RESETTLEMENT POLICY FRAMEWORK

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized HAI PHONG DEPARTMENT OF TRANSPORT RP1035 V. 3 PROJECT MANAGEMENT UNIT OF REGIONAL TRANSPORT WORKS HAIPHONG URBAN TRANSPORT DEVELOPMENT PROJECT RESETTLEMENT POLICY FRAMEWORK PROJECT MANAGEMENT UNIT OF REGIONAL TRANSPORT WORKS HAI PHONG, 11/ 2010

2 HAIPHONG DEPARTMENT OF TRANSPORT PROJECT MANAGEMENT UNIT OF REGIONAL TRANSPORT WORKS HAIPHONG URBAN TRANSPORT DEVELOPMENT PROJECT RESETTLEMENT POLICY FRAMEWORK The Employer PROJECT MANAGEMENT UNIT OF REGIONAL TRANSPORT WORKS The Consultant THANG LONG INFRASTRUCTURE DEVELOPMENT JSC (Infra-Thanglong) HAI PHONG, 11/

3 TABLE OF CONTENTS PART 1. INTRODUCTION Project Background Resettlement Policy Framework (RPF)... 7 PART 2. POLICY FRAMEWORK FOR COMPENSATION, ASSISTANCE AND RESETTLEMENT Institutional Framework Legal Framework Necessary Waivers Principles and Objectives Entitlement Policy Compensation Policy for Residential Land Compensation Policy for Agricultural Land Compensation Policy for Structures and Architectural Works Compensation Policy for Crop and Trees Compensation Policy For Income Lost Compensation For Secondary DPs Compensation for Affected Public Assets Compensation for Tomb Displacement Compensation For Temporary Effects In Construction Stage Allowance and Assistance During The Transition Period Resettlement Issues Organization and Implementation PART 3. PREPARATION AND IMPLEMENTATION OF THE RESETTLEMENT PLAN Screening Resettlement Instruments Preparation of Resettlement Plan Project Appraisal Information Dissemination Complaints and Handling Complaints Working Schedules Costs and Budgets Monitoring and Evaluation Monitoring Evaluation ANNEXES VN - Haiphong Urban Transport Development Project 2

4 ABBREVIATIONS CARC(s) CB DMS DONRE DP(s) GOV GRC IDA IMA PC PMU RP RPF WB Compensation, Assistance and Resettlement Committee Compensation Board/Committee Detailed Measurement Survey Department of Natural Resources and the Environment Displaced Person(s) Government of Vietnam Grievance Redress Committee International Development Association Independent Monitoring Agency People s Committee Project Management Unit Resettlement Plan Resettlement Policy Framework World Bank VN - Haiphong Urban Transport Development Project 3

5 Definition of Terms Displaced Person(s) (DPs) Resettlement Assistance Cut-off date Detailed Measurement Survey (DMS) Entitlement Host community Income restoration/livelihood improvement Inventory of Losses (IOL) Land Acquisition Relocation/ Resettlement Replacement Value Displaced Person(s) (DPs) are the persons who are affected by involuntary taking of land, resulting in: (a) Relocation or loss of shelter; (b) Loss of assets or accessibility to assets; (c) Loss of income sources or means of livelihood, regardless of relocation or not; and (d) Restriction of accessibility to legally designated parks or protected areas causing adverse impacts on their livelihoods. Additional support provided to DPs who are losing assets (particularly productive assets), incomes, employment or sources of living, to supplement the compensation payment for acquired assets to achieve, at a minimum, the full restoration of living standards and quality of life. The date after the project is approved and the project landmarks are made. Displaced Persons and local communities will be informed of the cut-off date for each Project component, and any persons moving into the project area after that date will not be entitled to compensation and assistance under the Project. The finalization and/or validation of the results of the inventory of asset losses (IOL), severity of impacts, and list of DPs done earlier during the preparation of the final resettlement plan. The range of compensation, assistance measures and assessments comprising income restoration support, moving assistance, income assistance, relocation and resettlement assistance to the DPs to restore their economic and social facilities depending on the type and severity of their losses. A community living in the proposed resettlement sites. The restoration and/or improvement of income sources and livelihoods of relevant DPs. The process of tally, location, measurement and identification of replacement cost of all fixed assets that will be recovered or adversely affected by, or because of, the project. These include, (without limitation or being in an exhaustive list) lands used for residence, business, agriculture, ponds, dwelling, stalls and shops; other structures such as fences, tombs, and wells; trees with commercial value; and sources of income and livelihood. It also includes assessing the severity of the impacts on the DPs' affected land, property, assets livelihood and productive capacity. The process by which the State issued administrative decisions to acquire the land-use rights or land allocated to users as regulated. Relocation means DPs movement away from their old residence and resettlement means a new residence of DPs. The amount of money, which is needed to replace an affected asset and VN - Haiphong Urban Transport Development Project 4

6 (Cost) Replacement Cost Study Severely Affected Person Vulnerable Groups cover the transferring costs for such asset without depreciation or deductions for salvageable materials, inclusive of taxes, and/or costs of transactions as follows: : (i) Productive land (agricultural, fishponds, gardens, forests) based on the market prices that reflect the local recent land sales of comparable land in the district and other nearby areas or, in the absence of such recent sales, based on the land s productive value; (ii) Residential land is compensated based on the market prices in the normal condition that reflect recent sales of comparable houses and residential land in the district and other nearby areas or, in the absence of such recent land sales, based on sales in other locations with similar qualities; (iii) Houses and eligible structures which are usable and associated with the land based on current market prices of materials and labor without depreciation or deductions for salvaged building materials plus fees for obtaining the ownership papers; (iv) Standing crops based on the current market value of the crop at the time of compensation; (v) Perennial crops and fruit trees will be compensated by cash equivalent to the current market value given for the type, age and productive value of such trees (future production) at the compensation time. The process involved in the determination of the replacement cost of land, houses and other affected assets based on market surveys. DPs who will (i) lose 30% or more of their total productive land and/or assets, (ii) have to relocate; and/or (iii) lose 30% or more of their total income sources because of the Project. Distinct individuals or groups of people who might suffer or face the risk of land and property acquisition or building resettlement sites specifically including: (i) female headed households with dependents, (ii) disabled individuals; (iii) households with disabled persons, (iv) households falling under the MOLISA s poverty line, (v) households with children and elderly who are homeless and have no other means of support, (vi) landless households, (vii) ethnic minorities VN - Haiphong Urban Transport Development Project 5

7 DECLARATION OF THE GOVERNMENT In order to resolve satisfactorily the compensation, resettlement and income restoration for persons who are affected by the acquisition of land, housing and other properties by Haiphong Urban Transport Development Project funded by the WB, the GOV based on the Document No Issued on has approved this Policy Framework of Compensation, Assistance and Resettlement (so called the Policy Framework). The Framework will be applied to other activities resulting in land acquisition and resettlement, which are (a) directly related to the Project; (b) required to achieve the Project s objectives; and (c) implemented or planned in parallel with the Project. PART 1 INTRODUCTION 1.1 Project Background 1. Haiphong, the third largest city in Vietnam, is the vital gateway for international trade bridging the international markets and the north of Vietnam. The volume of imports and exports through Haiphong city is increasing rapidly along with the country s economy, which are mainly transported in or out of Haiphong via the road axis in the city centre; most of the port s traffic uses Nguyen Van Linh Nguyen Binh Khiem roadway. Because there was no integration between the initial design of the roadway and the planning for the city s urban space, the road must serve both heavy-duty trucks going in and out of the port and internal transport vehicles at the same time. This is the main cause of traffic jams and hazardous gas emissions in the Haiphong urban transportation network. 2. At present, the Central and City Governments are planning two major development programmes: (i) Haiphong Port Upgrading and Development Programme, phase and phase , which aim to expand the port capacity for serving over 100 million tons cargoes per year, and (ii) Hanoi-Haiphong Highway. They are both favorable for the development of Haiphong city; especially Hanoi-Haiphong Highway Project will create a link from Hanoi to Haiphong international gateway in Lach Huyen. 3. How favorable the inter-provincial transport system, but the city s internal transport system is still irrational. There are no east-west roads connecting to the centripetal axe and north-south axe (National Road No.10 and Provincial Road No.351) in the entire southern area of the city from Nguyen Van Linh road to Provincial Road No.355. Consequently, the east-west traffic flow is bound to the centripetal roads prior to turning to Nguyen Van Linh Nguyen Binh Khiem and Road No This leads to serious conflicts between the interregional traffic and urban land-use. This situation demands a planning of another road to replace Nguyen Van Linh Nguyen Binh Khiem axis for the smooth traffic connection between Haiphong and neighbor provinces as well as the connection between other regions of VN - Haiphong Urban Transport Development Project 6

8 Haiphong city and its existing ports, to ensure compliance with the City s master plan and development strategy. 4. Project objectives: are (i) to solve traffic jams, traffic accidents and environmental pollution caused by heavy-duty vehicles running through the city centre on their way in and out of the ports; (ii) to promote the city s economic development with a focus on satisfying the transportation demands in the city and to and from the ports in the Northern Economic Area; (iii) to effectively connect with the existing and planned urban transportation infrastructure to speed up the concentrated urbanization in the city centre; (iv) to carry out pilot improvement of the public transport services in the urban area, particularly in the centre and the high density developed corridor; and (v) to enhance capacity and effectiveness of State agencies and develop the urban and transportation human resources. 5. Preliminary Description of the Project: Haiphong Urban Transport Development Project consists of three main components as follows: Component A: Upgrading Haiphong Urban Trunk Road (approximately 20km long). The section from National Highway No.10 (Bac Son commune) to Truong Chinh road (Quan Tru ward) is 9.8 km long and 50.5 m wide. The second section from Truong Chinh road (Quan Tru ward) to the inter-ward road of Hai An district (Nam Hai ward) is 10.2 km long and 50.5 m wide. Component B: The Pilot Upgrading of Public Passenger Transport Services and Traffic Safety. This component includes the pilot upgrading bus and public transportation services, which will play as a model project and possibly be expanded. Component C: Institutional Capacity Building. This component consists of programs on institutional capacity building and the development of human resources in the traffic and urban management. 6. To implement the Project Components, it is necessary to carry out site clearances. The preliminary survey results indicate that the project will affect approximately 3,000 households (in 13 communes/wards of five districts/rural districts. The corresponding RPs must be prepared for each phase prior to the project appraisal. 1.2 Resettlement Policy Framework (RPF) 7. The preparation of this RPF is based on the World Bank s Involuntary Resettlement OP/BP 4.12 policy (amended in April 2004). The basic objective of the RPF is to ensure that all Displaced Persons (DPs) will be compensated for their losses at Replacement Costs and given suitable means to improve or at least maintain their livelihoods and living standard to preproject implementation. 8. The Resettlement Policy Framework will provides principles, objectives, and eligibility criteria for DPs as well as benefits, institutional and legal frameworks, compensation and restoration measures, population characteristics, procedures for addressing grievances to guide the compensation, resettlement and restoration for DPs. VN - Haiphong Urban Transport Development Project 7

9 PART 2 POLICY FRAMEWORK FOR COMPENSATION, ASSISTANCE AND RESETTLEMENT 2.1. Institutional Framework 9. Responsibility for compilation and implementation of the Compensation, Assistance and Resettlement Policy Framework (RPF), and the Resettlement Plan (RP) is as follows: (a) The main duty of the RPF implementation and the RP preparation belongs to the Project Management Unit of the Regional Transport Works (PMU). The PMU shall be responsible for preparing the DP socio-economic surveys and the RP report and its implementation, and for dealing with other work within the scope of their daily responsibilities. The PCs of districts/rural districts and wards/communes will take part in the activities mentioned in the RP report. These administrative units will also ensure the active and effective participation of DPs in the preparation and implementation of the RP. To ensure that the RP reports are acceptable to the WB and implemented smoothly, the PMU shall be liable for: i) employing experienced consultants to prepare the RPs; and ii) assigning officials from the PMU and city and/or district Boards of Compensation, Assistance and Resettlement who are experienced in social safeguard policy. (b) The Haiphong city PC s budget will pay for the costs of the project compensation, the costs for construction of project resettlement sites, IDA loan will cover costs for technical assistance to resettlement implementation and the external monitoring agency Legal Framework 10. This section reviews the GOV and WB policies and legal frameworks concerning land acquisition, compensation, assistance and resettlement. Due to some differences between WB policies and those of the GOV, it is proposed that the project will be exempted from some of the GOV s articles in its Decrees and Regulations related to compensation, assistance and resettlement. The plans for compensation, assistance and resettlement will be implemented in accordance with these project policies. 11. The GOV s legal framework: the followings are the State Laws and Decrees regarding land acquisition, compensation and resettlement applied in all of Vietnam and the regulations of Haiphong City 1 : The 1992 Constitution of the Socialist Republic of Vietnam which certifies and protects the right of citizens to own housing; The 2003 Law on Land issued on 26 November 2003; Decree No.181/2004/ND-CP dated 29 October 2004 guiding the implementation of the 2003 Law on Land. 1 The provisions on compensation, assistance and resettlement when the State recovers land in Hai Phong city and the unit prices of architectural structures are issued by Haiphong People's Committee in each period. VN - Haiphong Urban Transport Development Project 8

10 Decree No.197/2004/ND-CP dated 03 December 2004 enacted by the Government, regulating compensation, assistance and resettlement when the State acquires land; Circular No.116/2004/TT-BTC dated 17 December 2004 providing guidance for the implementation of Decree No.197/2004/ND-CP dated 3 December 2004 on compensation, assistance and resettlement upon the State recovery of land; Decree No.188/2004/ND-CP dated 16 November 2004 providing the method of land price calculation and the tariff for all types of land; Circular No.02/2010/TTLT-BTNMT-BTC dated 08/01/2010 issued by the Ministry of Natural Resource and Environment and Ministry of Finance guiding the preparation, appraisal and issuance of land prices and revision of land prices in the competence of the city/province PCs under the Government control; Government Decree No.17/2006/ND-CP dated 27 January 2006 on the amendment and supplementation to a number of articles of the decrees guiding the implementation of the Land Law and Decree No.187/2004/ND-CP on conversion of State-owned companies into joint-stock companies; Decree No.84/2007/CP dated 25 May 2007 providing additional regulations on issuing certificates of land use rights, land acquisition, implementation of land use rights, procedures of compensation and resettlement upon the State s recovery of land and addressing grievances about land; Decree No.123/2007/ND-CP dated 27 July 2007 amending and supplementing some articles of Decree No.188/2004/ND-CP dated 16 November 2004 on methods of determining land price and tariff on all types of land. Decree No.69/2009/CP dated 13 August 2009 providing additional regulations on issuing land use plant, land price, land acquisition, compensation procedures, assistance and resettlement. Decision No.130/2010/QD-UBND by Haiphong People s Committee dated 22/01/2010 issuing regulations on compensation, assistance and resettlement upon the State s recovery of land in the area of Haiphong city. Decision No.1263/2010/QD-UBND by Haiphong People s Committee dated 30/7/2010 issuing amendment, adding some items of regulations on compensation, assistance and resettlement upon the State s recovery of land in the area of Haiphong city (propagating attaching with Decision No.130/2010/QD-UBND by Haiphong People s Committee dated 22/01/2010) Decision No.1240/QD-UBND by Haiphong People s Committee dated 29 July 2008 issuing the set of unit prices of structures for compensation and assistance upon the State s recovery of land in the area of Haiphong city. Haiphong City PC Decision No.2640/QD-UBND dated 31 December 2009 issuing land prices in 2010 in the area of Haiphong city and the regulations in force. 12. The WB s policy on Involuntary Resettlement (OP/BP 4.12) 12.1 The first objective in the WB policies is to study all options to minimize or avoid involuntary resettlement. Where it is not feasible to avoid resettlement, plans should be made for compensation and assistance to restore the DPs living standard to pre-project levels or to levels prevailing prior to the beginning of project implementation. This policy for the recovery of land and other assets is applied when the land acquisition causes loss of shelter, VN - Haiphong Urban Transport Development Project 9

11 part or all of the DPs profitable assets, or accessibility to sources of income and/or production Required measures to ensure the best results from resettlement: a. Consulting DPs about feasible measures for compensation and resettlement. b. Providing DPs with options for resettlement and recovery. c. Offering DPs opportunities to participate in and choose options for planning. d. Compensating in full replacement costs for losses attributable to the project. e. Equipping the resettlement site with fundamental infrastructure and services at least equivalent to the ones of the DPs previous residential areas. f. Providing DPs with allowances, support, vocational training and income assistance to facilitate their relocation. g. Identifying vulnerable groups and providing them with special assistance. h. Setting up an institutional structure and organization to ensure the compensation and resettlement process is successful Compensation Criteria and Eligibility DPs who are entitled to the compensation for their losses include: (a) those who have legal rights to the land or other assets; (b) those who do not have legal rights to the land or other assets at present but have a claim to land or assets according to the regulations in the Vietnamese laws based on filed documents such as land tax bills, certificates of residence status, or a permit from the local authorities to occupy and use the land in the area affected by the project; and (c) those who have no recognizable legal right or claim to the land they are occupying Persons covered under (a) and (b) are compensated for their land and other affected assets at replacement cost and provided other assistance. Persons covered under (c) are given Resettlement Assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project area prior to a cut-off date determined in each RP. Persons who encroach on the area after the cut-off date 5 determined in each RP are not entitled to compensation or any other form of resettlement assistance (though they may be entitled to some support stipulated in current policies). 13. Valuation and compensation for losses: Methods used for the valuation of losses in Bank funded projects are based on replacement costs. For this project, the losses consist of damages to land, structures and other assets. The replacement cost of land includes the land value as defined in accordance with the prevalent market price plus the fee for obtaining a certificate of land use rights. For affected houses and other structures, the valuation is based on the market price of construction materials to build a replacement house of equal or better quality and area to that affected. For works partly or wholly affected by the project, the compensation usually includes the market price of building materials plus costs for transportation, labour and contractor fees, registration fees and transfer taxes. Asset depreciation and the value of materials that can be salvaged by DPs, are not deducted from the compensation. 14. Comparison between the GOV and WB policies Vietnamese GOV policies and practices regarding resettlement and compensation issues are mostly compatible with the WB guidelines. The most compatible domains are as follows: VN - Haiphong Urban Transport Development Project 10

12 Vietnam has procedures that allow compensation for losses to people with no legal land use rights, who can satisfy conditions of legalization. Registered permanent residents are entitled to choose what form of compensation they want such as relocation to a better resettlement site, cash, or a combination of both these forms. New resettlement locations for DPs should have better infrastructure and public services than the previous location and provide for a higher standard of living. There will be mechanisms to assist DPs in transition period, in keeping informed, negotiating compensation, and voicing their grievances. Regarding assistance to illegal DPs there are some measures to assist them to restore their livelihood and living standards, as required by the WB policy. The principle, condition for land compensation are defined as in Article 14 Decree 69/2009/ND-CP dated 13/08/2009 issued by GoV and Article 3 Decision 130/2010/QD-UBND dated 22/1/2010 issued by Hai Phong PPC which indicated that, those with land that is to be acquired which is being used for a particular purpose will be compensated with new land suitable for the same purpose. If such new land is unavailable, compensation will be calculated based on the value of the land use rights at the time of the acquisition. If there is a difference between the value of compensation and the new land or house it can be paid in cash. 15. Table 1 summarizes the differences between the policies of the Vietnamese Government, Hai Phong City and the WB and proposes a policy for the Project. VN - Haiphong Urban Transport Development Project 11

13 Table 1: Differences between Haiphong and WB Policies for Compensation, Assistance and Resettlement, and Policy Proposals 2 for the Project No. Issue 1 Land ineligible for compensation WB Policies (OP/BP 4.12) No compensation given for the land, but allowances for the recovery of livelihoods and living standards are provided to households affected by the project. Haiphong City PC regulation (Decision No. 130/2010/QD-UB, Decision No. 1263/2010/QD-UB) Affected agricultural land: comply with Item 4, Article 5: - Unplanned reclaimed land, fixed land allocated by the Gov./state companies, public land and short-term allocated land will be supported equally 50% of the respective agricultural land price at the same location. - Borrowed land for the construction will be supported equally 30% of land price at the same location. Affected residential land: Households whose land is used for residence which actually has house or structures serving for the living activities and violates Item 4 of Article 14 of Decree No. 84/2007/ND - CP of the Government will be supported. - Land used before October 15, 1993 will be supported 50% of the price of the land which is being used equally to one time of the new allocation of resident land area. The remain will be supported: 200,000d/m2 in rural districts; d/m2 in urban districts; for acquired areas with its price below Policies Proposed for the Project Affected agricultural land: No compensation but assistance 30%-100% agricultural land value for living recovery Affected residential land will not be compensated but 30-50% of its value will be given for the area equal to standard area of residential land to assist in the recovery of livelihoods and living standards. The remaining area (if any) will be supported in accordance with regulations of Hai Phong People s Committee, to obtain the project s objectives. Remarks The standard area of residential land is provided in accordance with Decision No.1518/2006/QD-UB, dated 12 July 2006 of the city PC 2 The above table only mentions specific differences between WB resettlement policy, Vietnamese policies, and Haiphong PC policies issues. Other contents are not mentioned in this table. 12

14 No. Issue WB Policies (OP/BP 4.12) 2 Land prices Compensated at replacement price (reflecting market prices plus transaction fees) 3 Support for houses or other structures on acquired land, which do not meet the criteria for full compensation 100% of the cost for new construction plus the fees for relevant administrative procedures. Haiphong City PC regulation (Decision No. 130/2010/QD-UB, Decision No. 1263/2010/QD-UB) d/m2 in rural districts; below d/m2 in urban districts, in which the price unit regulated by City PC in annual table of land price, supported by 80% the price of land - the supported area is based on the actually used area but does not exceed 02 times of the new allocation of resident land area. The remain (if any) shall be supported by 50% the price of land for growing perennial crops in location 1. - Land used after October 15, 1993 will not be compensated but supported 30% the price of land regulated in annual table of land price of Hai Phong city PC for actually used area but does not exceed 01 time of the new allocation of residential land area. The remain (if any) shall be supported by 50% the price of land for growing perennial crops in location 1. Affected residential land: The City PC sets land prices and compensates in accordance with the allocated land use purpose. Items 3, Article 9 are applied to houses or other structures on acquired land which are not eligible for compensation: + After the announced planning: - Being not yet inventory of loss: (i) before 1/7/2004: assisted 100% of the value; (ii) after 1/7/2004: assisted 60% of the value. - Being inventory of loss done: (i) before 1/7/2004: assisted 30%; (ii) after 1/7/2004: not Policies Proposed for the Project The PMU will employ a functional agency to research and establish replacement prices to reflect market values for the Project and submit these to the City PC to be basic for compensation price approval. Support for 100% of the price for new construction plus fees for relevant administrative procedures. After the cut-off date, there is no compensation and support. Remarks This will ensure the price of transfer is close to the market as specified in Decree No.69/2009/ND-CP. VN - Haiphong Urban Transport Development Project 13

15 No. Issue WB Policies (OP/BP 4.12) After the cut-off date, there is no compensation and support. 4 Resettlement For all displaced households to be relocated 5 Support for affected households doing business Support for all affected households doing business Haiphong City PC regulation (Decision No. 130/2010/QD-UB, Decision No. 1263/2010/QD-UB) compensated, assisted. + Structures on agricultural land: (i) Sentryboxes, thatches, structures built with bricks and mortar, or other structures on agricultural land used for guarding business facilities or for temporary living are compensated 100% of their value up to 25m 2 ; parts of such structures exceeding 25m 2 are illegally built or permitted by an incompetent local authority are only supported at 50% of their value; According to Item 1,2 Article 15 only applies to displaced households whose land and houses are eligible for compensation. Households that are not eligible for compensation and have no other house will be considered case by case. Apply only for affected business households, who have registered licensed businesses Registered licensed businesses, whose incomes are affected will be compensated or supported for the loss of business equal to 30% of their yearly income based on the average of their Policies Proposed for the Project All displaced households who own legal houses and lands are entitled to (1) to buy a new land plot in the resettlement site, regardless of whether or not they have family-register books. In case, relocated DPs cannot afford, they will be supported the differences. Households, who are not entitled to compensation for residential land but have no other land/house will be provided with land plot in resettlement sites, if they get certification of their homelessness from local authorities. In case, relocated DPs cannot afford, they will be supported the differences. Support for households having registered licensed businesses whose incomes are affected will be compensated or supported for the loss of business equal to 50% of their yearly income based on their average yearly income over the previous 3 years as Remarks Para 3.3, Item 3 Article 15, Decision 130/2010. VN - Haiphong Urban Transport Development Project 14

16 No. Issue 6 Threshold of "severely affected income" for DPs when their agricultural land is acquired WB Policies (OP/BP 4.12) Losing over 20% of their agricultural land (this is a WB s normal practice) Haiphong City PC regulation (Decision No. 130/2010/QD-UB, Decision No. 1263/2010/QD-UB) yearly income over the previous 3 years as declared with the tax agency. For business households who not may be account for accounting document, yearly tax balance for tax organization will be supported from million VND Policies Proposed for the Project declared with the tax agency. Persons affected permanently by the Project who have small businesses or services at home but do not declare their income to the tax agency will be provided an allowance equivalent of 6 months average incomes. Remarks Losing over 30% of their agricultural land Losing over 30% of their agricultural land 3 Because households living in Hai Phong city have other income sources apart from agricultural one. 3 In the resettlement plan reports, social indicators such as household size, occupation, income (sourse) for agricultural land affected households should be remarkably analyzed, especially pay attention to the household whose affected in the range of 20-30% of their total agricultural land. In case, the compensation and income restoration is not feasible, a special support package will be provided for their living recovery. VN - Haiphong Urban Transport Development Project 15

17 2.3 Necessary Waivers 16. To satisfy the World Bank s OP/BP 4.12 policy on involuntary resettlement, a number of articles in the Vietnamese laws and relevant regulations that do not guarantee the right to compensation based on replacement prices will be waived. Articles on eligibility that do not extend the rights of restoration and/or assistance to households without valid papers for their land will also be waived. 2.4 Principles and Objectives 17. WB Operational Policy 4.12 (OP/BP 4.12) has been used as the basis to formulate this Policy Framework with the following principles and objectives: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Minimizing land acquisition, resettlement and/or impacts to people s assets. Providing economic restoration for maintaining or improving the pre-project living standard and income of all DPs living, working, doing business or farming within the right of way of bridges and roads during the survey period. The lack of legal documents of affected assets will not bar DPs from these economic recovery entitlements. Rehabilitation measures including: (i) compensation at the replacement cost without considering depreciation or materials that may possibly be re-used to construct new houses and other structures; (ii) agricultural land will be compensated by cash at the replacement cost; (iii) residential land will be compensated by cash at the replacement cost; households and individuals whose land is acquired totally or the remaining area after being acquired is not enough to live, if there are demands, will be allocated for resettlement; iv) transportation costs, allowances, and support; and (v) any other necessary measures to assist the DPs in maintaining or raising their living standard and income at the same level as prior to the Project implementation. Replacing DPs' residential and agricultural land with better or more acceptable land near the acquired land. Minimizing the time for relocation, resettlement and receiving allowances. Payment of compensation, allowances and other assistance must be completed at least one month prior to the commencement of civil works in a section or part thereof. Carrying out land acquisition compensation and rehabilitation with the participation of the DPs to minimize disorder. Entitlements must be provided to the DPs before the date the project work will begin in each corresponding area Maintaining or improving the public services. Ensuring the availability of financial and physical resources for resettlement when required. Ensuring the effectiveness and timeliness of the Project design, planning, consultation and RP. Supervising, monitoring and evaluating the implementation of the RP in a timely and effective manner. 16

18 2.5. Entitlement Policy Compensation Policy for Residential Land 18. DPs will be compensated for land owned by households as follows: Legal Residential Land The legal Residential land 4 will be compensated, supported, as follow: (a) If the land boundary is clearly defined: i. Residential land that used before 15/10/1993 will be entitled to compensate at 100% price for the entire area which is recorded on paper; ii. (b) Residential land that used prior to 15/10/1993, which are identified area of garden and pond in the same parcel of land on paper (regardless of building houses and structures for the activities) will be compensated 100% of the price for the entire residential area which is recorded on paper; The area of gardens and ponds (if any) will be compensated by land price of gardens and ponds in addition to the support of 50% the price of residential land in the same parcel of land which has houses of such family/individual. The supported area is based on the actually used area but does not exceed 02 times of the new allocation of resident land area. If the boundary of residential land and adjacent garden and pond is not clearly defined, will be compensated, as follow: i. Residential land is used before 18/12/1980, whose boundaries is clearly acknowledged in the cadastral records or papers of land use rights, regulated in Items 1, 2 and 5, Article 50 of Law on land (including land and pond in the same parcel of land), its whole area is defined as residential land and compensated equally to 100% of the price (included land transferred, land offered having certification of local authority at commune level) ii. iii. Land used before 18/12/1980, whose boundaries is not clearly acknowledged in the cadastral records or papers of land use rights 5, will be compensated 100% of the price of such land but the compensated area does not exceed 05 times of the new allocation of resident land area (included land transferred, land offered having certification of local authority at commune level). The remain will be compensated based on the land price of gardens and ponds in addition to the support of 50% the price of residential land in the same parcel of land, which has houses of such family/individual. The supported area is based on the actually used area but does not exceed 02 times of the new allocation of residential land area. Residential land used from 18/12/1980 prior to 01/7/2004 will be compensated equally to 6 the limit area recognized as residential land. The remaining area will be compensated based on the land price of gardens and ponds in addition to the support of 50% the price 4 The DP meet requirements or procedure that is regulated in Items 1, 2 and 5, Article 50 of Law on land and Item 1, Article 11 of Decree 84/2007/NĐ-CP dated 25/5/ The land is mentioned/ regulated in Items 1, 2 and 5, Article 50 of Land Law. 6 It is stipulated in Decision No.1518/2006/QD-UBND dated 12/7/2006 by Hai Phong People's Committee. VN - Haiphong Urban Transport Development Project 17

19 iv. of residential land in the same parcel of land, which has houses of such family/individual. The supported area is based on the actually used area but does not exceed 02 times of the new allocation of residential land area. DPs who having difference between actually measured square and one noted in BOLUR, the compensation and assistance level will be compensated to actually measured area 7, in case of (i) the former is smaller than the latter, (ii) the former is larger than the later but the difference is confirmed by local authority that it is legalizable. Legalizable Residential Land Residential land without but eligible for a land use rights certification: (a) Residential land used before 15/10/1993: Legalizable residential land 8 with house/structure beyond will be compensated at 100% of the price of such residential land for the actually used area but does not exceed 01 time of the new allocation of residential land area. The remaining area will be compensated based on the land price of gardens and ponds in addition to the support of 50% the price of residential land in the same parcel of land but does not exceed 01 time of the new allocation of residential land area. And the rest (if any) will be supported in accordance with regulations of Hai Phong People s Committee to obtain the project s objectives. (b) During implementation phase, monitoring will be used to determine if they have achieved livelihood restoration through these means; and if not, further special assistance package(s) will be proposed by PMU, acceptable to Hai Phong PC, to assist these DPs and to ensure the DP s livelihood restoration has done. Residential land used from 15/10/1993 to prior 01/7/2004: Land being used but does not exceed 01 time of the new allocation of residential land area will be compensated at 100% of land price for the using land area in the new allocation of residential land with the deduction of land use fee 9. The area that exceeds the allocation of residential land and the area of gardens and ponds on the same parcel of land which is not recognized as residential land shall be compensated accordingly to the price of perennial crops in position 1: (c) Land is allocated without proper authority before 01/7/2004: i. Households who paid for land use right but they have not been issued certificate of land use right will be compensated and supported as, follows: Residential land used before 15/10/1993: Households will be compensated by 100% residential land price for the acquired area within the limited allocation of residential land. Residential land used from 15/10/1993 to prior 01/7/2004, households will be compensated by 100% residential land price for the used area within the limited 7 According to Article 47 of Decree, 84/2007/ND-CP dated May 25, The case is not mentioned/ regulated in Item 4, Article 14, Decree 84/2007/ND-CP, dated 25/5/ It is based on stipulation in Item a, Article 8, Decree 198/2004/ND-CP and Article 4, Circular No 14/2009/TT- BTNMT dated 01/10/2009 promulgated by MONRE. VN - Haiphong Urban Transport Development Project 18

20 ii. (d) allocation of residential land. The area outside the limited allocation of residential land will be compensated by 100% residential land price but deducted the due land use fees 10. If households do not pay or do not pay enough land-use fee, they will be compensated by 100% residential land price for the used area within the limited allocation of residential 11 land price but deducted the due land use fees. The remaining area (if any) will be supported accordingly to the price of perennial crops in position 1. Land managed by organizations for business/ production, working-office ( acquired land is not residential land) handed over for staff/workers using for house building or land transferring (including land having house, shop, as sale will be priced) will be compensated, supported based on Item (c) of this regulation. Illegal Residential Land Illegal Land used as actual residential land with houses and other structures 12 will be supported as follows. (a) (b) Land used before 15/10/1993 will be supported 50% residential land price for the used area equally to the one time new limited allocation of residential land. The remaining area (if any) will be supported in accordance with regulations of Hai Phong People s Committee to obtain the project s objectives. Land used after 15/10/1993 will not be compensated but supported 30% residential land price regulated in annual table of City PC for using square but does not exceed 01 time of the new allocation of residential land area. The remaining area (if any) will be supported at 50% accordingly to the price of perennial crops in position 1. During implementation phase, monitoring will be used to determine if they have achieved livelihood restoration through these means; and if not, further special assistance package(s) will be proposed by PMU, acceptable to Hai Phong PC, to assist these DPs and to ensure the DP s livelihood restoration has done. 19. House rented from the State : Households will be compensated by cash equivalent to 60% of the value of residential land and 60% of the value of the house being rented. For encroached land, there will be no compensation but assistance for investment on the land. 20. Land adjacent to compensated land, but not acquired, and its value is affected or otherwise impacted will be compensated for actual damages. Residential land obstructed by the structures of the Bridge Construction will be compensated by 10% of its value to cover the reduction of its value. 10 It is prescribed rate in Items 2,3, Article 8, Decree 198/2004/NĐ-CP and applied basing on regulations in Article 4, Circular No 14/2009/TT-BTNMT dated 01/10/2009 promulgated by MONRE. 11 It is prescribed rate. in Items 2,3, Article 8, Decree 198/2004/NĐ-CP and applied basing on regulations in Article 4, Circular No 14/2009/TT-BTNMT dated 01/10/2009 promulgated by MONRE. 12 This is illegal land that mentioned in Item 4, Article 14, Decree No 84/2007/NĐ - CP VN - Haiphong Urban Transport Development Project 19

21 2.5.2 Compensation Policy for Agricultural Land 21. DPs will be entitled to the following compensation and assistance policies: Compensation for land: In Hai Phong there is no funds to compensate agricultural land on a landfor-land basis so the general policy is to issue by cash payment. Households who are eligible for compensation or have legal long-term land use rights: (a) (b) (c) (d) If the acquired land is less than or equivalent to 30% of a household s total agricultural land, and its remaining economically viable, the household will be compensated by cash equivalent to 100% of the replacement cost for the acquired land. If the acquired land is more than 30% of a household's total land area, or the remaining land is not economically viable, in addition to a cash compensation of 100% replacement cost of the acquired land, there will be other supporting policies. Gardens and ponds in the same parcel of land with houses of families/individuals in residential areas, which is not recognized as residential land; gardens and ponds in the same parcel of land with separate houses; gardens and ponds in the same parcel of land with houses along the canals and along the roads; are eligible for compensation as prescribed, when the State recovers land, the whole acquired area is compensated by the price of garden land pond. Also a support of 50% the price of land in the same parcel of land will be provided accordingly with the acquired area but is not exceeding 02 times of the limit of new land allocation. Households/individuals eligible for the compensation and living in urban/rural residential areas, who are acquired with agricultural land which is defined by the boundary of a parcel of land which has houses at the most outside in a village, hamlet, similar residential area or in an administrative boundary of a ward; or who are acquired with agricultural land which is defined by the boundary of a parcel of agricultural land adjacent to the administrative boundary of a ward or adjacent to the boundary of a population area, in addition to the compensation of perennial prices at the position 1, will be supported equally with 20% of the average residential land price in such region. The support area is not exceeding 5 times of the local land allocation limit. Households who are not eligible for compensation of agricultural land: (a) Support % agricultural land price for land users who are not eligible for land compensation. (b) If the land is rented based on a civil contract between households or individuals, compensation for farm produce and trees will be paid to the land user cultivating the land. (c) Affected persons using public land (in a structure's space or safety corridor) that must be returned when the state needs will not be compensated for that land, but will be compensated for the replacement cost of affected farm produce and trees. (d) The DPs who are using the 5% public land will be compensated for their investment in such land equally with 50% agricultural land price, other 50% agricultural land price will be provided to communal budget. VN - Haiphong Urban Transport Development Project 20

22 (e) If the agricultural land of affected persons is 10 meters far from the ROW, they will be supported for the land value reduction. The support level equals with 10% land price of such land plot. Land users who use bidding land or rent public land: 22. Such land users will be compensated by cash for their investment costs or the remaining value of rental contracts for that land (if any), or the equivalent of 30% of the price of agricultural land Compensation Policy for Structures and Architectural Works 23. Compensation for affected houses and structures of households or individuals: (a) (b) Affected structures on land eligible for compensation will be compensated by cash equivalent to 100% of their replacement cost. Houses and structures which are partly dismantled: (i) the remaining parts are unsuitable for use will be compensated at 100% of the structure quantity (to be certified by the Compensation and Resettlement Committee); (ii) the remaining parts are reusable will be compensated at least twice of the dismantlement area percentage Compensation Policy for Crop and Trees 24. People cultivating affected annual and perennial trees will be compensated based on the average market price for their farm produce, the average annual production of aquatic products, and/or the replacement cost for long-term trees 14. Trees that can be relocated will be compensated based on actual losses and damages, plus transportation fees. The method for determining replacement prices of farm produce, trees, and aquatic products is based on Item 24 of Decree No.197/2004/ND-CP Compensation Policy For Income Lost Due To Cessation Of Business And Production 25. The compensation for persons affected by loss of income due to the cessation of their business and production will be as follows: (a) Licensed business and production households whose income is affected will be compensated or supported for losses in business equivalent to 50% of their actual annual income. The amount of compensation will be based on their average yearly income declared with the taxation agency over the previous three years (equivalent to 100% of the average income of 6 months). 13 Particularly: removing less than 10% of the area, compensating 20% of the structure value. Removing 10% to 39% of the area, compensating 20% - 80% of the structure value. Removing more than 40% of the area, compensating 100% of the structure value. Auxiliary structures behind houses, which are outside the land acquisition marking will be compensated. If they are moved due to the plan for the area, they will be compensated or assisted by 100% of the removal price. 14 Method of determining market value and replacement cost for trees, crops are made under the provisions of Article 24 of Decree 197/CP. VN - Haiphong Urban Transport Development Project 21