LAO: Small Towns Water Supply and Sanitation Sector Project

Transcription

1 Resettlement Plan June 2016 LAO: Small Towns Water Supply and Sanitation Sector Project Prepared by Department of Water Supply Ministry of Public Works and Transport for the Asian Development Bank. This is an updated version of the draft originally posted in July 2008 available on

2 CURRENCY EQUIVALENTS (as of 1 June 2016) Currency unit Kip Kip1.00 = $ $1.00 = 8, ABBREVIATIONS ADB Asian Development Bank AH Affected Household AP Affected Persons CPI Committee for Planning and Investment DCTPC Department of Communication, Transport, Post and Construction DHUP Department of Housing and Urban Planning DBH Diametre and breast height of tree DMS Detailed Measurement survey DPWT Department of Public Works and Transport DRC District Resettlement Committee DWS Department of Water Supply EA Executing Agency EIA Environmental Impact Assessment EM Entitlement Matrix EMHH Ethnic Household other than Tai-Kadai EMP Environmental Management Plan FHH Female headed household GAP Gender Action Plan GOL Government of Lao PDR The Government Government of Lao PDR Government HH Households IEE Initial Environmental Examination IEM Independent External Monitoring IMA Independent Monitoring Agent IOL Inventory of losses IPSA Initial Poverty and Social Assessment Lao PDR Lao People's Democratic Republic LACF (P) Land acquisition and compensation framework (plan) LAR Land Acquisition and Resettlement LWU Lao Women s Union MPWT Ministry of Public Works and Transport Nam Saat The National Center of Environmental Health and Water Supply NCRWSP Northern and Central Regions Water Supply and Sanitation Sector Project OPWT Office of Public Works and Transport PCU Project Coordination Unit PDR People s Democratic Republic

3 PIB Public Information Booklet PIU Project Implementation Unit PM Prime Minister PNP Provincial Nam Papa PPSC Provincial Project Steering Committee PRC Provincial Resettlement Committee the Project Small Towns Water Supply and Sanitation Sector Project RC Resettlement Committee RCS Replacement Cost Survey RF Resettlement Framework ROW Right of Way RP Resettlement Plan SES Socio-Economic Survey SMMP Social Management and Monitoring Plan STEA [Former] Science Technology and Environmental Agency STDP Small Towns Development Sector Project STWSP Small Towns Water Supply and Sanitation Sector Project TA Technical Assistance TOR Terms of Reference UDAA Urban Development Administration Authority VEI Village Environmental Improvements VRC Village Resettlement Committee WATSAN Water and Sanitation Unit WB World Bank WREA Water Resources and Environmental Agency (created 23 July 2007) WTP Water Treatment Plant Y Year WEIGHTS AND MEASURES ha Hectare Lpcd Liters per capita per day L/s Liters per second m Meter m 2 Square meter m 3 /day Cubic meters per day Sqm Square meter

4 This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the terms of use section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

5 Table of Contents Kasi Sub-project Plan... v Executive Summary... vi I Background... 1 II Sub-project Description... 2 A. Water Supply System... 2 B. Drainage Improvements... 2 C. Village Environmental Improvements... 2 III Scope of LAR... 2 A. Sub-project Eligibility... 2 B. Measures to Minimize Land Acquisition... 3 C. Land Acquisition and Losses Land Acquisition Loss of Houses or Structures Loss of Crops and Trees Disruption of Businesses... 4 D. Socio-Economic Profile Socio-Economic Profile of sub-project Area Socio-Economic Profile of Affected People Vulnerable APs Severely Affected APs... 7 i

6 IV Policy Framework and Entitlements... 7 A. Policy Framework... 7 B. Project Principles... 8 C. Eligibility for Compensation and Other Assistance...10 D. Voluntary Land Contribution...10 E. Entitlement Matrix...11 V Compensation, Relocation and Rehabilitation Arrangements...14 A. Compensation Arrangements Permanent Land Acquisition Temporary Land Acquisition Voluntary Land Contributions Affected Trees Affected Structures Disruption of Businesses AP Preferences and Concerns for Compensation and Resettlement...15 B. Relocation Strategies...15 C. Rehabilitation Allowances...16 D. Ethnic Group and Gender Arrangements...16 E. Due Diligence during the DMS...17 VI Information Disclosure, Consultation and Grievance Redress...17 A. LACP Information Dissemination and Consultations...18 B. Information Disclosure...18 C. Grievance Redress...19 ii

7 VII Resettlement Costs...20 A. Source of Resettlement Funds...20 B. Compensation and Allowance Rates...20 C. Resettlement Costs...20 VIII Institutional Arrangements...20 IX Monitoring...22 A. Internal Monitoring for the Sub-project...22 B. External Monitoring of AHs...23 X Implementation Schedule...24 A. For Feasibility Study...24 B. Resettlement Steps Scheduling from DMS to Construction...24 Tables Table 1: Summary of Land Acquisition in Kasi... 4 Table 2: Affected Households and Persons in Kasi... 5 Table 3: Kasi Core Villages Population Characteristics... 6 Table 4: STWSP Land Acquisition, Compensation and Resettlement Principles 8 Table 5: STWSP Entitlement Matrix...11 Table 6: STWSP Grievance Redress Procedures...19 Table 7: Resettlement Cost...21 Figure 1: Compensation Procedure...18 iii

8 Attachments Attachment 1: Village Impacts...26 Attachment 2: Cost Recovery Survey...27 Attachment 3: IOL Kasi...28 Attachment 4: Consultations with Stakeholders...29 Attachment 5: Voluntary Contribution Consent Declaration...42 Attachment 6: Declaration for Affected Persons...43 Attachment 7: Form for Consultation with no longer APs...44 Attachment 8: Receipt of Compensation Payment for Affected Persons...45 Attachment 9: Form for Consultation with no longer APs...46 Attachment 10: Form Distribution of PIBs...47 Attachment 11: Kasi Screening Form...48 Attachment 12: Kasi Public Information Booklet Update...50 Attachment 13: Lao Laws and Regulations and ADB policy and guidelines regarding involuntary resettlement Lao PDR Laws and Regulations ADB Policy on Involuntary Resettlement...52 iv

9 Kasi Sub-project Plan v

10 Executive Summary A. Background 1. The Small Towns Water Supply and Sanitation Sector Project (STWSP) builds on the ADB s current work in the sector and on the Government s policy of developing small district towns as centers of marketing and agricultural processing, by developing or rehabilitating piped water supplies, complementary drainage and environmental sanitation in 12 priority small district towns. These 12 towns are located in 9 provinces 1 throughout the country. They include 9 towns for new water supply systems and 3 towns with existing water supply systems that require rehabilitation to improve service. 2 Kasi Subproject became a recent addition to the project due to the savings in the construction cost of the other priority subprojects. 2. The Project has six outputs, namely: (i) strengthening water supply regulation and management; (ii) water supply development; (iii) urban environmental improvements; (iv) enhanced community actions and participation; (v) enhanced gender equity; and (vi) project implementation and capacity building. 3. The Executing Agency (EA) for the STWSP is the Ministry of Public Works and Transport (MPWT), with responsibility delegated to a Project Coordination Unit (PCU) established within the Department of Water Supply (DWS). The implementing agencies are the Departments of Public Works and Transport (DPWT) in each of the 10 provinces. B. Planned Civil Works 4. The water supply scheme aims to provide a piped water supply with individual household connections of 90 Lpcd to all households in 8 core villages 3 in Y2017 with a capacity of serving 95% of the number of households estimated to populate Kasi in 2032 (14,448 persons based on a combined Y2015 population of the 8 villages of 10,260). The proposed water supply scheme comprises of: (i) an intake tower upstream from the main urban area at the Nam Lik river; (ii) a short transmission main for raw water to be pumped to the water treatment plant; (iii) 2,100m 3 /day capacity water treatment plant (WTP) comprising presedimentation, flocculation, sedimentation, rapid gravity filtration, a backwash tank and chlorination facilities, detention ponds, plant office, workshop, store and a small water testing laboratory; (iv) a clear water reservoir at the WTP; (v) a 50m clear water transmission main to the reservoir; (vi) one access road to WTP and reservoir land, and (vii) around 18.5 km of gravity-fed distribution and reticulation network throughout the eight core villages. A PNP office will be constructed on the mountain next to the WTP. 5. The subproject will improve drainage in Kasi town, Kasi District. Some lined covered drains for cross roads between the National Road 13 North and Road to Muang Nan will be provided up to a maximum of 350m. 1 Bokeo, Luang Namtha, Champasak, Savannakhet, Saravane, Sekong, Attapeu, Huaphan, Vientiane Province. 2 The original 15 towns were reduced to 12 towns during mid-term review. 3 See footnote 5. vi

11 C. Land Acquisition and Resettlement Impacts 4 6. The LAR impacts in Kasi District Town are not significant, or ADB category B as the number of households experiencing major impacts is nihil. Therefore, the sub-project is judged to be eligible for inclusion in the Project 5. A Land Acquisition and Compensation Plan (LACP) has been prepared for minor impacts. The (LACP) has been prepared in compliance with the STWSP policies and procedures including the STWSP Land Acquisition and Compensation Framework (LACF). The current LACP contains the sub-project s specific information and an estimate of losses based on the draft detailed design. 7. The following sections summarize the extent of land acquisition for development of the water supply system and drainage improvements. This includes the following subcomponents: (i) Water intake: The proposed raw water supply intake is located on the Nam Lik adjacent to the police station in Ban Phoukham. The water intake will require a maximum area of 1,820 m 2 all on vacant public land on the Nam Lik river at Ban Phoukham. (ii) Water treatment plant: The proposed treatment plant site is on the Phu Mieng mountain on the other side of the main road in Ban Phoukham. The treatment plant site will occupy approximately 10,000 m 2 public garden land with 50 Ketsana trees planted by 1 family of the main ethnic Tai-Kadai language group. The family paid land tax but used the land without land certificate for the past generations. The family has another 2 ha of rice land and rents out their residential land alongside the road in town of 1,600 m 2, to a shop which is selling dry food stuff. (iii) The clear water reservoir will be on the WTP land. (iv) The access road to the WTP on the mountain: The road will take land of 4 HH. In 3 cases, the land is in the man s name as he inherited the land from his parents before marriage and in 1 case the land is on the woman s name as she inherited from her parents before marriage. For those 4 cases, the land needed for the access road amounts averages 2.1% of the land that the families possess on the mountain and in the lowlands across the road (each family has 1-2 ha of rice land). (Details in the WTP Excell Sheet in the IOL in Attachment 3). (v) (vi) A PNP office will be built on the WTP site. The raw water main of 355 m will pass through government vacant land. (vii) The distribution network will be gravity supplied from the elevated reservoir at the WTP site. All distribution and reticulation pipes will be located in the rights-of-way of existing roads. Distribution pipes will temporarily use land in front of the houses and shops of 86 AHs who are using that land as entry areas and verandas. The total area for temporary land acquisition for pipe laying is 18,595 m 2 (957 m 2 private, 17,638 m 2 public). (viii) Drain: All proposed drainage improvements are in the RoW of existing roads and no land has to be acquired permanently. Some lined covered drains for cross roads between the 4 For details refer to Tables 1, 2 and in Attachment 1 5 LAR must be not significant for each candidate sub-project town in order for it to meet Project eligibility. vii

12 National Road 13 North and Road to Muang Nan will be provided up to a maximum of 350m. Access to properties across the open channel during construction will be provided. Drainage construction will temporarily acquire the use of land (in RoW) in the entry area of some households 6 but the situation will be restored by the Project as before the works began. These entry areas do not have structures on them but some houses might have poured cement in these areas to avoid dust Businesses will be temporarily disrupted during trench digging for installation of the distribution pipes. The business structures are located close to the road in the alignment of the pipes in the RoW. This might disrupt business activities for a short period of 1-3 days for each business. 24 of these businesses will not close during construction because they are selling dry products or items and they expect to have access to their shops with the provided planks. The remaining 32 businesses will close during pipe laying as they are all selling food or health services/products and will be affected by dust Trees of 5 households will be lost. 50 Ketsana trees of 9 years old are lost to the WTP site. 3 Mango trees will be lost due to pipe laying. And 13 bamboo trees are lost to the access road to the WTP. D. Severely Affected APs 10. In Kasi sub-project there are no severely affected households 7. E. Policy Framework 11. The LACP is developed from the laws and decrees of the Government of Lao (GoL) People s Democratic Republic (PDR) and Asian Development Bank s (ADB s) relevant policies and guidelines. The latest being ADB's new Safeguard Policy Statement (June 2009, approved by ADB Board July 2009) and the Lao Government's Decree on Environmental Assessment, February 2010 (112/PM). Provisions and principles adopted in the RF supplement the provisions of relevant decrees currently in force in Lao PDR wherever a gap exists. The LACP and Update fully comply with all criteria and contents of the RF. F. Information Dissemination and Consultations 12. To date, dissemination and consultation activities have occurred as an integral part of the preparation of the LACP. APs are notified and consulted in advance about land acquisition, compensation and resettlement activities for the sub-project, including among others: (i) public meetings, (ii) distribution of PIB, (iii) preparing official lists of eligible APs and their entitlements, 6 These have encroached on the ROW, as is common practice and mostly tolerated by the authorities when the land is not required for public works. 7 Severely affected APs are defined as those that (i) lose 10% or more of their productive land, income or other productive assets; (ii) must relocate and rebuild their house and/or shop on new land; and/or, (iii) where assets are affected only partially but the remaining assets are rendered un-viable for continued use and relocation might necessary for that reason. viii

13 (iv) compensation rates and amounts, (v) and, other matters such as the grievance redress mechanism. G. Land Acquisition and Resettlement Costs 13. The estimated cost of LAR for the Kasi sub-project is 108,192,755 Lao kip (13,332 US$) which includes (i) the base LAR costs; (ii) costs of land clearance of community land and, (iii) contingencies of 10% reserve fund. Calculations of the amounts can be found in Attachment 3. H. Institutional Arrangements 14. The STWSP sets out detailed information on the institutional arrangements for the preparation and implementation of land acquisition, compensation and resettlement for the Project. The PIU has overall responsibility for activities related to land acquisition and compensation of APs. The PIU will work in close collaboration with resettlement committees at the provincial and district levels, as well as with village authorities and mass organization representatives in the core villages. I. Monitoring 15. The Sub-project will have internal and external monitoring activities. 16. The scope of internal monitoring to be carried out by the PIU assesses (i) compliance with the STWSP resettlement policies and procedures and (ii) the availability and efficient use of personnel, material and financial resources; and, identifies the need for (iii) remedial actions to correct any problems that arise. 17. The Independent External Monitoring is responsible for monitoring of all activities related to updating and implementing the LACP; and, to assess whether AHs are able to restore their living conditions, livelihoods and incomes to pre-sub-project levels and, if not, to recommend remedial actions to assist AHs. ix

14

15 I Background 1. The Small Towns Water Supply and Sanitation Sector Project (STWSP) will build on the ADB s current work in the sector, by developing or rehabilitating piped water supplies, complementary drainage and environmental sanitation in 12 priority small district towns 1. The 12 towns nominated for inclusion in the Project are located in 9 provinces 2 throughout the country. Kasi Subproject became a recent addition to the project due to the savings in the construction cost of the other priority subprojects. 2. The Project will build on the Government s policy of developing small district towns as centers of marketing and agricultural processing, as economic links between rural, national and international markets, and as places offering non-farm employment to the rural poor. By developing these small urban centers, the Government is also seeking to reduce poverty through economic growth and improve geographical equity in urban social infrastructure development. 3. The Government s water supply sector goal is to provide 24-hour per day access to safe drinking water for 80% of the urban population by the year The Project will focus primarily on water supply, which is the small towns highest development priority, but will also include a small investment in drainage and sanitation to improve living conditions. Significant community participation, health and hygiene promotion activities, and village environmental improvements have been integrated into the Project to maximize its potential for achieving its overall goal. The expected outcome of the STWSP is improved access, quality and reliability of water supply and sanitation services in the Project towns. 4. The Project has six outputs, namely: (i) strengthening water supply regulation and management; (ii) water supply development; (iii) urban environmental improvements; (iv) enhanced community actions and participation; (v) enhanced gender equity; and (vi) project implementation and capacity building. 5. The Executing Agency (EA) for the STWSP is the Ministry of Public Works and Transport (MPWT), with responsibility delegated to a Project Coordination Unit (PCU) established within the Department of Water Supply (DWS). The implementing agencies are the Departments of Public Works and Transport (DPWT) in each of the 10 provinces. 6. This Land Acquisition and Compensation Plan Update (LACP Update) for Kasi Town in Vientiane Province is prepared based on an assessment of the land acquisition and resettlement (LAR) impacts during sub-project preparation for the Small Towns Water Supply and Sanitation Project (STWSP) between March 2007 and December The LAR impacts in Kasi are not significant 3, or ADB category B. The purpose of this LACP is to ensure that all affected people (APs) will be compensated at replacement cost at current market value for their losses, and provided with rehabilitation measures so they are at least as well off as they would have been in the absence of the Project. The LACP (i) identifies the legal and policy frameworks of the Lao Government and appropriate ADB guidelines; (ii) sets out procedures and policies on LAR to guide mitigation of impacts during project implementation; (iii) identifies an IOL and (iv) includes an estimated budget for implementing the compensation plan. 7. The LACP 4 and Update should be read together with the Land Acquistion and Resettlement Framework (LACF) on the definition of terms, legal framework, project principles, 1 The initial proposal had 15 district towns selected but they were reduced to 12 towns during mid term review. 2 Bokeo, Luang Namtha, Champasak, Savannakhet, Saravane, Sekong, Attapeu, Huaphan, Vientiane Province. 3 LAR must be not significant for each candidate sub-project town in order for it to meet Project eligibility (see further par. 12) 4 The terminology of Decree 192 of the Government of the Lao PDR (GOL) has been adopted for the Project to facilitate harmonization between GOL and ADB requirements for land acquisition, compensation, rehabilitation and resettlement. Specifically, the land acquisition and compensation plan (LACP) is equivalent to the ADB requirements for a resettlement plan (RP) that would be prepared for sub-projects with non-significant land acquisition and resettlement impacts. 1

16 voluntary contributions, entitlements, roles and responsibilities of EA, PCU, PIU and PIAC, payment procedures, reserve fund, internal and external monitoring procedures and reporting. The LACF has been distributed to the sub-projects before starting the inventory of losses. The current LACP update contains the sub-project s specific information and an estimate of losses based on the DMS. II Sub-project Description 8. The STWSP in Kasi includes the construction of a new water supply system, drainage and sanitation works and financial and technical assistance for village environmental improvements in eight core villages 5. A. Water Supply System 9. The water supply scheme aims to provide a piped water supply with individual household connections of 90 Lpcd to all households in 8 core villages 6 in Y2017 with a capacity of serving 95% of the number of households estimated to populate Kasi in 2032 (14,448 persons based on a combined Y2015 population of the 8 villages of 10,260). The proposed water supply scheme comprises of: (i) an intake tower upstream from the main urban area at the Nam Lik river; (ii) a short transmission main for raw water to be pumped to the water treatment plant; (iii) 2,100m 3 /day capacity water treatment plant (WTP) comprising presedimentation, flocculation, sedimentation, rapid gravity filtration, a backwash tank and chlorination facilities, detention ponds, plant office, workshop, store and a small water testing laboratory; (iv) a clear water reservoir at the WTP; (v) a 50m clear water transmission main to the reservoir; (vi) one access road to WTP and reservoir land, and (vii) around 18.5 km of gravity-fed distribution and reticulation network throughout the eight core villages. A PNP office will be constructed on the mountain next to the WTP. B. Drainage Improvements 10. The subproject will improve drainage in Kasi town, Kasi District. Some lined covered drains for cross roads between the National Road 13 North and Road to Muang Nan will be provided up to a maximum of 350m. Access to properties across the open channel during construction will be provided. 11. The proposed works are designed to: (a) reduce minor flooding of road, footpaths and shops at the market and residential area; (b) drain surface water from the market and residential area, and; (c) eliminate ponding of stagnant, polluted water in drains in the market and residential area. C. Village Environmental Improvements 12. The eight core villages will engage in a participatory process to identify local needs for drainage, upgrading access roads or other environmental improvements and to select, carry out and maintain these works with financial and technical assistance from the Project. 5 Naxou, Phoukham, Viengkeo, Nathen, Namon Mai, Namon Gnai, Viengsamai, Nong Bouathong. 6 See footnote 5. 2

17 III Scope of LAR A. Sub-project Eligibility 13. The policy for the STWSP is that a candidate sub-project town is eligible for inclusion in the Project if, in addition to other criteria, the land acquisition and resettlement impacts are not significant Village-level impacts for Kasi are in Attachment 1. The scope of LAR in Kasi sub-project town is not significant as the number of households experiencing major impacts is nihil. Therefore, the sub-project is judged to be eligible for inclusion in the Project. A Land Acquisition and Compensation Plan (LACP) has been prepared. The Kasi Land Acquisition and Resettlement Screening Form is included in Attachment 11. It is based on data collected by the TA consultants during the inventory of losses (IOL) after DMS. B. Measures to Minimize Land Acquisition 15. The measures taken to minimize land acquisition required for the sub-project include: (i) the intake and raw water transmission main will be sited on government land; (ii) the distribution and reticulation pipes are, as much as possible, located in the rights-of-way; (iii) all drainage channels will be in the right-of-way of existing roads; (iv) the contractor will hand-dig trenches when pipes have to be laid within an existing structure so that displacing the structure is avoided. C. Land Acquisition and Losses Land Acquisition 16. The following sections summarize the extent of land acquisition for development of the water supply system and drainage improvements. This includes the following subcomponents: (i) Water intake: The proposed raw water supply intake is located on the Nam Lik adjacent to the police station in Ban Phoukham. The water intake will require a maximum area of 1,820 m 2 all on vacant public land on the Nam Lik river at Ban Phoukham. (ii) Water treatment plant: The proposed treatment plant site is on the Phu Mieng mountain on the other side of the main road in Ban Phoukham. The treatment plant site will occupy approximately 10,000 m 2 public garden land with 50 Ketsana trees planted by 1 family of the main ethnic Tai-Kadai language group. The familiy paid land tax since land tax exists but used the land without land certificate for the past generations (at least 30 years). (iii) The clear water reservoir will be on the WTP land. (iv) The access road to the WTP on the mountain: The road will take land of 4 AH. In 3 cases, the land is on the man s name as he inherited the land from his parents before marriage and in 1 case the land is on the woman s name as she inherited from her parents before marriage. For those 4 cases, the land needed for the access road amounts averages 2.1% of the land that the families possess on the mountain and in the lowlands across the road (each family has 1-2 ha of rice land). (Details in the WTP Excell Sheet in the IOL in Attachment 3). Two of these AHs rent out their residential land alongside the road in town of 1,100 m 2, to a motorbike and an electrical equipment shop. Both shops confirmed they will not close their 7 Significant meaning more than 200 APs severely affected (relocation, loss of 10% productive assets, and where assets are affected only partially but the remaining assets are rendered un-viable for continued use and relocation might necessary for that reason (the latter from the Guidelines on Resettlement Compensation (WREA, March 2010). 8 For details refer to Tables 1, 2 and in Attachment 1. 3

18 shops during the pipe laying (which will take approximately 3 days) and therefore rent payment will not be affected by the project. (v) (vi) A PNP office will be built on the WTP site. The raw water main of 355 m will pass through government vacant land. (vii) The distribution network will be gravity supplied from the elevated reservoir at the WTP site. All distribution and reticulation pipes will be located in the rights-of-way of existing roads. Distribution pipes will temporarily use land in front of the houses and shops of 86 AHs who are using that land as entry areas and verandas. The total area for temporary land acquisition for pipe laying is 18,595 m 2 (957 m 2 private, 17,638 m 2 public). 17. All proposed drainage improvements are in the RoW of existing roads and no land has to be acquired permanently. Some lined covered drains for cross roads between the National Road 13 North and Road to Muang Nan will be provided up to a maximum of 350m. Access to properties across the open channel during construction will be provided. Drainage construction will temporarily acquire the use of land (in RoW) in the entry area of some households 9 but the situation will be restored by the Project as before the works began. These entry areas do not have structures on them but some houses might have poured cement in these areas to avoid dust. (ix) Village Environmental Improvements 18. Part of the participation, awareness and community actions subcomponent, village environmental improvements (VEI) may involve minor land acquisition. Improvements may include footpaths and tertiary drainage. Sanitation facilities will also be decided upon during that time. As these improvements are demand-driven, the exact scope and land requirements will not be known until implementation. As the expected land acquisition will be indeed minor, the land can be voluntarily donated (under the conditions set out for voluntary contributions in section IV D). This is recognized by the Bank as valid exchange for project benefits 10 so that no additional compensation is needed and no LACP nor a full resettlement procedure is required. Table 1 gives an overview of all land to be acquired for the Project. Table 1: Summary of Land Acquisition in Kasi Construction Component Village Permanent Land Acquisition Temporary Land Acquisition Public Land Private Land RoW Area (m2) Length (m) No. APs Area (m2) Length (m) No. AH s Area (m2) No. AH s Water intake Phoukham 1, Transmission main Phoukham 355 Reservoir Phoukham on WTP area Water treatment plant Phoukham 10,000 Access Roads Phoukham ,158 4 Distribution pipes 8 villages Drainage Phoukham, Viengkeo 350 Total 11, , Source: Kasi IOL by PIU and PIC, March These have encroached on the ROW, as is common practice and mostly tolerated by the authorities when the land is not required for public works. 10 Bank policy (on Involuntary Resettlement approved in 1995) would not be applied in cases where communities volunteer small parcels of land in exchange for project benefits, such as health clinics, schools, water supplies, or irrigation channels, providing that there are no squatters on the land, that the owners and users verify publicly that they agree to provide the land for project purposes, and that grievance redress mechanisms are in place. Projects that may cause severe localized effects: Communities might be prepared to volunteer small sites for community services. (from ADB's Handbook on Resettlement, p.7). 4

19 3.3.2 Loss of Houses or Structures households will have their cement or concrete front areas to their house or business temporarily broken to make the trench for the water pipes. 12 Households will temporarily have the earth dug up for pipe laying Loss of Crops and Trees Trees of 5 household will be lost. 50 Ketsana trees of 9 years old are lost to the WTP site. 3 Mango trees will be lost due to pipe laying. And 13 bamboo trees are lost to the access road to the WTP Disruption of Businesses Businesses will be temporarily disrupted during trench digging for installation of the distribution pipes. The business structures are located close to the road in the alignment of the pipes in the RoW. This might disrupt business activities for a short period of 1-3 days for each business. 24 of these businesses will not close during construction because they are selling dry products or items and they expect to have access to their shops with the provided planks. The remaining 32 businesses will close during pipe laying as they are all selling food or health services/products and will be affected by dust. 22. The income of these 32 businesses varies from 600,000 to 30,000,000 Kip per month, depending on the type of business. Businesses are categorized amongst food related businesses (from very small food businesses serving soup to larger restaurants, health and hygiene related businesses (from hairdressers, barbers to small and larger pharmacies), and businesses selling products (from dry food stuffs to electrical equipment, mobile phones, hardware to pump stations). For income and profit calculations per business see IOL column 27 to 32, Attachment 2. Amongst the businesses that will not need to close are the 4 large pump stations along the road. They agreed with the PIU that pipe laying works will be done separately on the entry and exit access so that the pumps will be reachable during the construction. Table 2 below gives a summary of affected households. The list of all APs and their affected assets is in the IOL in Attachment 3. Table 2: Affected Households and Persons in Kasi Impact Affected Total Households and APs Major Impacts Households Business Perm Temp HH HHs HHs HHs APs EMH % FHH % HHs APs EMHH FHH Water Supply** % 7 8% WTP* % 0 0% Access to WTP % 0 0% water sellers 0 0 0% 0 0% Total % 7 8% **incl. 5 AH who also lost to the WTP; 86 incl these 5 too so total is 86; * Plus land from government total APs is 428 as 29 are both in WS and WTP D. Socio-Economic Profile Source: Kasi IOL by PIU and PIC, March Socio-economic profiles have been prepared for the sub-project area and for APs, including data on key indicators related to land acquisition and resettlement impacts. The sources of data on sub-project conditions are the results of the social survey conducted during preparation of the sub-project Feasibility Study (FS) November/December The socio- 5

20 economic conditions of APs were surveyed during the fieldwork for preparation of the current LACP Socio-Economic Profile of sub-project Area 24. Kasi town is located along the National Road 13N and lies some 173 km south of Luang Prabang town and 142 km north of Phonhong town. Kasi is the northern-most district of Vientiane Province. 25. The town layout is in the form of a strip that flanks national highway 13 North on both sides at an average elevation of 415 m. A river, the Nam Lik, runs almost parallel to the town to the south-west. There is also a stream, the Houay Hinza that runs in an east-west direction and joins the Nam Lik at the southern end of the town. Two other tributaries to the Nam Lik, Nam Kheng and Nam Kaen lies to the northwest and northeast of the town respectively. The flatlands area for paddy cultivation are to the west of the town along the Nam Lik. A small mountain, Phu Mieng, lies to the east of the town with a highest elevation of around 570m. 26. The district has 56 villages and a total population of 30, The core town area has 10 villages with a total population of 12,767 of which 49.8% are females. Within the 8 core villages of the Project there are 1,871 households with a total population of 10,260 (49.9% women). Population figures and ethnicity are as shown in Table 3 below. Table 3: Kasi Core Villages Population Characteristics Total Population Village No. of HHs Total Female Male Ethnic Group No. No. No. Lao/Tai Hmong Khmu Io-Mien 1 Namon mai Nathene Viengkeo ,182 1, Naxou Viengsamai Nongbuathong Namonyai Phoukham Total 1,871 10,260 5,118 5,142 1, Percent of total 49.9% 50.1% 64.7% 8.4% 24.4% 2.5% Source: District government records 27. Kasi s inhabitants belong to all three main language groups: Tai-Kadai (64.7%), Mon- Khmer (24.4%) and Hmong-Mien (204 HH, 10.9%). 7.4% Of all households are female headed. 28. The main occupation of the population in Kasi is farming, including fruit and vegetable production, especially amongst females (76%). Less than 2% of the adult population declared themselves as not economically active; this includes the unemployed, retired, and the disabled, and the figure therefore appears too low. Government officers and traders who live in the Kasi villages represent about 7.5%. 29. Agriculture with rice cultivation and animal breeding (cows, pigs and poultry) and trade are the main economic activities for the town. The service sector is also a key part of the economy with the provision of guest houses, pump stations and restaurants for travellers along NR13N. According to the respondents in the socio economic survey the lowest average monthly income is 645,000 Kip/person. The highest average monthly income is 3,687,000 Kip. About 11 Source: Kasi Urban Plan,

21 81% of households reported an income of over 240,000 Kip per household member per month 12. The mean income over all villages was 1,575,000 Kip per person per month, but the median income only 663,000, suggesting that income is skewed towards the high end of the range. About 19% of households declared earnings less than 240,000 Kip/person/month, which brings them under the poverty line for urban areas Socio-Economic Profile of Affected People 30. Basic socio-economic information about the AP households who are temporarily affected is summarized below: (i) The members of the 86 households have a total of 428 persons (average 4.98 ps/hh av. of socio-economic survey is 5.5). (ii) 7 Of the households are female headed (8.1%; 7.4% in the socio-economic survey). (iii) The AHs belong mainly to the Tai-Kadai language group. Only 3 belong to the Mon-Khmer language group (3.5% of AHs). This shows that ethnic groups other than Tai-Kadai do not live along the roads where the main pipes are being layed (in the socio-economic survey the ethnic groups add up to 31.8%) and where the affected households are. (iv) Shop owners with food or health related services have monthly household incomes from 600,000 to 30,000,000 Kip. A profit of 10% of income is generally assumed by the local tax office and is used here as no data and receipts are available. Shops selling dry food stuffs, hardware, electrical equipment and pump stations have higher incomes from 30,000,000 to 600,000,000 Kip/month. (v) None of the APs is designated as a poor household by district authorities or by themselves Vulnerable APs 31. Vulnerable APs 13 may be at greater risk due to the impacts of land acquisition and resettlement; as a consequence, they are entitled to additional assistance to help them to restore living and socio-economic conditions if they are severely affected. 31. There are 7 female-headed households (8 %) amongst the affected households. They are all from the main Tai-Kadai language group. 32. The affected households are mainly under the Tai-Kadai language group. 3 AH are Khmu (Mon-Khmer language group) (3.5% of AHs). 32. None of the households is designated as poor Severely Affected APs 33. Severely affected APs are defined as those that (i) lose 10% or more of their productive land, income or other productive assets; (ii) must relocate and rebuild their house and/or shop on new land; and/or, (iii) where assets are affected only partially but the remaining assets are rendered un-viable for continued use and relocation might necessary for that reason. They are entitled to additional assistance to restore incomes and/or relocate. 34. In Kasi sub-project there are no severely affected households. 12 The official poverty line is defined as 180,000 kip/month/person for rural villages and 240,000 Kip/month/person for urban villages. Poverty Decree 309/PMO, Vulnerable: female headed, ethnic group other than Tai-Kadai, poor (below the published poverty line). 7

22 IV Policy Framework and Entitlements A. Policy Framework 35. This Land Acquisition and Compensation is developed from the laws and decrees of the Government of Lao (GoL) People s Democratic Republic (PDR) and Asian Development Bank s (ADB s) relevant policies and guidelines. Provisions and principles adopted in the RF supplement the provisions of relevant decrees currently in force in Lao PDR wherever a gap exists. These relevant Lao laws and decrees and ADB policy and guidelines are further discussed in Attachment More in particular, the STWSP policy framework and entitlements have been built upon the laws of the Government of Lao PDR, principally the Constitution (1991) and the Land Law 14 (1997, 2003), the Road Law (1999), Decree 192/PM on Compensation and Resettlement (July 2005), the Regulations for Implementing Decree 192/PM issued by the Science Technology and Environment Agency and Technical Guidelines for Compensation and Resettlement of People Affected by Development Projects (November 2005), Advise mandate No 20 by the Secretariats of the Lao Revolutionary Party Committee (dated May 29, 2009) and Asian Development Bank's (ADB) Policy on Involuntary Resettlement (1995), Policy on Gender and Development (ADB, 1998), Policy on Indigenous Peoples (ADB, 1998), and Public Communications Policy (ADB, 2005) The overall aim of the above policies is to avoid or minimize the impacts on people, households, businesses and others affected by the land acquisition required by a project. Where resettlement is not avoidable, the overall goal is to compensate and assist affected people (AP) to restore their living standards to levels equal to, if not better than, that they had before the Project. The policy sets out principles for land acquisition, compensation and resettlement. 38. After signing the Grant Agreement (on 6 March 2009; approval by ADB on 2 Feb 2009), the ADB endorsed a new Safeguard Policy Statement (June 2009, approved by ADB Board July 2009). And the Lao Government issued a Decree on Environmental Assessment, February 2010 (112/PM). This Decree stipulates that a social management and monitoring plan (SMMP) should be part of the Environmental Assessment. This SMMP should define the main social activities, measures on prevention, minimization and mitigation of social impacts, as well as measures on compensation, resettlement and restoration of living conditions of the people who are (will be) affected by the investment project. In March 2010, an update on Technical Guidelines for Compensation and Resettlement (from Nov 2005) was published. The update was prepared in accordance with the provisions of Decree 192, the Implementing Regulations, and the National Policy No. 561 CPI on Environmental and Social Sustainability of the Hydropower Sector in Lao PDR issued on 7 June The material presented in these Guidelines is generally culled and assembled from several sources. Major among these include the ADB s Handbook on Involuntary Resettlement; ADB s Gender and Resettlement Checklist, February 2003; World Bank s Source Book on Resettlement; Resettlement Guidelines prepared under ADB TA 3133-LAO, Strengthening Social and Environment Management in Lao PDR, July 2000; and Resettlement Guidelines prepared under the WB funded Hydropower Development Strategy for the Lao PDR in September Additionally, information presented in these Guidelines is also drawn heavily from several development projects in Lao PDR as well 14 The Land Law provides the issuance of a Land Title, which attests provisional ownership rights to use agricultural as well as forestland (Articles and 21-22). Land titling is gradually being undertaken in all towns of Lao PDR. For Kasi Town it has been done in all villages for residential (construction) land; land use certificates have been issued for rice and garden land. The Lao people along the road, nearly all have 1-2 ha of rice land in the area on the other side of the road (opposite the mountains). As they live there already for some generations, they inherited the land, including garden land on the mountain. In the event that Land Titling has not been done yet, APs only have Land Use Rights Certificates (Form 01), Land Tax Payment Receipts and/or Residency Certificates. Form 01 are certificates of land use for taxation and are considered evidence of land use but not as full legal title. 15 The STWSP Land Acquisition and Compensation Framework includes a full presentation of these policies and principles. 8

23 as in neighboring countries. Where relevant, international best practice examples are presented in the Guidelines with an objective of bringing these Guidelines to acceptable international standards, without losing focus on the country-specific context. The Guidelines explain in detail the processes and procedures necessary for collection of data, surveys and preparation of various documents in accordance with the provisions of Decree 192 on Resettlement and Compensation. 39. Together, the new ADB Safeguard Policy Statement and the new Guidelines on implementation of Decree 192 confirm and strengthen the agreed upon policy on resettlement for the current Project. Although the Project agreement was signed after the issuing of the above documents, they will be referred too when appropriate and useful. Both Lao Law and ADB policies entitle APs to compensation for affected land and non-land assets at replacement cost. However, definition of severely affected APs varies between ADB (OMF2 para 5) at 10% and Decree 192/PM (Article 8) at 20% of income generating assets affected. However in accordance with Decree 192/PM (Article 6) which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the Project, the 10% definition of severely affected will be adopted as part of the Project s resettlement policy. B. Project Principles 40. Table 4 below presents the compensation and resettlement principles adopted for STWSP. Table 4: STWSP Land Acquisition, Compensation and Resettlement Principles No. STWSP LACR Principles 1 Involuntary resettlement and loss of land, structures and other assets and incomes shall be avoided and minimized by exploring all alternative options, including the use of public land. 2 APs residing, working, doing business and cultivating land within the required project area as of the completion date of the census and detailed measurement survey will be entitled to compensation and rehabilitation assistance to assist them in improving, or at least maintaining their pre-project living standards and productive capacities. The Project will ensure that APs are able to find alternative sites or income sources. 3 All APs will be equally eligible for compensation and rehabilitation assistance in accordance with individual RPs, irrespective of tenure status, social or economic standing, and any such factors that may discriminate against achieving the objectives outlined above. Lack of formal legal title or rights will not be a bar to eligibility for compensation and assistance under the Project. APs will not be displaced from affected land until the village allocates suitable alternative land or compensation is paid that is sufficient to purchase suitable land within the same or neighbouring village. Those who encroach on the proposed area after the cutoff date (or completion of IOLs) will not be entitled to compensation or rehabilitation, unless there has been a change in subproject scope. 4 All compensation will be based on the principle of replacement cost 16 (free from taxes, registration and land transfer costs) at the time of compensation. 5 The process and timing of land and other asset acquisition will be determined in consultation with APs to minimize disturbance. Payment of compensation or replacement of affected assets and any resettlement to new locations must be completed prior to the start of civil works for the subproject. Rehabilitation measures must also be in place, but not necessarily completed, as these may be ongoing activities 6 Where houses and structures are partially affected to the degree that the remaining portion is not viable for its intended use, the Project will acquire the entire asset, and APs will be entitled to compensation at replacement cost for the entire asset 7 APs will be systematically informed and consulted about the Project, the rights and options available to them and proposed mitigating measures. The comments and suggestions of APs and communities will be taken into account 16 Replacement cost means the method of valuing assets to replace the loss at market value, or its nearest equivalent, plus any transaction costs such as administrative charges, taxes, registration and titling costs. Replacement cost is based on market value before the project or dispossession, whichever is higher. 9

24 No. STWSP LACR Principles 8 The key information in the LACP such as measurement of losses, detailed asset valuation, compensation and resettlement options, detailed entitlements and special provisions, grievance procedures, timing of payments and displacement schedule will be disclosed to APs in an understandable format such as the distribution of public information booklets (PIBs) prior to submission to ADB for review and approval. 9 Resettlement identification, planning and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women s assets, property and land-use rights, and to ensure the restoration of their income and living standards. 10 Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved. 11 Special measures will be incorporated in the resettlement plan to protect socially and economically vulnerable groups such as ethnic groups other than Tai-Kadai, women-headed households, children, households headed by the disabled, the elderly, landless and people living below the generally accepted poverty line. Vulnerable APs will be provided with appropriate assistance to help them improve their standard of living through asset building strategies such as provision of land, replacement housing of minimum standards and increased security of tenure. 12 Compensation and rehabilitation assistance for vulnerable groups will (i) be carried out with respect for their cultural values and specific needs and (ii) ensure that they are not disadvantaged by the process of land acquisition. 13 There will be effective mechanisms for hearing and resolving grievances during updating and implementation of the LACP. Grievance redress mechanisms will include representation from the APs, especially women, ethnic groups other than Tai-Kadai, and other vulnerable groups. 14 Institutional arrangements will be in place to timely and effectively design, plan, consult and implement the land acquisition, compensation, resettlement, and rehabilitation programs. Resettlement committees will include representatives from APs especially women and vulnerable groups. 15 Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period. 16 Appropriate reporting, monitoring and evaluation mechanisms will be identified and set in place as part of the resettlement management system. Monitoring and evaluation of the land acquisition, resettlement and rehabilitation processes and the final outcomes will be conducted by an independent monitor 17 Voluntary donation will not be applied for any assets except very minor losses of residential land. Voluntary donation of small strips of residential land will be according to the following criteria that will be strictly complied with, i.e., (i) the AP s total residential land area is not less than 300 m 2 ; (ii) if the AP s total residential land area is more than 300 m 2, the strip of land that can be donated cannot be more than 5% of the total land area; and (iii) there are no houses, structures or fixed assets on the affected portion of land. APs opting to make voluntary contributions shall make an informed choice. The procedures for voluntary contributions shall ensure transparency and accountability. Source: STWSP Land Acquisition and Compensation Framework C. Eligibility for Compensation and Other Assistance 43. All APs who are identified in the project-impacted areas on the cut-off date will be entitled to compensation for their affected assets, and rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income-earning capacity and production levels. The cut-off date will be the final day of the IOL for the FS in each sub-project. In Kasi this is 15 January Those who encroach into the sub-project area after the cut-off date will not be entitled to compensation or any other assistance, unless there has been a change in sub-project design. D. Voluntary Land Contribution 44. For the STWSP, voluntary donation will not be applied for any assets except very minor losses of residential land. The following criteria will be strictly complied with: (i) The total area of the AP s residential land that is being donated is not less than 300 m 2. 10

25 (ii) If the AP s residential land area in question is more than 300 m 2, the amount of land that can be donated cannot be more than 5% of the total land holding. (iii) There are no houses, structures or other fixed assets on the affected land. 45. Voluntary donation according to these criteria will follow a process in accordance with ADB s Operations Manual (OM) F2, which is the same as the Government s Decree 192/PM/2005. The procedures for voluntary contributions are designed to facilitate an informed, transparent and accountable process. To ensure this, voluntary contributions shall be acceptable only if the following safeguards are in place: (i) There is full consultation with local officials, affected land owners, any non-titled affected people and other stakeholders regarding the site selection, land acquisition requirements and the issues surrounding voluntary land contributions. (ii) All APs and other stakeholders are fully informed about the potential impacts of the voluntary donations. They agree that a) the proposed donations are directly linked to benefits they will receive and b) do not severely affect their living conditions, livelihoods and incomes; and, they are satisfied that c) community sanctioned measures are in place to replace any losses that are agreed to through written record by affected people. (iii) All voluntary contributions will be confirmed through a written agreement between the AP and the local authority, and verified by an independent third party such as a designated person, non-government organization or legal authority. A sample of the written agreement is included in Attachment 5. Written agreements shall be submitted to ADB as part of the confirmation that all APs have been compensated for their lost assets. (iv) The local authorities have established adequate grievance redress mechanisms for the Project and fully informed APs and other stakeholders of these procedures. E. Entitlement Matrix 46. The Entitlement Matrix summarizes the main types of losses and the corresponding nature and scope of entitlements in the following Table 5. Table 5: STWSP Entitlement Matrix Type of Loss Entitlements Temporary loss of access to or use of land (e.g., during construction) Legal users No compensation will be paid, but the land will be returned to APs within one (1) month of the completion of required works or use of land, in a condition equal to or better than pre-project level. The cost and works to restore, repair or reconstruct any culverts or structures to access the land from the road will be the responsibility of the Contractors as part of their contracts. The cost of restoration and improvement of any such land, as required, will be made a responsibility of the Contractors as part of their contracts. All APs regardless of land use rights Implementation Issues Legal users are those with recognized land use rights such as registered title, land certificate, survey certificate, tax receipts and including unregistered users as per Land Law. The PIU and PIAC will ensure that (i) APs are adequately informed of their rights and entitlements as per the STWSP land acquisition and resettlement policies; and, (ii) agreements reached between APs and the civil works contractor are carried out. 11

26 Type of Loss Entitlements Cash compensation will be paid at replacement cost to all APs for damage to or loss of trees, crops, fences or other structures and/or for loss of net income from business or other activities. In the case of sharecropping or concession arrangements, the compensation will be paid to each of the parties in accordance with previous agreements. Permanent loss of agricultural or other productive land Legal users For minor losses equal to less than 10% of the total land holding, legal APs will receive cash compensation at replacement cost at current market prices. For major losses equal to or more than 10% of the total land holding, as a priority, legal APs will be allocated replacement land of similar type, category and productive capacity, located in the same village and with land title or secure tenure; or, if land is not available or the APs chooses, cash compensation at replacement cost at current market prices plus assistance to purchase and register land. If the area of the remaining agricultural land is no longer viable, legal APs may request that the Project acquires the entire land holding. All transaction fees, taxes and other costs associated with allocation of replacement land with title or secure tenure will be paid by the Project. If the head of household is married, the title or land certificate will be issued in the names of both spouses. Users with temporary or lease rights APs that hold a lease for use of agricultural land (e.g., for a concession) will receive compensation equal to the remaining value of the lease. Permanent loss of residential land Legal users With sufficient remaining land to rebuild house/structures: (i) Cash compensation at replacement cost at current market prices for land of similar type and category; and, (ii) Contractor to improve remaining residential land at no cost to APs (e.g., land filling and levelling) so APs can rebuild on remaining land. Without sufficient remaining land to rebuild house/structures: (i) replacement land equal in area, type and category at a location satisfactory to APs and with registered title or secure tenure; OR (ii) cash compensation at replacement cost equal to current market prices for land of similar type, category and location, plus assistance to Implementation Issues Legal users are those with recognized land use rights such as registered title, land certificate, survey certificate, tax receipts and including unregistered users as per Land Law. Voluntary donation of productive land will not be allowed by the Project. Legal users are those with recognized land use rights such as registered title, land certificate, survey certificate, tax receipts and including unregistered users as per Land Law. Voluntary contribution of residential land will be allowed only under the following conditions: (i) the total area of AP residential land is at least 300 m 2 ; and, (ii) the affected portion is less than 5% of the total area; and, (iii) there are no structures or fixed assets on the 12

27 Type of Loss Entitlements purchase and register land. If the area of remaining land is not viable to rebuild, APs may request that the Project acquires the entire land holding. All transaction fees, taxes and other costs associated with the allocation of replacement land and/or issuance of title or secure tenure will be paid by the Project. If the head of household is married, the title will be issued in the names of both spouses. Users with temporary or lease rights Non-legal users APs that hold a lease for use of construction or other non-agricultural land will receive compensation equal to the remaining value of the lease. Non-legal APs will not receive compensation for affected land. However, if they have no other residential land holdings, they will be allocated replacement land with leasehold tenure to rebuild their house. Implementation Issues Loss of Structures (residential and commercial structures, and simple shops) Owner of structure regardless of land use rights For structures that are completely destroyed or are no longer viable, cash compensation at full replacement cost equal to current market prices for materials, materials transport and labour to build a structure of similar size and quality. For partially affected structures, APs will receive cash compensation at full replacement cost equal to current market prices for materials, materials transport and labour to rebuild or repair the affected portion. If APs relocate to new land in order to rebuild structures, they are entitled to a transition subsistence allowance and a moving allowance. There will be no deductions for depreciated value of affected structures or for salvaged materials. Tenants, including residential and business tenants Loss of crops and trees In the case of partially affected structures, tenants may remain with permission of the owner. If tenants must or choose to relocate, they will receive a cash allowance equal to the current rental amount for a transition period of three (3) months, a moving allowance and assistance to find alternative accommodation or premises. All APs regardless of land use rights Notice to harvest annual crops, if possible. For annual crops that cannot be harvested, cash affected portion. Voluntary donation according to these criteria will be carried through a process in accordance with the ADB Operations Manual (OM) F2 which is the same as the GOL Decree 192/PM/2005. Adequate time will be provided for APs to rebuild/ repair structures. Affected houses and shops that are no longer viable are those whose remaining portion is no longer usable and/or habitable. 13

28 Type of Loss Entitlements compensation equivalent to current market prices times the average yield/crop calculated over the past three (3) years. For fruit and nut trees that give fruit/nuts, cash compensation equivalent to current market prices times average yield for 3 years given the type, age and productive capacity at the time of compensation. For fruits/nuts that have no fruit yet, cash compensation equivalent to current market prices for management and replacement. For timber trees, cash compensation at replacement cost equal to current market prices based on types, age and diameter at breast height (DBH) of trees. In the case of sharecropping or concession arrangements, the compensation will be paid to each of the parties in accordance with previous agreements. Loss of common property resources Villages, village authorities, mass organizations Loss of business income For common property resources, the affected land will be replaced in areas identified in consultation with affected communities and relevant organizations. Affected buildings and structures will be restored to original or better condition APs with businesses that are disrupted temporarily and not displaced Cash allowance equal to the provincial daily wage or average daily revenues whichever is higher, for the number of days that business activity is disrupted. APs with businesses that are displaced Cash allowance equal to the provincial daily wage or average daily revenues whichever is higher, for the number of days that business activity is disrupted before being able to use a new source of generating income/opening a new business. Transition subsistence allowance APs that relocate and rebuild house and/or shop on residual or new land; APs that lose 10% or more of their productive land Relocating APs with no impact on business or main source of income: a cash allowance and/or in-kind assistance equal to 16 kg of rice per household member for three (3) months. Relocating APs with main income source affected OR APs losing 10% or more of productive land: a cash allowance and/or in-kind assistance equal to 16 kg of rice per household member for six (6) Implementation Issues 14

29 Type of Loss Entitlements months. Transport allowance APs that relocate to new land to rebuild house and/or shop Assistance in cash or in-kind to move structures, salvaged materials, new building materials and personal possessions to new site. Severely affected vulnerable APs Vulnerable APs that are severely affected by (i) relocation of house/ shop; (ii) loss of 10% or more of productive land; or, (iii) where assets are affected only partially but the remaining assets are rendered un-viable for continued use and relocation might necessary for that reason A supplementary subsistence allowance equal to 16 kg of rice per household member for one (1) month. Eligible to participate in income restoration program as provided for sub-project. Contractors will make all reasonable efforts to recruit severely affected and/or vulnerable APs as labourers for civil works. Source: STWSP Land Acquisition and Compensation Framework Implementation Issues Vulnerable APs include ethnic groups other than Tai-Kadai, designated poor households, and households headed by women, the elderly or the disabled. This allowance is in addition to any other compensation or allowances to which these APs are entitled. V Compensation, Relocation and Rehabilitation Arrangements A. Compensation Arrangements 47. The following section outlines the compensation arrangements for the different type of losses due to civil works in the sub-project Permanent Land Acquisition 48. The 4 AH losing land (with a maximum of 3.64% of total productive land) to the access road to the WTP agreed to voluntarily contribute their land for the project in full knowledge of the current market rate of the land. For details on land owned and land taken per household, see the Excell sheets for WTP in the IOL in Attachment 3. As there is not too much land sale in Kasi yet and there are no standard prices per m 2, the price for the land had to be established based on some examples of sale prices and in consultation with the DRC (for garden land on the mountain without access road a price of 3,000 Kip/m 2 was agreed upon). For examples of prices for land sales see the second Field Report in Attachment 4 (p. 39). The 1 AH loosing the use of non-owned land to the WTP area (10,000 m 2 ) is not eligible for compensation for the land as it is government land. Besides this forest land that they used without title, this family has around 2 ha of rice land and has a large residential plot on which they live and which they partly rent out to a shop along the main road. This proofs that this is not a family suffering from loosing the use of the forest land as their economic benefits are coming from the rice field and rent.this AH confirmed that they did not expect to have any yield from the Ketsana trees and just use them as firewood. In an interview by the PIAC, PIU staff and DRC representative with the wife and husband, it was decided in mutual agreement that this family will not be worse of after the WTP has been built. 15

30 5.1.2 Temporary Land Acquisition 49. Businesses and houses that temporary loose the use of land because of the pipe laying, are not entitled for compensation for land as they will be able to use the land after construction. If their business is disrupted, they are entitled for lost business income (see further below) Voluntary Land Contributions 50. As stated under 5.1.1, 4 AHs will voluntarily donate their land, with a maximum of 3.64% of total productive land, to the access road to the WTP. For details on land owned and land taken per household, see the Excell sheets for WTP in the IOL in Attachment Affected Trees 51. It is estimated that 3 mango trees of 1 household will be lost due to pipe laying. 13 Bamboo trees of 3 AHs will be lost to the access road and 50 Ketsana trees of 1 AH will be lost to the WTP area (compensation rate is kip for trees older than 6 years). See details of cost of trees in Replacement Cost Form in Attachment 2. For fruit giving trees, the entitled compensation would be for 3 years of annual yield whereas trees that do not have fruit yet would be compensated for management, seedling and planting costs. However, all 5 households losing trees agreed to voluntarily donate them to the project and not seek compensation in cash. Processing of voluntary contributions is described under Chapter VI Information Disclosure, Consultation and Grievance Redress in paragraph Affected Structures Households will have their cement or concrete veranda floors temporarily broken to make the trench for the water pipe or drainage. The contractor will reinstate the floors in original state. Calculations of the costs of cement and concrete are in the IOL in Attachment 3 based on the Replacement Costs in Attachment 2. The process of determining these costs is described under Chapter VI Information Disclosure, Consultation and Grievance Redress in paragraph 67. Another 12 AHs will have some temporary inconvenience of having a trench for the water pipe dug in the earth in front of their house or business. The contractor will reinstate the ground in former condition Disruption of Businesses Businesses will be temporarily disrupted during trench digging for installation of the distribution pipe and construction of the drainage. This would disrupt business activities for a short period of 1-3 days for each business. They are entitled to cash compensation at this amount for the number of days that construction activities disrupt their business activities. 54. From the 56 businesses, 24 AHs with businesses not related to food or health indicated they would not close their shops and therefore do not need compensation. 32 Businesses related to food and hygiene will have to close and prefer cash compensation AP Preferences and Concerns for Compensation and Resettlement 55. All APs with impact on cement slabs and concrete access floors prefer repair by the contractor to the previous state over cash compensation. The AHs loosing land to the access road to the WTP and the AHs loosing trees voluntarily contribute them to the project after learning that the cash compensation they preferred previously, would have to come from the local government. B. Relocation Strategies 56. There is no relocation necessary in Kasi and therefore no special relocation strategies are required. Nevertheless, the PIU and DCR will coordinate closely with the IEM to monitor the general resettlement process and the outcomes, addressing issues such as the extent to which 16

31 AP needs and preferences are considered, their levels of participation in and satisfaction with decision-making on compensation for temporary losses. C. Rehabilitation Allowances 57. In the event that severely impacted households are identified during the implementation period, rehabilitation allowances will be provided to severely affected households under the following three categories, if applicable (i) transport allowance; (ii) subsistence transition allowance; (iii) vulnerability allowance. (i) (ii) (iii) Transport Allowance The PIU will coordinate with district officials for the provision of one or more trucks and/or manpower to assist APs to move; or, the Project will pay APs an appropriate amount of cash allowance to permit them to make their own transport arrangements. Transition Subsistence Allowance A transition subsistence allowance equal to 16 kg of rice per household member per month (roughly half kg/pp/day), for a period of six (6) months is given to severely affected households. Vulnerability Allowance An additional subsistence allowance equal to 16 kg of rice per household member, for one (1) month is given for every factor of vulnerability In Kasi, there are no severely affected households and therefore no households are eligible for rehabilitation allowance. D. Ethnic Group and Gender Arrangements 59. In Kasi, APs are mainly from the Tai-Kadai language group. Only 3 Khmu AHs are from the Mon-Khmer language group. 7 AH (8.14 %) are female-headed households. In order to address the needs of these APs, the following measures will be carried out during the planning, implementation and monitoring of the land acquisition, compensation and resettlement activities: (i) The DRC includes representatives of the district offices of the LWU and LFNC. The members of the DRC also includes the chief and/or deputy chief of the eight core villages where assets are affected. (ii) The DRC consulted individually with the APs and their families to ensure that all understood the STWSP policies, entitlements and procedures regarding land acquisition, compensation and resettlement; and, to identify the specific needs and concerns of male and female APs. Meeting individually with these AHs also ensured that women in the households understood and felt comfortable to voice their thoughts. (iii) The compensation payment forms will be signed by both spouses if the affected assets are conjugal property. (iv) All information to APs who are temporarily and/or permanently affected by the subproject will be distributed to men and women equally; and, the DRC and/or VRC will take appropriate steps, as necessary, to encourage women to participate in any public meetings about the sub-project. (v) The DRC will collaborate with the WATSAN to ensure that women and all ethnic groups are targeted for information about the sub-project and land acquisition activities. 17 See footnote 13 17

32 (vi) The DRC will also determine whether there is need to communicate with APs in language(s) other than Lao, in public meetings, individual consultations and/or in written communications. (vii) All members of AP households regardless of ethnicity or gender are equally eligible to apply and, depending on their qualifications, be considered for employment by the contractor(s) for civil works for the Project. (viii) In all core villages, if there is employment associated with the VEI, 30% of new jobs will be reserved for qualified women regardless of their ethnicity. (ix) The DRC will assist the Independent External Monitor (IEM) to monitor the impacts on women and APs of all ethnic groups. (x) All databases and monitoring indicators for land acquisition, compensation and resettlement activities will disaggregate data and other information by gender and ethnicity. (xi) The PIU with support from the PCU will provide formal and on-the-job training for DRC to raise their awareness of gender and ethnicity issues and to ensure that they understand and comply with the STWSP policies and procedures for vulnerable APs. E. Due Diligence during the DMS 60. The DMS conducted following detailed engineering design for the sub-project encompasses (i) confirmation and updating of the IOL results; (ii) a due diligence on compensation as impacts and costs might have changed due to changes in design and material prices; (iii) confirmation of agreement on compensation to the AHs permanently loosing income;(iv) updating of compensation rates according to replacement costs according to current prices. 61. The objective of the due diligence is to confirm compliance with STWSP policies and resolve or remedy any outstanding issues including: (i) Changes in the numbers of AHs and the types and extent of affected assets including cement slabs, trees and disrupted businesses. (ii) Details on the types and amounts of compensation and assistance (in cash and/or in kind); and evaluation of whether this assistance meets the STWSP principle of replacement cost. (iii) The level of satisfaction and/or concerns and needs of AHs regarding LAR procedures and compensation. VI Information Disclosure, Consultation and Grievance Redress 62. Disclosure of information and consultations occurred during preparation and implementation of the sub-project to ensure that APs and other stakeholders have timely information about land acquisition, compensation and resettlement, as well as opportunities to participate in and express their preferences and concerns regarding the resettlement program. The PIU and DRC with assistance from the village WATSANs organizes meetings and consultation, distributes information and takes other steps to keep APs informed. 63. Important tools of accountability for PIU and in the LAR process are the IOL calculations, Declaration Forms (given the value of all affected assets per AH), Voluntary Contribution Forms (giving the value of all assets voluntarily donated per AH), Compensation Receipt Forms (giving the value of compensation received for all affected assets per AH) and No Longer AP Forms (giving all assets that were thought to be affected at the time of the Feasibility Study but were actually not found to be affected at the time of DMS). The calculated compensation figures for all assets from the IOL are filled out in the Declaration Forms and signed for by the AHs. The 18

33 numbers of AHs and amounts in the Declaration Forms should equal the amounts of the Compensation Receipt Forms, Voluntary Contribution Forms and No Longer AP Forms (as in the figure below) to proof that the compensation procedures are followed properly and that the AHs are informed of their eligibility. These forms are given and explained to the PIUs and DRCs during the training and workshops. Attachments 5-8 show these forms. Figure 1: Compensation Procedure From IOL Total Costs to be compensated = A. Declaration Form with all calculated costs based on value = B. Voluntary Contribution Form w. value of contributed assets C. No Longer AH: w. value + + D. Compensation Receipt w. Value of all compensated assets A. LACP Information Dissemination and Consultations 64. To date, dissemination and consultation activities have occurred as an integral part of the preparation of the LACP. APs are notified and consulted in advance about land acquisition, compensation and resettlement activities for the sub-project, including among others: (i) public meetings, (ii) distribution of PIB and updated version (see Attachment 12), (iii) preparing official lists of eligible APs and their entitlements, (iv) compensation rates and amounts, (v) and, other matters such as the grievance redress mechanism. For a full overview of consultations see Attachment 4. B. Information Disclosure 65. Information Disclosure has been done as follows: (i) At the Feasibility Study at the beginning of January 2016 a PIB has been distributed and discussed with DRC, village chiefs and APs. PIU and village chiefs sign when they receive the PIBs in order to monitor actual distribution of the PIBs (see Attachment 10). (ii) At the DMS training for DRC and PIU at the end of January 2016 the information from the PIB was reiterated. (iii) In compliance with ADB requirements, the PIU assisted by the PCU will ensure the public disclosure of the LACP as endorsed by the PPSC and approved by ADB. (iv) The full LACP, or a summary or information booklets, will be made available in Lao in a readily accessible location within the sub-project area. (v) The final LACP Update will also be disclosed on the ADB website. 66. During the DRC/PIU meeting before the IOL data collection it is mentioned to the authorities that an official letter announcing the cut-off date to all villages involved is needed. A cut-off date letter was issued on 21 January 2016 informing of the commencement of project 19

34 and cut-off date for construction of 15 January This cut-off date was announced in 3 ways: verbally during IOL data collection by PIU staff, by the Head of Village to the villagers after receipt of the letter, and circulated in the PIB. 67. The replacement cost survey is done in 3 steps: (i) First the unit cost form for construction materials and land are established. For construction materials OPWT and shops for construction materials are consulted. For land prices the Department of Land and Housing and the Village Heads are consulted. This is done during the first weeks of the resettlement consultants' fielding. These costs can be found in the Replacement Cost Form in Attachment 2. (ii) These costs, labour costs, costs of trees and crops in the area are discussed and verified by the DRC members (including mass organizations). DRC establishment and members are discussed under Institutional Arrangements in paragraph 74. (iii) Finally these costs are confirmed (or revised) by the AH who might experience these costs during the IOL data collection. During the DMS training it has been checked if this has indeed been done and dates of DMS training are in Attachment 4. C. Grievance Redress 68. The following Table 6 shows the grievance redress mechanism that has been adopted for the sub-project. PIU and IEM will monitor and report on grievances and complaints during the course of the resettlement process (as specified in Implementation Steps in Chapter X). This is described in paragraph 79 (iv) and 81. Table 6: STWSP Grievance Redress Procedures No. Grievance Redress Procedures 1 Stage 1: In the first instance, APs will address complaints on any aspect of compensation, relocation or unaddressed losses to the village arbitration unit or other designated village grievance officers. The unit will organize a meeting with the complainants to resolve the issue using its traditional methods of conciliation and negotiation; the meeting will be held in a public place and will be open to other APs and villagers to ensure transparency. 2 Stage 2: If within 5 days of lodging the complaint, no understanding or amicable solution can be reached or no response is received from the village arbitration unit, the AP can bring the complaint to the District Resettlement Committee (DRC). The DRC will meet with the AP to discuss the complaint, and provide a decision within 10 days of receiving the appeal. 3 Stage 3: If the AP is not satisfied with the decision of the DRC or in the absence of any response, the AP can appeal to the Provincial Resettlement Committee (PRC). The PRC will provide a decision on the appeal within 10 days. 4 Stage 4: If the AP is still not satisfied with the decision of the PRC, or in the absence of any response within the stipulated time, the AP can submit his/her grievance to DWS. The DWS acting on behalf of the MPWT will render within 10 days of receiving the appeal. 5 Stage 5: As a last resort, the AP may submit his/her case to the Court of Law. The complaint will be lodged with the Court of Law; the decision of the Court will be final. Although the technical guidelines for resettlement designate this elevating of the complaint to the local mass organizations, non-benefit organizations and AP representatives, in order to ensure the availability of adequate resources to carry out this procedure, the DWS will be responsible for forwarding the complaint and ensuring its process in the courts. Source: STWSP Land Acquisition and Compensation Framework 20

35 VII Resettlement Costs A. Source of Resettlement Funds 69. All land acquisition, compensation and resettlement costs for the sub-project will be financed using provincial counterpart funds. TA to PCU and PIU to implement resettlement procedures will be under the Project's regular budget. B. Compensation and Allowance Rates 70. Compensation and allowance rates have been established in the province, at replacement cost based on market prices. The rates are based on data collected during the IOL from APs, district officials and other sources. They have been validated and, as required, adjusted during the DMS. The proposed compensation and allowance rates for the sub-project are indicated as unit costs Attachment 2. C. Resettlement Costs 71. The estimated cost of LAR for the Kasi sub-project is 108,192,755 Lao kip (13,332 US$) which includes (i) the base LAR costs; (ii) costs of land clearance of community land and, (iii) contingencies of 10% reserve fund. Calculations of the amounts can be found in Attachment 3. Table 7 below summarizes the sub-project's resettlement costs. Item Table 7: Resettlement Cost Total (kip) Amount US Dollars(1 US$ = kip)*** Land Garden Land (permanent): 1,158 m2 3,474, Residential Land (temporary): 957 m2 all in RoW - 2 Houses Business - Temporarily affected during civil works* 6,047, Structures - 78,397,650 9,661 5 Trees - 10,438,000 1,286 6 Crops - annual yield Other Assets Subtotal base Resettlement costs 98,357,050 12,120 Rehabilitation Allowances - Living Allowance 3 mnths - - Living Allowance 6 mnth - - Repair Allowance - - Special Assistance - Transport Allowance - Subtotal Allowances - - Sub Total LAR Costs 98,357,050 12,120 Reserve Fund 10% 9,835,705 1,212 Total LAR Costs 108,192,755 13,332 *1 road construction for 1 month and laying water pipe for 3 days *** rate at 22 March

36 VIII Institutional Arrangements 72. The STWSP sets out detailed information on the institutional arrangements for the preparation and implementation of land acquisition, compensation and resettlement for the Project. 73. The PIU has overall responsibility for activities related to land acquisition and compensation of APs. The scope of these activities includes (i) conducting the AP census, DMS and due diligence following detailed engineering design; (ii) assessing losses, AP entitlements and requirements for compensation and rehabilitation assistance, including updating the Entitlement Matrix as required; (iii) consulting with all APs to inform them about the sub-project impacts, their entitlements, compensation rates, rehabilitation assistance and procedures and schedules for implementation of the LACP; (iv) assisting the work of resettlement committees; (v) internal monitoring and regular reporting on land acquisition, compensation and resettlement activities; and, in collaboration with other PIU staff, (vi) ensuring coordination of land acquisition activities and civil works. 74. The PIU will work in close collaboration with resettlement committees at the provincial and district levels, as well as with village authorities and mass organization representatives in the core villages. The District government was informed of the need to establish a DRC in the introductory meeting about LAR in the beginning of January The official DRC establishment and appointment of members was done by the Provincial Governor at 14 January The members include Dep. Governor as chair, Chief Public Works, Chief of District Personnel, Dep. Police, Dep. District Environment and Nature, Dep. District Lao Front, Representative DLWU ( ), Representative Kum Ban (village group committee), authorities of 8 core villages (total 16 persons (including 1 woman (6.25%)). The Resettlement Committees and village authorities will assist the PIU as follows: (i) The Provincial Resettlement Committee (PRC) headed by the Provincial Governor or Deputy has to be kept informed of LAR progress. But with the establishment of the DRC the day-to-day LAR affairs in the sub-project are delegated by the Provincial Governor to the DRC with either the District Governor or the Deputy as the chair of the DRC. The PRC is represented in the DRC with the head of PIU and Provincial Water Supply Agency. The PRC will assist in ensuring disbursement of funds from the provincial treasury to the district to enable the district to pay adequate compensation amounts. (ii) The DRC prepared and certified the official list of APs following the DMS, certified the compensation rates based on updated surveys of replacement costs, reviewed and formally endorsed the updated LACP and will ensure disbursement of funds from the district treasury to cover the costs of compensation and, as required, rehabilitation assistance. DRC will sign compensation documents identifying the entitlements and compensation amounts to be paid to each AP. In addition, the members of the DRC will act as grievance officers to hear and resolve complaints that cannot be dealt with at the village level. (iii) The village leaders assisted the DRC particularly with the distribution of information to APs and other residents and the organization of public meetings and/or individual consultations with APs. The village chief and elders heard and resolved any complaints from APs and other stakeholders. The village representatives of the LWU and/or LFNC were available to assist to ensure that all APs understand, agree or, if not, have opportunities to express their concerns. See dates of communications with villages leaders and representatives and Field Reports of interactions in Attachment The PCU (i) did review and endorse the updated LACP prior to submitting to the provincial department of natural resources and environment and then to ADB for review and approval, (ii) will review internal monitoring reports and IEM report and report regularly to ADB on progress and completion of land acquisition, compensation and resettlement activities; and, (iii) continues to ensure coordination of land acquisition and civil works activities and compliance with conditions for the award of civil works contracts. 22

37 76. The PCU recruited an IEM at the beginning of the STWSP. The responsibility of the IEM is to carry out external monitoring of all land acquisition, compensation and resettlement activities. 77. The PCU also recruited a Project Implementation Assistance Consultant (PIAC) to provide technical assistance and guidance to the PIU and other parties involved in land acquisition, compensation and resettlement activities. IX Monitoring A. Internal Monitoring for the Sub-project 78. The scope of internal monitoring to be carried out by the PIU assesses (i) compliance with the STWSP resettlement policies and procedures and (ii) the availability and efficient use of personnel, material and financial resources; and, identifies the need for (iii) remedial actions to correct any problems that arise. 79. The PIU will prepare a monthly progress report on the resettlement activities of the subproject, and submit it to PCU. The report will include information on key monitoring indicators, namely: (i) Affected people and compensation: the number of APs by category of impact; the status of delivery of compensation and subsistence, moving and other allowances. (ii) Status of rehabilitation and income restoration activities: The number of APs severely affected by a) loss of productive assets and/or b) displacement; the number of vulnerable APs; the status of relocation of displaced APs; the status of technical and other assistance for income restoration. (iii) Information disclosure and consultation: number and scope of public meetings and/or consultations with APs; status of notifications to APs; summary of AP needs, preference and concerns raised during meetings and consultations. (iv) Complaints and grievances: summary of types of complaints received; steps taken to resolve them; outcomes; and, any outstanding issues requiring further management by district or provincial authorities or ADB assistance. (v) Financial management: the amount of funds allocated for compensation, operations and other activities; the amount of funds disbursed for each. (vi) Resettlement schedule: completed activities as per schedule; delays and deviances, including reasons; revised resettlement schedule (see Implementation schedule of all resettlement activities under chapter X Implementation Schedule). (vii) Coordination of resettlement activities with award of contract for civil works: status of completion of resettlement activities and projected date for award of civil works contracts. (viii) Implementation problems: problems that have arisen, reasons and proposed strategies to remedy; outstanding issues. 80. Upon receipt of monthly reports, the PCU consults with PIU to clarify and/or resolve any outstanding issues. On a quarterly basis, the PCU collates the monthly progress reports for the sub-project and prepares a Project monitoring report to be submitted to ADB. 23

38 B. External Monitoring of AHs 81. The IEM is responsible for monitoring of all activities related to updating and implementing the LACP; and, to assess whether AHs are able to restore their living conditions, livelihoods and incomes to pre-sub-project levels and, if not, to recommend remedial actions to assist AHs. The IEM conducts socio-economic surveys of AHs on a bi-annual basis and one year following completion of compensation payments; and, monitors resettlement activities including, among others, the DMS, payment of compensation and allowances, rehabilitation and income restoration activities, public meetings and consultations, and the grievance redress process. The IEM will work closely together with the DRC in all activities. 82. The PIU and DRC will support the work of the IEM in the following ways: (i) collect baseline socio-economic data from AHs during the IOL and DMS; and, make all data, official AP lists and other relevant data available to the IEM; (ii) assist the IEM, as required, during followup socio-economic surveys and consultations with APs; and (iii) facilitate the IEM to participate in, monitor and receive relevant information about resettlement activities. X Implementation Schedule 83. The implementation schedule for land acquisition, compensation and resettlement activities for the sub-project is presented in the following overview. See dates for the steps that have been done in Attachment 4. A. For Feasibility Study Step 1: PIU is trained in Resettlement Procedures and data collection for IOL. Step2: Preparation of a LACP per sub-project as part of the Feasibility Study and submitted to ADB for review and approval. B. Resettlement Steps Scheduling from DMS to Construction Step 1: Step 2: PIU trained in DMS and compensation procedure PIU identified new APs and measure their losses Step 3: PIU visited APs from previous survey who are no longer APs because of changes in the design and explain that they are not APs anymore and let them sign the form (with their spouse) Step 4: PIU conducted Detailed Measurement Survey (DMS) to record any losses for compensation and rehabilitation according to the finalized design. At that time the data from the cost recovery survey was updated as well. This was done in the presence of APs, village head, district official, and a member from the Lao Women s Union or Lao Front for National Construction. Step 5: Data from the DMS were sent back to PMU where they were processed. The LACP was updated, finalized and sent to ADB. Step 6: PIU starts to write the compensation declaration forms for every AP. The final compensation rates will come from final calculations of compensations based on the IOL. Step 7: Consultant will share the finalized LACP Update and IOL with the subprojects. Compensation Declaration forms for all APs can now be completed by PIU with the calculated amounts. Step 8: PIU distributes the compensation declaration forms to all APs. APs are also informed they can view the LACP at the PIU s office. 24

39 Step 9: APs have 14 days to view the LACP, sign and return back the forms or decide to object. Objections should be directed to Village head or the chief of a mass organization in the village first. If that does not solve the problem, the objection should go to the district officials or Grievance Redressal Committee or PIU. If that does not solve the problem, the local resettlement consultant or the independent monitoring organization can be asked to help. If all that does not help the case can be brought to PMU or MCTPC. If the problem is still not be Court. APs should be exempted from all taxes, administrative and legal fees. Step 10: PIU will oversee payments to be done to the APs who returned the compensation declaration forms and APs will sign a receipt upon payment and be given a copy. Step 11: Payment receipts should be kept in the PIU and a copy should go to PMU and/or independent monitoring agent. Step 12: Reports on finalized compensation and replacement works will be sent by PMU to ADB to signal completion of the resettlement process. Step 13: PIU should inform APs to clear the identified areas 2 weeks before construction works start. 84. Land acquisition and resettlement activities for any sub-project, including disclosure of the resettlement and compensation plans to the APs and submittal to ADB for review and concurrence, should be completed prior to ADB's approval to award civil works contracts for that sub-project. 25

40 Attachment 1: Village Impacts Affected Households in Core Villages of Kasi Kasy Households Village Ethnic WS Intake/WTP Trees Business Ban Naxou Lao, Khmu 1 1 Ban Phoukham Lao, Khmu, Iomien 40 5* Ban Viengkeo Lao, Khmu, Iomien Ban Nathaen Lao, Khmu 6 5 Ban Namon Mai Lao, Khmu 10 8 Ban Namon Gnai Lao 0 0 Ban Viengsamai Khmu 3 3 Ban NongBouathong Lao, Khmu, Iomien 2 2 Total 86 5* WS: Phoukham: plus 4 public organisations, Viengkham: plus 1 public organisation; * 5 also are affected by WS Naxou, Phoukham, Viengkeo, Nathen, Namon Mai, Namon Gnai, Viengsamai, Nong Bouathong 26

41 Attachment 2: Cost Recovery Survey 27

42 Attachment 3: IOL Kasi 28

43 Attachment 4: Consultations with Stakeholders Kasi Date Key Step Consultation/ Responsibility Stakeholders Involved Record Dissemination Coordination (number of men/women*, Comments/ Topics Discussed Staff positions, ethnicity estimate**) Action Nov 2015 plus several visits over 2 years Orientation Session Explain scope, implementation arrangements and responsibilities. PCU, DTL, PIC Design District Governor, PIU (3), DPWT (2), PNP Nov 15 Reconnaisance and field assessment Discuss options and available locations, and involvement/contribution of community. PCU/PIC Design District Governor of Champasak, Deputy Director, DPWT, Head of PNP, Head of DWS Office, PIU Head, Deputy PIU Head, Staff PIU (7 Lao men) Nov 15 Topographical Survey Topographical survey Survey Team PIU Dec 15 Social Survey SES in 8 core villages Social survey team, PCU PIU Village Heads and Mass Organizations, stakeholders, potential 29

44 Date Key Step Consultation/ Responsibility Stakeholders Involved Record Dissemination Coordination (number of men/women*, Comments/ Topics Discussed Staff positions, ethnicity estimate**) Action APs, SES for 10% of households 189 hh; 175 male headed, 14 ; % Tai Kadai, % Mon-Khmer, % Hmong) Jan 16 Field Assessment Different Options for location WTP and intake 14 Jan 16 Resettlement workshop Lao Decree and Regulations RF Need for DRC Need for cut-off data Cost recovery survey Need for Grievance and Redressal Responsible Persons Steps for PIU Form for IOL AP Distribution PIB Environmental Issues PCU, Team Design PCU, PIC Resettlement, PIC Environment Distr. Gov, DPWT, PIU PIU Chief (Head DPWT), 2 PIU staff (3 ) Village Authorities (24 men, 6 women; 24 fr Tai-Kadai, 6 fr Mon-Khmer (Khmu) ethnic group); from 8 villages: Naxou, Phoukham, Viengkeo, Nathen, Namon Mai, Namon Gnai, Viengsamai, Nong Bouathong), District staff: environment, LWU ( ), land, police Total: 34: Female: 7: Male: 27 ethnic Khmu: 6 ( ) 30

45 Date Key Step Consultation/ Responsibility Stakeholders Involved Record Dissemination Coordination (number of men/women*, Comments/ Topics Discussed Staff positions, ethnicity estimate**) Action Jan 16 IOL Interviews with APs Data collection for IOL PIU PIU 94 AHs (6 female headed; 73 Tai-Kadai, 21 fr Mon- Khmer, ethnic group) 26 Jan 16 DMS training Explanation of initial LACP and IOL Preparation and training for DMS Further explanation of resettlement procedures PCU, PIC Resettlement PIU (chief and 1 staff) DRC: Dep. District Governor, Chief Public Works, Chief of District Personnel, Dep. Police, Dep. District Environment and Nature, Dep. District Lao Front, Representative DLWU ( ) Villagers: Nathaen: Head, Viengkeo: Dep. Head, Phoukham: Dep. Head Total of 10 ps (1 ); (fr Tai-Kadai Interviews with 25 APs (5 ) Jan 16 Workshop VEI VEI priority selection Community PIC, PCU Dev. 3 District staff (incl. 1 ) 737 total from 8 villages: (women 357) (494 fr Tai- Kadai, 201 fr Mon-Khmer, 42 fr Hmong-Mien ethnic group) 31

46 Date Key Step Consultation/ Responsibility Stakeholders Involved Record Dissemination Coordination (number of men/women*, Comments/ Topics Discussed Staff positions, ethnicity estimate**) Action March 16 Updated IOL data collection Support PIU to do DMS Get final IOL data for final calculation of compensation for LACP (for ADB) PCU, PIC Resettlement PIU, DRC All 86 temporary AHs and 5 expected permanently AHs (including 3 Khmu AH and 7 female headed AH) Start Payment Procedure March 16 Cost estimate VEI Consultation about costs for VEI Final selection Social PIC, PCU PIU Villagers from 8 villages (fr Tai-Kadai, Mon-Khmer, and Hmong-Mien ethnic group) March 16 Confirmation of DMS data Check updated IOL data and confirm PIU, DRC All 86 AHs (83 Tai-Kadai, 3 Mon-Khmer ethnic group; 7 female headed AHs) 32

47 Report on public consultation and LAC from sub project Kasi The main objective of the field trip is to conduct on village consultation, carry out the FS and also Detailed Measurement Survey (DMS). The activity has implemented formal land acquisition procedures: 1. Activities and Schedule of Field Work: Date Day Time Activities Person/s Responsible 12 Jan 2016 Tue Morning Traveling to site: Kasi District Duangtou PCU Afternoon Worked with PIU Kasi on planning and lay out map for having a good understanding about field collecting data on Assets loss and SES. 13 Jan 2016 Wed Morning Conducted workshop on village consultation and Detailed Measurement Survey according to final detail design. Duangtou PIU Afternoon Field survey and SES interview in Phoukham village 14 Jan Jan Jan 2016 Thu Whole day Field survey and SES interview in Phoukham village Friday Whole day Field survey and SES interview in Viengkeo and Nathaen village Saturday Whole day Field survey and SES interview in Namon May, Namon Yai, Nong Bouathong, Nasou and Viengkeo village Duangtou PIU Duangtou PIU Duangtou PIU 17 Jan 2016 Sunday Whole day Updated Whole data from the field Duangtou PIU 18 Jan 2016 Monday Whole day Field survey and SES interview the missing AH Duangtou PIU 19 Jan Tuesday Morning Updated data from field Duangtou 33

48 2016 Afternoon Travel back Vientiane 2. Workshop The workshop have been conducted at District meeting Whole 8.00: opening speech by Deputy District Governor. Participants: PIU (3 ), District staffs concerning: environment, LWU ( ), land officer, police, Village authorities from 8 affected village have participated in the workshop (24, 6 ). Total: 37: Female: 7: Male: 30 ethnic Khmu: 6 ( ) 3. Contents Explained Lao Decree 192 and ADB policy. Explained the steps of Resettlement and compensation. Explained interview forms and data colleting forms. Explained the need of Cut- off date and establishing of DRC. Explained the LARC and the steps of Redress problem. Explained the method of survey of AH. Big group discussion on Lao Decree 192 and ADB policy (Answer and reply). Transect walk in the field collect Assets and SES interview. Explained all form concerning LARC. 4. Achievements of the Field Works: 1. Completed to conduct workshop on DMS about the LAC base to the final design for PPOs, DCOs, and village authorities with representative AHHs from 8 affected village 2. Completed to collect Assets loss data and interviewed SES of AHs of 8 affected village. 5. Findings and Issues: According to the detail Design and confirmed by Engineer and discussion on 11 January 2016 about the 8 affected village in Kasi. 34

49 1. Intake located in Phoukham village in the town taking water from Namlik river near police office area The intake area is public land. 2. WTP located in a big mountain in Phoukham village also. The WTP area is public area and forestry land. There are 50 Ketsana trees planted by Mr. Tip Fan. The trees are on public land and the Government has no collected Taxes from Mr. Tipfan. 3. The Access to WTP have 3 privates owner land: Mr. Oth who located in Viengkeo village has 210m 2 land will be loosed permanently by constructed road to WTP no tree plantation. Mr. Vanthong who located in Phoukham village has 180m 2 will be loosed permanently by construction road to WTP and 8 hole small wild bamboo owned by Mr. Vanthong will be loosed, no tree plantation. Mr. Sithon who located in Phoukham village has 150m 2 construction to WTP, no tree plantation. land will be loosed permanently by road The type of the land will be loosed for road construction is forestry land AHs from WS pipes: male heads HHs are 81 and female heads HHs are The affected land is residential land and is temporally affected just a little big located in Access to WTP is garden land and permanent loss for land and som Ketsana trees such: Mr. Tip Fan has 50 Ketsana trees will be loosed, Mr. Sithon has 200m 2 of garden land will be loosed, Mr. Vanthong has 180m 2 garden land Mr. Tip Fan 210m 2 of garden land will be loosed. There is one drinking water factory located in village Viengsamay but no water seller in the market. The factory income will not be affected. 6. The structures loss are only Cement slap and concrete in front shop and house and some business will be loosed income about 3 days during construction Pipe. - No severely AHHs - No poor households have been affected. - No affected houses - No relocated households affected Business or income will be affected and 18 business of them not closed the others will be closed during the construction because they are some food shop and restaurant and pharmacy shop will be affected income about 3 days during the construction pipe. 1 PIU and village authorities have capable to collect data on interview SES and Assets loss. 2 PIU and village authorities have capable to conduct the steps of compensation. During the workshop PIU, District and village authorities and villagers well understood the policy of Lao 35

50 Decree 192 and ADB policy, well understood about Resettlement Steps and the steps of redress problem, no question raised by the participants. The villagers are very happy to have Water Supply, villagers said that they wished to have Water Supply for a long time ago so that now they have Water Supply project it is a good choice for them and they are so happy. All theirs Assets loss they have voluntary donation to project without any request compensation. During the construction work villagers request to company should take them to work in the project. 6 Countermeasures Taken and Future Action Plan: The next field trip inventory of losses and eligibility for compensation forms should be signed by District Governor, PIU, Chief village and AP Vientiane 20 January 2016 Prepared by: (D. CHUYAOYANG) 36

51 Introduction: Report 2 nd Field Trip to Phase 4 Town Kasi by Resettlement Team STWSP January 2016 The proposed field trip was based on the work of the first field trip for Phase 3 town Kasi, resulting in initial IOL. Objectives: Explanation of initial IOL and calculation preparation and training for DMS further explanation of resettlement procedures Contents: Initial IOL presentation and discussion Reminder of 13 steps of Resettlement procedures Presentation forms 1-5 Presentation form socio-economic data new APs Interviews with APs and Village Heads Who: Duang Thu and Hermien Participants: DRC Dep. District Governor, Chief Public Works, Chief of District Personnel, Dep. Police, Dep. District Environment and Nature, Dep. District Lao Front, Representative DLWU ( ) Villagers: Nathaen: Head Viengkeo: Dep. Head Phoukham: Dep. Head PIU Dep. PIU, staff PIU 37

52 Total 12 including 1 woman Selected APs for interviews (in presence of respective village heads and District LWU) Phoukam: Mr. Tipfan, loosing land to WTP and temporary some concrete in RoW in front of house Mr. Oth, loosing land to access to WTP and temporary some RoW in front of house Mr. Vanthong, loosing land to access to WTP Mr. Sithon, loosing land to access to WTP and temporary some concrete in RoW in front of house Ms. Onsy, widow, loosing temporary some concrete in RoW in front of house and 3 mango trees Ms. Norasin, widow, loosing temporary some concrete in RoW in front of house Mr. Somchith, loosing temporary some concrete in RoW in front of restaurant Agricultural Bank, loosing temporary some concrete in RoW in front of building at entry and exit access Police station, loosing temporary some earth in RoW in front of building Credit Association, loosing temporary some concrete in RoW in front of building at entry and exit access Viengkeo: Mr. Phaan and Ms. Ann, loosing some food business during pipe laying Mr. Singkham, loosing temporary some concrete in RoW in front of pump station in access and exit roads Mr. Khamphayvanh, oosing temporary some concrete in RoW in front of pump station in access and exit roads EDL, loosing temporary some concrete in RoW at entry and exit access Nongbouathong: Mr. Tik, loosing temporary some concrete in RoW in front of pump station in access and exit roads Viengsamai: Mr. Vanthong, Khmu, selling dry goods Namon Mai: Ms. Vone, widow, loosing temporary some cement in RoW in front of house Namon Yai: Village head, confirmed that there are no affected households Naxou: Ms. Chap, divorced, selling dry goods; will loose some BBQ business during pipe laying 38

53 Nathaen: Mr. Noungkham, loosing temporary some concrete in RoW in front of pump station in access and exit roads Total interviewed persons: 17 (5 women) and 4 organisations Method: Presentation of LAR work Big group discussion on questions and Replacement Costs Walk through and interviews w. APs and village heads Document preparation: Initial IOL and summary LACP in Lao 13 steps of Resettlement procedures (reminder) Forms 1-5 Form socio-economic data new APs Measurement Technique Picture Replacement Cost form Interview questions for APs and Village Heads Draft design maps from DMS Socio-Economic survey data Findings: - cut-off date letter on 21 January 2016 informing of the commencement of project and cut-off date for construction of 21 January DRC established on 14 January 2016 with Dep. Governor as chair, Chief Public Works, Chief of District Personnel, Dep. Police, Dep. District Environment and Nature, Dep. District Lao Front, Representative DLWU ( ), Representative Kum Ban (village group committee), authorities of 8 core villages (total 16 persons (including 1 woman). - Water Supply Pipe Laying: 3 days - Landtitling: in all villages, land titling has been done for residential (construction) land; land use certificates have been issued for rice and garden land. The Lao people along the road, nearly all have 1-2 ha of rice land in the area on the other side of the road (opposite the 39

54 mountains). As they live there already for some generations, they inherited the land, including garden land on the mountain. - Sales of land, especially garden land, are relatively new to Kasi. When asked for the price of land per m 2, no one knows. However, there are a few known instances of land sale and these were taken as reference to determine the value of garden land on the mountain to the WTP: a. Residential/construction land: - along road: 300m 2 (15m x 20 m): million kip: kip/m 2 - not on road: same piece for million kip: kip/m 2 - not on road: 1,500m 2 (30m x 50m): 60 million: 40,000 kip/m 2 - not on road, 10 years ago: around half ha (5,000 m 2 ): 50 million kip: kip/m 2 - one asking price on road: 3.540m 2 (59m x 60m): 1 million ThB is 220 million kip: kip/m 2 b. Rice land (din naa): 1.750m 2 (25m x 70m): 72 million kip: kip/m 2 c. Garden land: - with access road: 1 ha (10,000 m 2 ) for 40 million kip: 4,000 kip/m 2 - without access road: proposed: 1 ha for 30 million kip: 3,000 kip/m 2 The value of garden land without access road was agreed with the owners who loose land permanently to the WTP and access road to WTP at 3,000 kip/m 2. The village chief, as representative of the DRC, and PIU were present at the discussion about this price. - RoW for the main road is 15 m from the center of the road (30 m total width) - There are no individual water sellers. One company sells drinking water to the restaurants around town. This will not change with the new water supply. - All pump stations have properly made entry and exit access of reinforced concrete to allow access to large trucks (up to 12 wheel trucks). The accesses and pump station areas are done by professional construction companies.... PIU agreed with all pump station holders that the pipe laying would be done separately for entry and exit access so that there will be access to the pump station for all type of vehicles during the time of construction. 40

55 Ethnicity: Although Kasi town has quite some Khmu and Iomieng amongst the population, most people along the main road, where there are most impacts because of the main pipe laying, are from Lao ethnic. This is a result of the fact that they are the oldest population who settled in the lowland area and along the road a long time ago, sometimes many generations. Therefore, they own most of the lowland, construction land and rice land, but even have land use certificates for garden land on the mountains that go back to their grandparents. Only the village of Viengsamai looks different with different type of housing and indeed most inhabitants there are from Khmu ethnicity. This demonstrates the phenomenon that the population of a town can have a high percentage of non Lao ethnic inhabitants, but that this percentage is almost always much lower amongst the AHs (as they are traditionally the longest living people in town and occupy the land along the main roads). Design Points: When visiting the pump stations and public organizations, it was noticed that the PIU told the pump owners and directors of the organizations that the project would fill in the trenches made for pipe laying with sand but that they needed to repair the concrete themselves. Back at the office, it turns out that actually the repair of the concrete is already in the BoQ. This is a good thing as it would be very difficult and not fair to ask owners of accesses that are so properly made of reinforced concrete to repair it themselves. It would be very difficult for them to find a contractor who would do a little bit of work for them and if they do it themselves, the quality would be less than before. It seems that construction work is done professionally in Kasi and therefore it becomes more difficult to ask individual owners to do their own repairs. This is quite a change from previous towns where the damage would be to earth in front of the house or to cement slabs which everyone can repair themselves. The influence of land recordings on significance of LAR It is a known fact that people try to pay as little land tax as possible. The village chief of Phoukham confirmed this and explained it further. People will often say they have or use less land, either in the rice area but especially on the mountains, than they do. This does not apply for land for which there is a land title or a certificate, but for land without it. In order to pay less tax, people also apply for fewer land certificates (for garden and forestry land) than they would actually need for legal registration of the land they can use. This means that they might hold certificates for 2 plots, but actually use 5 plots. This affects the scoring of the severity of resettlement impacts because for severity the percentage of productive land permanently lost is recorded (if it is more than 10% the affect is called severe ). If one takes the area on the official land use certificates as indicative for the total productive land, this 10% is easier reached than when the total actual used land is recorded. This creates a problem of not being able to officially proof total productive land and having to base recordings on inofficial/verbal accounts. If one would insist on using official documentation, more households might be severely affected than is actually the case. This is an interesting point to remember when the significance of LAR is determined for a sub-project. Point of historic interest for LAR It was observed (as mentioned above) in Kasi that pump stations and public organizations constructed proper reinforced concrete entries and exits. For the pump stations the whole 41

56 area was constructed properly, designed for handling heavy, up to 12-wheel, trucks. It is clear that there is progress in this area and construction is handled more professional. The consequence for LAR is that impacts are more serious in terms of money and repair work. The impacts are too large to ignore or to let owners take care of it themselves. This is something not seen on this scale before. When NCWSP started, around 10 years ago, all damage there was, was on wooden fences, trees and earth in front of the house (see LACP for Houn). In STWSP, more and more impacts were on cement slabs in front of the house: every house mixed a bag of cement to pour on the earth in front of their house. And under Phase 4 (and WSSP), impacts are more and more on concrete floors in front of the house, proper concrete stairs and on reinforced concrete accesses. Also the reinforcement of the RoW is very clear now. Under NCWSP, the RoW was not mentioned often, whereas now, most houses and small shops use part of the RoW for their own use and this becomes clear in the design for the water supply lines. In terms of loss of land, this means that fewer households are marked as loosing their land, because actually part of the land they use is officially in the RoW. Schedule Field Trip Kasi, 25 to 28 January 2016: 1 st day, Monday 25 Jan: Travel to Kasi 2 nd day, Tuesday 26 Jan: Meeting with Governor's office Workshop with PIU and DRC Walk and drive through 3 d day, Wednesday, 27 Jan: Interviews with APs Interviews with APs 4 th day, Thursday, 28 Jan: 8.30 Interviews with APs Return to Vientiane 42

57 Attachment 5: Voluntary Contribution Consent Declaration LAO PEOPLE S DEMOCRATIC REPUBLIC Province: District: Village: I, Name: Age: with residence located in village, certify that I have been previously informed by the local authority of my entitlement to compensation for any loss of property (house, land and trees) that might be caused by the construction of water supply system or urban environmental (development) improvements in.. district,. village. I confirm that I voluntarily accept the land of. square meters located in.. village to be provided to the local authority. I also confirm that I do not request any compensation for loss of.. (land, houses, structures, trees, crops) and would request the local authority to consider this as my contribution to the project. The proposed donations are directly linked to benefits we will receive and do not severely affect our living conditions, livelihoods and incomes; and, we are satisfied that community sanctioned measures are in place. Type of Loss Area (sqm)/unit Unit Rates Total Comment Land Houses Structures Crops Trees Other Total Therefore, I prepare and sign this certificate for the proof of my decision. Date:. District Signature:. The owner/user of the land/house/structure/crops/trees Wife/Husband Witnesses: Certified by the Chief of the Village: Certified by the external monitor:. The Chief of DRC:.. 43

58 Attachment 6: Declaration for Affected Persons LAO PEOPLE S DEMOCRATIC REPUBLIC Province: District: Village: Hereby it is declared that the household headed by Name: Age: with residence located in village, is affected by the water supply project and has been previously informed by the local authority of their entitlement to compensation for any loss of property (house, land and trees) that might be caused by the construction of water supply system or urban environmental (development) improvements in.. district,. village. I confirm that I will loose land of. square meters located in.. village to be provided to the local authority. Type of Loss Area (sqm)/unit Unit Rates Total Comment Land Houses Structures Crops Trees Other Total Therefore, I sign this declaration of my entitlement to compensation. Date:. District Signature:. The owner/user of the land/house/structure/crops/trees Wife/Husband Witnesses: Certified by the Chief of the Village: The Chief of DRC:.. 44

59 Attachment 7: Form for Consultation with no longer APs LAO PEOPLE S DEMOCRATIC REPUBLIC Province: District: Persons who were APs in the previous design should be told if they are no longer affected after revision of the design. They can sign after the visit by the responsible persons. No. Name Village Date Visit Visited by whom Signature of former AP Signature of former AP wife Certified by the Chief of the Village: The Chief of PIU. 45

60 Attachment 8: Receipt of Compensation Payment for Affected Persons LAO PEOPLE S DEMOCRATIC REPUBLIC Province: District: Village: Hereby it is declared that the household headed by Name Age: with residence located in village, has received compensation payment according to the previous agreement with the water supply project. It has been previously informed by the local authority of their entitlement to compensation for any loss of property (house, land and trees) that might be caused by the construction of water supply system or urban environmental (development) improvements in.. district,. village. Foreseen losses by the above mentioned household are summarized in the table below: Type of Loss Area (sqm)/unit Unit Rates Total Comment Land Houses Structures Crops Trees Other Total Head of household signs below to confirm payment of compensation. Date:. District Signature:. The owner/user of the land/house/structure/crops/trees Wife/Husband Witnesses: Certified by the Chief of the Village: PCU The Chief of PIU. 46

61 Attachment 9: Form for Consultation with no longer APs LAO PEOPLE S DEMOCRATIC REPUBLIC Province: District: Persons who were APs in the previous design should be told if they are no longer affected after revision of the design. They can sign after the visit by the responsible persons. No. Name Village Date Visit Visited by whom Signature of former AP Signature of former AP wife Certified by the Chief of the Village: The Chief of PIU. 47

62 Attachment 10: Form Distribution of PIBs Province: Please tick when you have received District: Received by Name Position Number of PIBs Date Signature: PIU 100 (3 to keep) Governor's office 2 DRC 5 Village 1 9 Village 2 9 Village 3 9 Village 4 9 Village 5 9 Village 6 9 Village 7 9 Village

63 Attachment 11: Kasi Screening Form Small Towns Water Supply and Sanitation Sector Project LAND ACQUISITION AND RESETTLEMENT CATEGORIZATION A. Introduction Each sub-project of the Small Towns Water Supply and Sanitation Sector Project (STWSP) is assigned an involuntary resettlement category depending on the significance of the probable involuntary resettlement impacts. B. Information on STWSP sub-project sub-project town / district Province Kasi in Kasi district Vientiane Province Scope of sub-project (description of the nature and scope of works) a) Water supply system b) Drainage and sanitation c) Other N/A The sub-project will develop a new piped water supply system with individual house connections in Kasi s 8 core villages: Naxou, Phoukham, Viengkeo, Nathen, Namon Mai, Namon Gnai, Viengsamai, Nong Bouathong. The proposed works include: (i) an intake tower upstream from the main urban area at the Nam Lik river; (ii) a short transmission main for raw water to be pumped to the water treatment plant; (iii) 2,100m 3 /day capacity water treatment plant (WTP) comprising pre-sedimentation, flocculation, sedimentation, rapid gravity filtration, a backwash tank and chlorination facilities, detention ponds, plant office, workshop, store and a small water testing laboratory; (iv) a clear water reservoir at the WTP; (v) a 50m clear water transmission main to the reservoir; (vi) one access road to WTP and reservoir land, and (vii) around 18.5 km of gravity-fed distribution and reticulation network throughout the eight core villages. A PNP office will be constructed on the mountain next to the WTP. The subproject will improve drainage in Kasi town, Kasi District. Some lined covered drains for cross roads between the National Road 13 North and Road to Muang Nan will be provided up to a maximum of 350m. C. Screening Questions for Resettlement Categorization Initial screening for involuntary resettlement is to be conducted during preparation of the STWSP Feasibility Study for the sub-project (based on preliminary engineering design). Involuntary Resettlement Effects Yes No Does the sub-project include upgrading or rehabilitation of existing physical facilities? Does the sub-project include the construction of new physical facilities? x x Extent of Impacts And Other Remarks WTP, intake, transmission main, distribution lines, access road Will it require permanent land acquisition? x Land for WTP, intake and access road Is the ownership status and current usage of the land known? x 1 AH is using the land and paying tax but does not have ownership; 4 AHs have land certificates for the land they use. 49

64 Involuntary Resettlement Effects Yes No Are there any non-titled people who live or earn their livelihood on affected land? Will there be loss of housing? Will there be loss of agricultural plots? Will there be losses of crops, trees and fixed assets? Will there be loss of businesses or enterprises? Will there be loss of incomes and livelihoods? Will people lose access to facilities, services, or natural resources? Will any social or economic activities be affected by land use-related changes? x x x x x x x x Extent of Impacts And Other Remarks 66 trees will be lost (3 mango, 50 ketsana, 13 bamboo) 32 businesses will temporarily loose income during pipe laying; the AHs who loose land will still have their rice fields and rental income from their residential land. There will be minor changes as described above. D. Involuntary Resettlement Category After reviewing the answers above, the PIU and District Resettlement Committee agree subject to confirmation, that the sub-project is a: Category B, Not significant* land acquisition and resettlement impacts: a Land Acquisition and Compensation Plan (LACP) is required. LACP Update to be submitted to ADB in April 2016 [ X ] * Not significant: Less than 200 people (approximately 40 households) will experience major impacts that are defined as (i) being physically displaced from housing and/or shops or (ii) losing 10% or more of productive land or other income-generating assets. If Category B, please provide information on affected people (APs): Affected Persons Yes No Any estimate of the likely number of households that will be affected by the subproject? Are any of them designated poor households? Are any of them households that belong to ethnic groups other than Tai-Kadai? Are any of them households headed by women, elderly or disabled persons? x x x x Description (Numbers of APs, current situation) 86 AHs from which 5 loose land permanently. The 5 AHs have also rice land and 3 of them rent out residential land to shops. There are 3 AHs from Khmu (Mon-Khmer) ethnic group. They only will be temporarily affected by the pipe laying. There are 7 female headed households who are temporary affected by the pipe laying. 50

65 Attachment 12: Kasi Public Information Booklet Update 51

66 Attachment 13: Lao Laws and Regulations and ADB policy and guidelines regarding involuntary resettlement 1. Lao PDR Laws and Regulations 1. The Constitution (1991) provides the following relevant articles: Article 14. The State protects and promotes all forms of state, collective, and individual ownership. Article 15. Land in Lao PDR is owned by the national community. The State ensures the right to use, transfer, and inherit it in accordance with the law. Article 8. Establishes the right of all ethnic groups to protect, preserve and promote their customs and heritage. All acts of division and discrimination among ethnic groups are prohibited. 2. The 1997 Land Law (No. 01/97) is the principal legislation by which the State exercises its constitutional responsibility for the management, preservation, and use of land. In relation to Project resettlement, this law allows for expropriation of land by the state when this is in the public interest. Importantly, the Land Law requires the land user to be compensated, and this compensation is determined by an inter-agency committee. The articles of particular importance to resettlement are summarized below: Article 5 - provides for protection of the rights of efficient, regular and long-term land users. Article 43 rights to use of land can be achieved through delegation by the state, inheritance of through transfer of rights. Article 54 termination of land use rights can be affected by voluntary liberation of rights by possessor, or through expropriation by the state for use of the land in the interests of the public. Article 61 when land is required to be expropriated by the government for use in the public interest, the relevant authorities are required to compensate the land use possessor for their losses. Article 62 determination of assessed losses should be undertaken by a committee comprising representatives of all concerned agencies. 3. The Land Law (No. 04/NA) of 21 October 2003, supersedes the previous Land Law (1997), which outlines land definitions, land titles and the responsible authorities that vary for each category of land use or administration. The Law makes some reference to the compensation entitlement for land in Article but not to structures. 4. The Land Law provides the issuance of a Land Title, which attests provisional ownership rights to use agricultural as well as forestland (Articles and 21-22). Land titling is being undertaken under the AusAid/World Bank project in a number of towns. Under this project Land Titles and Land Survey Certificates are issued. In places where Land Titling has not been done yet, most APs will only have Land Use Rights Certificates (Form 01), Land Tax Payment 52

67 Receipts and/or Residency Certificates. Form 01 are certificates of land use for taxation and are considered evidence of land use but not as legal title. For agricultural and forest land the District Agricultural and Forestry Extension Office (DAFEO) issues Temporary Use Certificates. People without proof of ownership and/or certificates are considered unregistered users. These users differ from illegal users. In case of acquisition, APs who hold the above documents but also those who are granted customary land use rights 18 or are considered unregistered users since before the cut-off date, receive compensation under the Land Law. 5. The Road Law (1999) requires reasonable compensation to the owner whose land will be acquired for the right-of-way (ROW), relocation and replacement structures and loss of trees and crops (Article 19). In the Decree and ADB regulations it is stated that privately owned land or land under permitted land use within the agreed ROW used for road construction will be expropriated, and the owner will receive reasonable compensation. However, in Laos it often is the case that structures and even part of housing are constructed within the ROW after the ROW has been announced. In this case in the Project compensation will be restricted for loss of materials of structures, repair costs and loss of trees. 6. While both the Land Law and the Road Law ensure compensation for legal owners of properties under acquisition, they do not guarantee either replacement value of the acquired properties or restoration of income, or indeed provide for compensation to nonlegal (but not illegal) users. 7. The Decree 192/PM on Compensation and Resettlement (July 2005) rectifies key areas of the Land and Road Laws which would prevent informal land users from any eligibility, and also sets a clear definition of the reasonable compensation mentioned in the Land and Road Laws and determines these as replacement cost. It supplements the Land and Road Laws in than it provides processes and mechanisms for acquiring and removal of structures and not just land and for determining entitlement, with community participation. Along with the decree s Regulation on Implementation (November 2005) and Technical Guidelines (November 2005), it provides a comprehensive framework on resettlement planning in Lao PDR. The Decree recognizes the rights of vulnerable groups (i.e. households headed by women, disabled, elderly or very poor) and ethnic groups. 2. ADB Policy on Involuntary Resettlement The objectives of ADB s Policy on Involuntary Resettlement (1995), are to avoid involuntary resettlement whenever feasible, to minimize resettlement where population displacement is unavoidable, and to ensure that displaced persons receive assistance so they are at least as well-off as they would have been in the absence of the Project. The policy stipulates three important elements in involuntary resettlement: (i) compensation for lost assets and loss of livelihood and income, (ii) assistance in relocation including provision of relocation sites with appropriate facilities and services, and (iii) assistance with rehabilitation so as to achieve at least the same level of well-being with the Project as before. The policy further specifies that the absence of legal title (Form 01) to land cannot be considered an obstacle to compensation and rehabilitation privileges. All persons affected by the Project, especially the poor, landless, vulnerable, and disadvantaged households should be included in the compensation, transition allowance, and rehabilitation package. 18 These certificates are issued at the District level. 53

68 The recent changes in the Government of Lao PDR legislation related to compensation and resettlement in development represents a significant improvement in the rights of citizens when their livelihoods, possessions and society are affected by development projects. 54

69 SMALL TOWNS WATER SUPPLY AND SANITATION SECTOR PROJECT kasy DISTRICT town SUBPROJECT PUBLIC INFORMATION BOOKLET 1 Prepared by: MINISTRY of public works and transportation DEPARTMENT OF HOUSING AND PLANNING LAO People's Democratic republic vientiane PROVINCE January 2016

70 QUESTION: WHAT IS THE SMALL TOWN WATER SUPPLY AND SANITATION PROJECT (STWSP)? The Government of the Lao PDR is using funds from the Asian Development Bank and other sources to improve access to clean, safe water, proper sanitation facilities and urban drainage in 13 towns throughout Lao PDR. engineering design will begin. Construction will start end The Project will keep you informed about progress and important dates. One part of the Feasibility Study is updating the Land Acquisition and Compensation Plan. In Kasy, a new water supply system will be constructed to supply water to the core villages of Naxou, Phoukham, Viengkeo, Nathen, Namon Mai, Namon Gnai, Viengsamai, Nong Bouathong. Water will be taken from the Nam Leek river. Core villages will also be able to improve drainage and household sanitation. The Ministry of Public Works and Transport (MPWT) is the Executing Agency for the Project. In each province and district, a Project Implementation Unit (PIU) will be established under the DPWT. Village committees will help inform and consult people about the Project. QUESTION: WHEN WILL THE PROJECT START? Answer: A Feasibility Study for the project in Kasy will be conducted in the beginning of During that time also the detailed QUESTION: WHAT IS THE MAIN OBJECTIVE OF THE LAND ACQUISITION AND COMPENSATION PLAN? Answer: The main objective of the program is to ensure that all people affected by land acquisition (affected people or APs) will be at least as well-off, if not better-off, than they would have been without the Project. A preliminary census and inventory of losses (IOL) will be carried out in January 2016 to identify potentially affected people. You will be informed about the results. After the position and alignment of the infrastructure is known and the detailed design is completed, a detailed measurement survey (DMS) will be done in the presence of APs, village head, district official, and a member from the Lao Women s Union or Lao Front for National Construction to record any losses for compensation and rehabilitation. The PIU and village officials with help from Project consultants to identify who is affected

71 by land acquisition and record affected land, structures and crops or trees. QUESTION: HOW WILL THE STWSP AFFECT PEOPLE IN KASY? Answer: As much as possible, the water intake, treatment and storage facilities will be built on public land and the water pipes will be located in road rights-of-way. This will minimize the number of households that will be affected. However, some households may lose small amounts of land or structures and crops or trees. QUESTION: WHAT IF MY LAND OR OTHER ASSETS ARE AFFECTED BY THE PROJECT? Answer: The Project will provide compensation and rehabilitation to eligible APs whose land and other assets are permanently acquired or temporarily affected by the Project. The following summarizes the proposed entitlements for land acquisitions for the Project. family s total productive land is lost, a food subsidy will be provided equal to 6 months supply of rice for each affected family. For marginal losses (i.e., less than 10% of total productive/ commercial land), cash compensation for lost land at replacement cost at current market value. All transaction fees, taxes and other costs associated with allocation of replacement land with title or secure tenure will be paid by the Project. If the head of household is married, the title or land certificate will be issued in the names of both spouses. Temporary loss of land. Cash compensation for loss of net income, damaged assets, crops and trees at current market value and restoration of land to former state. For common property resources, the affected land will be replaced in areas identified in consultation with affected communities and relevant organizations. Permanent loss of land. For major impacts (i.e., 10% or more of total productive/ commercial land area lost), full title to replacement land as a priority, or cash compensation at replacement cost at current market value. If more than 10% of a

72 QUESTION: CAN I VOLUNTARILY CONTRIBUTE MY LAND TO THE PROJECT? QUESTION: DOES COMPENSATION APPLY TO MY AFFECTED HOUSES OR STRUCTURES? Answer: Voluntary contributions of residential land. APs may choose to donate small amounts of residential land without compensation if: (i) the total area of the residential land is at least 300 m 2 ; (ii) the affected land is 5% or less of the total area; and, (iii) there are no structures, crops or trees on the affected land. The voluntary contribution will be witnessed by an independent third party, e.g., LWU. Answer: Yes. Houses and any structures such as wells, animal pens, fences etc, that will be affected by the Project shall be compensated at replacement cost so that you are able to have a house or structure of the same size and standard. You will be compensated at full replacement cost for materials, transport of materials and labor without deduction for depreciation or salvageable materials so that you are able to rebuild your structures as the original or even better condition. QUESTION: DO WE NEED TO HAVE A LAND TITLE TO BE COMPENSATED? Answer: No. If you do not have formal legal rights to land you may still receive compensation and other assistance. APs that have registered title, Land Certificates (Form 01) or any forms of written or verbal agreements to utilize the land are entitled to compensation for the lost land and assets (including crops and trees) and assistance. APs who do not have recognized rights to land will still be compensated for the assets on the land, such as any structures, crops and trees and provided other assistance to help them restore living conditions and income-generating activities. For APs who have to rebuild structures on remaining or new land the Project contractor will improve land (e.g., land fill and/or leveling) at no cost to APs to provide adequate building site. Answer: QUESTION: WHAT ABOUT MY CROPS AND TREES? Timely information that annual crops have to be harvested before construction, if possible. For annual crops that cannot be harvested, cash compensation equivalent to current market prices times the average yield/crop calculated over the past three (3) years.

73 Fruit-bearing trees will be compensated at 3 years production value at the current market value. QUESTION: IF I NEED TO MOVE MY HOUSE OR BUSINESS, OR LOSE MY FARMING LAND, HOW CAN THE PROJECT HELP? For timber trees, cash compensation equivalent to current market value given the type, age and productive value at the time of compensation. QUESTION: WHAT IF I LOOSE INCOME BECAUSE OF BUSINESS INTERUPTION? For temporary business interruptions: A cash allowance equal to the provincial daily wage or the average daily revenues whichever is higher, multiplied by the number of days of business disruption. For relocating businesses: Same as above plus a subsistence allowance for a period of six (6) months equal to 16 kg of milled rice per household member per month. Answer: Apart from the compensation for loss of land and other assets at replacement costs, the Project shall ensure that the standard of living of APs is maintained or improved after the Project. Therefore, in the case of relocation the Project shall provide relocation and subsistence allowance to APs: Subsistence allowance: for a period of three (3) months equal to 16 kg of milled rice per household member per month, for relocating APs without any impact on business or main source of income. for a period of six (6) months equal to 16 kg of milled rice per household member per month, for (i) relocating APs with impact on business or main source of income and (ii) APs losing 10% or more of their productive land. Transportation Allowance will cover the costs of transporting personal effects and salvaged or new building materials in cash or kind. Vulnerable APs including designated poor households, minority ethnic groups or female-headed households will receive an additional subsistence allowance for a period of one (1) month

74 equal to 16 kg of milled rice per household. Contractors will make all reasonable efforts to recruit severely affected and/or vulnerable APs as labourers for subproject civil works. QUESTION: WHAT IF I HAVE BEEN TOLD TO MOVE BUT WAS NOT INCLUDED IN THE DMS? QUESTION: HOW AND WHEN WILL WE BE PAID? Answer: All compensation will be paid at replacement cost based on current market prices. A replacement cost survey will determine current market prices for different types of assets. Compensation rates will be established for each type of asset (land, structures, trees, etc.). You will be consulted about the proposed compensation rates before they are made official. QUESTION: CAN ANYBODY IN OUR COMMUNITY CLAIM COMPENSATION? Answer: No. APs are eligible for compensation and assistance under the STWSP if they already own or occupy affected land and other assets before the Project cut-off date. The cut-off date will be the date of the end of the IOL that will be carried out following at the start of the Feasibility Study. Anyone moving into the Project area after cut-off date will not be eligible for compensation and assistance under the Project. Answer: APs will be fully informed about the dates for the DMS and asked to be present when the PIU and village officials come to their house or business. If APs are not in the village or for other reasons cannot be available at the time of the DMS, the PIU will establish procedures including the types of documents that APs will be required to produce to document their claims to eligibility for compensation under the STWSP. QUESTION: HOW WILL WE BE CONSULTED AND INFORMED? Answer: The STWSP will provide complete and timely information to APs about the Project, including all activities related to land acquisition. Meetings will be organized in core villages and APs will receive information about the Project, land acquisition impacts, AP rights and entitlements to compensation and assistance, grievance redress mechanisms, opportunities for APs to participate in resettlement activities, the responsibilities of local officials and other agencies and implementation schedule. The PIU will also organize meetings and consultations in each village to provide you with opportunities to discuss your preferences, needs and concerns about all aspects of the land acquisition and compensation plan.

75 Special consultations will be conducted with APs, for example, to arrange temporary relocation of shops to permit the drainage works in the market, or to develop appropriate rehabilitation strategies for other APs that are severely affected or vulnerable. The PIU and village authorities will keep you informed about these consultations, particularly after the DMS. QUESTION: WHAT IF WE DISAGREE? Answer: APs can voice their complaints on any aspect of land acquisition, compensation, resettlement and implementation in verbal or written form and they will be addressed in a timely and satisfactory manner. APs will first address their complaints to their village chief and/or arbitration unit; if they are not satisfied with the outcome, they can appeal to the district and provincial levels and, ultimately, to the courts. APs can ask for help from mass organizations, family members, friends or other people to file their complaints. APs will be exempted from all taxes, administrative and legal fees in the legal process. QUESTION: DO WE NEED TO MOVE OR CLEAR THE AREA IMMEDIATELY AFTER OUR LAND, HOUSES OR STRUCTURES HAVE BEEN IDENTIFIED AS AFFECTED? Answer: No. Clearing the project site will only take place once compensation for affected land or other lost assets has been received by APs. Once the AP acknowledges receipt of payment, the Project will provide a reasonable time for APs to clear the area in order for construction activities to commence. The time will be approximately 90 days to relocate permanent structures, 60 days to relocate temporary houses and structures, and 30 days to relocate shops. QUESTION: AS A RESIDENT IN THE PROJECT AREA, HOW CAN I HELP? Answer: We would like you to participate in all consultation meetings and other project related activities to ensure that you are fully informed and consulted. Your active participation during surveys and implementation of the resettlement program helps us to find ways to mitigate impacts, to identify problems and to identify ways of solving these problems.

76 CONTACT DETAILS: For further queries and suggestions, please call or see us at: If you have further queries and suggestions, please call or see us at: District PWT Office or District Resettlement Committee: Address: Water Supply Office, Vientiane Province Phone Number: Water Supply Office in Vientiane Province: Cut-off date Kasy: 21 January 2016