VIE: Northern Power Transmission Expansion Sector Project

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Resettlement Monitoring Report June 2013 VIE: Northern Power Transmission Expansion Sector Project Subprojects: 1) 500kV Hiep Hoa substation 2) 500kV Son La- Hiep Hoa Transmission Line 3) 220 kv Thuong Tin- Kim Dong Transmission Line 4) 220kV Kim Dong substation. Prepared by the Local Implementation Consultant (LIC) Social for Viet Nam Electricity (EVN) Northern Power Project Management Board (NPPMB). The Resettlement 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.

Northern Power Project Management Board Northern Power Transmission expansion sector ADB Loan VIE 2225 Semi-annual Resettlement Monitoring Report January - June 2013 Prepared by LIC, resettlement June, 2013

ABBREVIATION ADB CEP CMC CPC CPPMB DPC DONRE EM EMF EMP ES IEE LIC MONRE NPPMB NPT PPTA PPE PTC QCVN ROWs SPS S/S TCVN T/L VICA Asian Development Bank Certification of Environmental Protection Construction Monitoring Consultants Commune People s Committee Central Power Project Management Board District People s Committee Department of Natural Resources & Environment Environmental Monitoring Electromagnetic Field Environment Management Plan Environmental Sanitation Initial Environmental Examination Local Implementation Consultant Ministry of Natural Resource & Environment Northern Power Project Management Board National Power Transmission Corporation Project Preparatory Technical Assistance Personnel Protective Equipment Power Transmission Company Vietnam Technical Standard Right of Ways Safeguard Policy Statement Substation Vietnam Standard Transmission line VICA International Consultants Company 2

TABLE OF CONTENTS ABBREVIATION... 2 EXECUTIVESUMMARY... 4 A. OVERVIEW... 6 1.1 ProjectBackground... 6 1.2. Objectives and Study Approach... 9 B. RESETTLEMENT COMPLIANCEOFSUBPROJECTS... 9 2.1. 500kV Son La-Hiep Hoa T/L Subprojects... 13 2.1.1. Background of 500kV Son La - Hiep Hoa Transmission Line... 13 2.1.2. Findings... 13 2.2. 500kV Hiep Hoa Substation... 15 2.2.1. Background of 500 kv Hiep Hoa Substation... 15 2.2.2. Findings... 16 2.3. 220kVKimDongSubstation,... 16 2.4. 220kVThuongTin KimDongT/L... 16 C. CONCLUSIONSANDRECOMMENDATIONS... 17 3

EXECUTIVESUMMARY In 2005, the Asian Development Bank (ADB) financed a Project Preparatory Technical Assistance (PPTA) to provide consultants that will assist the Northern Power Project Management Board (NPPMB) in the preparation of Initial Environmental Examination (IEE) for the following three core subprojects: (i) 500 kv Son La- Hoa Binh and Son La Nho Quan transmission line, (ii) 220 kv Thanh Hoa-Nghi Son-Vinh transmission line, and (iii) extension of Van Tri 220 kv substation. The IEE for Son La Hoa Binh Nho Quan Transmission Line (TL) and 220kV Thanh Hoa Vinh Transmission Line Subprojects were both approved by ADB and the Government of Viet Nam and will be updated and finalized following the detailed design, subject to ADB review and approval. For the Van Tri Substation, it was determined during the PPTA that no land acquisition will be involved and no IEE was prepared. The PPTA consultants also prepared an Environment Policy Framework to guide the NPPMB in the preparation of IEE for the following subprojects: Son La Hiep Hoa 500 kv Transmission Line (TL); QuangNinh - Mong Duong 500 kv TL; HiepHoa 500 kv substation; Expansion of 500kV Thuong Tin; and Ha Tinh - ThachKhe 220 kv TL At present, two subproject(hatinh-thachkhe220kvt/landquangninh-mongduong500kv T/L) have been replaced by three new subprojects (500kV Nho Quan substation2nd transformer,220kv Tuyen Quang substation and 220kV Bim Son substation). To utilize the loan savings, the Electricity of VietNam (EVN) with the agreement of ADB decided to add three more subprojects into the Loan 2225-VIE namely Kim Dong 220 kv substation, Hai Duong2 220 KV substation and Thuong Tin - Kim Dong 220 kv T/L. As such, in the VIE-2225 framework, there are 12 subprojects namely (i) Son La Hoa Binh Nho Quan 500 kv Transmission Line, (ii) 220kV Thanh Hoa VinhT/L; (iii) Son La-Hiep Hoa 500kV Transmission Line; (iv) Expansion of 500kV Thuong Tin; (v) Extension 220kV Van Tri Substation; (vi) Hiep Hoa 500kV substation; (vii) 220 kv Bim Son substation; (viii) 220 kv Tuyen Quang substation; (ix) Extension 500kV Nho Quan substation 2nd transformer; (x) Kim Dong 220kV s/s; (xi) Thuong Tin Kim Dong 220kV T/L; and (xii) Hai Duong 2220KV s/s. Northern Power Project Management Board (NPPMB) selected 2 LIC, social and resettlement, to help NPPMB to monitor the implementation of compensation and resettlement activities in order to ensure the implementation of safeguard policy in accordance with ADB requirements. To assist the NPPMB in its compliance with the resettlement safeguards of ADB, a local 4

implementation consultant (LIC) for the resettlement was employed in the project. LIC, resettlement is in charge of 04 subprojects, including 500kV Hiep Hoa substation; 500kV Son La- Hiep Hoa T/L; 220 kv Thuong Tin- Kim Dong T/L; 220kV Kim Dong substation. The LIC was engaged in the project for 22 months, starting March 2012. 5

A. OVERVIEW 1.1 Project Background 1. Project Northern Power Transmission expansion sector represents a 5- year time slice of Electricity of Viet Nam s (EVN) transmission expansion program, covering 500kV and 220kV transmission lines, and associated substations. The project covers the northern part of Viet Nam which is relatively poor. The project will enable power to be supplied to the planned industrial zones in the region, thereby facilitating employment and income generating opportunities. Thus it will benefit the poor and ethnic minorities living in the project area. The project will also create the potential for power interconnection between Viet Nam and the People s Republic of China. 2. The Project is to (i) strengthen the northern transmission network to improve system s reliability and quality of supply, (ii) facilitate power transmission by removing transmission bottlenecks, (iii) reduce transmission losses, and (iv) facilitate efficient utilization of existing and planned power plants. 3. The Project was approved on 21 December 2005. The loan agreements were signed on 22 August 2006 and declared effective on 24 November 2006 for a total loan amount of $360 million. Original loan closing date was 31 December 2010 and extended on a one-time basis to 31 December 2013. 4. Under the Project, nine subprojects comprising three core subprojects, three non-core subprojects and three replacement subprojects have been implemented in Northern Viet Nam. The three core subprojects are: (i) 500 kv Son La- HoaBinh and Son La - NhoQuan transmission line, (ii) 220 kv ThanhHoa-NghiSon-Vinh transmission line, and (iii) extension of Van Tri 220 kv substation. Three noncore subprojects are: i) Son La - HiepHoa transmission line; (ii) expansion of Thuong Tin 500 kv substation; and (iii) HiepHoa 500 kv new substation. Three subprojects which replaced originally proposed Ha Tinh-ThachKhe and QuangNinh - Mong Duong transmission lines are: (i) expansion of the NhoQuan 500 kv substation (2nd transformer), (ii) TuyenQuang 220 kv new substation and (iii) Bim Son 220 kv new substation. The above three replacement subprojects were decided based on the priority electricity supply requirements. 5. Three additional subprojects have been proposed for implementation utilizing the loan savings of about $29 million. The proposed new projects are: (i) Hai Duong 220kV new substation; (ii) Kim Dong 220kV new substation; and (iii)thuong Tin-Kim Dong 220kV transmission line. 6

6. As such, in the VIE-2225 framework, there are 12 subprojects namely (i) Son La Hoa Binh Nho Quan 500kV Transmission Line, (ii) 220kV Thanh Hoa Vinh T/L; (iii) Son La-Hiep Hoa 500kV Transmission Line; (iv)expansion of 500kV Thuong Tin; (v)extension 220kV Van Tri Substation; (vi) Hiep Hoa 500kV substation; (vii) 220kV Bim Son substation; (viii) 220kV Tuyen Quang substation; (ix)extension 500kV NhoQuansubstation 2ndtransformer; (x)kimdong 220kVs/s;(xi)ThuongTin-KimDong 220kVT/L;and(xii)HaiDuong2220KVs/s 7. NPPMB and CPPMB are two implementing units. Out of the nine approved subprojects, NPPBM is implementing eight subprojects and CPPMB is implementing one subproject which is Hiep Hoa 500kV new substation. 7

8

8. To further assist NPPMB to review safeguards documents to ensure compliance with ADB safeguards policy andto monitor implementation of the safeguards the local implementation consultant (LIC)- resettlement has been engaged in a lump-sum contract for 22 months, starting from March, 2012 9. This semi-annual environmental monitoring report will mention on: (i) spot check resettlement compliance of 04 subprojects under VIE-2225 Loan covering the period from Jan2013 to June2012 and (ii) recommendations to improve the environmental safeguard compliance in the next period 1.2. Objectives and Study Approach 10. At present, among the 12 subprojects, the 220kV Thanh Hoa Vinh T/L was constructed with no significant environmental impacts, 220kV Bim Son Substation, 220kv Tuyen Quang started construction on December and there were also no anticipated significant environmental impacts. The IEEs of the three new subprojects: (i) 220 KV Kim Dong substation; (ii) Thuong Tin Kim Dong T/L and (iii) Hai Duong 2 substation were approved by ADB and are currently under the bidding stage. The remaining six subprojects are operational and no significant environmental issues are of concern. 11. The main objectives of the project monitoring are to implement the environmental monitoring program; assess the environment condition at the construction sites; and strengthen the effectiveness of the environmental monitoring system with the participation of the relevant stakeholders. 12. To achieve these objectives, the methodology employed are the following: - Review of project documents, DDR, Project Documents, Memorandum of understanding from ADB s missions, ADB ssps2009, ADB s Guidelines on environmental assessment. - Maintain close dialogue with ADB Safeguard Specialists, NPPMP, CPPMP, VICA, contractors, and local authorities; and - Site visits. Several visits were conducted to spot check the environmental compliance in the following subprojects-500kv Son La Hiep Hoa transmission line; 500kV Hiep Hoa substation; Thuong Tin-Kim Dong; Kim Dong substation and Hiep Hoa substation. B. RESETTLEMENT COMPLIANCEOFSUBPROJECTS The status of the environmental compliance of the subprojects and LIC activities are summarized in Table1. 9

Table1:12subprojectsofVIE-2225 (AsofJun 31st,2012) No Subproject Location RP DDR LICactivities SUBPROJECTS THATARECOMPLETED ANDOPERATIONAL 1 500kvSonLa- NhoQuan- HoaBinhT/L 2 500kVSonLa- HiepHoaTransmissionL ine 3 500kVHiepHoa Substation Eight districts of provinces of Son La Ninh Binh and Hoa Binh. 19 districts office provinces of Son La, Phu Tho,Vinh Phuc, Thai Nguyen and Bac Giang Hiep Hoa district of Bac Giang province i. 04 DDR of Tan Son, Phu Tho districts/ Phu Tho and Lap Thach/Vinh Phuc approved by ADB 04 RPs of 04 districts of Mai Son, Bac Yen, Phu Yen and Muong La, Son La province ii. 11 remaining DDR approved by ADB A RP and updated RP done prepared by CEFACOM and submitted to ADB, but not have approved Estimate to prepare a DD survey at end of September, 2013 LIC carried out monitoring the implementation of compensation and resettlement activities; Continue to monitor the implementation of RP, corrective action plan quarter LIC conducted the spot check monitoring on April, 2013 and provided technical assistance to VICA for preparation of DDR 4 Expansionof500kV Thuong Tin Substation Thuong Tin, Hanoi None None 10

No Subproject Location RP DDR LICactivities 5 Expansion 500kVNhoQuansubstat ion Nhoquandistrict,Nin hbinhprovince. None SUBPROJECTS THATAREUNDERCONSTRUCTION None 220kVThanhHoa Vinh Transmission line 7 220kVBimSon substation 8 220kVTuyenQuang substation 10 districts of two provinces Thanh Hoa and Nghe An Bim Son town, Thanh Hoa province Yen Son town, Tuyen Quang province Done Done Done SUBPROJECTS THATAREUNDERGOING THEBIDDINGPROCESS 9 Extension220kVVan Tri Substation Van Tri, Hanoi None None 10 220kVKimDong Substation Kim Dong district, Hanoi A updated RP submitted to ADB for approval 11

No Subproject Location RP DDR LICactivities 11 220kVThuongTin Kim Dong transmission line Thuong Tin district, Hanoi and two districts of Khoai Chau and Kim Dong of Hung Yen province Done LIC conducted the spot check monitoring on June 2013 LIC will conduct the quarterly spot check monitoring for compensation payment. 12 220kVHaiDuong2 Substation Kinh Mon district, Hai Duong prov. Done LIC conducted the spot check monitoring on June 2013 LIC will conduct the quarterly spot check monitoring for compensation payment. 12

2.1. 500kV Son La-Hiep Hoa T/L Subprojects 2.1.1. Background of 500kV Son La - HiepHoa Transmission Line 13. The total length of Son La-Hiep Hoa T/L was 268.47km. The right-of-way (ROW) of the T/L was determined in the Decree No. 106/2005/NĐ-CP and for 500 kv transmission line which was delimited by two vertical planes in parallel to the line on two sides and the distance from the planes to the nearest wire was 7m. The average width of the ROW was 30.45m. The starting point of Son La Hiep Hoa 500kV T/L was the Son La 500KV substation and the ending point was Hiep Hoa 500KV substation. The T/L traversed 19 districts. 14. The transmission line has been in operation since 31 March 2012 and it is temporarily under the management of the operation unit. 2.1.2. Findings 15. Compensation payment: Up to now, compensation payment for all 19 districts have completed 16. Issuance of Land Use Right Certificate: The Land Use Right Certificate (LURC) is issued by the District People s Committee. LURC is an important document as it could serve as guarantee if the HH wants to borrow money from a bank. This document also needs to be presented for administrative procedures.the LURC, which serves as ownership document for the new plot of land, in a resettlement site or for individual plot, has been provided to all relocated HH, accounting for 50-60% of total resettlement households. 17. Completion of Infrastructures in Resettlement Sites - NPPMB and local authority paid more attention to relocation household. In ensuring entitlement of relocation household and avoid negative impact of subproject. NPPMB and district/town PC facilitated to provide good resettlement plot for relocation. - In the fact, 21 RS are convenience for transportation and near administrative centers (market, school, post- office). It is good for new life of relocation household. - Basically, RS completed, infrastructure works available for relocation household. Relocation household completed constructing their house. In general, relocation household rebuilt new house bigger than old one and they restored their life. 13

No. 1 2 3 4 5 6 7 8 Resettlement site Table 2: Syntheses of RS of Son La- HiepHoa T/L Total HHs requested for resettlement Average living/hh (m2) Tam Dao, VinhPhuc 24 TraiKhoong village, Minh Quang 100 m2 24 commune 150 m2 Tam Duong, VinhPhuc 88 Dao Tu 1 14 100m2 Dao Tu 2 (Dong Ban) 7 100m2;200m2;300m2 Kim Long 1 (Go village) 45 100m2;200m2;300m2 Kim Long 2 (Village No 8) 16 100m2;200m2;300m2 An Hoa 6 300m2 BinhXuyen, VinhPhuc 8 Trung My commune 8 400m2 Song Lo, VinhPhuc 45 Yen Thach 13 300m2 Dong Thinh 1 12 300m2 Dong Thinh 2 20 300m2 Tam Nong, PhuTho 11 HienQuan 11 300m2 PhuTho town, PhuTho 23 Village No 4, Ha Thach 10 400m2 Village No 11, Ha Thach 13 400m2 PhuNinh, PhuTho 40 PhuNham 1 5 300m2 PhuNham 2 5 300m2 Tien Du 5 200m2 Tu Da 1 6 300m2 PhuNinh 14 300m2 PhuLoc 5 300m2 Pho Yen, Thai Nguyen 13 TrungThanh 7 185m2 ThuanThanh 5 300m2 (Source: Existing DDR and RP) 18. Restoration of livelihoods: RP included the preparation of an Income Restoration Program (IRP) for farmers losing more than 10% of their productive land Up to now IRP was implemented. A large number of farmers losing more than 10% of their land are found in substations. 1 Tu Da RS has 09 APs, in which 07 received blocks of RS, 02 APs received resettlement block of Industrial Zone 14

Picture3.Thanh Sondistrict,PhuTho Picture 4: Mai Son district, Son La 2.2. 500kV HiepHoa Substation 2.2.1. Background of 500 kv HiepHoa Substation 19. CPPMB is implementing Hiep Hoa 500kV substation project. The substation is to be powered by Son La hydropower station through 300 km long 500kV transmission line. Prime Minister s approval for construction and investment plan of 500kV Son La-Soc Son transmission line in was obtained in 2005.The origin allocation of substation was proposed at Soc Son. In April 2006, it was decided to move the location of the 500kV substation from Soc Son to Hiep Hoa situated about 10 km north because the original location is a flood prone area and the provincial authorities not agreeing to the. Two of the three 500kV power transformers of Hiep Hoa substation were commissioned on 17 December 2011 and the third unit was commissioned on 27 March 2012. Picture5&6.500kVHiepHoaSubstation 15

20. Hiep Hoa 500kV substation was built to meet the increasing demand of electricity in the the Northern power system, especially Hanoi area, while receiving power from the hydro- power plants in the Northwest area and thermal power plants in the Northeast area, especially Son La hydro-power plant and Quang Ninh and Mong Duong thermal-power plants. Besides, Hiep Hoa Substation creates circuit connections between the regions in the electrical system, enhancing the safe operation and the stability for the national electricity system, reducing power loss in the transmission network. Therefore, the construction of HiepHoa500kV substation is needed for the improvement of the national electricity system. 2.2.2. Findings 21. Compensation payment for asset affected by Hiep Hoa substation completed in 2010. 22. At the end of March, 2013, LIC, CPPMB, NPPMB and ADB resettlement consultant had a field trip at Hiep Hoa district, Bac Giang province. The team worked with local authority of Dai Thanh commune, interviewed some seriously affected household in Hanoi village, Dai Mao village, Dai Thanh commune. The results presents that compensation payment is correct and full. The life of seriously affected household restored. 23. Estimate that next month, VICA consultant will carry out DD survey to prepare DDR of Hiep Hoa substation. 2.3. 220kVKimDongSubstation, 24. Theproposedsite for the 220kVKim Dong S/S in ToanThang commune, Kim Dong district,hungyenprovince(closeto thenational RoadNo18) 25. On Feb, 2013, VICA consultant amended RP for Thuong Tin district according to comments of ADB specialist; submitted to ADB and NPPMB in March 2013. 2.4. 220kVThuongTin KimDongT/L 26. VICA completed 03 RP for 03 districts of Thuong Tin- Kim Dong and submmited to ADB for appriasal and approval. 16

C. CONCLUSIONSANDRECOMMENDATIONS 3.1 Conclusions 27. Compensation and resettement for 500kV Son La HiepHoa transmission line subproject &500kV Hiep Hoa substation basically completed. 28. In RSs, infrastructure works completed (water supply, light system, sewerage system, residential road). Mostly resettlement household moved there and build thier house. In genral, thier new house is bigger and nice than old one 29. Monitoring result presents that mostly APs affected by 02 subprojects of Son La- Hiep Hoa T/L and Hiep Hoa substation restored thier life. 3.2 Recommendations 30. 500kVSonLa Hiep Hoa transmission line subproject: continue to monitor the implementation of safeguard policies to mitigate negative impact for APs. 31. 500kV Hiep Hoa substation subproject: soon do DD survey to assess the implementation of compensation and resettlement activities, restoration program. 32. VICA completed updated RP of220 kv Thuong Tin- Kim Dong subproject, Kim Dong S/S and submitted to ADB for NOL. Propose ADB soon issue NOL for these subproject. 17