Updated Resettlement Plan

Viet Nam: Mong Duong Thermal Power Project December 2008 Prepared by: Thermal Power Project Management Unit 1, Electricity of Viet Nam

1

Table of Contents

EXECUTIVE SUMMARY i I. INTRODUCTION 1 A. Preparation of Updated Resettlement Plan 1 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS 1 A. Measures to Minimize Impacts 1 B. Impacts on Affected Households 1 C. Impacts on Companies 5 D. Impacts on Land and Non-Land Assets 7 E. Potential Impacts During Construction Phase 9 F. Potential Impacts During Operation Phase 9 III. PROJECT ENTITLEMENTS 10 IV. CONSULTATION AND DISCLOSURE ACTIVITIES 12 A. Public Information and Consultation of APs 12 V. GRIEVANCE REDRESS MECHANISM 13 VI. RELOCATION AND INCOME RESTORATION PLAN 15 A. Relocation of Households 15 B. Income Restoration for Severely Affected Households 16 VII. MONITORING 16 VIII. IMPLEMENTATION ARRANGEMENTS 17 IX. RP BUDGET 18 X. IMPLEMENTATION SCHEDULE 19

2

EXECUTIVE SUMMARY

A Resettlement Plan was prepared and approved by both the Government of Viet Nam and Asian Development Bank in September 2006 based on preliminary design. The Resettlement Plan covers the power plant, cooling water intake channel, cooling water discharge channel, ash pond, and workers' site. Updating of the Resettlement Plan was carried out in 2008 based on detailed measurement survey, consultation with and participation of project affected persons (APs) and concerned local authorities, and establishment of unit rates. The updated RP covers the power plant area, the cooling water the intake channel, the ash pond, the water discharge channel and the river diversion area. Thirty seven households will be directly affected by the Project. Among the 37 households, 16 households will have to relocate and 3 households are considered as severely affected due to impacts on main source of income (loss of paddy land). A total of 13 companies will be affected by the Project. TPMMU1 with the assistance of the project supervision consultants is now in the process of designing appropriate income restoration measures for severely affected households. There are no poor households or households receiving social policy from the Government. The area of land required for the Project is 269.4 ha. Most of the affected land is composed of forestry land (114,2 ha). The project area is hilly and most of the hills are under forest planted cover (mostly acacias). The Project will also require around 47.3 ha of land used for aquaculture. Due to the proximity of the sea, many areas along the sea or along the Mong Duong River have been developed for this activity. The ash pond in particular is mainly used for aquaculture Consultations with APs were carried out from December 2007 until December 2008. Separate meetings were also held with women. Key information of the RP were disclosed to APs as early as 2006 (when the RP was prepared) and updated resettlement-related information were again disclosed to APs during public meetings. The RP cost is USD 5.3 million. Payment for land and non-land assets meets the principle of replacement cost. Assistance (in cash and in-kind) will also be provided to severely affected households (relocating households and households losing income which is 10% or more from paddy land). Following the approval of the updated RP, disbursement of payment will be made to all APs. TPPMU1 will not allow construction activities in specific sites until all resettlement activities have been satisfactorily completed, agreed rehabilitation assistance is in place, and the site is free of all encumbrances

2007 2008 2009 2010 Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

RP Updating (Following Detailed Design) - Consultation and Disclosure Activities - DMS, Replacement Cost Survey - Design of Income Restoration Measures

i

ii

2007 2008 2009 2010 Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

- Identification of Replacement Land - Updating of RP Budget - Preparation of Updated RP - Disclosure of Updated RP to the APs - Submission of Updated RP to ADB Approval of the Updated RP by ADB Implementation of Updated RP (After ADB Approval)

- Disbursement of Compensation and Allowances - Handover of Replacement Land -Implementation of Income Restoration Measures*

Clearing of Land Start of Civil Works** Internal and External Monitoring***

Monitoring will be undertaken by TPPPMU1, Cam Pha Resettlement Committee, and the external monitor engaged by TPPPMU1. Quarterly monitoring reports (internal and external) will be submitted to ADB. Project Supervision Consultants will assist TPPMU1 and Cam Pha Resettlement Committee in the RP implementation and monitoring activities. This updated RP should be read together with the approved 2006 Resettlement Plan.

I. INTRODUCTION

A. Preparation of Updated Resettlement Plan

1. A Resettlement Plan was prepared and approved by both the Government of Viet Nam and Asian Development Bank in September 2006 based on preliminary design. The Resettlement Plan covers the power plant, cooling water intake channel, cooling water discharge channel, ash pond, and workers' site.

2. This Resettlement Plan has been updated to take into account the final detailed design available and the data from the detailed measurement surveys. DMS was conducted in the power plant area, the cooling water the intake channel, the ash pond, the water discharge channel and the river diversion area. This updated RP has been prepared with the participation of and consultation with key stakeholders, such as the People’s Committee of Cam Pha town and Mong Duong ward, project affected persons (APs) and other concerned organizations.

3. This updated RP should be read together with the approved 2006 Resettlement Plan.

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS

A. Measures to Minimize Impacts

4. The census and detailed measurement survey in the power plant, cooling water intake channel and river diversion areas was completed in April 2008 while census and DMS in the ash pond and cooling water discharge channel areas was completed on 14 July 2008.

5. Thermal Power Plant Site. The project site has been chosen to reduce impacts on resettlement. A large part of the project site is owned by coal companies under Vinacoal, a large state company, and is used as a coal storage area and as a port for coal exportation. This site has been considerably modified from its natural state. The project area is also generally hilly and forest-covered. Relatively few households (HH) live in the Project area. The choice of the site, surrounded by hills, and isolated from the Mong Duong urban area also limits the impacts on the existing residential areas of Mong Duong Ward. 6. Cooling Water Discharge Channel. During the preparation of the RP, preliminary design shows that two sections have to be dug : (a) from the power plant to the De Dach River and (b) De Dach River to Sa Thay River through the residential area of Cam Hai Commune. During DMS, it was possible to reroute the last section of the water discharge channel to avoid the fishing village of Cam Hai Commune.

7. East of the Ash Pond near the Water Intake. Two private coal companies, Binh Minh and Duc Trung, located South and East of the Ash Pond near the water intake, were supposed to move according to the former design. However, the result of DMS shows that Duc Trung and Binh Minh companies will lose only a part of their land, therefore they don't need to move.

B. Impacts on Affected Households

8. Total Number of Affected Households. Thirty seven households will be directly affected by the Project. Among the 37 households, 16 households will have to relocate and 3 households are considered as severely affected due to impacts on main source of income (loss of paddy land).

1

Table 1: Total Number of Affected Households

Name of APs

Component Total acquired

area (m2) Total

landholding (m2)

Percentage (%)

1 Truong Van Tro discharge 20,041.3 235,585 8.5 2 Nguyen Trung Lap discharge 4,350.2 72,475 6.0 3 Nguyen Van Thang discharge 2,930.5 31,657 9.2 4 Tran Dang Nam discharge 2,215.9 2,215.9 100 5 Dao Xuan Thuy discharge 515.1 11,785 4.4 6 Le Van Dung discharge 248.0 17,500 1.4 7 Ngo Thi Ngoc Thuy discharge 1,483.6 40,954 3.6 8 Nguyen Thi Ban discharge 57.5 13,600 0.4 9 Nguyen Thi Muon discharge 227.4 12,956 1.8 10 Do Van Ly discharge 440.0 18,200 2.4 11 Doan Van Son discharge 2,581.2 32,804 7.8 12 Vu Thi Chap discharge 3,982.2 44,370 8.9 13 Pham Van Quy discharge 16,307.1 72,700 22.4 14 Hoang Van Kim discharge 2,969.1 33,225 8.9 15 Pham Van Thuy discharge 782.3 782.3 100 16 Pham Van Tan ash pond +

plant site 518,462.8 3,651,260 14.2

17 Pham Ba Tan Plant site 19,115.7 225,540 8.5 18 Vu Anh Dung ash pond 1,860.6 1,860.6 100 19 Pham Quang Hoan ash pond 5,647.6 115,500 4.9 20 Pham Van Quyet ash pond 2,338.7 32,400 7.2 21 Trieu Duy Toan ash pond 1,296.5 27,670 4.7

22 Trieu Duy Thien ash pond 465.8 465.8 100 23 Nguyen Dinh Vinh ash pond 466.0 466.0 100 24 Phung Van Ha ash pond 397.3 12,780 3.1 25 Le Van Dung ash pond 429.8 429.8 100 26 Pham Duy Hung ash pond 880.7 21,800 4.0 27 Doan Van Xuong ash pond 1,487.6 23,700 6.3 28 Vu Thi Linh/Pham Van

Hung Plant site 678.6 678.6 100

29 Truong Van Khanh Plant site 4,933.4 58,080 8.5 30 Pham Van Vinh Plant site 5,648.7 68,368 8.3 31 Nguyen Xuan Ngoc Plant site 3,171.2 57,250 5.5 32 Trinh Ba Hai Plant site 1,656.0 23,990 6.9 33 Nguyen Van Sang Plant site 148,027.4 720,600 20.5 34 Pham Tat Chung Plant site 1,140.5 20,500 5.6 35 Tran Hoa

River diver + plant site

112,086.9 1,249,000 8.9

36 Lo Van Vy Plant site + river diver

296,826.7 4,000,000 7.4

37 Do Dinh Vinh Plant site + river diver

282,423.0 3,900,000 7.2

Subtotal 1,468,573 12,133,038 9. No household was identified as poor or categorized as social policy households. All households are headed by men.

2

10. Plant Site. On the plant site, 3 main land owners Nguyen Van Sang, Tran Hoa and Lo Van Vy will be affected. They will lose respectively 20,5%, 8,9% and 7,4% of their entire land. However, they still own respectively 72 ha, 125 ha and 400 ha of remaining productive land. In addition, they already purchased land in other commune or district. These large land owners employ families on their farm. The families are living and working on the land. Some workers are also employed seasonally or part time. All the houses occupied by workers belong to the owner. On the 3 properties, these houses will not be affected by the project. Therefore, no impact is anticipated for workers; they will continue to work on the farm during and after site clearance. No specific assistance is required for them.

11. One HH (Pham Van Hung) is considered as severely affected as he will lose all his productive land and his main income comes from agriculture. During meeting with him, he required to have access to credit to help him to start new or improved farming activities.

12. Two other HH, Pham That Chung and Pham Ba Tan will have to relocate. However, they have respectively more than 22 and 2 ha of remaining land. They both choose to relocate individually. The 6 remaining HH will be marginally affected with land affected mainly by loss of forestry land (less than 10%).

Table 2: Summary of Affected Households by Plant Site

Name of HH head/

Nb of

pers.

Type of affected

productive land

% of land

affected

Occupation Main structure affected

Impact

(HH) Nb Area

PLANT SITE

1

Lo Van Vi Agriculture and fish pond

7,4% Land owner 0

0

Marginally affected More than 400 ha of remaining land

2

Nguyen Van Sang (Nguyen Thi Thom)

Forestry and fish pond

20,5% Land owner 1

79.7

Marginally affected More than 72 ha of remaining land

3 Pham Ba Tan 5 Forestry

land 8,5 Coal worker 1

73.5 Relocating HH 4

Pham Van Hung

2 Garden land

100% Farmer/Coal collector

1 57.7

Relocated and severely affected farmer

5 Truong Van Khanh

5 Forestry land

8,5% Farmer 2 67.7 Marginally affected

6 Pham Van Vinh 5 Forestry

land 8,3% Farmer 0

0 Marginally affected

7 Trinh Ba Hai 6 Forestry

land 6,9% Farmer 1 68.6 Marginally affected

8 Pham Tat Chung

3 Forestry land

5,5% Farmer 2 81.8 Relocating HH

9 Nguyen Xuan Ngoc

4 Forestry & garden land

5,5% Coal worker 0 0 Marginally affected

10 Do Dinh Vinh 6 Forestry land

7,2% Farmer 0 0 Marginally affected

11 Tran Hoa Forestry and fish pond

8,9% Land owner 2 271 Marginally affected

13. There are 15 households affected by the cooling water discharge channel, of which 7 households lost all their residential land, houses, garden and agriculture land and they all agreed to

3

relocate in the resettlement site. Other 8 households lost their land but less than 10% of their landholding (see table 8 below and Annex 5).

Table 3: Summary of Affected Households by Discharge Channel

Name of HH head Nb of pers.

Type of productive

affected land

% of land

affected

Occupation Main structure affected

(HH) Nb Area

Impact

DISCHARGE CHANNEL

1 Nguyen Thi Ban 4 Garden land 0,4% Coal worker 0 0 Marginally affected

HH

2 Nguyen Thi Muon 5 Garden land 1,8% Coal worker 0 0 Marginally affected

HH

3

Hoang Van Kim 4 Garden & agriculture

land

8,9% Farmer 2 77.5 Relocating HH

4 Ngo Gia Dinh/Ngo Thi Ngoc Thuy

4 Agriculture land

3,6% Coal worker 0 0 Marginally affected HH

5 Nguyen Trung Lap 5 Partly affect.

HH 6,0% Farmer 1 38 Relocating HH

6

Tran Dang Nam 1 Garden & agriculture land

100% Farmer & Coal collector

1 38 Relocated and severely affected farmer

7 Truong Van Tro 4 Forestry land 8,5 Farmer 0 0 Marginally affected

HH

8 Nguyen Van Thang

6 Forestry land 9,2% Farmer 0 0 Marginally affected HH

9 Dao Xuan Thuy 3 Partly

affect.HH 4,4% Farmer 0 0 Marginally affected

HH 10 Le Van Dung 4 Forestry land 1,4% Farmer 0 0 Marginally affected

HH

11 Do Van Ly 5 Forestry land 2,4% Farmer 0 0 Marginally affected

HH

12 Doan Van Son 4 Garden land 7,8% Farmer 1 37.5 Relocating HH

13 Vu Thi Chap 5 Garden land 8,9% Farmer 1 37 Relocating HH

14

Pham Van Quy 4 Forestry & garden land

22,4% Farmer 1 28 Reorganized HH More than 7 ha of remaining land

15 Pham Van Thuy 2 Totally affect.

HH 100% Tan’s farm

worker 1 33 Relocating HH

14. Ash Pond. Eleven households, located in the future ash pond, will be affected by the project. Most of the land is owned by Mr Pham Van Tan (52 ha) and include mainly forestry land and fish ponds. Mr Pham Van Tan has more than 365 ha of remaining forestry land. He also purchased new land in Cam Hai. He has already started new forest and aquaculture activities.

15. Mr Pham Van Tan employs several families. They are living on his land. 3 of them own a plot of land and a house within Mr Tan land. They are considered as relocating HH.

16. All the workers will be transferred to this new land and new houses will be built. The houses will be built, by Mr. Pham Van Tan, before clearance. It was confirmed that no workers will lose their jobs. Therefore, no specific assistance is required for workers; they will not experience any transition period; they will move to their new land once the houses are built. The transport will be ensured by the owner. They will continue to receive their salary during this period.

4

17. Four other HHs will have to relocate. One of them, Mr. Trieu Duy Thien is considered as severely affected and will require assistance. The 3 others one HH lose less than 10% of their productive land. Finally 3 other HH, including Mr. Pham Van Tan, will be marginally affected.

Table 4: Summary of Affected Households by Ash Pond

Name of HH head/

Nb of pers.

Type of productive

affected land

% of land

affected

Occupation Main structure affected

Status

(HH) Nb Area

ASH POND

1

Pham Van Tan 4 Forestry land & fish pond

14,2% Land owner 0 0 Marginally affected, more than 365 ha of remaining land

2 Doan Van Xuong 2 Garden land 6,3% Farmer 1 35 Relocating HH

3

Vu Anh Dung 3 Agriculture and forestry land

100% Tan’s farm worker

1 29 Relocating HH; will continue to work for Mr. Tan

4

Pham Quang Hoan

3 Partly affect. HH

4,9% Tan’s farm worker

1 28 Relocating HH; will continue to work for Mr. Tan

5 Pham Van Quyet 4 Agriculture

land 7,2% Farmer 1 28 Marginally affected

6 Trieu Duy Toan 5 Agriculture

land 4,7% Farmer 1 27 Relocating HH

7 Trieu Duy Thien 4 Garden land 100% Farmer 1 34 Relocated and severely

affected farmer

8

Nguyen Dinh Vinh

5 Garden land 100% Tan’s farm worker

1 28 Relocating HH; will continue to work for Mr. Tan

9 Phung Van Ha 4 Garden land Farmer 0 0 Marginally affected

10 Le Van Dung 3 Garden land 100% (at this

location)

Farmer 1 35 Relocating HH; Have other productive land in other location

11 Pham Duy Hung 4 Garden land 4,0% Farmer 0 0 Marginally affected HH 18. Cooling Water Intake Channel. All 205,844.0 m2 of special land acquired for cooling water intake channel is managed by Mong Duong People’s Committee. No household will be affected by this component. C. Impacts on Companies

19. Total Number of Affected Companies. A total of 13 companies will be affected by the Project as summarized in the table below.

Table 5: Coal Companies and State owned Companies Affected

Name of Companies Location Area of land (m2) Ownership

Khe Cham Coal Cie Plant site 13,096.4 Vinacoal Hanh Toan Coal Cie Plant site 71,413.7 Ministry of Defence Cam Pha Forestry Cie Plant site 25,280.8 Depart. of DARD Cam Pha Coal Cie Plant site 16,069.5 Under Vinacoal Joint-Stock of VinaCoal-Mineral Group Plant site 1,225.1 Under Vinacoal Mine Construction Cie Plant site 10,062.8 Under Vinacoal Coal Trade-Services Ltd,.Co. Plant site 21,296.8 Under Vinacoal

5

Name of Companies Location Area of land (m2) Ownership

Plant site 530,244.0 Cooling water intake

channel 192,854.0

Ash pond 633.0 Discharge Channel 138,328.0

Mong Duong Ward PC

MD river diversion 93,563.0

Mong Duong Ward PC

Binh Minh Company Ltd Ash Pond 2,383.7 Private Duc Trung Company Ltd Discharge Channel 26,631 Private Binh Nguyen Company Ltd MD river diversion 82,485 Private

Thien Thuan Tuong River diversion 13,509 Private (included in

compensation plan of Mr. Tran Hoa)

Cam Pha Forestry Company Plant site Depart. of DARD

20. Plant Site. Six coal companies and one private limited company are located in the plant site: Khe Cham, Hanh Toan, Cam Pha, Joint-Stock coal, mining Corporation, mine construction and coal trade-services company of Quang Ninh, and Binh Minh Ltd. Vinacoal controls more than 90% of the mining, distribution, and export of coal in Vietnam. In Mong Duong Ward, Vinacoal owns Mong Duong and Khe Cham coal mines. All the companies have different installations (platforms, wharfs, jetties). They all also have several buildings for coal storage, coal loading, and administration for workers.

21. The land officially belongs to the provincial authorities. The state and private companies hired the land in a period of 20-50 years. At the present, six of seven companies finished their contract of land rental and they are not entitled to compensation for investment on land. Only coal Trade – Services company is entitled to compensation for improvements made on land.

22. All six companies are state owned companies (SOEs). At the time of updating the resettlement plan, all coal companies have already moved their installations to Khe Day port, about 5 km from plant site area. No other relocation site for coal companies is identified in this updated RP. Relocation of affected SOEs will be the responsibility of the provincial department of Industry. Cam Pha Town is identified as an industrial area according to the provincial Master Plan, many areas are devoted to industrial activities. They will be moved to other SOEs’ plants or port installations in the neighbourhood. Vinacoal (owner of 4 affected companies) owns several port installations in the surrounding area and is also planning new port installation in Cam Pha. Vinacoal (partner of the project) will easily reorganize its activities. According to Vinacoal and Vietnam labour policies, SOEs have to ensure a job to their permanent workers if the installations are moved.

23. A state-owned forestry company, Cam Pha Forestry Company, has a port installation in the plant site for exporting and importing wood. The company is under the Quang Ninh provincial department of Agriculture. The company will move near the Khe Day port where all coal companies will relocate.

24. The Thien Thuan Tuong Construction Company is located on the route of the River diversion. The company is owned by Mr. Tran Hoa a large landowner. The company has already moved nearby on Mr Hoa land. All the workers kept their jobs.

6

25. Ash Pond. Two private coal companies will be affected: Binh Minh and Duc Trung. Binh Minh has 8.6 ha of land close to ash pond at the mouth of the Mong Duong River. The company built access roads, port installations and several buildings. 26. The result of DMS indicates that Duc Trung Company will lose about 2.6 ha of special land and Binh Minh will lose only 2,384 m2 of special land. For these two private companies, the land belongs to Cam Pha Town. However, the two companies invested on the land and they are entitled to compensation for investment on land. These 2 companies could continue their activities at their present location and no worker will be affected. D. Impacts on Land and Non-Land Assets

27. Land. The area of land required for the Project is 269.4 ha. Most of the affected land is composed of forestry land (114,2 ha). The project area is hilly and most of the hills are under forest planted cover (mostly acacias). The Project will also require around 47.3 ha of land used for aquaculture. Due to the proximity of the sea, many areas along the sea or along the Mong Duong River have been developed for this activity. The ash pond in particular is mainly used for aquaculture. 28. More than 20.9 ha of industrial land will also be required. Industrial areas are located at the mouth of the Mong Duong River and are occupied by 6 coal companies (4 under Vinacoal). This site is used to store and to export coal by the sea. Several port installations are located on this site. Two port installations belonging to private companies Binh Minh and Duc Trung, between the ash pond and the intake canal will also be marginally affected. They could however continue their activities. 29. Residential land, garden land and agricultural land are marginally affected accounting respectively for 4,1 ha, 1,3 ha and 0,1 ha. for less than 2 ha each (see Annex 1).

Table 6: Summary of land acquisition Type of land Plant site Discharge

channel Ash

Pond Water intake

River diversion

Total

1 Productive land 827.537,2 83.592,0 463.326,3 257.003,1 1.631.458,6

1.1 Garden land 12.795,2 12.795,2

1.2 Forestry land 779.904,7 42.848,5 213.588,3 105.642,1 1.141.983,6

1.3 Fish ponds 46.333,3 27.948,3 249.738,0 151.361,0 473.380,6

1.4 Agriculture land 1.299,2 1.299,2

2 Non agricultural land

503.392,3 171.150,8 27.715,1 205.844,1 111.176,2 1.019.278,5

2.1 Residential land 10.413,8 20.100,0 6.606,5 2.991,3 1.140,8 41.252,4

2.2 Industrial land 123.715,6 20.699,1 21.108,6 9.998,8 33.945,5 209.467,6

2.3 Transport land 20.865,1 1.833,6 5.436,8 28.135,5

2.4 Irrigation land 196,0 196,0

2.5 Water 348.397,8 128.322,1 192.854,0 70.653,1 740.227,0

3 Non used land 43.403,2 43.403,2

7

Type of land Plant site Dischargechannel

Ash Pond

Water intake

River diversion

Total

Total 1.374.332,7 254.742,8 491.041,4 205.844,1 368.179,3 2.694.140,3

30. Houses and Structures. A total of 52 main structures/houses (1,858 m2) will be affected by the Project. Of these 28 are residential HH (1,389 m2) and 24 are industrial structures (469 m2). All residential structures belong to category IV1. A pagoda is located on an island at the mouth of the Mong Duong River. This pagoda is frequented by Mong Duong residents and was built by a local resident. The pagoda will not be affected, however, access to the island will be more difficult due to the presence of the plant and the water intake. In addition, the environment of the pagoda will be greatly disturbed by the presence of the thermal power plant just in front. No other cultural or religious site will be affected. No tombs have been identified so far in the project area.

Table 7: Affected Structures

Houses

Category IV Houses for

workers Industrial structures

Other structures

Total

No. m2 No. m2 No. m2 No. m2 No. m2

Plant site 10 700 24 469 8 1,840 41 3,612Discharge channel 8 600 10 580 18 1,180.0Ash Pond 8 298 9 600 17 994

Intake channel 0 0 0 0 0 0 0 0 0 0River diversion 2 147 2 260 3 407

TOTAL 28 1,389 24 469 29 3,280 81 5,138 31. Forest Trees. About sixty two (62) hectares of forest trees, mainly acacias and also eucalyptus will be affected in the project area. Quang Ninh province compensates trees according to the volume (in cubic meters) of trees affected. It is estimated that one hectare of forestry land produces 110 cubic meters. 32. Before 2000, eucalyptus was the main species planted in Quang Ninh province and in the project area. However for the past 5 years acacia has increasingly become viewed as preferable to eucalyptus because of their rapid growth rate (5 to 6 years), adaptability to poor soil types, and resistance to leaf diseases that are a problem for eucalyptus. The main outlet for acacias is the coal industry which uses acacia wood for mine galleries.

Table 8: Affected Forest Trees

Forestry land (m2) Acacias and eucalyptus (m3)

Plant site 779,904 4,896 Ash Pond 213,588 1,896 Discharge channel 42,848 640 River diversion 105,642 950 TOTAL 1,141,984 8,382

1 Category IV house correspond to a permanent house with a relatively low level of comfort.

8

33. Fruit Trees. A total of about 5,345 fruit trees will be affected. The main affected fruit trees are longans and lychees. Most of the affected fruit trees are located on the 2 large farms located on the plant site.

Table 9: Affected Fruit Trees

Longan

(Qty) Lichees

(Qty) Bananas

(Qty) Mango (Qty)

Jack fruit (Qty)

Orange (Qty)

Ananas (Qty)

Other(Qty)

Total (Qty)

Plant site 4,000 1,000 250 50 5,300 Discharge channel 5 5 10 15 35 Ash Pond 10 5 15

TOTAL 4,005 1,000 5 20 205 15 50 5,345 34. Affected Businesses. Due to the rerouting of the diversion channel, no business is now affected by the project. E. Potential Impacts During Construction Phase

35. As presented in the 2006 RP, the EIA Report2 shows that during construction phase filling and leveling the delta of the existing Mong Duong river and dredging the intake channel will destroy all existing fish and other aquatic habitat in these areas. It is anticipated that it will take 2 years for the natural aquatic ecosystem of the lower river to be restored in the new re-aligned mouth of the river. All fishing activities in the Mong Duong River will then be disturbed during at least 2 years and a half (including the 6 months construction period).

36. High tide brings fishes in the river estuary. In the 2006 RP, 13 families were identified: five HHs were relying completely on fisheries as their livelihood and eight relied partially on fisheries (secondary source of income). They only fish some hours per day during high tide. In 2008 the number of fishermen was lower. According to local fishermen, they started to fish around the coastal shore. It is however difficult to assess the impacts on these fishermen. They could move and found new fisheries area. Only the environmental monitoring could assess the real impacts on fisherfolks. No specific entitlements have been proposed to them but the Project will carry out environmental monitoring to identify negative impacts on their income and that appropriate income restoration measures will be proposed. F. Potential Impacts During Operation Phase

37. During operation phase, particularly in the discharge channel (De Dach Estuary and Cam Hai Coastal Zone, Cam Hai Commune), increase of the water temperature, due to the thermal effluent, will alter the ecosystem and biological productivity of the De Dach estuary and near the ocean outfall at Cam Hai commune.

38. The sand worm and other aquatic populations will be affected by the thermal plume, which obviously will be greatest near the plant. Sensitive species will decline or disappear, while other species may quite likely thrive due to the effects of temperature on metabolism and productivity. However, due to the lack of information on the standing volume of the effluent stream in the channel, i.e., heat dilution capacity, that will be maintained during operation, there is a major source of uncertainty. Specific effects of the thermal effluent, such as the effects on

2 June 2006, Marine Aquatic Resources Study, EIA Report. ADB-TA4670(VIE).

9

fisheries, diminished fish captures (including sand worms), loss of income, etc. can only be assessed during operation.

39. In Cam Hai Commune: • More than half of the residents (183 HH) rely on fisheries as their livelihood. They are

fishing at least 10 km off shore. Because they are fishing far from the shore, it is likely that they will not be affected by the thermal plume. However, monitoring is necessary.

• 23 households are also engaged in cage culture. According to the entrepreneurs, cage culture is more effective - more production and higher returns than catch fishing - but it needs larger investment and access to credit.

• During low tide, local people are also collecting "Sai Sung" or "white/sand worms" in the sand as a secondary source of income. Dried white worm or "Giun Trang" is in great demand and will be sold 800 000 VND/kg (50 USD). White/sand worms are very productive in this area. According to a report from the Ministry of Fisheries3 ‘’Sand worm is a species of high economic value living on sandy tidal flats in coastal zone of Quang Ninh in general and in Van Don in particular. This is a natural species of high economic value that is both used for local food and for export. At present, 90% of the fished production is exported to Chinese market. This is a species that the poor, especially women, may exploit all the year round’’. The sand worm and other aquatic populations in De Dach estuary and Cam Hai coastal zone will be affected by the thermal plume, which obviously will be greatest near the plant. According to the EIA, sensitive species will decline or disappear, while other species may quite likely thrive due to the effects of temperature on metabolism and productivity. Most of the HH in Cam Hai (covering the De Dach estuary and the coastal zone) are collecting worms as a secondary source of income (around 300 HH). However not all the Cam Hai coastal zone will be affected by the thermal plume; only the De Dach estuary and the discharge channel outlet. Based on discussions with fisherfolks and local authorities, we can estimate roughly to 50 the number of HH collecting worms and other aqua products in the affected area.

• Some families also sell food and drinks near the plant area. These families live outside the project area and just installed temporary huts in the project site, at the mouth of the Mong Duong River. Selling food and drinks is not the main income of the families. They are mainly involved in fisheries.

40. Impacts on fisheries in the discharge channel can only be determined during operation, according to water quality and fisheries monitoring during operation against a baseline that will be established during Project implementation. During operation, a monitoring program and a rapid response mechanism will be established to identify impacts, needs and mitigation measures in close consultation with affected fisher folks. The HHs potentially affected through loss of access to fisheries, aquaculture and worm collection are entitled to the livelihood restoration as indicated in the 2006 RP.

III. PROJECT ENTITLEMENTS

41. Based on the result of the detailed measurement survey, severity of impacts on the three households, establishment of unit rates, the entitlement matrix adopted is as follows: 3 Planning for brackish water and marine aquaculture in Van Don district, Quang Ninh 2002-2010, September 2002.

10

Table 10:: Entitlement Matrix Type of Impact Entitlement

a) Marginal loss of agricultural/forestry land and aquaculture

Legal/legalizable households and eligible organizations are entitled to cash at full replacement cost of the affected land.

No land compensation for non-legalizable households, but they are entitled to full compensation for loss of crops and/or trees

b) Severe loss of agricultural/forestry land and aquaculture

Legal/legalizable households and eligible organizations are entitled to cash at full replacement value of the affected land

Subsistence allowance 1,100,000 VND/pers/month for 4 months Training program, assistance to have access to credit and priority for employment

in the power plant based on the academic background for one member of each severely affected HH.

c) Loss of residential land

Legal/legalizable households and eligible organizations are entitled to cash at full replacement value of the affected land - 700,000 VND/m2 for a maximum of 120 m2 along Highway 18; - 350,000 VND/m2 for a maximum of 300 m2 outside Highway 18;

APs who are have remaining land less than 100 m2 will have two options: - Resettlement in a fully serviced resettlement site located at the South entrance

of Mong Duong ward, near Highway 18 at a price of 1,200,000 VND/m2 to 1,350,000 VND/m2 for a plot of land of 100 m2. APs will not pay any transfer or other taxes. APs will receive full title on their plot of land;

- Individual relocation at a location satisfactory to APs with full title on land. d) Loss of

industrial land No compensation for land. Eligible organizations are entitled to allocation of new

land to re-establish their activities (Khe Day port) e) Loss of crops,

and trees All households and organizations regardless of land use rights are entitled to

cash compensation at current market prices. Annual crops: 2 months notice that the land on which their crops are planted will

be recovered and that they must harvest their crops in time. If standing crops cannot be harvested within the timeframe of the notice, households will be compensated at replacement value for the loss of the un-harvested crops. Replacement value is based on the average production over the last 3 years multiplied by the current market prices for agricultural products

Perennial crops and trees: Full replacement cost for the loss of perennial plants and fruit and timber trees. Replacement value is equal to current market prices given the type, age and productive value of the affected crops or trees. Cash compensation at current market prices for any un-harvested crops that are near or ready to harvest at the time of land acquisition

f) Impacts on main and secondary structures

Cash compensation at full replacement cost for materials and labour for affected portion with no deduction for depreciation or salvageable materials.

g) Relocating HH Household who will relocate in the RS will receive the following allowances:

- Subsistence allowance: 1,350,000 VND/HH member - Transportation allowance: 3,000,000 VND/HH - House renting allowance: 1,100,000 VND/HH/month for 4 months - Relocation allowance: 37,500,000 VND/HH

Household who will relocate individually will receive the following allowances: - Subsistence allowance: 1,350,000 VND/HH member - Transportation allowance: 3,000,000 VND/HH - House renting allowance: 500,000 VND/HH/month for 4 months - Relocation allowance: 75,000,000 VND/HH

h) Reorganized Households

Household who will reorganize will receive the following allowances: - Subsistence allowance: 675,000 VND/HH member - Transportation allowance: 2,000,000 VND/HH - House renting allowance: 7,00,000 VND/HH/month for 4 months - Relocation allowance: 45,000,000 VND/HH

11

Type of Impact Entitlement i) Temporary

impacts during construction

Rental in cash which will be no less than the net income that would have been derived from the affected land during disruption for productive land. For residential land, the rent will be negotiated with HHs. The land will be restored to its pre-project condition.

IV. CONSULTATION AND DISCLOSURE ACTIVITIES

A. Public Information and Consultation of APs

42. During the process of RP udating, by TPPMU1, DRC staff and local authorities since December 2007 in several meetings. The purpose of the meetings was to: (i) inform the project planning; and (ii) disclose resettlement policy and resettlement planning for Mong Duong Thermal Power Plant Project, (iii) options with regard to compensation, assistance, and relocation; (iv) address/resolve questions or complaints raised by APs during the consultation meeting. It should be noted that in June 2006, key information of the RP was disclosed to all APs through public information booklets and posted at the town, communes and ward offices. 43. Upon completion of detailed measurement survey and establishment of unit rates, the "compensation plan" which covers detailed losses, rates, and applicable entitlements and rehabilitation measures were sent to all APs in August 2008 and September 2008. The compensation plans were also reviewed and checked by TPPMU1 staff to make sure that all losses are included and to provide transparency in resettlement activities.

44. All of affected household heads participated in public meetings to review quantity of losses and compensation values, and rehabilitation measures applied by the resettlement committee of Cam Pha town.

Table 11: Consultation Meetings Date of

consultation Content of consultation No. of APs

attended Note

1 20 Dec 2007 Disclose Resettlement Policy

32 In Mong Duong Ward

2 7 Aug 2008 Compensation rates and rehabilitation measures

17 Two APs have complaints on missing quantity of land acquired.

3 27 Aug 2008 TRC adjusted quantity of land for two APs

2 Two APs agreed adjustment and signed on their compensation plans.

4 10 Sep 2008 Compensation rates and rehabilitation measures

20 Seven APs did not agree with their quantity & compensation values

5 20 Sep 2008 TRC adjusted quantity of land & comp. values for seven APs

7 Seven APs agreed adjustment and signed on their compensation plans.

6 2 Oct 2008 Compensation rates for assets and investment on land

12 coal companies & State ent

All 12 coal companies & State enterprises agreed with rates and compensation to investment on land.

Note: Due to a large quantity of land, trees and secondary structures affected by the project the Resettlement Committee have to prepare separated compensation plan for each household/company. After completion of some compensation plans, TRC forward them to TPPMU1 for review then disclose to APs at the consultation meetings for review again and signing.

12

45. A separate meeting with women was held in November 2008. Women expressed their concern on the impacts on environment and in particular health issues. They also raised concern on employment opportunities and requested the Project to give priorities to them and their families. For those who are engaged in farming activities, the 100m2 land in the relocation site is too small and is not adaptable to farmers.

46. The issue on the small replacement plot of land at the relocation site, male households also raised this since it is not adapted for farmers, therefore, they opted for cash and will find a replacement land on their own.

V. GRIEVANCE REDRESS MECHANISM

47. The grievance redress mechanism presented in the 2006 RP is consistent with the Government's existing grievance redress mechanism as shown below.

Complaints of APs on any aspect of compensation, relocation, or unaddressed losses will be lodged verbally or in written form to the CPC/WPC. The complaint can be discussed in an informal meeting. It will be the responsibility of the CPC/WPC to resolve the issue within fifteen days from the date the complaint was received.

If no understanding or amicable solution was reached or no response has been received from the CPC, the AP can register the complaint with the TRC. The AP must lodge the complaint within one month of lodging the original complaint with the TRC and must produce documents which support his/her claim. The TRC will provide the decision within fifteen days of the AP registering the complaint. The TRC’s decision must be in compliance with the Project’s Resettlement Plan. Copies of the TRC’s decision will be provided to the AP, TPPMU1, and TPC.

If the AP is not satisfied with the decision of, or in the absence of any response by the, TRC or its representatives, the AP can appeal to the PPC. The PPC, together with TRC, and TPPMU1 if required, will provide decision on the appeal within thirty days from the day it is received by the PPC.

If the AP is still not satisfied with the decision, the AP can appeal to higher authorities such as the District Civil Court.

48. The commune, district and provincial level RCs will also serve as the grievance redress committees at all levels. Attempts will be made to settle the issues at the commune level through community consultation, involvement of social and resettlement experts as required, NGOs and mediators and facilitators if required

49. At the time of RP updating, through public consultation meetings in December 2007, most of affected households did not accept proposed rates for land and houses, and requested reconsideration. All APs accepted compensation rates for agriculture land, secondary structures, trees, crops, other properties and rehabilitation measures. 50. Based on the feedbacks from the APs, several meetings were held among the local authorities for review and consideration, on 27 June 2008, based on proposal of adjustment of compensation prices for land and houses prepared by Cam Pha town Resettlement Committee and People’s Committee, Quang Ninh People’s Committee has issued Decision No. 2022/QD-UBND dated 26 June 2008 on updated compensation prices for land and Decision No. 1970/QD-UBND dated 19 June 2008 on updated compensation prices for houses and some

13

structures. Generally, compensation prices for land increased 20-25% in comparison with prices issued in 2007; and rates for houses and some structures increased around 75% in comparison with that in 2007. 51. On 24 October 2008, ADB Vietnam Resident Mission received a written complaint from 6 affected persons (APs) affected by the Mong Duong Thermal Power Plant Project. The main reasons of the complaint were: (a) compensation rate for residential land is estimated to be too low. Households, who opted to move to the Resettlement Site (RS), will have to pay 3 times the price they are compensated for their affected residential land to be able to buy a plot of land in the RS; (b) compensation prices for structures don’t correspond to market value; and (c) some trees are compensated at 20% of their value. 52. On 9 November and 17-18 December 2008, TPPMU1, together with ADB VRM staff and consultants, held meetings with the APs to inquire on the nature of APs' complaints, the project policy as per approved 2006 RP. Meetings were held with 4 of the 6 households who sent the complaint letter to ADB. These households confirmed that several meetings were held with them and they verbally raised their complaints. Since they were not satisfied with the verbal answers, they sent a written complaint to Cam Pha Resettlement Committee in September 2008. Having received a written reply from the Cam Pha Resettlement Committee on 10 October 2008 and that the reply was not satisfactory to the households, the households explained that they wrote to ADB Viet Nam Resident Mission as indicated in the public information booklet which they received in 2006. 53. Investigations and meetings with concerned departments were also carried out to determine the validity of complaints. Findings show that the nature of complaints has no merits. After carefully explaining the project policy and entitlements, basis for establishment of unit rates, all APs accepted the explanation provided by the team. On 22 December 2008, the APs officially signed the compensation plan and that there are no more outstanding grievances4.

Table 12: Nature of Complaints and Findings Nature of Complaint Findings

Compensation rate for residential land is estimated to be too low. Households, who opted to move to the Resettlement Site (RS), will have to pay 3 times the price they are compensated for their affected residential land to be able to buy a plot of land in the RS

The complaint has no merit. It was assessed that the price of residential land meet market price for the same category of land in the same area. Cam Pha Town raised the price of land from 250,000 VND/m2 to 350,000 VND/m2 in the project area to reflect market prices.

compensation prices for structures don’t correspond to market value

The complaint has no merit. The compensation rates have been adjusted in the compensation plans (75%) to reflect market prices and the inflation that occurred in Viet Nam since the beginning of 2008. No depreciation of materials was taken into account to establish these prices

Some trees are compensated at 20% of their value.

The complaint has no merit. The payment of trees, based on the existing policy of the Government applying density per category of trees (i.e., the maximum number of trees allowed per hectare) were paid at replacement cost. PPC applied the highest value for trees even if the trees within the density are of lower quality. For trees that were above the density (i.e., overplanted trees), it was found that the trees were of lower quality/less

4 It should be noted that of the 6 APs who sent the complaint letter to ADB, 5 of them already signed the

compensation plan in September 2008.

14

Nature of Complaint Findings productive and the 20% of the total cost of trees applied (now adjusted to 30%) already corresponds to the actual value of the overplanted trees. Also, some APs deliberately planted trees after the cut-off date to get more compensation.

VI. RELOCATION AND INCOME RESTORATION PLAN

A. Relocation of Households

54. APs who will have their main houses affected and will need relocation have the following options:

Option 1: To re-organize on their remaining land if this land is considered viable. The minimum size considered viable has been identified as being 100 square meters (m2). Household who will reorganize will receive the following allowances:

- Subsistence allowance: 675,000 VND/HH member - Transportation allowance: 2,000,000 VND/HH - House renting allowance: 7,00,000 VND/HH/month for 4 months - Relocation allowance: 45,000,000 VND/HH

Option 2: To relocate to a fully serviced resettlement site.

The proposed resettlement site has already been built, near Highway 18 at the South entrance of Mong Duong Ward. The RS was built by the Mong Duong Coal Company but is managed by Cam Pha town people’s committee.

This RS is intended to relocate all HH affected by projects in Mong Duong ward (mainly due to coal mine activities) including the Mong Duong Thermal Power Plant Project. Some plots of land have been reserved to APs for the Mong Duong Power Plant Project. The RS includes the following infrastructures: access road to Highway 18, sidewalks, tap water from the Mong Duong ward water network, sewage system, streets lights and public buildings. It is located near the Mong Duong River in a non polluted and calm environment. The RS will not be affected by the presence of the thermal power plant. The price of land in the RS is from 1,200,000 VND/m2 to 1,350,000 VND/m2 according to the location within the RS. All the plots have an area of 100 m2. In addition, APs will receive the following allowances

- Subsistence allowance: 1,350,000 VND/HH member - Transportation allowance: 3,000,000 VND/HH - House renting allowance: 1,100,000 VND/HH/month for 4 months - Relocation allowance: 37,500,000 VND/HH

Option 3: To make their own arrangements (self-relocation).

APs will receive compensation for land and structures and make their own arrangements for relocation. For APs who opt for individual relocation, the resettlement committees at all levels will closely supervise land plots or structures to be purchased/built so that their living standards are ensured to be at least as good as they would have been without the Project.

15

In addition, APs will receive the following allowances: - Subsistence allowance: 1,350,000 VND/HH member - Transportation allowance: 3,000,000 VND/HH - House renting allowance: 500,000 VND/HH/month for 4 months - Relocation allowance: 75,000,000 VND/HH

55. Sixteen households are entitled to relocation. Twelve households opted to relocate in the RS, 3 households to relocate individually and one will reorganize on his remaining land. However, several APs, who opt to relocate in the RS, are now reconsidering their choice. These APs, mainly farmers, consider that the RS is not adapted to farmers (plot of 100 m2 too small) and want to relocate individually. 56. The Project will provide all necessary technical assistance during the construction of houses on individual resettlement sites. When their new houses are completed, the APs will be assisted in moving to the new site. The quality of construction, power installation, water supply and other infrastructure on the plot will be supervised by TPPMU1 and the relevant local authorities. For APs who opted to self-relocate will be assisted by the local authorities in finding new land. B. Income Restoration for Severely Affected Households

57. With regard to livelihood restoration for severely affected households, consultations with these households show that the two households expressed their interest to get employed by the Project and therefore, wanted to undergo training while one household requested the Project to have access to credit to start new livelihood activities (rasing animals). TPPMU1 is now developing a training and employment strategy to give priorities to the APs in general and severely affected households in particular. 58. As for access to credit, credit could be obtained from the Bank for Agriculture and Rural Development. This Bank is very well established in the project area. They are already funding project for fisher folks or farmers involved in aquaculture and forestry activities in the project area. The Project met with officials from the Bank for Agriculture and Rural Development and the latter expressed their willingness to cooperate with the Project. 59. The project supervision consultant will work with TPPMU1, the Bank and local authorities to help Mr. Hung to have access to credit, develop training and employment strategy. Close monitoring will be carried out throughout the implementation of income restoration strategy. Modifications of the livelihood program/strategy, will be done, as necessary.

VII. MONITORING

60. Internal Monitoring. TPPMU1 and the Resettlement Committee will carry out regular monitoring and will submit quarterly reports to ADB5. The main indicators that will be monitored regularly are the following:

• Payment of compensation and assistance to APs in various categories; with no discrimination according to gender, membership of ethnic group or any other factor;

5 As part of the TPPMU1’s regular quarterly progress report to ADB.

16

• Delivery of technical assistance, relocation, payment of subsistence and moving allowances;

• Delivery of income restoration and social support entitlements and any modifications or improvement on proposed/ongoing income restoration activities to ensure compliance with policy objectives;

• Public information dissemination and consultation procedures; • Adherence to grievance procedures and outstanding issues requiring management’s

attention and equality of access; • Attention given to the priorities of APs regarding the relocation and income

restoration options offered; • Coordination and completion of resettlement activities; and • Unforeseen impacts during construction activities. • Actual implementation progress against agreed implementation schedule

61. External Monitoring. TPPMU1 hired by the end of October 2008 the Development Research and Consultancy Center (DRCC) under Vietnam Academy of Social Sciences as an organization for the independent monitoring and evaluation of resettlement plan implementation. DRCC will start its work as soon as the updated resettlement plan is approved. 62. DRCC will carry out its independent periodic review and assessment of a) achievement of resettlement objectives, b) the changes in living standards and livelihoods, c) restoration of the economic and social base of the affected people, d) the effectiveness, impact and sustainability of entitlements, e) the need for further mitigation measures if any, and f) to identify strategic lessons for future policy formulation and planning and good practice. 63. DRCC will undertake (i) key informant interviews; (ii) focus group discussions; (iii) structured direct field observations on status of resettlement implementation; and (v) formal and informal interview surveys with APs; separate meetings with women and severely affected households to monitor and assess the progress the APs are making to restore their living standards. As there are only 37 households, socio-economic profile of all households will be obtained through informal or structured questionnaires by DRCC as part of its montoring on APs' living standards and livelihoods of all APs. 64. DRCC will also closely monitor impacts during construction activities as adverse impacts may occur on the fishing activities of the fisherfolks identified during RP planning. 65. Monitoring will be carried out on a quarterly basis and external monitoring reports will be submitted to ADB and TPMMU1 within seven days after monitoring period.

VIII. IMPLEMENTATION ARRANGEMENTS

66. TPPMU1 has established a Resettlement Unit (RU) staffed with full time and with 8 persons to oversee the smooth and effective implementation of resettlement, compensation and rehabilitation measures and activities and work closely with Cam Pha RC and provide support and guidance to Cam Pha Town and communes. TPPMU1 will have overall responsibility to closely cooperate with local resettlement specialist for updating, preparing, and implementing the resettlement plan. TPPMU1 has assigned at least one person (or more as required) with social science background and/or work experience on social safeguard issues to work with the RC.

17

67. The Resettlement Committee (RC) of Cam Pha town was convened in 2007 to assist People’s Committee of the Town to implement all resettlement activities. The RC is chaired by Chairman of Cam Pha TPC and has the following members: director of Department of Finance as Deputy Chairman of RC; the project developer (TPPMU1)– as a standing member; director of Department of Natural Resources and Environment (DONRE) as a member; vice-chairwoman of Mong Duong Ward People’s Committee (WPC) as a member. 68. During the updating of the RP, a national consultant was hired to assist TPPMU1 and RC. During implementation of the updated RP, project supervision consultants composed of international and national resettlement and gender specialists will be mobilized in January 2009 to assist TPPMU1 in the:

• establishment and implementation of a centralized resettlement/social management system;

• implementation of all resettlement activities; needs and demand assessments for income restoration measures and to then assist in the design of the most effective programs;

• strengthening of the existing grievance redress mechanism • monitoring of impacts on fisher folks during construction activities and during

operation due to the change in water quality and temperature in the De Dach estuary and in Cam Hai coastal zone in close coordination with the consultants in charge of the environmental monitoring program

• design and implement a rapid response mechanism to address impacts and design and implement appropriate mitigation measures

• design and implement gender strategy 69. The consultants will also carry out formal and on-the job training on resettlement, social preparation, and social impact assessment.

IX. RP BUDGET

70. TPPMU1 will be responsible for channelling funds for the compensation for land acquisition and resettlement to the RCs who will be responsible for its payment directly to affected persons with respect to land, crops, trees, houses, other structures and any allowances. 71. The RP budget is US$ 5.3 million. Table 11.9 shows the breakdown of costs: compensation, measures for income restoration, and various allowances together with costs expected to be incurred for management and implementation.

Table 13: RP Budget No Items Cost

(VND) Cost (US$)

I Land recovery 16,877,296,920 1,054,831.00

18

No Items Cost (VND)

Cost (US$)

II House and structures 51,348,962,300 3,209,310.00

III Crops/trees6 5,535,244,600 345,952.00

IV Allowances

1 Assistance for removal 46,000,000 2,875.00 2 Assistance for life stabilisation 68,175,000 4,260.00

3 Accommodation allowance 75,900,000 4,744.00

4 Allowance for relocation in RS 457,500,000 28,594.00

5 Individual relocation allowance 150,000,000 9,375.00

6 Allowance for re-arrangement 90,000,000 5,625.00

V Sub-total (I-IV) 74,668,628,820 4,666,788.00

VI Implementation

1 Resettlement implementation (2%) 1,493,332,576 93,333.00

2 External Monitoring 315,000,000 19,687.00

VII Contingencies (10%) 7,647,696,139 477,981.00

VIII GRAND TOTAL 84,124,657,353 5,257,791.00 72. The Government will ensure timely provision of counterpart funds for resettlement and will meet any unforeseen obligations in excess of the RP budget estimates in order to satisfy resettlement objectives.

X. IMPLEMENTATION SCHEDULE

73. Following the approval of the updated RP, disbursement of payment will be made to all APs. TPPMU1 will not allow construction activities in specific sites until all resettlement activities have been satisfactorily completed, agreed rehabilitation assistance is in place, and the site is free of all encumbrances.

Table 14:: Implementation Schedule 2007 2008 2009 2010

Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

RP Updating (Following Detailed Design) - Consultation and Disclosure Activities - DMS, Replacement Cost Survey - Design of Income Restoration Measures - Identification of Replacement Land - Updating of RP Budget - Preparation of Updated RP - Disclosure of Updated RP to the APs - Submission of Updated RP to ADB

6 The cost of trees will be adjusted in each compensation plan to reflect the PPC Decision of 2008 increasing the

payment for overplanted trees.

19

20

2007 2008 2009 2010 Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Approval of the Updated RP by ADB Implementation of Updated RP (After ADB Approval)

- Disbursement of Compensation and Allowances

- Handover of Replacement Land -Implementation of Income Restoration Measures*

Clearing of Land Start of Civil Works** Internal and External Monitoring***

* Will be in place and ongoing. ** Ongoing *** Monitoring will be carried out until completion of construction and during operation.