DA NANG QUANG NGAI EXPRESSWAY PROJECT

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Ministry of Transport Vietnam Expressway Corporation DA NANG QUANG NGAI EXPRESSWAY PROJECT RESETTLEMENT PLAN Volume 1- DA NANG SECTION January 2011

2 CONTENTS LIST OF TABLES... iii ABBREVIATIONS... v DEFINITION OF TERMS... vi EXECUTIVE SUMMARY... 1 I. INTRODUCTION... 8 I.1. The project... 8 I.2. Minimizing Land Acquisition and Resettlement Impacts II. LEGAL FRAMEWORK II.1. Relevant Vietnamese Legislation II.2. Involuntary Resettlement Policy of the WB (PO December 2001) II.3. Main gaps between Viet Nam policies and World Bank Policy on IR III. ENTITLEMENT POLICY III.1. Objectives III.2. Eligibility to compensation and relocation assistance III.3. Compensation Principle and Entitlement III.3.1. Principles of Replacement Cost III.3.2. Compensation policy for agricultural land III.3.3. Compensation for Residential Land III.3.4. Compensation houses/other structures III.3.5. Compensation for Graves/Tombs III.3.6. Compensation for loss of Standing Crops and Trees III.3.7. Compensation for Loss of Income and/or Business/Productive Assets III.3.8. Compensation for temporary impact during construction III.3.9 Compensation for Loss of Community Assets III Allowances and Rehabilitation Assistance during Transition Period III Allowances / Assistance Targeted to Vulnerable Households IV. SOCIOECONOMIC CONDITIONS IV.1. General socioeconomic conditions of the affected area IV.2. Survey on the socioeconomic conditions of the project DPs IV.2.1. Demographic Characteristics of DPs IV.2.2. Educational status IV.2.3. Occupation and Employment IV.2.4. Household Incomes IV.2.5. Households below Poverty level IV.2.6. Access to public facilities IV.2.7. Access to utilities and services IV.2.8. Ownership of Consumer Goods i

3 V. RESETTLEMENT IMPACTS VI. RELOCATION ARRANGEMENT VI.1. The potential of the resettlement sites VI.2. Process of site development and resettlement policy VI.3. Cost for the site development VI.4. Issues of relocation VII. INCOME RESTORATION AND REHABILITATION VIII. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE, DISSEMINATION VIII.1. Purposes and contents of consultation and information dissemination VIII.2. Consultation during RAP preparation VIII.3. Consultation during RAP Implementation VIII.4. Disclosure IX. IMPLEMENTATION ARRANGEMENTS IX.1. Responsibility IX.2. Implementation arrangements IX.3. RAP implementation schedule X. MONITORING AND EVALUATION X.1. Internal monitoring X.2. External Monitoring XI. GRIEVANCE REDRESS MECHANISM XII. COST AND BUDGET XII.1. Compensation Prices XII.2. Cost estimate ANNEX A: Comparision Table... 1 ANNEX B: Socio-economic Characteristics ANNEX C: Resettlement Impacts ANNEX D: TOR for Replacement Cost Survey ANNEX E: Resettlement Cost ANNEX F: TOR for External Monitoring Agency ANNEX G: DMS Questionaire ii

4 LIST OF TABLES Table I.1: General technical specifications of the project... 9 Table I.2: District and Communes covered by the Expressway Table IV.1: Demographic Characteristics of DPs Table IV.2: Age structure of surveyed population Table IV.3: Educational status of the heads of householders Table IV.4: Education Level of Surveyed DPs Table IV.5:Types of employment Table IV.7: Number of poverty household base on MOLISA poverty line Table IV.8: Percentage of HHs experience with periodic health check in affected area Table IV.9: Percentage of HHs has toilet facilities and connects to running water Table IV.10: Consumer Goods of the surveyed households Table V.1: Number of HHs and heads affected by land acquisition Table V.2: Number of affected area of different land types Table V.3. Impact Degree on agricultural land Table V.4. Legal status on land use right Table V.5: Number of households fully affected on residential plot and number of residential landless households by district Table V.7: Legal status on land use right Table V.8: Fully affected houses by district (fully affected area or partially acquired by the project but the remaining area unviable for use) Table V.9: Area of fully affected houses according to each house class Table V.10: Partially affected houses by districts Table V.11: Area of partially affected houses according to each house class Table V.12: Loss of other Structures Table V.13: Impacts on annual crops and trees by Districts Table V.14. Affected Small Scale Business household Table V.15: Affected vulnerable households Table V.15: Number of Household Are Entitled to Receive Land Plot in Resettlement Sites iii

5 Table VI-1. The households have to relocate and potential of resettlement sites by district Table VI.2: Steps for Site Planning, Development and Relocation Implementation Table VII.1: Consultation with institutions, local NGOs of the affected districts Table VII.2: Potential programs, loans and training courses in Da Nang City could be considered for the economic restoration and livelihood improvement for the project affected people Table VIII.1: Meetings in affected districts Table VIII.2: Preferences, choices of DPs to the modes of economic restoration Table IX.1: Proposed schedule for RAP implementation with key activities Table XII.1: Sumary Estimated Resettlement Cost for the Da Nang section Table XII-1: Summary Estimated Resettlement Cost for the Da Nang section iv

6 ABBREVIATIONS CPC Commune People s Committee DPC District People s Committee DCSCC District Compensation and Site Clearance Committee DARD Department of Agriculture and Rural Development DOC Department of Construction DOF Department of Finance DONRE Department of Natural Resources and Environment DPI Department of Planning and Investment DOT Department of Transport DMS Detailed Measurement Survey DP Displace Person EMA External Monitoring Agency FS Feasibility Study GOV Government of Viet Nam IDA International Development Association of the World Bank IOL Inventory of Losses LURC Land Use Rights Certificate MOLISA Ministry of Labor, Invalids and Social Assistance MOT Ministry of Transport NGOs Non-governmental Organizations PIP Project Information Pamphlet PMU85 Project Management Unit 85 PPC Provincial Peoples Committee RCS Replacement Cost Study RAP (or RP) Resettlement Plan SES Socio-Economic Survey TOR Terms Of Reference USD US Dollar VND Vietnam dong WB World Bank WU Women s Union v

7 DEFINITION OF TERMS Assistance Cut-off date Detailed Measurement Survey (DMS) Displaced Persons Means additional support provided to DPs who lose assets (particularly productive assets), incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life or otherwise improvement. Is the date of commencement of census and asset inventory surveys by the provincial authorities following approval of the project by GOV. The cut-off date has to be formally declared by the relevant authorities to stakeholders. Persons who occupy the project site after the cut-off date will not be eligible for compensation and relocation assistance. Means the detailed survey of affected assets for preparation of Inventory of Losses (IOL), including the loss of land, structures and other fixed assets, business, employment and sources of households incomes; and preparation of detailed list of households thus impacted by the project. The final cost of compensation, assistance and resettlement is determined following completion of the DMS. The DMS will be done by respective District Compensation Committees in the RAP implementation phase once the benchmarks of the project site demarcation are put on the ground. Term used in OP 4.12 of the World Bank. Means any person or persons, household, firm, private or public institution that, on account of changes resulting from the Project, will have their or its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (including residential, commercial, agricultural, forest and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without displacement. DPs including all persons who are affected by land acquisition for the project construction (permanently or temporary) and persons who are affected by land acquisition for the relocation site development for the relocating households. vi

8 Entitlement Host community Livelihood restoration/ Improvement Inventory of Losses (IOL) Land recovery Resettlement Vulnerable People Means the range of measures comprising compensation, assistance, (including income restoration support, transfer assistance, income substitution, relocation support and assistance to the vulnerable DPs etc.) in order to achieve the objective of Resettlement Plan. Means the community residing at, or in the vicinity of the relocation sites designated for relocating households. Means the restoration of livelihood and household incomes of relevant DPs through the RAP policy and its implementation. Means the process of identification, location and measurement of all fixed assets that will be acquired / recovered or adversely affected by or as a result of the project. These include, (without limitation or being an exhaustive list) lands used for residence, commerce, agriculture, ponds; dwelling units, stalls and shops, other structures, such as fences, tombs, wells; trees with commercial value, sources of income and livelihood. It also includes the assessment of the severity of the impact of land and property on the affected assets and the severity of impact to the livelihood and productive capacity of DPs. Detailed and final IOL is carried out in the initial phase of RAP implementation. Means the processes by which all or part of land and property owned, possessed, occupied or used, are compulsorily recovered or otherwise acquired from an individual, household, firm or private institution by the State or are acquired by agreement. Decision on land recovery will be done through two steps (i) Decision at the provincial or city for the whole project areas and subsequently (ii) Decision by the district to each individual. Means the physical relocation of DP from the DP s pre-project place of residence and/or business. Means individuals or distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of land and property recovery or resettlement and specifically includes: (i) female headed households with dependents (ii) households with disabled persons, (iii) households falling under the current MOLISA benchmark poverty line, (iv) children and elderly households who are with no other means of vii

9 support, and (v) landless households. Means the amount calculated before displacement which is needed to replace an affected asset without deductions for taxes, and/or costs of transaction as follows: (i) Productive land (Agricultural, fishpond, garden, forest) based on market prices that reflect recent land sales of comparable land in the district and other nearby areas, and in the absence of such recent sales, based on equivalent productive value; (ii) Residential land based on market prices that reflect recent sales of comparable houses and residential land in the district and other nearby areas, and in the absence of such recent land sales, based on sales in other locations with similar attributes; Replacement Value (iii) Houses and other related structures based on current market prices of materials and labor without depreciation or deductions for salvaged building materials; (iv) Standing crops equivalent current market value of the crop at the time of compensation; (v) Perennial crops and trees, cash compensation equivalent to current market value given the type, age and productive value (future production) at the time of compensation. (vi) Timber trees, the price that would currently be paid for the tress on the nearest market based on the diameter of each tree at breast height. Replacement Study Cost Means the process involved in determining the replacement cost of land, houses and other affected assets based on surveys by independent evaluators. viii

10 1. The project EXECUTIVE SUMMARY According to JETRO Study, one of major reasons of traffic accident on National Highway 1A is considered of Mixed Traffic. That is mixing of industrial and living transportation, mixing of Quang Nam short traffic, and mixing of bicycle, motorcycle and vehicle. The Expressway is designed to receive long trip traffic, which will contribute for reducing traffic accident. Da Nang - Quang Ngai Expressway Project is with the objective of improving the road transportation system with the scopes of i) providing safe and secured transportation for the high speed and heavy vehicles, and ii) strengthening of institution to manage the expressway transportation system. Through realizing the scopes, the Expressway is also aimed to achieve the following targets: (a) Support Nationwide Socio-Economic Development (b) To Promote Socio-Economic Development of Central Vietnam (c) To Promote Improvement of Environment; and (d) To Promote Traffic Safety The alignment of the Expressway passes through two provinces (Quang Nam and Quang Ngai) and Da Nang city, with km in total length and tolled dual 2-lane facility (2-lane at each direction) at the entire alignment. The Resettlement Plan summarizes the impacts due to the proposed expressway traversing the City of Da Nang. Approximately 08 km length of the road alignment crosses through one district namely Hoa Vang, covering a total of three communes of Da Nang City. 2. Land acquisition impacts According to Vietnam Regulation, the width of the corridor for the project is 70m. Based on this required area, land acquisition impacts in the Da Nang City are summarized as below: There are a total of 424 households in 03 communes of 01 district of Da Nang City who will be impacted by land acquisition for the project. Of these: - 62 Households will be impacted by the loss of residential land either partially or fully with the total affected area is 38,498 m 2 Page 1

11 - 395 Households will be impacted due to the loss of agricultural land with the total area of 370,374 m ,067 m 2 other land (public land) will be impacted - About 9,075 m 2 of forestry land (Production forestland) will be impacted Households will be impacted on either partially or fully by the loss of houses with the total affected area of houses being 2,453 m There are 85 HHs will receive land plot in resettlement site, of which relocated HHs due to loss of residential land (both with and without structure) include 25 HHs (including 12 HHs affected by loss of business), by loss of agriculture land (60 HHs). 3. Legal and Policy Frameworks The RAP is developed based on the laws of the Government of Viet Nam (GOV) and the World Bank Policy on Involuntary Resettlement (OP December 2001). The policy of GOV on compensation, assistance and relocation has been improved significantly in recent years (Land law-2003; Decree ; Decree ; Decree etc.) and very close to the requirements of the World Bank standards on involuntary resettlement (OP 4.12). The entitlements for compensation and other assistance take into consideration the latest provisions of the Decision 36/2009/QĐ- UB of Da Nang People s Committee, dated on 24th December 2009, on compensation and resettlement policies. The main policy objectives and principles of the Project Compensation and Resettlement policy are (i) land acquisition should be minimized as much as possible, if unavoidable, the policy should be developed to (ii) ensure that affected people receive compensation at full replacement values and with relocation assistance so that they will be at least as well off as they would have been in the absence of the project or otherwise improved. The cut-off date of the project coincides with the date of commencement of the census of affected persons and inventory of losses (IOL) and will be established when DMS begins following approval of the project by GOV. The cut-off date will be formally announced by the relevant authorities to stakeholders. 4. Public Participation and consultation Several meetings of consultations, public meetings and commune discussions were held with affected households and local authorities. Many DPs and local officials at Page 2

12 the different levels from the province to commune as well as local NGOs have been consulted for different aspects of compensation and resettlement such as compensation and resettlement policy, options to compensation modes (in cash or in kind, cash for self-relocation or to relocate at the resettlement sites which will be constructed by the project), preference to the livelihood restoration/development programs etc. Many different instruments and channels of consultation and participation were applied and organized. A lot of feedback has been obtained from DPs, local NGOs, local authorities and relevant Provincial, District Departments. Public consultation activities will continue throughout the implementation phase. At the early time of the RAP and project implementation, Public Information Booklet (PIB) will be prepared by the Project Management Unit 85 and will be disseminated to the affected households and posted at the public places. 5. Relocation arrangements and livelihood restoration Since no public agricultural land is available that can be offered to the DPs as replacement agricultural land, the project authorities will make special efforts to assist DPs who wish to purchase replacement private agricultural land on willingbuyer willing-seller basis. The project will also provide logistical support for such transactions and all legal and documentation costs would be covered by the project if carried out within a period of six months from the date of receipt of compensation by the DPs. External Monitoring Agency will closely monitor this activity. There are 85 households have to be relocated with total required area of resettlement sites being 35,360m 2. The resettlement sites will be well developed with physical infrastructures and social services such as inter roads, water and power supply system, drainage and sewage water treatment systems etc. The economic restoration programs to the DPs losing their productive land, including poor and vulnerable groups are proposed to make sure that they would improve or at least restore their livelihood as before displacement levels. The programs are proposed to be based on the consultation with DPs and other stakeholders, especially local NGOs. Implementation of livelihood restoration programs, including outcome of the training, extension services etc. will be closely monitored by the project authorities as well as by the external monitoring agency. A post-implementation evaluation by the external monitoring agency would be carried out to determine whether the objectives of the income rehabilitation and livelihood restoration have been achieved. The project authorities will provide additional resources for continued assistance to the DPs until they have restored their livelihood at least to the preproject levels. Page 3

13 Planning and implementation of selected income restoration plans will be based on extensive and well-documented consultation with the affect people. 6. Implementation Arrangements Responsibilities of all relevant authorities and institutions from Central to Commune levels are clearly described in the Decree 197/ND-CP-2004 and Decree 84/ND-CP The VEC under the Ministry of Transport (MOT), is the Executing Agency of the Project. It is responsible for realization of the Da Nang - Quang Ngai Expressway Project, including resettlement policy framework. PMU85, on behalf of the VEC, has direct responsibility and day-to-day management oversight for implementing all aspects pertained to the Expressway s works, including planning, programming, budgeting, design, implementation, monitoring, evaluation, ensuring overall project s coordination and supervision of resettlement activities and coordination/liaison with the World Bank. The PMU 85 will provide overall guidance and closely coordinate with all district and commune levels for the project and RAP implementation. The PPC of Da Nang City and their relevant Departments are responsible for review, approve on land recovery; compensation costs at the replacement values, relocation site development and direct its lower levels in implementing the RAP. District People s Committees, District Compensation and Resettlement Committees (DCSCC), affected Communes will be responsible for carrying out for the DMS, prepare compensation plans for each HH or individuals, affected institutions, pay compensation to DPs as well as settle for complaints from DPs. 7. The implementation schedule The implementation schedule of RAP is proposed based on the schedule of the project construction; a schedule for key activities is summarized as below. Proposed schedule for RAP implementation with key activities (this RAP implementation schedule will be modified after the finalization of the proposed construction schedule). 8. Information disclosure and dissemination Key information about the project, compensation and assistance will be summarized as in Public Information Booklet (PIB) and will be disseminated to all DPs once this Page 4

14 RAP is approved by the competent authorities. The Project Management Unit 85 is responsible for disclosing the final RAP. Table 0.1: Schedule for key activities of RAP implementation Activities 1. Information campaign: Information disclosure and dissemination of RAP at info shop of the WB in DC and VIDIC at Viet Nam office and at PC office Da Nang City. A summary of project background and RAP disseminated to all affected communities and DPs. 2. Update detailed measurement surveys and census of DPs 3. Start up of planning for income rehabilitation measures 4. Resettlement site construction 5. Pay compensation to and relocation of DPs. 6. Relocation of Households 7. Monitoring Target dates/time January to February 2011 March to December 2011 June 2011 to September 2011 June 2011 to September 2011 May 2011 to December 2011 April 2012 to June 2012 June 2011 to April Post-implementation evaluation of resettlement June 2013 The RAP and/or Vietnamese Version of Entitlement Matrix will be disclosed at affected districts and Communes level as well as at DONRE and DOF offices of Da Nang City. The full RAP will be disclosed at Info-shop of the World Bank and VIDIC of the World Bank office in Viet Nam. VNM version of the Entitlement Matrix would be made available to the DPs in each commune. An external monitoring report on the RAP implementation will be made available at the project affected communes, affected districts and to relevant Departments of Da Nang City. Page 5

15 9. Grievance redress mechanism The Grievance Redress Committee (called GRC) at 03 levels (commune/district and provincial level) will be established before the start of resettlement implementation and announcement publicly. At each level, the committee members will include 5-7 representatives from PMU, CRC (1-2 persons at each 03 level), mass organization/civil society/cbos/ngos (1-2 persons), Lawyer Union/associations and DP representatives, which is a positive way to resolve issues that concerns of DPs. If it is impossible to solve their complaints at the commune or ward level, DPs can take 04 steps, which are (i) first stage- at Commune level; (ii) second stage- at District level; (iii) third stage-at Provincial level; and (iv) final stage- Courts. Persons filing a complaint will not be charged administration or complaint fees. Participation of civil society members and DPs representatives would ensure that the GRCs function without any coercion, remain independent, and discuss all the issues and complaints, and take decisions in an objective and transparent manner. 10. Cost and budget Table 0.2: Estimated Resettlement Cost for the Da Nang section No Items Total cost (VND) Exchange USD (1USD = 19,000 VND) I Compensation for land 43,802,327,500 2,246,273 II Compensation for Structures 3,036,664, ,726 III Compensation for other fixed assets 1,857,304,000 95,246 IV Compensation for crops and trees 3,694,821, ,478 V Cost of resettlement site development 14,048,000, ,410 VI Cost of Public Facilities 430,000,000 22,051 VII Compensation for Loss of Businesses 307,500,000 15,769 VIII Allowance and Assistances 49,621,335,000 2,544,684 IX SUB-TOTAL A (I+II+III+IV+V+VI+VII+VIII) 116,797,951,500 5,989,639 X Cost of Management (2% of I - VII) 2,335,959, ,793 XI Cost of RCS 240,000,000 12,308 XII Cost of External Monitoring & Evaluation (1% of I-VI) 1,167,979,515 59,896 VIII SUB-TOTAL B (X+XI+XII) 3,743,938, ,997 XIV Contingency 10% 12,054,189, ,164 Grand Total 132,596,079,050 6,799,799 Page 6

16 To ensure that all compensation is paid at replacement cost, the VEC will contract an independent land price appraisers licensed by the Department of Finance to carry out Replacement Cost Study (RCS) for all the affected assets based on the prevalent market prices. The findings of the RCS will be submitted to the PPC for comparison and revisions, where necessary to ensure that the final rates reflect market prices and that all assets are compensated at the replacement cost. In case of over-run of resettlement cost, VEC will ensure that adequate additional funds are available in a timely manner. Page 7

17 I. INTRODUCTION I.1. The project According to JETRO Study, one of major reasons of traffic accident on National Highway 1A is considered as Mixed Traffic. That is mixing of industrial and living transportation, mixing of Quang Nam short traffic, and mixing of bicycle, motorcycle and vehicle. The proposed Da Nang - Quang Ngai Expressway is designed to receive long trip traffic, which will contribute in reducing traffic accidents and congestion Da Nang - Quang Ngai Expressway Project is expected to improve the road transportation system with the scope of i) providing safe and secured transportation for the high speed and heavy vehicles, and ii) strengthening of institution to manage the expressway transportation system. Through realizing the scopes, the Expressway is also aimed to achieve the following targets: (a) Support Nationwide Socio-Economic Development: According to the logistic survey conducted at the time of JETRO Study in 2007 (JETRO Study), 20% of passing vehicles in the central Vietnam was bound for Hanoi and Quang Nam. In addition, more than 40% of passing vehicles between Da Nang and Quang Ngai was long trip connecting to the North and the South of Vietnam. The Expressway will be the pivot of traffic to connect these two regions. (b) To Promote Socio-Economic Development of Central Vietnam: The Expressway is considered to play the important role on transportation of goods and passengers in the whole country in combination with National Highway No.1A (NH1A). In addition, the Expressway is expected to contribute for the international transportation of economic triangle (Lao PDR Cambodia Vietnam) via East West Economic Corridor (EWEC) to ports in Central areas in Vietnam. (c) To Promote Improvement of Environment: Environmental condition alongside NH1A is becoming worse due to heavy traffic volume. The Expressway will contribute for improving environmental condition alongside NH1A by receiving long trip traffic. (d) To Promote Traffic Safety: The alignment of the Expressway passes through two provinces (Quang Nam and Quang Ngai) and Da Nang city with km in total length and tolled dual 2-lane facility (2-lane at each direction) at the entire alignment. The general technical specification of the project is described as in Table I.1 below. Page 8

18 Table I.1: General technical specifications of the project No. Item Unit 1 Road length Km 2 Class of road Quantity of total project (Including Km of Expressway and 8.02 Km of road connecting to NH1A. 4 lane expressway (Reservation for 6 lanes future expansion). Quantity in Da Nang Section 8 (From Km00 to Km8) 4 lane expressway (Reservation for 6 lanes future expansion). 3 Travel speed 120 km/h 120 km/h 4 Width of road base M Road surface Asphalt and concrete 6 7 Frequency of flood return period Super bridge: 1/100 Asphalt and concrete Super bridge: 1/100 Land to be permanently acquired m2 9,605, ,014 8 House to be demolished m2 66,288 2,453 9 Bridge/ culvert Major Bridge Set/m 04/ /1,372 Minor waterway Bridge Set/m 72/7,942 6,109 m Overpass bridge Set/m 30/4,299 Viaduct Set/m 22/2,587 Culvert for waterway Set/m 254/13, Tunnel Set/m 01/540 0/ Crossing Interchange Set 09 1 Culvert for road Set Service zone Set 02 0 Parking yard Set facilities Traffic Management Center Expressway Operation Offices Throughway Toll Barriers Set 01 0 Set 01 1 Set 02 1 Toll station Set 10 0 (Source: Relevance Specified in the Feasibility Study Report of Da Nang Quang ngai Project by TEDI, February 2010) Page 9

19 I.2 Scope of the RAP The Resettlement Plan summarizes the impacts due to the proposed expressway traversing the municipality of Da Nang. Approximately 08 km length of the road alignment crosses through one district namely Hoa Vang covering three communes of Da Nang municipality. The list of district and communes traversed by the expressway in Da Nang municipality is shown in Table I.2. Table I.2: District and Communes covered by the Expressway Number District Communes Hoa Nhon 1 Hoa Vang Hoa Phong Hoa Tien The right of way is 70 m wide. The impacts on land acquisition for this RAP are surveyed based on the design of the route of feasibility studies and the cadastral maps of affected communes. Any potential adverse impacts due to the associated structures, service areas, approach road etc. are not foreseen at this stage as all the proposed work will be carried out within the existing ROW. However, if any adverse impacts are identified or any change in the design of associated structures, approach roads etc. during the implementation phase, they will be addressed in accordance with the policy provisions specified in the RAP and in compliance with the WB OP4.12. The impacts on land acquisition will be updated with detailed measurement survey (DMS) after the detailed engineering design is made available and the demarcation of the affected area is marked by the benchmarks on the ground by local authorities and PMU 85. The route of the expressway is shown as Figure I-1 below. I.2. Minimizing Land Acquisition and Resettlement Impacts A lot of efforts have been made by technical and social teams as well as local authorities to minimize impacts on land acquisition through different phases of the project study. The consultation with relevant parties was also held, based on their feedback, the alignment was adjusted to minimize negative impacts on environment and land acquisition. As the result of alignment adjustment, number of households have to be relocated is reduced significantly compared to the original alignment proposed by TEDI in its Feasibility Study. The changes made to reduce impacts on Page 10

20 land acquisition, especially to reduce the number of households that have to be relocated, are summarized below: The length of section in Da Nang city is relative short, about 8Km. The original alignment was proposed by TEDI in its Feasibility Study (TEDI F/S 2005) with due examination in order to reduce negative social impacts as well as to realize technical feasibility. The JETRO Study and the WB Supplemental Study followed the alignment proposed by TEDI in its F/S for the section of Da Nang City. From December 10, 2009, the TEDI design consultant (DC) made adjustment to the alignment at sections: Km0+000 to Km basing on the Announcement 422/TB-BGTVT signed on September 23, 2009 and Announcement 594/TB-BGTVT signed on September 25, 2009 by MOT in order to reduce negative social impacts. As a result the major modifications at the following section (from Km0+000 to Km8+000) 1 were proposed in order to reduce adverse environmental and social impacts. Section from Km0 to Km8 From Km0+000 the alternative alignment slopes to the east of the Nippon Koei line to avoid clearing the 500 KV poles at Km From Km3+000 to Km 6+000, the route is nearly in parallel the Nippon Koei line and in the distance of 100m from the Nippon Koei line to avoid removing of the 500kv poles at Km Thus, the alignment has avoided two-500kv high voltage transmission lines relocation. 1 Although the modification section is from Km0 to Km16, Section from Km8 Km16 which belongs to Quang Nam Province is specified in Quang Nam RAP. Page 11

21 Figure I-1: The route of the project Page 12

22 II. LEGAL FRAMEWORK The relevant laws and regulations of the Government of Viet Nam define the legal framework for compensation, resettlement and rehabilitation under the project and the World Bank social safeguards policies. In case of discrepancies between the National laws, regulations, and procedures and WB's policies and requirements, WB's policies and requirements will prevail, consistent with Decree No. 131/2006/ND-CP (which provides that in case of discrepancy between any provision in an international treaty on Official Development Assistance, to which the Socialist Republic of Viet Nam is a signatory, and the Vietnamese Law, the provision in the international treaty on ODA shall take precedence -Article 2, Item 5). The same statement was mentioned in the Decree 197/2004/ND-CP on compensation and resettlement when the Government takes over the land for the defense, security purposes, benefits of nation and public works as well as for economic development. Decree No. 17/2003/ND-CP, promulgating the regulation on the exercise of democracy in communes, including requirements for consultation with and participation of people in communes. II.1. Relevant Vietnamese Legislation The policies of GOV on compensation, resettlement and assistance have been significantly improved from time to time, especially, 2003; National Assembly passed the date of land law. Many Laws, Decrees, Circulars and amendments to Laws; Decrees issued by the GOV to improve the policies on land acquisition, compensation and assistance. The policies on land acquisition, compensation and assistance have also significantly improved on the requirements of consultation, participation, information dissemination, monitoring and evaluation. For the projects financed by the International Banks, the GOV has also approved for the required waivers to meet with the international standards on involuntary resettlement. - Land Law 2003/QH11, providing Viet Nam with a comprehensive land administration law. - Decree No. 197/2004/ND-CP dated 3 December 2004, on compensation, rehabilitation and resettlement in the event of land recovery by the State, as amended by Decree No. 17/2006/ND-CP. - Decree No. 17/2003/ND-CP, promulgating the regulation on the exercise of democracy in communes, including requirements for consultation with and participation of people in communes. Page 13

23 - Decrees No. 188/2004/ND-CP and 123/2007, specifying the methods for land pricing and land price frameworks in the event of land recovery by the State. - Decree No. 84/2007/ND-CP, dated May 25, 2007 supplementary stipulations on issue of LURC, land acquisition, land use right implementation, procedure of compensation, assistance in the event of land recovery by the state and grievance redress. - Circular 57/2010/TT-BTC, dated on 16 April 2010 of Ministry of Finance regulating the establishment of cost estimation, use and finalization of expenses for resettlement s compensation and support in the case of land s recovery. - Circular No. 114/2004/TT-BTC elaborates in detail the methods (direct comparison and income methods) for determining land prices. - Decree No. 17/2003/ND-CP, promulgating the regulation on the exercise of democracy in communes, including requirements for consultation with and participation of people in communes. - Decree No. 131/2006/ND-CP, on the management and use of Official Development Assistance (ODA). Decree No. 131/2006/ND-CP provides that in case of gaps between any provision in an international treaty on Official Development Assistance, to which the Socialist Republic of Viet Nam is a signatory, and the Vietnamese Law, the provision in the international treaty on ODA shall take precedence (Article 2, Item 5). - Decree 69/2009/ND-CP to amend for planning on land use, cost for land, land recovery, compensation and resettlement. This Decree requires a lot of assistance to the DP who affected by loss of productive land and are left with unviable land holdings; especially households have to relocate and losing the agricultural land. - Circular 14/2009/TT-BTNMT dated 01 October 2009 guides on the details of implementing about compensation, resettlement and resettlement assistance, process of land acquisition, land allocation, leasing land. - Decision 36/2009/QĐ-UB of Da Nang People s Committee, dated on 24 th December 2009, on compensation and resettlement policies. Page 14

24 II.2. Involuntary Resettlement Policy of the WB (PO December 2001) The objective of the policy on involuntary resettlement is: (a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. (b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (c) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. II.3. Main gaps between Viet Nam policies and World Bank Policy on involuntary resettlement There are a number of ways in which the approaches of the Vietnam Government, either in policy or practice are compatible with World Bank policy. The most important compatibilities are: 1. On the issue of land tenure and the legal right to compensation, the Government and World Bank approaches are compatible. Vietnam has a process whereby people without legal land rights may meet conditions of legalization and receive compensation for losses up to a rate equal to 100% of land price minus the taxes and fee for land use right registration from 15 October 1993 (Article 42, 49 and 50 of 2003 Land Law). 2. All DPs, who satisfy residence conditions in accordance with the provisions of the Decree 197, are provided with options that include relocation to an improved site, or cash, or a combination of the two 3. Resettlement offer not only better improved infrastructure and social services but represent a higher standard of living. 4. Allowances and livelihood support are provided to help the DPs in the transition period and there is an institutional structure through which people are informed, can negotiate compensation, and can appeal. Page 15

25 5. Compensation at replacement cost is ensured in Article 6 of Decree 197/2004/ND-CP dated December 3 rd, 2004 that people who have land being acquired shall be compensated with land of similar land use purpose. If there is no land for compensation, cash compensation equal to land use rights value at the time of land acquisition shall be applied. If there is any difference in value, in case of compensation by new land or house, such difference shall be settled in cash and Article 19 in the same Decree states that house and structure of domestic use of household or individual shall be compensated with the value of construction of new house, structures of similar technical standard. With the promulgation of the 2003 Land Law and the adoption of Decrees No. 197/2004/ND-CP and No. 188/2004/ND-CP, Decree 84/2007/ND-CP, the policies and practices of the Government have become more consistent with WB s social safeguards policies. However, there are several gaps in the provisions of the WB policy with those of the Vietnamese regulations and local provincial practices. A comparative analysis between the WB policy and Vietnam s national and provincial policies together with the policy provisions adapted for the project is provided in Annex A. The main gaps between national policy and provincial policies and OP 4.12 on involuntary resettlement of the World Bank are as follows. According to the Decree 197 and Decree 69, the significance of impact is triggered by a loss of 30 percent or more of agricultural land while in OP 4.12 the trigger is at a loss of 20 percent or more of productive land or assets. In the project however a thresho all households losing their productive land, irrespective of the degree of loss, would be provided income rehabilitation assistance. Decree 197 recognizes non-legal users or users without papers or documents only if they have been using the land to be affected by a project in a stable manner prior to 15 th October However, in accordance with the provisions of the WB policy, all the affected users as of the cut-off-date would be entitled to compensation for their affected assets and appropriate relocation assistance. Land Law and Decree 197 provide for deductions from both land and assets compensation in a number of circumstances. In the project, all compensation would be at replacement cost and without any depreciation or deduction for salvaged material In accordance with the Vietnamese regulations, houses and structures will not be compensated if they have been constructed without permission, Page 16

26 constructed in contravention of a land use plan, or if they have encroached upon a demarcated safety protection corridor. In the project all affected structures would be paid at 100% of their replacement cost. Vietnamese regulations provide for compensation at 80% for house and structures if they have been built on land that is ineligible for compensation. In the project all affected structures would be paid at 100% of their replacement cost. Decree 197 recognizes businesses or economic entities as DPs only if they hold a business certificate (i.e. excludes non-registered businesses). In the project all affected businesses, registered as well as unregistered would be entitled to compensation for losses and other applicable assistance. Decree 197 recognizes DPs losing employment and provide for economic support only if they have employment contract and are employed by a business or economic entity holding a business certificate. In the project however, the DPs losing sources of livelihood due to the adverse impacts on business establishments would be provided some assistance for a limited period and assistance in finding alternative employment even if they do not hold employment contract or if the businesses are not registered. Under Decree 197 and Decree 69, assistance for occupational change and job creation is only provided to DPs engaged directly in agricultural production and in cases where more than 30% of their agricultural land is affected. However, in the project all DPs affected by loss of productive land, irrespective of degree of impact will be entitled to additional assistance and employment and income rehabilitation measures. In the project, a Replacement Cost Study (RCS) would be carried out by a professional appraiser to determine prevalent market rates and to validate compensation rates established by provinces. The final compensation rates would take into consideration the findings of the RCS and consultation with the DPs to ensure that all compensation is paid at replacement cost. Vietnamese regulations do not fully cover the scope fo the vulnerable groups as defined under the OP4.12 on Involuntary Resettlement of the World Bank. However, the project provides for additional assistance to the households that fall within the definition of the vulnerable groups (poor households who fall below the poverty line, the landless, the elderly, women headed households, disable persons). Page 17

27 Despite the key gaps, summarized above, the provisions and principles adopted in the project will supersede the provisions of relevant decrees currently in force in Viet Nam consistent with Decree No. 131/2006/ND-CP on ODA management. With the approval of this RAP, the gaps analyzed above and the measures to address these gaps are also approved by the competent authorities of GOV. Page 18

28 III. ENTITLEMENT POLICY III.1. Objectives The overall objectives of this resettlement policy are (i) to avoid, or if not, minimize resettlement impacts; (ii) if land acquisition impacts are unavoidable, RAP is prepared in a way to ensure that displaced persons will not be worse off; rather, they should be able to at least maintain or otherwise improve their pre-project living standards and income-earning capacity. The Project will also provide an opportunity for the local population to derive benefits from it. Likewise, the Project should serve as an occasion for the local population to participate in its planning and implementation, thereby engendering a sense of ownership over this development undertaking. III.2. Eligibility to compensation and relocation assistance Cut-off Date: The cut-off date of the project coincides with the date of commencement of the DMS that will be carried out by project authorities following approval of the RAP by the Government of Vietnam and includes census and inventory of losses (IOL). The cut-off date will be formally declared by the relevant authorities to stakeholders. Persons who occupy the project site after the cut-off date will not ben eligible for compensation and relocation assistance. Eligibility: Persons who occupy the project site after the cut-off date will not be eligible for compensation and relocation assistance. DPs eligible for compensation and rehabilitation will include: (a) those who have formal legal rights to land or other assets; (b) those who initially do not have formal legal rights to land or other assets but have a claim to legal rights based upon the laws of the country; upon the possession of documents such as land tax receipts and residence certificates; or upon permission of local authorities to occupy or use the project affected plots; and (c) those who have no recognizable legal right or claim to the land they are occupying. Persons covered under (a) and (b) are provided compensation at full replacement costs for the land they lose, payment for non-land assets they own and necessary assistance in cash or in-kind. Persons covered under (c) are provided compensation at full replacement cost for non-land assets they own and 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 provided that they occupy the project area prior to the cut-off date of the project. Persons who occupy the project area after the cut-off date will not be eligible to any compensation or assistance. Page 19

29 III.3. Compensation Principle and Entitlement Compensation policy and entitlements proposed in the project, and as specified in the following sections, take into consideration the Vietnamese national and provincial regulations and provisions of the WB s OP The overall objective is to ensure that the DPs are able to improve or at least restore their livelihood to preproject level. Vulnerable households are provided additional assistance to meet the above stated objectives. III.3.1. Principles of Replacement Cost All compensation will be based on the principle of replacement cost in cash or in kind. In case of cash compensation, replacement cost is the amount calculated before displacement, which is needed to replace an affected asset without deduction for taxes and/or costs of transaction as follows: (a) Productive Land (agricultural, aquaculture, garden and forest) based on actual current market prices that reflect recent land sales in the area, and in the absence of such recent sales, based on recent sales in comparable locations with comparable attributes, fees and taxes for LURC or in the absence of such sales, based on productive value; (b) Residential land based on actual current market prices that reflect recent land sales, and in the absence of such recent land sales, based on prices of recent sales in comparable locations with comparable attributes; fees and taxes for LURC; (c) Houses and other related structures based on actual current market prices of materials and labor without depreciation or deduction for salvaged building materials and fees; (d) Annual crops equivalent to current market value of crops at the time of compensation; (e) For perennial crops, cash compensation at replacement cost is equivalent to current market value given the type, age and productive value (future production) at the time of compensation; (f) For timber trees, cash compensation at replacement cost is equivalent to current market value for each type, age and relevant productive value at the time of compensation based on the diameter at breast height of each tree. Page 20

30 In case of in kind compensation, the principles will be as follows: (a) Replacement residential land will be of the locational advantage and physical attributes similar to the land lost with equivalent or better access to physical infrastructure and social services. (b) Replacement productive land will be of equivalent productive potential and locational advantage similar to the land lost, with improved or better condition for cultivation compared to that at the time of handing over to the project. (c) Building and other substructures will be at the replacement conditions. (d) Either grant with LURC and ownership of building without any taxes fees or if not, taxes and fees for LURC and ownership of building must be included in the package of compensation to DPs. III.3.2. Compensation policy for agricultural land The DPs will be entitled to the following types of compensation and rehabilitation measures: The general mechanism for compensation of lost agricultural land will be through provision of "land for land" arrangements of equal productive capacity, at location satisfactory to the DP. If land compensation size is smaller or lower quality, DPs will be entitled to compensation on cash equivalent for the differences. However, if land is not available or at the informed request of the DP prefers to receive cash compensation for the lost land will be given as follow: (a) Legal and legalizable land users: (i) if the portion of the land to be lost represents 20% or less of the total area of the landholding by DP, and the remaining plot of land is still economically viable, cash compensation for the lost area at full replacement cost. The DPs will also be entitled to income rehabilitation assistance as described in item (iii) below. (ii) if less than 20% of productive land affected rendering the remaining land unviable for continued use, the project, at the request of the DP, will acquire entire land holding and the DP will be entitled to assistance and support similar to that in item (iii) below. (iii) if more than 20% of a household s agricultural land is acquired, then in addition to cash compensation at full replacement cost for the lost area (or for the entire affected plot if the remaining area of the plot is not economically viable), or replacement land of equivalent Page 21

31 productivity, the Project will provide rehabilitation allowances for training/retraining and intensifying of the existing occupation or shifting to new ones, combining with technical assistance such as agricultural extension, credit etc. The DP whose agricultural land is acquired will be compensated by cash equivalent to 100% of the replacement cost. If the remaining land is not economically viable, as requested by DP, the entire area will be acquired. In addition to a cash compensation, the DPs will also be entitled to income rehabilitation assistance. The forms of assistance support would be decided through close consultation with the entitled DPs to ensure appropriate and effective measures assisting the DPs to restore their income generating capacity and income levels. (b) Users with temporary/ leased rights to use land: (i) The DPs will be refunded the lease payment they have made for the affected portion of the land corresponding to the remaining lease period. Additionally, the DPs will be compensated for any investment they have made on the affected land or 30% of the replacement cost of the affected land, whichever is higher. (ii) if the remaning land is rendered unviable, at the request of the DP, the project will take back entire land and provide the DP with suitable replacement land at location acceptable to DP. If suitable replacement land is not available, at the request of the DP, the project will refund the payment made by the DPs corresponding to the remaining lease period. Additionally, the project will compensate DP for the investment made on the affected land or 30% of the replacement cost, whichever is higher. (c ) Land Users without recognized Rights to Use Land (i) In lieu of compensation for land, the DPs will receive assistance corresponding to 50% of land replacement cost. (ii) For poor and vulnerable, household and DPs lóing their productive land, including landless, as priority, allocation of arable land equal to per capita arable land in commune as regulated by Decree 64/1993/CP, OR, if there no land available for allocation or, at the informed request by the DPs, in addition to above, a rehabilitation/training assistance will be provided to ensure the DPs are able at least to restore or improve their income levels and living standards. Page 22

32 In case when the affected persons utilizes the public land (in Right of Way), that subjects to be recovered under the project, with conditions to return, on request, the land to the Government, they (DPs) will not be compensated for this public land, but will be compensated for crops and trees at full market prices. III.3.3. Compensation for Residential Land (a) DPs losing residential land without structures: Compensation for loss of land in cash at replacement cost (b) DPs losing residential land with structures built thereon and the remaining land is sufficient (not less than 40 m 2 in the urban area and not less 100 m 2 in the rural area) to rebuild their house on (reorganizing DP), the DPs will be compensated for a part of loss of land in cash at the replacement cost and compensation for fully affected structures at full replacement cost. If house/structure is partially affected, repairing cost to restore it to former or better conditions. (c) DPs losing residential land with structures built thereon and without remaining land sufficient (less than 40 m 2 in the urban rural area and less 100 m 2 in the rural area) to rebuild on (relocating DP) are entitled to: For the DPs, who have legal or legalizable rights to the affected land, can opt to one of the followings: (i) (ii) The provision of replacement residential land (plot at the relocation site) of equivalent size, at a similar location and with land title without any cost. The relocation site will be developed with basic infrastructure, including access road, access to electricity, to water supply, drainage, which at least are equal to conditions existed at the former location; or Cash compensation for entire residential land at full replacement cost and additional assistance for self-relocation equivalent to the unit cot of physical infrastructure invest per plot at the relocation site. For the DPs, who do not have legal or legalizable rights to the affected residential land, are entitled to the assistance amount equal to 30% of replacement cost. For poor or vulnerable DPs who have no other residential land in the same as their affected ward/commune, the project will provide either a residential plot of minimum size at a common RSs or on a individual residential plot, with titled to the land (plot of 40 m 2 in urban area and 100m2 in rural area); or on request of the DPs, cash assistance Page 23

33 equivalent to 60% of the land replacement cost for them to rearrange relocation by themselves. III.3.4. Compensation houses/other structures DPs losing houses and/or other structures will be entitled to the following: (i) (ii) (iii) (iv) For fully affected house (including house whose whole area is affected or partly affected but non-affected part could not be used either because of technical issue or because of inconvenient to use): Compensation in cash for entire affected structures will be provided at 100% of the full replacement cost for materials and labor, regardless of whether or not they have title to the affected land or permit to build the affected structure. The amount will be sufficient to rebuild a structure the same as the former one at current market prices. No deductions will be made for depreciation or salvageable materials. If house/structure is partially affected and the remaining structure is viable for continued use, the project will provide a house/structure repairing cost, in addition to the compensation, to enable DPs to restore it to former or better conditions. Compensation for other structures/fixed assets will be at full replacement cost and will be in cash. Tenants, who have leased a house for residential purposes will be provided an assistance equal to the remainder of rental contract value, but not exceeding rental value for three months, Or a relocation allowance of 0.3 million/person/month for a duration of 06 months, whichever is higher; and transportation allowance for moving assets, as well as assistance in identifying alternative accommodation. III.3.5. Compensation for Graves/Tombs The level of compensation for the removal of graves/ Tombs will be for all costs of excavation, relocation, reburial and other related costs (to meet with some traditional custom). Compensation in cash will be paid to each affected family or to the affected groups. The level of compensation will be decided in consultation with the affected families/communities. Page 24

34 III.3.6. Compensation for loss of Standing Crops and Trees For annual and perennial standing crops, regardless of the legal status of the land, compensation will be paid to households who cultivate the land, according to the full market value of the affected crops and at replacement cost for affected perennial trees (wooden and fruit trees). III.3.7. Compensation for Loss of Income and/or Business/Productive Assets For DPs losing income and/or business/productive assets as a result of land acquisition, the mechanism for compensating will be: A. Allowance for Business Loss: All affected businesses and production households whose income is affected will be compensated or supported for losses in business equivalent to 50% of their actual annual income i.e. equivalent to 6 months of average net income: (i) For licensed businesses the compensation will be based on their average yearly income declared with the taxation agency over the previous three years, and (ii) For unregistered affected businesses the compensation will be based on the income data collected at the the time of DMS but the compensation will not be less than 3.0 mil.vnd/month. B. Employees who are affected by acquisition of residential/commercial land acquisition, public land or land of enterprises: Allowance equivalent to the minimum salary as per the provincial regulations to affected employees during the transition period for a maximum of 6 months and will be assisted in finding alternative employment. C. If the business has to be relocated, the project will provide alternative site with locational advantage and physical attributes similar to the land lost with easy access to customers base, satisfactory to the DP, OR compensation in cash for the affected land at replacement cost, plus transportation allowance to remove movable attached assets. III.3.8. Compensation for temporary impact during construction For temporary loss of land and properties, particularly during the implementation phase, DPs are entitled to follows: (a) For arable land: Compensation for the affected harvests of crops/trees at full market prices. Restoration of land to its previous or better conditions by providing measures to improve land quality in cases of land being adversely affected or acidified, and if the duration of project's use the land exceed more Page 25

35 than two years, then the DPs have option to: (i) Continue using land, OR, (ii) Give it to the Project and be compensated as permanent loss (b) For residential land: Compensation for all affected movable properties at full replacement cost. Restoration of land to its previous or better quality before handing land over the owner. (c) For temporary impact on business: Compensation for temporary loss of income, equivalent an average monthly net income. Compensation for all affected movable properties at full replacement cost and restoration of land to its previous or better quality. (d) For damages caused by contractors to private or public structures: Under their contract specifications, the contractors will be required to take extreme care to avoid damaging property and businesses during their construction activities. Where damages do occur, the contractor will be required to pay compensation immediately to affected families, groups, communities, or government agencies following the compensation policy specified in the RAP. In addition, damaged property will be restored immediately to its former condition. The above-mentioned policy also applies to those affected by development of individual resettlement or group resettlement sites, graves and borrow pits ect. III.3.9 Compensation for Loss of Community Assets In cases where community infrastructure such as schools, bridges, factories, water sources, roads, sewage systems is damaged, the project will ensure that these would be restored or repaired as the case maybe, at no cost to the community. III Allowances and Rehabilitation Assistance during Transition Period The DPs will be eligible to the following entitlements based on the different impacted categories: A. For impacts on Residential Land: a. Relocation Allowance: (i) in-district relocation: 2 mil; (ii) out-district relocation: 3 mil and out-province relocation: 7 mil and (iii) sub- house relocation: 50% of above provision. (iv) rebuilt on the remaining land: 1.5 mil; (v) affected tenant will receive relocation allowance of : 0.3 mil per person per month, for a duration of 06 months. Page 26

36 b. House Renting: Relocated DPs whose houses are demolished will be assisted in renting temporary houses in resettlement sites. If the house is not available, DPs shall be assisted in cash at VND 1,200,000 per household/month. The supporting time for the house renting is calculated from the date of land hand-over till the actual time that DPs are provided with resettlement houses based on the notices of the authority who allocates the house and land, plus to 6 month allowance for renting house during building their new house. In case, the above mentioned support is not enough (not affordable), DPs will be also got difference (with actual house renting contract value). c. Assistance for Relocation: Household whose compensation payment for residential land, house is (i) smaller than VND 200 mil, will be retained, for house building, land fee in resettlement site will be debted; (ii) higher than VND 200 mil, will be retained at least 200 mil, the rest will be paid for land fee in resettlement site, if it is not enough, the remaining fee will be indebted. Eligible relocated households who relocated themsheves, will be provided one-time payment at cash that with value equivalent to landplot at resettlement site, at mil, B. For impacts on Agricultural Land: a. Allowance for Living/production Stabilization: households who lose 20% or more of their agricultural lands affected by the project will be compensated with one time payment at cash equivalent to 30 kg of rice/person/month at local market price (about 300,000 VND), including: (a) : Affected households losing 20% to 70% of their agricultural land will be assisted for living stabilization for 6 months if the remaning land is vible for continued use, and for 12 months in case the remaning land is rendered unviable and entire land is acquired by the project; (b) Affected households with more than 70% of their agricultural land acquired will be assisted for living stabilization for 12 months if the remaining land is viable for continued use, and for 24 months in case the remaining land is rendered unviable and entire land is acquired by the project; (c) households affected by loss of <20% of land and the remaining land is rendered unviable for continued use, the DPs will be assisted with living stabilization support for 12 months; and if the remaining land is viable for continued use the DPs will be assisted with one time payment at cash equivalent to 30 kg of rice/person/month multiplied with percentage of productive land acquired to total land holding, for duration of 04 months. Page 27

37 b. Households affected by loss of agricultural land where the remaining land is rendered unviable for continued use (<300 M2) would be provided with a minimum size plot of 100 m2 at the resettlement site. c. Assistance for agricultural land in the residential area, garden land, pond land adjacent to residential land but are not recognized as residential land: Additional assistance (equivalent to 50% of the cost of compensation for the adjacent residential plot) for garden land and pond land; and (at 40% of the cost of compensation for the adjacent residential plot) for agricultural land. d. In case of land-for-land compensation, DP will be assisted with seedlings, agricultural-forestry extension programs, husbandry etc (Item 4 of Article 20 of Decree 69/2009). e. Every DP affected by loss of productive land, irrespective of the degree of impact, will be provided with additional assistance equivalent to 1.5 times the compensation amount they receive. f. For households, who are not entitled to their affected agriculture land but are supported for their agricultural land, the support levels of occupation change are applied respectively for land by 50% or 60% of the above stated support levels. g. Support for vocational training and job creation: At least one member of households affected by loss of productive land will be entitled to vocational training in the province. The DPs participating in such training programs will be exempted from payment of tuition fees. Trainees will be paid a lump-sum allowance of VND 200,000/month to cover the lodging and boarding expenses during the training period. After finishing training courses, they will be given priorities to be recruited in local manufacturing industries. 30% of training facilities would be reserved for women. C. Other Allowances/Assistance: - Incentive Bonus: Organizations, households, who well execute the policy of self-dismantling and transferring land for the Project on planned schedule, will be awarded: (i) 5% of the asset compensation value (houses, structures, trees) for organizations, households whose compensation value is less than VND 50,000,000; (ii) 8% of the asset compensation value (houses, structures, trees) for organizations, households whose compensation value is more than VND 50,000,000 but not exceeding VND Page 28

38 80,000,000, and (iii) The bonus level equals 50% of the general regulation but not exceeds VND 2,500,000 for affected, tents, small shops, gardens. - Repair Allowance: If house/structure is partially affected and the remaining structure is viable for continued use, the project will provide a repair allowance equivalent of 20% of compensation for the affected part of the structure to enable DPs to restore it to former or better conditions. - Every relocating DPs will be provided with a lump-sum one time amount of 3,500,000 VND to cover the cost of domestic water, power and telephone connections at the new site. - Transport Allowance for all relocating households, independent business and commercial establishments: VND 3,000,000/ DP or equivalent to the actual cost of relocation expenses (labor, transport) if relocating within the Province/City and VND 5,000,000/DP or equivalent to the actual cost of relocation expenses (labor, transport) opting to transfer to another province. III Allowances / Assistance Targeted to Vulnerable Households Specific assistance to vulnerable groups would be as follows: (1) For landless households, assistance through provision of land-for-land with secure tenure at no cost to landless households. The size of land will not be less than 40 m2 in urban area and 100m2 in rural area, or cash equivalent to the cost of minimum size of the plot at RS, if DPs prefer for selfrelocation. (2) Social Policy: (i) Households including social policy heroic mothers, ware veterans, wounded or dead soldiers families: 1-5 mil/hh: (ii) Poor Household: 2 mil/hh (to be certified by local authority) (3) Other vulnerable groups (female headed household, household with disable person, elderly without any source of support) will get the same support ( mil. VND/household) given to poor households in accordance with the provincial policy. Page 29

39 IV. SOCIOECONOMIC CONDITIONS IV.1. General socioeconomic conditions of the affected area Da Nang lies between latitudes and N, and longitudes and E. It is in the central of Vietnam, 759km from Ha Noi and 960km from Ho Chi Minh City. Conveniently, it lies on the north-south communications axis of land route (National Highway 1A), rail, sea, and air routes. Da Nang borders Thua Thien-Hue Province to the north, Quang Nam Province to the south and the west, and the Eastern Sea to the east. The total area and population of Da Nang are 1,283.4 km2 and 0.8 million respectively. Da Nang is one of the national economic, cultural, scientific and technological centers, especially of the central region and the Western Highlands. During the past years, it has had continuous and stable economic growth in line with progress in social life, advanced infrastructure and better urban planning. GDP grew at an average rate of 12.47% in the period and at 11.04% in The economy has been restructured positively, with the industrial and construction sector making up 47.59%, the service sector 49.4% and the agro-forestry and fishery sector 3.01%. IV.2. Survey on the socioeconomic conditions of the project affected households The IOL and socioeconomic survey was originally conducted during December March However, following changes in the alignment by TEDI (December 2009) additional survey was carried out during January 2010 based on TEDI adjusted alignment. The data on the socioeconomic conditions of the project affected households covered a total of 114 households. The selection of households for socioeconomic survey was based on the results of Inventory of loss (IOL), and households affected severally by loss of agricultural land and businesses. The socioeconomic household survey accounted for 27 % of the 424 affected households in the Da Nang City. Formal and informal meetings and group discussions with local authorities and other stakeholders including local NGOs was also carried out during the socioeconomic survey. At the time of survey and information gathering as mentioned above, only the F/S was available. Precise affected area has not yet identified and marked on the ground. Hence, the socioeconomic characteristics of the communities and potential DPs presented below will necessarily be updated after the final detailed designs are completed and the bench marks demarcating for the project boundaries are put on Page 30

40 the ground and officially declared to local authorities and local people. The results of survey from a sample of the project affected households are as follows. IV.2.1. Demographic Characteristics of DPs According to the results of census and IOL for 114 affected HHs (461 persons) who are located in the project affected areas, all respondents are Kinh people. The socioeconomic survey also did not indicate presence of any ethnic minorities in the Da Nang section. The average HH size is 4 persons for the whole section. The average age of the total surveyed population is 35 years old with the average proportion of males is 48.3 % and females is 51.7 %. The detailed Demographic Characteristics of DPs by communes are presented in Annex B. Table IV.1: Demographic Characteristics of DPs (Da Nang Section) District Total affected HHs surveyed with census and IOL Affected Persons Household Size ( %) Gender Ratio Population Average household size person/hh Less than 4 persons/ HH From 5-8 persons/ HH More than 8 persons/ HH Male (%) Female (%) Hoa Vang Total Table IV.2: Age structure of surveyed population Percentage of age group ( %) District Total affected HHs surveyed Population Average age of surveyed population Less 5 years old From 5 to 18 years old From 18 to 35 years old From 36 to 55 years old Over 55 years old Hoa Vang Total Page 31

41 IV.2.2. Educational status The illiteracy rate among survey HHs is 4.7 %. About 37.3 % of the total surveyed population has attained basic secondary education level while 32.0 % of the total surveyed population has attained at least primary education level. The survey found encouraging percentage of the surveyed population (about 18.8%) achieving high school level and just very small portion (7.2%) got college or university degree. As for the HHs Head, the illiteracy rate is quite low, just 4.3 % % of the surveyed HHs Heads has reached primary education. More than 34.9% has got basic secondary education. The details of educational status of analysis on the heads of households and surveyed affected persons are described as in Table IV.3 and Table IV.4 below. The details of educational status by communes are shown in Annex B. Table IV.3: Educational status of the heads of householders Education Level of DP Households Heads District Total Surveyed HH Heads Illiterate (%) Primary Education (%) Basic Secondary Education (%) High School Education (%) College and University (%) Hoa Vang Total Table IV.4: Education Level of Surveyed DPs Education Level of DP Population District Total surveyed population Illiterate (%) Primary Education (%) Basic Secondary Education (%) Higher Secondary Education (%) College and University (%) Hoa Vang Total IV.2.3. Occupation and Employment The main employment sectors in the project areas include agriculture, business, industry, government services, professional, self-employed, which is shown in the table below. Among them, the agricultural section is the dominant one, which accounts for 55.3% of the employed population. There is no statistic figure for unemployment because except for specific works such as workers, government Page 32

42 staffs, etc. people in these areas are listed in agriculture section. The employment details are presented in the Annex A. Table IV.5:Types of employment District Survey population Agricul -ture (%) Business (%) Workers in industry (%) Gov service (%) Professional (%) selfemployed (%) Other (%) Hoa Vang Total Note: Survey populations are at the age of 18 to 55 of the surveyed 114 households. IV.2.4. Household Incomes More than 55.3 % of the surveyed DPs are engaged in the agricultural sector. From these, it is identified that the primary income of the DPs comes from agricultural activities. The average monthly income of the surveyed HH in affected districts is about VND 867,000 per capita per month. The monthly income per capita by communes is presented in Annex B. IV.2.5. Households below Poverty level The poverty line for residents of the Project Area for the period was set at 200,000VND per person per month on rural area and 260,000VND per person per month on urban area 2. However, since the project predominantly covers rural areas, the criteria applied to assess the poverty line is rural one, which is 200,000 VND per person per month is for poor household. About 77.5% of households have their average monthly incomes per capita over VND 200,000 per month. Findings from the survey show that a considerable high proportion (29.8%) of monthly income per capita is less than VND 200,000 and would need additional assistance to meet the project objectives. The details of Number of poverty household in each commune are described in the Annex B. 2 Source: Decision No 170/2005/QĐ-TTg Page 33

43 Communes Table IV.6: Number of poverty household base on MOLISA poverty line Total Surveyed HHs Income Capita Less than VND 200,000 Income Capita From VND to 500,000 Income Capita More than VND 500,000 HHs % HHs % HHs % Hoa Vang Total IV.2.6. Access to public facilities Health In the affected districts, the most common health problems are flu, food poisoning, diarrhea, and traffic accident consequences. HIV/AIDS is a concern although the reported numbers of affected persons are very limited at present. There is a high under-nutrition among children below five years old and comparatively low uptake of contraceptive methods for family planning. Public health centers are presented in each commune, and there is a hospital in each district. However, facilities are poor in the main project area and there is a lack of nurses as well as medicine. It was learned that there is just about 32 % of the HHs experience with periodic health check. There is only 22.4% of survey population who work as professional, workers and government officer have health insurance. Table IV.7: Percentage of HHs experience with periodic health check in affected area Education Districts Total Surveyed HHs Periodic health care check (%) No Periodic health care check (%) Hoa Vang Total All communes have kindergartens and a school with primary and lower secondary levels. However school facilities are poor and many villages are far away from a school. Many adults have only completed 6 year, or 4 year or only 1 year of primary education. Difficult economic conditions lead to high numbers of children dropping out of school. The lack of high school and of opportunities for non-agricultural employment leads to low motivation for study among the young. The details of the number of HH accessing to public facilities are shown in the annex A. Page 34

44 IV.2.7. Access to utilities and services Water supply About 15.1% of surveyed HHs is connected to safe water system and 84.9% of HHs have to use drinking water derived from wells. Among 84.9% above, only a few of households have filter and treatment system for drinking water. Water is in short supply during the dry season, dirty during the rainy season. Poor water supply may be one of the reasons that there is a high incidence of water borne diseases in the area. Electricity Hundred percent (100%) of the affected communes are connected to the national power grid with private meter. However, the electricity usually interrupted in dry season. Sanitation Some 13 % of the DPs have latrine with semi-septic tank and 85 % use latrine with septic tank; the remaining 3 percent of the population are without toilet facilities. The details by communes are shown in Annex B. Table IV.8: Percentage of HHs has toilet facilities and connects to running water Districts Total Surveyed HHs Latrine with septic tank (%) Latrine with semi septic tank (%) Latrine over pond or river (%) Running water (%) Hoa Vang Total IV.2.8. Ownership of Consumer Goods Wells (%) Most of the population has access to telecommunication systems, for instance, more than 89% of the HHs has TV, and about 64 % of the HHs has telephones. Districts Table IV.9: Consumer Goods of the surveyed households Surveyed HH HH with telephone (%) HH with motorbike (%) HH with TV (%) HH with Video Player (%) HH with washing machine Hoa Vang Total (%) Page 35

45 V. RESETTLEMENT IMPACTS There are a total of 424 households in 03 communes of 01 district of Da Nang City who will be impacted by land acquisition for the project. Of these: - 62 Households will be impacted by the loss of residential land either partially or fully with the total affected area is 38,498 m Households will be impacted due to the loss of agricultural land with the total area of 370,374 m ,067 m 2 other land (public land) will be impacted - About 9,075 m 2 of forestry land (Production forestland) will be impacted Households will be impacted on either partially or fully by the loss of houses with the total affected area of houses being 2,453 m 2. - There are 85 HHs will be receive land plot in resettlement site, of which relocated HHs due to loss of residential land (both with and without structure) include 25 HHs, including 25 households affected by loss of business, by loss of agriculture land (60 HHs). The number of households affected due to the acquisition of different categories of land in each district is shown in Table V.1 below. Details of land acquisition impacts on the households by communes are shown in Annex C. Table V.1: Number of HHs and heads affected by land acquisition District Number of affected HHs Number of affected people Hoa Vang 424 1,738 Total 424 1,738 A. Impact on types of land Impacts on the different types of land by districts are shown in Table V.2 below and by communes are presented in Annex C. Page 36

46 Table V.2: Number of affected area of different land types District Loss of residential land (m2) Loss of agricultural land (m2) Loss of production forestry land (m2) Loss of other types of land 3 (m2) Total (m2) Hoa Vang 38, ,374 9,075 88, ,014 Total 38, ,374 9,075 88, ,014 Residential land, agriculture land, production forestry land and other land are the main types of land that are lost by the project. Among them, agriculture land lost the highest area compared to others, which is 370,374 m2. There is large area of affected Forestry land and other land used either by the people or public sector agencies. Expressway construction activities under the Project will therefore significantly affect these types of land 9,075 m2 and 67,716 m2 respectively. The area of Residential land, which is affected by the project, is 38,498 m2. Each types of affected land is discussed detail in the following sections. 1. Loss of Agricultural Land The number of households losing agricultural land and the remaining land is not economically viable (fully affected or the remaining areas are less than 300 m 2 ) are shown as in Error! Reference source not found. below. Most of the HHs in the project area has the average amount of 2,000 m2 of agricultural land. As can be seen in the Error! Reference source not found. below, 395 HHs are affected through loss of agricultural land, of which 352 HHs lose more than 20% of their land holding and 60 HHs lose more than 70% of their total agriculture land holding. These 60 HHs are considered as those who are affected by full loss of their land, thus, relocation option would be required and the project has to acquire and compensate for a whole plot. Besides that, for those losing more than 20% of the land, the project has to find the income sources to evaluate the dependant rate on agricultural income in order to have a suitable compensatory plan. 3 Other land or Public land is the land that being used for other purposes, not for agriculture, forestry and living. It includes vacant land along roads, water surface; cultural and historical relics land; land used by Security and national defense offices; and other specially used land such as land for industrial waste Page 37

47 There are 317 households have red book, 42 households have not received with red book, but are legalizable and are titled to receive red book and 36 households will not be eligible to have red book. These households are part of annual voluntary migration from other places to the project site, which is endowed with very fertile land and moderate climate. However, these HH are not considered as permanent residents of the area and therefore they are not eligible to have red book. Table V.3. Degree of Impacts on agricultural land District Loss of agricultural land (m2) Number of HH affected by loss of Agricultural land Number of HH affected <20% of the total agricultural land holding Number of HH affected from 20% to 70% of the total agricultural land holding Number of HH affected more than 70% of the total agricultural land holding Hoa Vang 370, Total 370, Table V.4. Legal status on land use right District HH affected by loss of residential land Households have Red book Legal status on land use right Households have not granted with Red book Households will not be eligible to have Red book Hoa Vang Total Degree of Impact and land-for-land option Although 395 households are affected by the loss of agricultural land, not many would have their remaining land holding falling below 300 m2. Further, the total loss of agricultural land compared to total area of agricultural land in the project communes is minor, varying between % in Da nang city - the overall average being 1.57%. Table V-4 presents the total and affected area of agricultural land in the project communes of all the three provinces covered by the project. The average agricultural land holding in the project communes vary between 300 to 1000 m2 per person. Taking an average household size of 4, the total land holding varies between 1200 m2 to 4000m2 per household. Most of the HHs in the project area have the average amount of 2,000 m2 of agricultural land. Even if the lowest Page 38

48 land holding of 1200 m2 is considered, on an average the households would have to lose 75% or more of their land holding before the remaining land falls below minimum economic size of 300 m2. Only 60 households would lose >70% of their land holding in this province. It is therefore safe to assume that the number of households where the remaining land is rendered below 300 m2 is not likely to be more than 400. However, this will be verified further when the DMS is completed. The policy provides for preference to land-for-land option to households who are affected by loss of >20% of their productive land. Total number of 352 households fall in this category. Of these 60 would lose >70% of their productive land. The remaining 292 hh would lose between 20-70% of their land holding. As discussed above, there would be very few of these households looking for replacement land because the remaining area of their land would be more than sufficient to support the family. As required by the policy, the project is required to offer land-for-land option to these households. However, district and commune authorities have confirmed that although there is non-agricultural public land in the project communes, there is no public agricultural land available that can be used for replacement land. As such project would not be in a position to offer land-for-land option to the DPs. The authorities also confirmed, and can be seen from Table V.4 below, there is significant area of private agricultural land in each project commune, as well as in other communes adjoining the project area, that can be purchased by the DPs if they so wish on willing-buyer willing-seller basis. Field investigations have revealed that although there are cases of households buying and selling agricultural land holdings in the project area, these deals are done unofficially. In Vietnam, people cannot buy/sell agricultural land officially although private deals when done and are routinely regularized by commune authorities. Project authorities have also committed to provide following assistance to DPs who wish to buy agricultural land in communes within and adjoining the project: (i) provide information to the DPs on available replacement land and facilitate visit to the area; (ii) provide logistical support to relocating DPs when they find replacement land; (iii) facilitate processing of legal documents such as registration, issuance of LURCs. The project will also cover the cost of legal documentation if the DPs buy replacement land within 6 months from receipt of compensation for affected agricultural land. Although compensation rates for affected land and other assets would be established based on the Replacement Cost Surveys to ensure that they reflect prevalent market prices, it is recognized that in case of large number of households willing to buy private agricultural land, the land prices in the market would most likely rise compared to the pre-project level and may in some cases go above the compensation Page 39

49 rates DPs receive. However, Every DP affected by loss of productive land, irrespective of the degree of impact, will be provided with additional assistance equivalent to 1.5 times the compensation amount. This additional cash amount would ensure that DPs would be able to buy land in private market even if there is marginal rise in land prices. The entitlements to compensation and other assistance to the DPs affected by loss of >20% of their productive land, or where <20% affected but the remaning land is rendered unviable for economic use (<300m2), as outlined in Section III.3.10, will ensure that even if the land-for-land option is not made available the DPs would be able to improve, or at least restore their livelihood to the pre-project levels. All the DPs exposed by impact other than those considered to be minor, will have a range of programs to support their full livelihood restoration and assure asset compensation at replacement value. Page 40

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