8th Independent Monitoring Report July 2012

VIE: Mong Duong 1 Thermal Power Plant Prepared by the Development Research and Consultancy Center (DRCC) for Viet Nam Electricity (EVN) Thermal Power Project Management Unit 1. The Independent 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.

DEVELOPMENT RESEARCH AND CONSULTANCY CENTRE

No. 1 Lieu Giai, Hanoi, Vietnam. Tel. 04.6273.0414 Fax: 04.6273.0448. E-mail: drcc@fpt.vn

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REPORT ON THE RESULT OF INDEPENDENT MONITORING OF

IMPLEMENTATION OF RESETTLEMENT ACTION PLAN

MONG DUONG THERMAL POWER PLANT PROJECT 1

UNDER MONG DUONG ELECTRICITY CENTER

IN QUANG NINH PROVINCE

HANOI, 2012

Hanoi, July 15th 2012

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Subject:

For the task of independent monitoring of implemenetation of RP

Report on Independent Monitoring submitted by DRCC

Mong Duong Thermal Power Plant Project 1, Quang Ninh province

TO: ASIAN DEVELOPMENT BANK (ADB), OFFICE IN HANOI

THERMAL POWER PROJECT MANAGEMENT UNIT 1

Development Research and Consultancy Centre (DRCC) would like to submit the Report

on 8th Independent Monitoring under the task of independent consultancy of the implementation

of RP, Mong Duong Thermal Power Plant 1 Project in Quang Ninh province.

Comments and opinions from ADB office in Hanoi and Thermal Power Project

Management Unit 1 are always highly appreciated.

Yours sincerely,

DIRECTOR

Nguyen Hong Quang

TABLE OF CONTENTS

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SUMMARY ......................................................................................................................... 5

I. IMPLEMENTATION STATUS UP TO PRESENT ....................................................... 6

1. The progress of project implementation: ..................................................................... 6

2. The progress of compensation and land acquisition: .................................................. 8

3. Progress of compensation payment: .......................................................................... 10

4. Major shortcomings in land acquisition and RP compliance: ................................... 10

5. Tasks of 8th monitoring ............................................................................................. 12

6. Methodology used in the moniroting ........................................................................ 13

II. FINDINGS OF THE 8TH MONITORING .................................................................... 13

1. Detailed measurement survey (DMS): ...................................................................... 13

2. Information dissemination, community consultation and participation of the local

people: ........................................................................................................................... 14

3. Pricing and compensation payment ........................................................................... 15

4. Assistance .................................................................................................................. 16

5. Income recovery Program ......................................................................................... 16

6. Claims settlement ...................................................................................................... 17

7. Internal monitoring .................................................................................................... 17

8. Resettlement: ............................................................................................................. 18

9. Gender and ethnic minority ....................................................................................... 18

III. CONCLUSION AND RECOMMENDATION .......................................................... 21

IV. NEXT MONITORING PLAN .................................................................................... 22

Annex 1: Time of implementing monitoring, conducted monitoring activities ................ 23

Annex 2: List of interviewed staffs and residents ............................................................. 24

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ABBREVIATIONS

ADB Asian Development Bank

BQL Management Unit

DRCC Development Research and Consultancy Centre

LA Land acquisition

IM Independent monitoring

CB Compensation Board

VOI Volume of implementation

VOD Volume of design

TOR Term of Reference

RP/ LAP Resettlement Plan/ Land acquisition Plan

PC People’s Committee

IFBD Invitation for Bid Document

CDD Construction drawing design LFDC Land fund Development Centre TPPMU1 Thermal Power Project Management Unit 1

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SUMMARY

The report is on the results of the independent monitoring of implementation of resettlement and land acquisition in Mong Duong thermal power plant in Cam Pha City, Quang Ninh Province. The 8th monitoring conducted in Mong Duong Ward and Cam Hai Commune, Cam Pha City includes some contents as follows:

(i) The 8th monitoring aims at describing the general progress of the project.

(ii) The progress of compensation and land acquisition, the implementation status up to present.

(iii) Review of the resolution of shortcomings mentioned in the 7th monitoring report and new problems arising in this monitoring.

(iv) Recommendations and plan for the next monitoring.

In reference with the 7th monitoring report, some shortcomings have been actively solved by Thermal Power Project Management Unit I and Compensation Board with sound results. However, there remain some shortcomings that are being solved. The specific results are as follows:

a. Activities related to the land acquisition and resettlement of the project in the territory of Mong Duong Ward, Cam Hai Commune of Cam Pha City have been basically completed; however, there still remain some shortcomings;

b. Information disclosure and community consultation have been implemented by the TPPMU1 and City CB; however, it is essential to have intensive activities to disclose next information to make affected households be fully aware of information about the project as well as their rights;

c. At the time of the 8th monitoring, payment has been conducted under some decisions and compensation plans on shortcomings mentioned in the 7th monitoring.

d. There still remain some households that have not received the compensation. Thermal power project management unit 1 and compensation board of Cam Pha City are making specific compensation plan to ensure the work construction;

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e. Assistance payment under the project policy framework has basically completed, except for few supplementary cases that are being under implementation. Livelihood recovery activities have been being implemented.

f. Activities related to gender and ethnic minority have been implemented in the line of the approved RP;

g. The reply and settlement of questions and claims submitted by the local people are remained slow that makes the affected households unsatisfactory;

h. It is the unsound management of land in the territory of Mong Duong ward and Cam Hai commune leading to unexpected mistakes that result in the re-identification of land origin is the main cause of shortcomings.

I. IMPLEMENTATION STATUS UP TO PRESENT

1. The progress of project implementation:

According to the summary report from the Economics Planning Division, Thermo Power

Project Management Unit 1 (TPPMU1), up to April 2012, the implementation of the Mong

Duong Thermal Power Plant Project 1 in Quang Ninh province has been focusing on the

construction and installation packages with the implementation progress as follows:

- EPC package: The design meets the demand of the proposed plan. Project construction

contractor: Hyundai Engineering and Construction Co.,Ltd. The design capacity is of 1080MW,

consisting of two machine units, with two CFB boilers in each unit, one turbine - generator of

540MW. The investment capital for construction of the Project: 85% from ADB loans, KEXIM

Bank (Korea) and 15% from the reciprocal capital of the Vietnam Electricity Group. The

machine unit 1 will be PAC after 40 months (from the effective date of the contract). The

machine unit 2 will be PAC after 46 months (from the effective date of the contract). The

warranty period is 2 years after the PAC of each unit. The main Consultancy Agency is

International Consultancy Pöyry Energy AG (Switzerland). The drilling ended on December 4th,

2011; the subcontractor has submitted the report to Hyundai contractor. Currently the design of

the Construction/ Architecture completes about 11.75%. Currently, the design of the thermal

mechanics (P & ID diagram) completes about 9.25%.

- 1st phase Consultancy Service: Up to now, TPPMU1 has completed negotiations with

the Consultancy Agency in terms of arisen costs of the tender evaluation from the phase 1. The

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TPPMU1 has submitted to EVN for approval, EVN is currently reviewing. On April 17th, 2012,

the Consultancy Agency submitted the final report to TPPMU1.

- 2nd phase Consultancy Service: On September 30th, 2011, the TPPMU1 signed contract

with Consultancy Pöyry Company. ADB made comments on Compensation for livelihood,

resettlement of freshwater lake Plan, the PMU and Consultancy Agency are editing according to

the comments of ADB.

- Items of leveling and regulation of Mong Duong River: On November 3rd, 2008,

TPPMU1 signed a contract for construction with LICOGI Corporation. Up to now, the volume of

implementation has reached 99.5% of the contract volume, with details of some items as follows:

For Mong Duong 2 (including 3 lots) has been handed over to AES. For Mong Duong 1

(including 6 lots): has been completed and handed over to Hyundai Contractor. The remaining

implementation volume is about 2%, including construction of rock dikes of plain water drainage

ditches, water drainage sewerage No. 3, enforcement of the Northern slope, sliding of 40m of the

South-Western slope; it is expected by April 30th, 2012 to complete the construction, by May

30th, 2012 to complete the planting grass roof reinforcement.

- On March 9th, 2012, TPPMU1 issued the Invitation for Bid Document (IFBD) (2nd

time), up to April 18th, 2012, there have been 12 contractors purchasing the IFBD. On March

20th, 2012, visit to the construction site was held for the contractors and meeting was held on

Mong Duong Project 1. Opening of the bid documents was done on April 20th, 2012.

- Drege of cooling water channels and channels to oil, limestone port: Package of the

dredge of cooling discharge channels: on March 2nd, 2012, EVN/ ADB approved in writing on

cancelling the bidding results and allowing the re-bidding, on March 5th, 2012, TPPMU1

submitted to EVN/ ADB for approval on edited IFBD, on March 8th, 2012 ADB gave a written

request to adjust some terms in the IFBD. The TPPMU1 made adjustment and submitted to

ADB, on April 18th, 2012 ADB sent a written document on consent with the contents of the

edited IFBD and allowing to announcing invitation for bids.

- The Operation and Repairment Mangement Area Package: On December 8th, 2009,

Provincial People's Committee of Quang Ninh made Decision on approval on the detailed

planning. On December 29th, 2011, the TPPMU1 signed a contract with Verification

Consultancy Agency, now has sent to the Verification Consultancy Agency design, cost

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estimates for the construction of infrastructure, 5-storey building and nursery school, healthcare

area which are expected to be completed in late April, 2012.

- The start electricity Package: On October 26th, 2011, Consultancy Agency submitted the

report on the result of the topography, geology survey & design documents of preliminary

construction drawings, TPPMU1 made comments on design construction drawings. Consultancy

Agency adjusted according to the comments of the TPPMU1. On November 15th,/2011

Consultants sent the construction drawing design document and cost estimates. On January 31st,

2012, TPPMU1 submitted EVN for approval on construction drawing design and cost estimates.

On February 24th, 2012 EVN made comments on clarifying the construction drawing design and

TPPMU1 sent the comments from EVN to Consultants. Currently, the Consultants/ PMU is

discussing the construction drawing design with the Electricity Corporation 1.

- Cinder dump Item: TPPMU signed the contract of survey, construction drawing design

– cost estimates with Electrical Construction and Consultancy Company 4, up to now

Consultants have completed survey. The Consultants finished the construction drawings design

(1st time) and submitted to the TPPMU1 December 28th, 2011. On January 11th, 2012, TPPMU1

had written request to Consultants to revise cost estimates according to the TPPMU1’s

comments. On March 7th, 2012, the Consultants completed and sent back the construction

drawing design and cost estimates to TPPMU1 (2nd time). On March 15th, 2012 the TPPMU1

made a written request to the Consultants to edit and clarify some of the contents in the cost

estimates. On April 13th, 2012, the Consultations completed and sent back the construction

drawing design and cost estimates to the TPPMU1 (3rd time). Now, TPPMU1 and Verification

Consultants are reviewing.

2. The progress of compensation and land acquisition: Up to May 2012, the compensation and land acquisition of Mong Duong thermal power

project have been basically completed with following items:

(i) Land acquisition in the area of households affected by the main factory:

Land acquision for 50 households and groups (In which, there are 12 organizations and

groups and 38 households affected by the project and 16 households have to move for

resettlement) was completed in May 2009.

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Regarding affected objects: According to the initial compensation plan, there are 50

households/ groups affected by the project, in which there are 12 cases of companies and groups

and 38 cases of individual households.

Related to the affected territory: there are 35 households, 12 companies and groups in

Mong Duong Ward, 3 households in Cam Hai Commune (2 households of Mr. Nguyen Van Thang

and Mr. Truong Van Tro have their houses and family record book in Mong Duong Ward but their

agricultural land in the territory of Cam Hai Commune; therefore, they are put in the compensation

list of Cam Hai Commune)

(ii) Land acquisition area of the 35 kV electricity line:

The compensation and land acquisition were completed in September 2009. The total

number of households affected by 37 positions of columns of 35 kV electricity line is 16

households, in which.

- The line supplying electricity for the construction has a total number of 16 column

positions, having effect on 9 households in area 12, area 4 and area 8;

- The moved line (after the improvement) has 10 column positions moved that has effect

on 12 households in area 8;

- The branch to Duc Trung has 5 column positions affecting 2 households in area 8;

- The branch to Thuy Khai has 2 column positions affecting 2 households; and

- The branch to Duc Trung has 4 column positions affecting 1 household.

(iii) The affected area in the ending section of the cooling water discharge channel:

A total number of 22 households affected by the ending section of the cooling water

discharge channel all concentrate in the territory of Cam Hai commune, Cam Pha town.

Compensation was completely paid to the affected households in September 2011. Some arising

problems will continue to be solved by the compensation board and Mong Duong TPPMU1 in

May 2012.

(iv). The land acquisition area of the housing area for staffs:

The total number of households affected by the housing area for staffs is 20 households. Up

to now, 16 out of 20 households have been received their compensation; 4 remaining households

that have not received the compensation are in residential group 147 in Mong Duong ward,

including: Household of Mr. Do Dang Hai; Household of Mr. Nguyen Huu Hai; Household of Mr.

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Nguyen Huu Loi; Household of Mrs. Nguyen Thi Ha. All of these four households have their

affected land on the road to the housing area for staffs connecting to the old National Road 18A

leading to Mong Cai. The current status of these households will be specifically presented in

Section 4.2 (results and shortcomings of the 8th monitoring).

3. Progress of compensation payment:

The compensation is all conducted in the line of approval decisions by Quang Ninh

Province People’s Committee and Cam Pha People’s Committee. Up to now, the payment for

land acquisition items has been basically completed and is specifically presented in the reports of

the 1st to the 7th monitoring, except for some existing minor shortcomings that will be mentioned

in Section 4.2 (shortcomings of the 8th monitoring).

4. Major shortcomings in land acquisition and RP compliance:

4.1. Shortcomings of the 7th monitoring:

The information disclosure and community consultation have been done but not really well; The information dissemination documents are insufficient, the project information documents were posted at communal/ ward People’s Committees but were not delivered to households; the updated version of the approved RP was not delivered to communes/ wards;

Deficiencies in the detailed measurement survey leading to the supplementary pricing due to the lack in the detailed DMS, there is a mistake in the source of land, etc.

A few households have been approved in the compensation plan but they have not received the compensation money due to many different causes, such as questions about the low unit price, insufficient detailed measurement survey of their assets; pricing for not right land types, lack of assistance, etc.

(i) Housing area for staffs:

Number of households affected by the construction of the housing area for staffs is 20. Already 11 households have compensation plan approved and been paid compensation. The nine remaining households with the recommendations want the road section in the housing area for staffs connecting to National Road 18 to be adjusted for not affecting households. This problem was submitted to Provincial People’s Committee for reviewing and making official decision by Compensation Board of Cam Pha town, so these 9 households have not been temporarily approved in the compensation plan (if the adjustment of the road is done, these households will not be affected anymore).

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(ii) The ending section of discharge channel:

Of 4/22 affected households that have not received compensation money, the

Compensation Board and People's Committee of Cam Hai commune are identifying the source

of land for the remaining 03 households, who are households of Mr. Tran Hoa, Ms. Bui Ha Van,

Mr. Ha Van Phu. Particularly for case of Mr. Bui Dinh Khe, Hamlet 3, Cam Hai commune

signed for confirmation of detailed measurement survey in July, 2011. The total compensation is

455,251,000 VND. In September, 2011, through the campaign of the Compensation Board and

TPPMU1, Mr. Bui Dinh Khe received adequate compensation for their affected assets and had

no further question.

4.2. Results of the 8th monitoring; solved problems and shortcomings

(i) Progress of land acquisition:

Compensation payment and land acquisition for ítems, packages in the component of the

main Plant were made and its shortcomings were solved completely and submitted in the 6th and

7th report by Compensation Board and TPPMU1 in combination with People’s Committee of

Mong Duong Ward and Cam Hai commune This 8th monitoring only focused in monitoring of

compensation payment, land acquisition process and solving shortcomings in the 7th monitoring

and the following arisings:

(ii) Housing area for staffs:

Up to now, the compensation payment has been made to 16/20 households, 4 households

in the residential group 147, Mong Duong ward have not received compensation money with the

names as follows: Household of Mr. Do Dang Hai; Nguyen Huu Hai; Nguyen Huu Loi; Mrs.

Nguyen Thi Ha. These four households have their land affected on the road to the housing area for

staffs connecting with the old National Road 18A leading to Mong Cai. The status of these

households is as follows:

Mr. Do Dang Hai has his land and house at the beginning of the road leading to the

housing area for staffs affected. He bought from Mr. Muoi in 2006. According to the plan of

LFDC of Cam Pha city, Mr. Hai’s land was priced as agricultural land in the ward land

boundary, he did not agree and he requested to be priced as residential land. However, his house

and land did not have legal document, they were bought only by agreement of two people with

hand-written paper. Now, LFDC Cam Pha city in combination with People's Committee of Mong

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Duong ward is reviewing the source of this land. Most likely, he will be compensated for

residential land after there is a result of investigation of source of land.

The three remaining households are Mr. Nguyen Huu Loi – the father and his children (Mr. Nguyen Huu Hai and Ms. Nguyen Thi Ha). They have their affected land on the road leading to the housing area for staffs connecting to the National Road 18A. Mr. Nguyen Huu Hai has his temporary house on the land but has no legal documents for their assets and no family record book on this address. Ms. Nguyen Thi Ha has a temporary iron-frame house and has no legal document. Mr. Loi has only ground affected, not house affected after adjustment of the design.

All households have not received compensation and have not handed over their land.

People’s Committee of Mong Duong ward and LFDC of Cam Pha city are discussing the plan of

consideration of re-investigation of the source of land of these households and making

compensation, assistance plan after having the result of investigation (it is expected in the early

May, 2012).

(iii) The ending section of discharge channel:

The 4 households in Cam Hai commune in the additional compensation plan have received

the compensation money and signed for confirmation, the item of land acquisition of the ending

section of the discharge channel has basically been resolved. However, the remaining 2 households

and 1 organization who are not included in the compensation plan have the following specific

questions: Duc Trung company, household of Mr. Bui Ha Van and Mr. Tran Hoa.

Three households/organization want to have assistance for the land area which they think that they paid labor to earthwork and reclaim, specifically: Duc Trung Company - the sea encroaching area; Ms. Bui Ha Van - the area considered as earth-working for fishing pond; Mr. Tran Hoa – the area pouring sand in area affected by discharge channel adjacent to the sea.

At present, the Compensation Board is redefining these arising problems and will supplement the compensation, assistance plan in May, 2012. According to TPPMU1, these arisen land area are encroached illegally from the public land by these households, so these land areas are not in the inventory data and not in the compensation plan. When interviewing with these households, it is known that these households want to have assistance, if they are not assisted; they will have no question and will not obstruct the construction.

5. Tasks of 8th monitoring

(i) Check the reviewing of shortcomings in the 7th monitoring and the solved problem. Orientation and plan for solving these shortcomings.

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(ii) Check whether the actual implementation of compensation and resettlement complies with RP policy of the project or not.

(iii) Check whether RP with mitigation measures that have been identified ensures the fairness and assist affected people in order to improve the quality of life better or at least equal to that before the project implementation.

(iv) Assess the effectiveness, impact and sustainable levels of the resettlement.

(v) Update the status of land acquisition and resettlement, and propose the necessary

adjustments in the implementation of resettlement for the next items of the Project.

6. Methodology used in the moniroting

The independent Monitoring Agency review profiles at office, observe, meet and interview

the parties involved in the task of reviewing the compensation payment activities, the

recommendations, the questions from affected households and monitoring the implementation of

the RP of households affected by the construction of the housing area for staffs and the households

affected by the ending section of the cooling water discharge channel

Information collection sources:

- Headquarter of TPPMU1 at Management Area of Mong Duong Electricity Centre, Cua

Ong ward, Cam Pha town;

- People’s Committee of Mong Duong ward, Cam Pha town;

- Compensation Board of Cam Pha town at headquarter of People’s Committee of Cam

Pha town;

- Visits and interviews with affected households having shortcomings.

II. FINDINGS OF THE 8TH MONITORING

1. Detailed measurement survey (DMS):

1.1. Process of doing DMS:

DMS is conducted by a DMS group including: Representatives of the compensation board

of Cam Pha town, representatives of some departments, mass organizations, chairmen of

communes/wards, area leader, representatives of the investor and representatives of the affected

households. The tasks of the DMS group is to accurately identify the quantity of each affected

asset of various households, prepare minutes of DMS and make plans on land acquisition.

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1.2. The accuracy of DMS:

The DMS is implemented in a democratic and public manner. Minutes of DMS is fully

prepared and signed by all parties taking part in the DMS and publically announced. In case of

having any questions about the affected assets, the DMS group will visit and directly work with the

affected households to identify and reach agreement on the quantity of the affected assets.

There is a wide range of affected assets including residential land, garden land,

agricultural land, forestry land, aquaculture land, fruits of the earth, house, architectural objects;

particularly, 15 households have to move to other places for resettlement.

2. Information dissemination, community consultation and participation of the local

people:

2.1. Information dissemination:

Information dissemination of Mong Duong thermal power plant 1 has been conducted in

the line of the regulated procedure. On updating the resettlement plan (RP), the thermal power

plant management unit 1 (TPPMU1), compensation and resettlement board of Cam Pha town

(DRC) and the local authorities brought information to the local people in the project area. Since

June 2006, major information about the project, major resettlement action plans have been mostly

disseminated to all affected households through community information handbooks in combination

with information posted at the headquarters of the wards/ communes and public places.

(i) Community consultation:

Since December 2007, meetings with the local people have been organized. The purpose

of these meetings is to inform the project’s plans, the project’s resettlement plans, compensation

options, resettlement assistance, answer questions or complaints of affected households and

organizations during the consultation meetings. This is a large scale project with a quite large

number of affected land and assets and a huge amount of compensation money; therefore, all

household owners have been invited to the community consultation meetings to check the quantity

of their affected assets and compensation value. The disseminated information includes the

project’s planning, legal documents reserved for the land acquisition, capital sources,

compensation and resettlement policy, implementation schedule of the project, rights and

responsibilities related to the land acquisition of the affected households, procedures of settlement

of questions and claims.

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(ii) The participation of the local people:

The affected households have invited to take part in meetings of information

dissemination and community consultation. Representatives of the affected households have

participated into the DMS and signed the minutes of DMS.

3. Pricing and compensation payment

The price unit applied to the compensation: The compensation for the land acquisition

and resettlement for items of housing area for staffs, ending section of discharge channel is in the

line of compensation unit price in 2011 by Quang Ninh People’s Committee.

- Decision No. 646/ QD – UBND dated 18th February 2011 by Cam Pha People’s

Committee on the approval of the compensation and assistance for the land acquisition of the

project: Building the housing area for staffs of Mong Duong thermal power plant in Mong Duong

ward, Cam Pha town.

- Decision No. 896 / QD – UBND dated 6th April 2011 by Cam Pha People’s Committee

on the approval of the compensation and assistance for the land acquisition of the project: Building

the housing area for staffs of Mong Duong thermal power plant in Mong Duong ward, Cam Pha

town (the 2nd time).

- Decision No. 896 / QD – UBND dated 10th June 2011 by Cam Pha People’s Committee

on the approval of the compensation and assistance for the land acquisition (supplementary) of the

project: Building the housing area for staffs of Mong Duong thermal power plant in Mong Duong

ward, Cam Pha town.

- Decision No. 1634 / QD – UBND dated 13th June 2011 by Cam Pha People’s

Committee on the approval of the compensation and assistance for the land acquisition

(supplementary) of the project: Building the housing area for staffs of Mong Duong thermal power

plant in Mong Duong ward, Cam Pha town.

- Decision No. 1642 / QD – UBND dated 14th June 2011 by Cam Pha People’s

Committee on the approval of the awarding 09 households under the project: Building the housing

area for staffs of Mong Duong thermal power plant in Mong Duong ward, Cam Pha town for

having moved their works and handed over the surface on time as regulated.

- Decision No. 2135 / QD – UBND dated 12th July 2011 by Cam Pha People’s Committee

on the approval of compensation and assistance plan for the land acquisition of the project:

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Building the housing area for staffs of Mong Duong thermal power plant in Mong Duong ward,

Cam Pha town.

- Decision No. 1269 / QD – UBND dated 9th May 2011 by Cam Pha People’s Committee

on the approval of the compensation and assistance plan for the land acquisition of the project: The

ending section of the discharge channel of Mong Duong thermal power plant in Cam Hai town.

- Decision No. 1414 / QD – UBND dated 19th May 2011 by Cam Pha People’s

Committee on the approval of the compensation and assistance plan for the land acquisition of

the project: The ending section of the discharge channel of Mong Duong thermal power plant in

Cam Hai town.

- Decision No. 1992 / QD – UBND dated 1st July 2011 by Cam Pha People’s Committee

on the approval of the compensation and assistance plan for the land acquisition of the project: The

ending section of the discharge channel of Mong Duong thermal power plant in Cam Hai town.

4. Assistance

Project’s assistance in the line of ADB’s policy framework such as assistance for the

movement of resettled households, assistance to stabilize the life and production, assistance for

career changes, assistance for vulnerable objects, etc. has been fully implemented by the

compensation board of Cam Pha city in the line of the project’s RP.

5. Income recovery Program

The Income recovery Program prepared by WorleyParsons Consultancy Company was

approved by ADB on March 23rd, 2010. On December, 30th, 2011, the Poyry Consultancy

Company updated and submitted the 1st Income recovery Program to ADB. On January, 25th,

2012, ADB had comments on the Income recovery Program and requested the Proyry

Consultancy Company to update, now Poyry is updating according to the comments from ADB.

The Program of agricultural, forestry expansion encouragement, vocational training,

training of veterinary experts, etc. for households affected: The program has worked with leaders

of Mong Duong ward on veterinary training and addition of al commissioner for the Livelihood

Board. The Program’s implementation was initially effective. However, the contact for training

veterinary for households that lost their land but they do not want to participate.

Assistance according to the Provincial People’s Committee: The assistance for finding

jobs in the form of assistance in cash by 2 times of the price of the affected agricultural land

basically was completed adequately.

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The Program of assistance for lending faced difficulty due to not finding the funding

source (no agencies or units want to lend money related collateral issues).

Consultants recommend to choose the effective models and omit models that are

inappropriate and got assistance from residents; And create favorable conditions for the affected

households to access to the credit institutions such as the social policy bank, to get loans in the area.

6. Claims settlement

A quite large number of meetings and consultation have been organized for affected

households in the housing area for staffs and the item of the ending section of the discharge

channel in the territory of Cam Hai commune. These meetings, conferences and consultation

have been organized by the compensation board of Cam Pha town, the project’s consultancy

agency and project management unit, People’s Committee of Mong Duong ward and PC of Cam

Hai commune. These meetings focused on answering questions of the local people about the

application of the unit price and the information dissemination of the project. In the 8th

monitoring, claims of some households as per mentioned above have been reviewed and settled

by the compensation board in cooperation with the project management unit and People’s

Committee of Mong Duong ward. Up to the time of the 8t monitoring (in May 2012), these

problems have been basically resolved. For some shortcomings as mentioned in the section of

shortcomings, the compensation board of Cam Pha city and the project management unit are

doing their utmost to find out suitable resolutions before September 2012.

7. Internal monitoring

It is the monitoring conducted in the office through available documents helps the

monitoring consultants realize that:

(i) For the office in the major plant in Cua Ong ward, Cam Pha city of Mong Duong

Thermal power project management unit, documents are not recorded sufficiently.

The reason for this problem is that the Compensation Board of Cam Pha city

(which is now Land Fund Development Center of Cam Pha city) is the unit

directly implementing the land acquisition but has not provided the TPPMU with

sufficient and frequent documents.

(ii) For the compensation board of Cam Pha city: documents supporting the land

acquisition and resettlement of the project are sufficiently recorded in its office.

However, it is quite difficult for the independent monitoring agency to work with

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either CB of Cam Pha City or PC of Mong Duong ward due to the unsound

cooperation of the local compensation board; therefore, consultants were not

provided with sufficient materials.

(iii) Reports are timely and frequently submitted to Mong Duong Thermal Power

Project Management Unit by relevant parties. However, the project management

unit is only reported about the general status without any specific and detailed

documents about the compensation and land acquisition.

8. Resettlement: Resettled households in the area of the major plant do not move to a focused resettlement

area but receive money for their self resettlement. These households have moved and stabilized

their lives since 2010. This issue has been presented in the 2nd and 3rd monitoring reports of the

project. At present, there remain some households that are affected by the housing area for staffs

are being under resolution as per mentioned above. All of the households affected by the

freshwater lake area have not had the approved RP; therefore, compensation, land acquisition

and resettlement for these households have not been implemented.

9. Gender and ethnic minority Most of the conducted surveys show that there is no gender discrimination in the territory

of the project. Almost all male and female children at the time of going to school in the affected

households are going to schools. All women of the surveyed households are members of the

Women’s Union. Every hamlet and village in the project region has established its own self –

managed group whose members are females in the locality. Thanks to such organizations,

women have a chance to study and share their experience in production and afforestation as well

as to have a better position in their community, etc. Therefore, women have as equal

opportunities in advancement as men.

There are a total number of 29 peoples in the communities of Quang Ninh province, in

which Kinh people accounts for 88.3% and the remaining is ethnic minority making up 11.7% of

the population in the province. Among 28 ethnic minorities in the provincial territory, there are

five groups of Dao, Tay, San Diu, San Chay and Chinese with 5,000 people living in remote and

mountainous areas. Other groups such as Nung and Muong have around 1,000 people, etc. Some

groups including Cor, Co – Ho, Bru – Van Kieu, La Chi, Xtieng, Ba Na, Ha Nhi account for a

small percentage, including dozens of people only. Ethnic minorities in the territory of Quang

Ninh province is scattered in almost every district. Binh Linh district has the highest rate of

19

ethnic minority (accounting for 95% of the population in the district) accompanied by Ba Che

district (79.61%), Tien Yen district (49%) and Yen Hung district has the lowest rate of ethnic

minority (0.03%).

Summary of ethnic minority in the territory of the project

Territory

Kinh San Diu Tay Dao Chinese Others Total

No of

HH %

No

of

HH

%

No

of

HH

%

No

of

HH

%

No

of

HH

%

No

of

HH

% No of

HH %

Cam Pha city 42,967 95.2 1,760 3.9 180 0.4 90 0.2 90 0.2 46 0.1 45,133 100

Mong Duong

ward 3,944 97.1 24 0.6 45 1.1 40 1.0 0 0.0 9 0.2 4,062 100

Cam Hai

commune 308 97.2 0 0.0 10 3.5 0 0.0 0 0.0 0 0.0 318 100

Cong Hoa

commune 689 90.1 26 3.4 11 1.5 16 2.1 11 1.3 11 1.5 764 1.5

Summary of shortcomings of the 8th monitoring

Problems Nature of problems Recommendations Unit/ agency in

charge Time

A. Information dissemination 1. Shortcoming:

- Households have

got enough

information on the

Project,

compensation and

resettlement policy.

- The project information

leaflets have not delivered

sufficiently to affected

households;

- The updated RP of the

Project has not been

delivered to the affected

communal People’s

Committee and affected

hamlets;

- The project information leaflets

which consist of the main contents

of the Project; rights of affected

people according to the RP of

specific project in Quang Ninh

province and mechanism for solving

claims should be delivered to

affected households or put at

affected hamlets so that affected

people can easily access the

information;

- The updated RP should be

delivered adequately to People’s

Committee of communes/ wards.

- LFDC of Cam Pha

city, TPPMU1and

monitoring Consultants

comply with the

Information

dissemination Plan.

In May

2012

B. Detailed measurement survey

1. Shortcoming - The definition of the - Continue to re-define the source of - TPPMU1 in April –

20

Problems Nature of problems Recommendations Unit/ agency in

charge Time

- Some affected

households think

that the result of the

detailed

measurement

survey is not

adequate, and not

accurate to the

actual status.

source of the land and

classification of land types

on the profiles compared to

the actual usage status

usually the key point of the

questions relating to the

land compensation.;

- Cases with questions

relating to detailed

measurement survey

detected in the 8th

monitoring have been being

solved.

land, quantity of arising of additional

detailed measurement survey if

applicable.

coordination with

LFDC Cam of Pha city

and communes/ wards.

May,

2012

C. Compensation

1. Shortcoming

- Some households

have not received

the compensation.

- Households have not

received compensation

money because they have

questions on pricing for

incorrect land types.

- TPPMU1, LFDC of Cam Pha city

should continue reviewing cases

with questions and solving these

questions and campaigning

households to receive the money.

TPPMU1, LFDC of

Cam Pha city

D. Assistance

1. Shortcoming

2. Findings

- Some households

in Cam Hai

commune have

received

compensation

money but still

recommend to have

assistance

adequately

according to the

Decision No 499-

UBND issued by

Provincial People’s

- Assistance types are in line

with the policy shown in the

compensation plan.

However, due to the specific

features in these areas, the

land management is not

thorough. Some households

have paid labor to reclaim

and earth-work land, etc.,

which are not expressed in

the detailed measurement

survey plan because

whether the land usage

status is legal or not have to

- The affected land areas should be

reviewed quickly to make the

additional assistance plan if the land

usage is legal, if not, there have to be

documents answering to these

households specifically.

TPPMU1, LFDC of

Cam Pha city, People’s

Committee of Cam Hai

commune, Mong

Duong ward.

May,

2012

21

Problems Nature of problems Recommendations Unit/ agency in

charge Time

Committee of

Quang Ninh.

been reviewed.

G. Claims and settlement

1. Shortcoming

- Some questions,

claims from

households have

not been settled

completely.

- The claim settlement is no done timely; TPPMU1, LFDC and People’s Committees of communes/ wards have not found the plan for solving this shortcoming completely.

- The progress of settlement of

claims should be speeded up;

- There should be reply in written

documents to questions of residents.

TPPMU1, LFDC of

Cam Pha city

May,

2012

III. CONCLUSION AND RECOMMENDATION

(i) The land acquisition under the phase 1 basically almost completes and achieves good

results. However, the land acquisition and resettlement activities are not really full compliant

with the provisions of the RP of the project.

(ii) In the 8th monitoring, some shortcomings in the 7th report were solved actively by TPPMU1, LFDC of Cam Pha city in combination with People's Committees of communes / wards and achieved some results. However, there are still some unresolved shortcomings, such as having not received compensation money due to not being satisfied with the compensation (inadequate land area, wrong pricing, not defining completely the source of land, etc.) which should be checked and reviewed by TPPMU1 and LFDC of Cam Pha city urgently in order to supplement and pay compensation to households and solve completely shortcoming to avoid disadvantage for the affected households.

(iii) TPPMU1 and consultancy units should strengthen monitoring during the

construction process of items to ensure that any adverse impacts that may occur to residents

during the construction process are made inventory and compensated promptly in accordance

with policies of the Project.

(iv) The progress of making RP for the freshwater lake area should be speeded up and the

making of detailed measurement survey, resettlement plan, pricing and payment of compensation

to households should be completed in June, 2012.

(v) The compensation board of Cam Pha City, which is now Land Fund Development

Center, takes direct responsibility for the land acquisition and compensation payment; therefore,

22

there should be a better cooperation among specific relevant parties such as: the sufficient,

frequent and timely provision of documents and data about the land acquisition and resettlement

to the Thermal Power Project Management Unit 1. The better coordination among relevant

parties should be encouraged to help such parties complete their tasks well.

IV. NEXT MONITORING PLAN

The next monitoring plan (the 9th time) will be expected to be conducted by the

consultants in September 2012 after the Contract annex has been signed by both Thermal Power

Plant Management Unit 1 and DRCC.

Basing on the progress of the implementation of land acquisition in the freshwater lake

area, the monitoring consultants will do their tasks right after the official approval for the RP of

the freshwater lake area by ADB.

In the 9th monitoring, the Consultants will put an emphasis on the monitoring and

updating as per mentioned in the 8th monitoring report. In addition, the Consultants also focus

on the monitoring of RP implementation in the area affected by the construction of the

freshwater lake.

The independent monitoring agency will put an emphasis on some issues as follows:

DMS and DMS report preparation

Information dissemination, community consultation and participation of the local people

Pricing and compensation payment

Assistance

Moving for resettlement

Income recovery

Gender and ethnic minority

Claim settlement

Internal monitoring

23

ANNEX

Annex 1: Time of implementing the 8th monitoring, conducted monitoring activities

Date Monitoring purpose and field activities Notes

19th April 2012 Travel from Hanoi to Mong Duong

20th April 2012 Work at the office with Mong Duong Project Management Unit

21st April 2012

Work with Cam Pha Compensation Board, Mong Duong People’s

Committee, interview leaders and work in the office about the

compliance with RP about land acquisition and resettlement.

22nd April

2012

Update the progress of land acquisition, monitor RP compliance,

livelihood recovery; visit and interview affected households and

study shortcomings in the housing area for staffs in Mong Duong

ward, the area of the main factory.

23rd April 2012

Work with Cam Hai People’s Committee, monitor RP compliance;

visit and interview residential groups, hamlets and affected

households and study shortcomings in the ending section of the

discharge channel, livelihood recovery activities, etc. in the

territory of Cam Hai commune.

24th April 2012

Monitor RP compliance, visit and interview residential groups,

hamlets and affected households and study shortcomings in the

ending section of the discharge channel, livelihood recovery

activities, etc. in the territory of Cam Hai commune.

August, 2010

25th April 2012

Work with the Project Management Unit, Compensation Boards of

Cam Pha City, Mong Duong People’s Committee, Cam Hai

People’s Committee to propose solutions to shortcomings and

following activities.

26th April 2012 Travel from Mong Duong to Hanoi

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Annex 2: List of interviewed staffs and residents

No. Full name Address Status

1 Nguyen Cong Chi TPPMU1 In charge of land acquisition of the

Mong Duong Thermal Power Plant

Project

2 Mai Hong Quang Land acquisition staff at AND1 in

Mong Duong

3 Bui Thi Suu Chairman of People’s Committee of

Cam Hai commune

4 Do Huu Hai Residential group 147, Mong Duong

ward

Affected land

5 Nguyen Huu Hai Residential group 147, Mong Duong

ward

Affected land, structures, temporary

house

6 Nguyen Huu Loi Residential group 147, Mong Duong

ward

Affected land, structures, temporary

house

7 Nguyen Thi Ha Residential group 147, Mong Duong

ward

Affected land, structures, temporary

house

8 Tran Hoa Hamlet 5, Cam Hai commune Affected land, trees, structures, tiled

roof house

9 Khong Van Man Hamlet 3 Cam Hai commune Affected land, trees, agricultural

crops, structures

10 Doan Xuan Hue Hamlet 3 Cam Hai commune Affected land, trees, agricultural

crops, structures

11 Do Van Lan Hamlet 3 Cam Hai commune Affected land, trees, agricultural

crops, structures

12 Bui Dinh Khe Hamlet 3 Cam Hai commune Affected land, trees, agricultural

crops, structures

13 Bui Thi Van Hamlet 3 Cam Hai commune Affected pond land

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No. Full name Address Status

14 Bui Thanh Duoc Hamlet 3 Cam Hai commune Affected land, trees, agricultural

crops, structures

15 Khong Thi Hai Hamlet 3 Cam Hai commune Affected land, trees, agricultural

crops, structures

16 Nguyen Thi Ut Hamlet 4 Cam Hai commune Affected land, trees, agricultural

crops, structures

17 Pham Van Tinh Hamlet 4 Cam Hai commune Affected land, structures

18 Khong Van Viet Hamlet 5 Cam Hai commune Affected land, trees, agricultural

crops, structures

19 Khong Van Binh Hamlet 5 Cam Hai commune Affected land, trees, agricultural

crops, structures

20 Ngo Doan Suu Hamlet 5 Cam Hai commune Affected land, trees, agricultural

crops, structures

21 Ha Thi Tieu Hamlet 5 Cam Hai commune Affected land, trees, agricultural

crops, structures

22 Do Van Ly Hamlet 5 Cam Hai commune Affected land, trees, agricultural

crops, structures

23 Nguyen Van Tan Hamlet 5 Cam Hai commune Affected land, trees, agricultural

crops, structures

26