lose land, 40 of which are female-headed, 180 AHs were ethnic minority, 14 AHs were headed by disability, 45 AHs were poor households and 33 AHs were headed by elderly 352 AHs are affected by the loss of dwelling units in the district. (See Appendix 2 for the DMS forms used and Appendix 3 for the master list of affected households). A. Affected Land 1. Land Area 11. An aggregate of 2,501,271.1 m² of land in Communes of Bao Thang district will be acquired by the Project. Of this area,746,454.9 m² (29.84 %) are annual cropland (paddy rice fields and vegetable garden lands, etc.); 658,562.3 m² (26.32%), perennial tree lands; 140,086.3 m² (5.60 %), aquaculture lands; 872,215.5 m 2 (34.87 %), forestlands; and 81,479.1 m 2 (3.25 %), residential lands. Table II-1 Distribution of Land Lossed of affected Households ( in m 2 ) Commune Unit Non-Agriculture land Agriculture land Group Forest Land Aquaculture Land Total Residential Land Special Use Land Agriculture production land Annual Crop land Perenial tree Land Son Ha m 2 41,730.0 0.0 326,901.0 119,739.0 251,633.0 65,119.0 805,122.0 HH 128 0 274 142 103 69 563 Son Hai m 2 10,184.0 0.0 34,681.0 138,339.0 339,974.0 34,183.0 557,361.0 HH 64 0 117 122 95 48 170 Xuan Giao m 2 7,382.1 2,473.0 104,339.9 101,781.3 198,684.5 17,696.3 432,357.1 HH 52 1 177 56 126 25 250 Gia Phu m 2 22,183.0 0.0 280,533.0 298,703.0 81,924.0 23,088.0 706,431.0 HH 108 0 167 117 36 43 440 Total m 2 81,479.1 2,473.0 746,454.9 658,562.3 872,215.5 140,086.3 2,501,271.1 HH 352 1 735 437 360 185 1,423 15

12. Of the 1,423 AHs losing land (both productive land and residential land), 1210 (85.03 %) are male-headed, while 213 (14.97 %) are female-headed. By land use, of the 352 households losing residential land, 275 (78.12 %) are male-headed, while 77 (21.88 %) are female headed. Similarly, of the 1,071 households losing productive land, 935(87.30%) are male-headed, while 136 (12.70 %) are female-headed. Gender Male - Headed Female - Headed Total Table II-2 Distribution of Land Losses of AHs by Gender Non Agriculture Agriculture land group Land Unit Agriculture Production Total Residential land Forest Aquaculture Land Annual Perennial Land Land Crop Land Tree Land m 2 66,442.4 577,864.9 509,621.0 677,889.0 98,060.4 1,929,877.7 HH 275 569 338 279 137 1,210 m 2 15,036.7 168,590.0 148,941.3 194,326.5 42,025.9 568,920.4 HH 77 166 99 81 48 213 m 2 81,479.1 746,454.9 658,562.3 872,215.5 140,086.3 2,498,798.1 HH 352 735 437 360 185 1,423 2. Tenure Status of AHs Losing Land 13. All 1,423 AHs losing lands hold land use rights certificate (LURC). 3. AHs Losing Leased Land 14. There are no affected leased lands. Likewise there are no households affected by the loss of the land they are cultivating that belong to other households or the government. 4. Severely Affected AHs Losing Productive Land 15. There are 646 AHs who are severely affected with the loss of 10% (or more of their total productive assets). All 78 EM HH will be severely affected. B. Affected Main Structures 1. Affected Houses and Severity of Loss 16. A total of 352 AHs will lose their entire houses. Of this number, 375 are maleheaded, while 77 are female-headed. 2. Reconstruction Options 17. Of the 352 AHs affected by the loss of their entire houses, 336 AHs have decided to shift to the group relocation site to be developed by the government and remaining 16 AHs can rebuilt in the residual Land. Table II-3 summarizes the reconstruction preferences of the 352 AHs. (Appendix 4 includes detailed information on the relocation sites). Commune Table II-3 Reconstruction Preferences of AHs Losing Entire Houses Male - Headed Ahs Rebuild on residual area of land Relocate elsewhere Female - Headed AHs Rebuild on residual area of land Relocate elsewhere Son Ha 5 94 2 27 128 Son Hai 4 43 1 16 64 Xuan Giao 2 35 2 13 52 Gia Phu 0 87 0 21 108 Total 11 259 5 77 352 Total 16

3 Floor Area of Wholly Affected Houses Wholly affected houses have an aggregate floor area of 17,308.84 m². Of this area, 1,195.85 m 2 (6.9 % of the total) are classified as Grade 3 structures, 5,570.47 m 2 (32.18 % of the total) are classified as Grade 4 structures while 10,542.52 m 2 (60.92 % of the total) are classified as Grade 5 structures. Commune Son Ha Son Hai Xuan Giao Gia Phu Total Table II-4 Floor Area of Wholly Affected Houses by Grade Unit Grade of House 1 2 3 4 5 Total Quantity 0.00 0.00 305.61 2,011.74 4,532.59 6,849.94 HH 0 5 21 102 128 Quantity 0.00 0.00 93.64 840.73 1,999.81 2,934.18 HH 0 0 5 17 42 64 Quantity 0.00 0.00 8.60 537.00 1,641.12 2,186.72 HH 0 0 1 8 43 52 Quantity 0.00 0.00 788.00 2,181.00 2,369.00 5,338.00 HH 0 0 17 26 65 108 Quantity 0.00 0.00 1,195.85 5,570.47 10,542.52 17,308.84 HH 0 0 28 72 252 352 4. Floor Area of Partially Affected Houses 18. There are no partially affected houses in Bao Thang District. C. Affected Secondary Structures 19. The following secondary structures are adversely affected by the Project, namely, kitchen (detached from the main house owned by 279 AHs and with an aggregate floor area of 5108.4 m²); toilet (detached from the main house owned by 357 AHs and with an aggregate floor area of 927.1 m²); Animal Shed (owned by 379 AHs with an aggregate floor area of 2623.3 m²); fence (owned by 65 AHs with an aggregate of 252.6 Cubic meters); multi-purpose concrete pavement (owned by 334 AHs with an aggregate area 16,246.8 m 2 ), and. In addition, 393 water wells, 323 Cisterns and 87 graves will be affected. These secondary structures will be compensated at replacement cost. Commune Son Ha Son Hai Xuan Giao Gia Phu Total Unit Table II-5 Quantities of Affected Secondary Structure. Kitchen ( m 2 ) Toilet ( m2) Animal Shed ( m2) Fence ( m3) Multi- Purpose concrete pavement ( m2) Well ( Unit) Cistern ( Unit) Grave ( Unit) Quantity 1,901.28 216.17 568.18 1.02 4,551.89 129 107 35 HH 103 125 124 2 113 118 107 26 Quantity 879.77 189.19 597.03 0.00 3,631.57 102 80 13 HH 50 71 86 0 80 86 80 8 Quantity 562.32 102.56 742.67 25.59 2,477.36 43 39 27 HH 30 49 74 18 52 43 39 12 Quantity 1,765.00 419.20 715.40 226.00 5,586.00 119 97 12 HH 96 112 95 45 89 92 97 4 Quantity 5,108.4 927.1 2,623.3 252.6 16,246.8 393.0 323.0 87.0 HH 279 357 379 65 334 339 323 50 17

D. Affected Crops and Trees 20. A total of 49,783 fruit-bearing (perennial) trees, 207,483 timber trees and other forest products of various species will be acquired. In addition 746,454.9 m 2 of land planted to annual crop and vegetables will likewise be affected. These trees will be compensated at replacement cost. Details of the species and number of affected trees are provided in Table II-6, table II-7 and table II-8. The schedule of construction work in the District will be closely coordinated with the AHs to allow for the harvesting of standing crops. However, any unharvested annual crops will be compensated at prevailing market rates. Table II-6 Area of Productive Land Used for Annual Crops (in m 2 ) Type of Annual Crop Unit Commune Son Ha Son Hai Xuan Giao Gia Phu Total Paddy M 2 209,581.0 19,228.0 33,890.0 132,162.0 394,861.0 Maize M 2 20,130.0 2,381.0 6,232.0 15,608.0 44,351.0 Cassava M 2 15,297.5 2,047.0 40,742.0 50,869.0 108,955.5 Bean M 2 2,772.5 492.0 2,051.0 1,064.0 6,379.5 Banana M 2 1,712.0 237.0 1,019.0 1,580.0 4,548.0 Vegetables M 2 6,034.0 2,744.0 7,400.0 13,468.0 29,646.0 Elephant Grass M 2 5,352.0 685.0 6,877.0 545.0 13,459.0 Other M 2 66,022.0 6,867.0 6,128.9 65,237.0 144,254.9 Total M 2 326,901.0 34,681.0 104,339.9 280,533.0 746,454.9 Table II-7 Inventory of Affected Perennial Trees Type of Perennial Tree Unit Commune Son Ha Son Hai Xuan Giao Gia Phu Total Polemo Tree 922 350 258 373 1,903 Coffee Tree 287 5 102 416 810 Orange Tree 76 8 357 162 603 Areca Palm Tree 2,270 566 1,057 1,199 5,092 Papaya Tree 362 177 387 303 1,229 Persimmon Tree 250 291 80 792 1,413 Jackfruit Tree Tree 452 390 258 675 1,775 Apricot Tree Tree 316 0 9 18 343 Custard Apple Tree 885 84 31 153 1,153 Longan Tree 3,183 1,035 823 2,047 7,088 Guava Tree 1,036 366 491 817 2,710 Mandarin Orange Tree 2,469 2,232 3,407 3,336 11,444 Canari Tree 1,728 2,880 1,090 286 5,984 Trung Ga Tree Tree 92 173 174 136 575 Litchi Tree 2,060 803 924 704 4,491 Mango Tree 1,355 360 762 693 3,170 Total Tree 17,743 9,720 10,210 12,110 49,783 Table II-8 Inventory of Affected timber Trees Type of Timber Tree Unit Commune Son Ha Son Hai Xuan Giao Gia Phu Total Diameter of Tree < 5 cm Tree 41,429 9,855 20,854 9,932 82,070 Diameter of Tree from 5-8 cm Tree 8,081 11,402 2,795 2,538 24,816 Diameter of Tree from 8-13 cm Tree 3,446 6,531 5,034 2,032 17,043 Diameter of Tree from 13-18 cm Tree 3,491 4,698 2,160 1,836 12,185 Diameter of Tree from 18-20 cm Tree 706 1,416 907 283 3,312 Diameter of Tree from 20-30 cm Tree 588 1,554 276 606 3,024 Diameter of Tree from 30-40 cm Tree 165 488 39 178 870 Diameter of Tree > 40 cm Tree 8 70 7 37 122 Bamboo Tree 13,103 15,250 14,425 21,623 64,401 Total Tree 71,017 51,264 46,497 39,065 207,843 18

E. Business Disruption and Income Loss 21. The DMS did not find any store or other commercial establishment that will be affected by the implementation of the highway project. F. Public Facilities 22. At this time, the DMS has not yet completed of public facilities that will be affected by the implementation of the highway project. Per agreement between VEC and PCARB, the local government will be responsible for finalizing the estimate of quantities of affected public facilities and the calculation of the cost for restoring and/or relocating the same which will be borne by the Project but will not be taken from the resettlement budget. The actual removal, transfer, and restoration of these affected public facilities will be carried out during road construction. Moreover, the relocation and restoration of power and telephone service will be carried out with minimum service interruption as possible. Similarly, the removal and rebuilding of irrigation canals will be done during off-farm season. A. Summary of Impacts 23. Table II-9 gives a summary of the affected assets and other adverse social impacts of the Project in the Bao Thang District. Non - Agriculture Land Agriculture Land Table II-9 Summary of Impacts Items Unit Total AHs/CPC Land Residential Land m 2 81,479.1 352 Special Use Land m 2 2,473.0 1 Annual Crop Land m 2 746,454.9 735 Perennial Tree Land m 2 658,562.3 437 Forest land m 2 872,215.5 360 Aquaculture Land m 2 140,086.3 185 Total of affected land 2,501,271.1 1423 AH/1 CPC Main Structures ( houses ) Grade 3 ( Concrete floor, average quality of materials) m 2 1,195.85 28 Grade 4 (brick wall, wooden frame with titled roof) m 2 5,570.47 72 Grade 5 ( bamboo and wooden frame with palm roof) m 2 10,542.52 252 Totally affected house m 2 17,308.8 352 Partially affected (house) m 2 0.00 0 Secondary Structures Kitchen m 2 5,108.4 279 Toilet m 2 927.1 357 Animal Shed m 2 2,623.3 379 Fence m 252.6 65 Multi-Purpose Concrete Pavement m 2 16,246.8 334 Well No 393 339 Cistern No 323 323 Grave No 87 50 Trees and Crop Annual crop m 2 746,454.9 735 Perennial Tree Tree 49,783 437 Timer Tree Tree 207,843 360 Total Number of Affected Households Total of affected households HH 1,423 AHs Relocating Households HH 336 Relocating small shop owners HH 0 Vulnerable households Women headed household HH 40 19

Items Unit Total AHs/CPC Household head with disability HH 14 Poor household HH 45 Ethnic minority household HH 180 Elderly household heads HH 33 20

III. GENERAL SOCIO-ECONOMIC PROFILE A. Composition of the AHs 24. The DMS has identified a total of 1423 affected households (AHs). 39.56 % (or 563 AHs) of them were located in Son Ha commune. 11.94 % (or 170 AHs) of them were located in Son Hai commune. 17.56 % (or 250 AHs) of them were located in Xuan Giao commune and 30.94 % (or 440 AHs) of them were located in Gia Phu commune.these affected households were made up of 4980 persons. Commune Table III-1 Composition of the Affected Households Total No. of HH Total Persons % Average/HH Son Ha 563 1970 39.56 3.5 Son Hai 170 595 11.94 3.5 Xuan Giao 250 875 17.56 3.5 Gia Phu 440 1540 30.94 3.5 Total 1588 4980 100 B. Profile of the Sample AHs 25. In view of the fact that (i) the AHs identified during the inventory of losses (IOL) in 2007 were based on preliminary information of the ROW and Project corridor of impact (COI), and (ii) there was reason to believe that the AHs identified during the DMS in April October 2008 were substantially different from those identified during the IOL, project authorities decided to conduct a new socioeconomic survey of the AHs based on a random sample survey of 20% of severely affected AHs (SAHs) and 10% of the rest of the AHs. The master list of AHs from which the samples were obtained came from the results of the DMS. 26. The results of the new socio-economic survey, which was carried out by the NGO contracted to prepare the income restoration program for SAHs, are presented below. A total of 370 AHs have been covered in the socio-economic survey and in of which, 83 AHs were located in the Au Lau Commune, 33 AHs were located in the Bao Hung commune, 33 AHs were located in the Hop Minh commune, 67 AHs were located in the Minh Quan commune, 36 AHs were located in the Minh Tien commune, 64 AHs were located in the Quy Mong commune and 54 AHs were located in the Y Can commune. Table III-2 Sample Size per Commune No Commune n % 1 Son Ha 44 30.98 2 Son Hai 23 16.19 3 Xuan Giao 28 19.71 4 Gia Phu 47 33.12 Total 142 100 C. Ethnicity and Gender of the Heads of Sample AHs 27. Only, twenty (20) AH heads surveyed belonged to the Tay ethnic minority group and other households belonged to the Kinh majority population. D. Educational Attainment of the Heads of Sample AHs 28. The socio-economic survey has shown that from a total respondent of 142 households, Overall, 59% of the household heads finished the secondary level. The highest proportion of this type was in Xuan Giao (67%) and lowest in Son Ha (52%). Nearly one- 21

fourth of them finished the elementary level. About 11% finished high-school. The proportion of high-school completion was highest in Son Hai (22%) and lowest in Gia Phu (6.4%). Six people (4.2%) were illiterate Educational level Table III-3 Educational Attainment Gia phu (%) Son Ha (%) Son Hai (%) Xuan Giao 1. Illiterate 4.3 4.5 8.7. 6 4.2 2. Primary 25.5 31.8 13 17.9 34 23.9 3. Secondary school 61.7 52.3 56.5 67.9 84 59.2 4. Not finished high school 2.1 2.3.. 2 1.4 5. Finished high school 6.4 9.1 21.7 14.3 16 11.3 Total 100 100 100 100 142 100 (%) Total (n/%) 3. Main Sources of Livelihood of the Sample AHs 29. The sample households were engaged in multiple sources of livelihood. However, as expected in a predominantly agriculture economy, most of the household heads interviewed (124 out of 142 or 87.3%) reported farming as their main occupation, followed by livestock raising where 114 households (80.3%) were engaged in. Other livelihood activities reported were working for the government (10), working as selling goods (10), driver (4), working in factory (2), working as laborer (2) and working as hpusewife (1). Sources of income Table III-3 Main Occupation of House-hold Heads Gia Phu Son Ha Son Hai Xuan Giao Total n % n % n % n % N % 1. Farming 38 80.9 43 97.7 23 100.0 20 71.4 124 87.3 2. Raising livestock 37 78.7 41 93.2 22 95.7 14 50.0 114 80.3 3. Selling goods 3 6.4 2 4.5 2 8.7 3 10.7 10 7.0 4. Restaurant/eatery 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 5. Factory/shop worker 0 0.0 1 2.3 0 0.0 1 3.6 2 1.4 6. Government employee 5 10.6 4 9.1 0 0.0 1 3.6 10 7.0 7. Private employee 2 4.3 0 0.0 0 0.0 0 0.0 2 1.4 8. Transport operator 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 9. Driver 1 2.1 1 2.3 1 4.3 1 3.6 4 2.8 10. Remittances (Vietnam) 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 11. Remittances (Abroad) 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 12. Housewife 0 0.0 0 0.0 1 4.3 0 0.0 1 0.7 4. Monthly Income and Food Sufficiency of Sample AHs 30. A total of 17 (40.48 %) AH heads reported to have a monthly income above the Government-set poverty threshold of 1 million VND per household. Meanwhile 25 (59.52.%) reported to have a monthly household income below the poverty threshold Table III-4 Average Monthly Household Income AH (in VND) Monthly income Number % <1 million VND 25 59.52 1-2 million VND 15 35.71 >2 million VND 2 4.77 31. It should be noted that while the cash incomes of some of the AHs were below the poverty threshold, it was learned during the socio-economic survey that the average lands with Land Use Rights Certificate (LURC) of each AH were 613 m², residential land; 1984 m², farm land; 744 m 2, pond; and 8173 m², for forest land. None of the AHs will lose all of the various types of land allocated to them by the government. 22