VIE: Yen Vien-Lao Cai Railway Upgrading Project

Social Monitoring Report Semi-Annual Report June 2014 VIE: Yen Vien-Lao Cai Railway Upgrading Project External Monitoring Report on RP Implementation Lao Cai Province Prepared by Railway Projects Management Unit of Viet Nam Railway for the Asian Development Bank.

NOTE In this report, "$" refers to US dollars. This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. 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.

MONITORING REPORT ON RESETTLEMENT PLAN EXTERNAL MONITORING CONSULTANCY SERVICES (CS5) YEN VIEN LAO CAI RAILWAY UPGRADING PROJECT, LAO CAI ADB LOAN 2302-VIE AFD CVN 6006 01 1

ơ TABLE OF CONTENTS I. SUMMARY... 6 II. INTRODUCTION... 8 III. OBJECTIVES OF THE PROJECT... 10 IV. OBLIGATIONS AND MEASURES OF THE EXTERNAL MONITORING... 12 1. Obligations of the external monitoring agency... 12 2. Monitoring measures... 13 V. AFFECTED HOUSEHOLDS AND SCOPE OF LAND ACQUISITION... 13 1. Affected households and scope of land acquisition by the railway... 13 2. Land Acquired for Resettlement Sites... 16 3. Project s impacts by location... 17 VI. LEGAL FRAMEWORK AND POLICIES... 18 VII. RESULTS OF MONITORING ON THE RP IMPLEMENTATION... 21 1. Information dissemination... 21 2. Community participation and consultation... 21 3. Land acquisition and compensation payment... 22 4. Income and livelihood restoration plan... 26 5. Complaint settlement mechanism... 26 6. Issues concerning gender and ethnic minorities... 28 7. Institutional arrangements and cooperation among relevant parties... 30 8. Implementation difficulties encountered in land acquisition... 32 XIII. RESETTLEMENT IMPLEMENTATION... 32 1. Resettlement sites in Lao Cai city... 33 2. Bao Thang district... 33 3. Bao Yen district s site... 34 COMPLIANCE... 38 X. CONCLUSIONS AND RECOMMENDATIONS... 41 1. Conclusions... 41 2. Recommendations on the land acquisition for land acquisition boards in Lao Cai province43 3

LIST OF TABLES Table 1: Summary of project s components and land acquisition requirements... 9 Table 2: Land acquisition for construction of sites... 10 Table 3: Summary of HHs affected by location... 13 Table 4: Total Project Land Requirements for Civil Works and Resettlement Sites... 14 Table 5: Number of affected households in the territory of district and commune... 14 Table 6: Area and percentage of residential and agricultural land acquired (m2)... 15 Table 7: Land Acquisition for Project Civil Works (m2)... 15 Table 8: Land Acquired for Resettlement Sites (m 2 )... 16 Table 9: Summary of compensation progress in Lao Cai province*... 22 Table 10: Summary of reasons for above-mentioned issues... 23 Table 11: Summary of land acquisition and cost in Bao Thang district... 24 Table 12: Summary of compensation payment for HHs affected by Rehabilitation and upgrading of Thai Van railway station... 25 Table 13: Summary of ethnic households in terms of location... 29 Table 14: Summary Matrix of Entitlement Gaps and Corrective Actions Required... 34 Table 15: ISSUES RELATED TO LAND ACQUISITION, RESETTLEMENT AND RP COMPLIANCE... 38 4

ABBREVIATIONS DTTS GPMB ADB EMA HH PAPs PAHs PRA TOR WB MPI NGO NPV PIB PSA RP RPMU CPMU PC SAP SES DMS IOL VNR USD (D)CARB LURC Ethnic Minority Land Acquisition Asian Development Bank External Monitoring Agency Household Project-affected people Project-affected households Participatory Rural Appraisal Terms of Reference World Bank Ministry of Planning and Investment Non government Organization Net present value Project information book Provincial Social Assessment Resettlement Plan Railway Projects Management Unit Construction Projects Management Unit People s Committee Severely affected people Socio economic survey Detailed Measurement Survey Impact on Land Vietnam Railways US Dollar (District) Compensation, Assistance and Resettlement Board Land use right certificate 5

I. SUMMARY 1. The report is made for the results gained from the monitoring of the implementation of compensation and land acquisition conducted in CP3 package in Lao Cai province in the third monitoring for Lao Cai city, Bao Thang district and Bao Yen district. 2. The third monitoring aims at reviewing the implementation of land acquisition and particularly for project - affected households which have been conducted by CARBs of Lao Cai province. 3. The third monitoring is to review the compensation policy and entitlements of the households having assets affected by the project implementation and to compare with matrix entitlement table mentioned in the RP as well as general policy framework of ADB. The monitoring is also to give recommendations on differences between the entitlements of the affected households who have been being benefited by the project implementation with the general policy framework of ADB. Refer to the updated RAP, basically Compensation boards in Lao Cai province has complied with the site clearance plan. However, there are still some remaining issues in the and site clearance. The summary of the monitoring results are as follows: a. Vulnerable affected ethnic minority HHs have not been assisted through the income rehabilitation program since this program has been surveyed the needs and established implementation plan. The households will be received assistance when the program is implemented. c. The land acquisition and have been being conducted in a quite favorable manner and 90% of work volume has been basically completed. However, there are some remaining issues not being resolved. d. Information dissemination and community consultation have been adequately conducted by the CPMU of Lao Cai city, the Land fund development center of Lao Cai city, CARBs of Bao Thang district and Bao Yen district as required by the updated RP which includes information dissemination activities and corrective action measures. However, in order to make the PAPs clearly aware of the project information and their benefits, information dissemination activities should be continued during project implementation. The 6

updated RP was approved in December 2013. RPMU is cooperating with local CARBs to disclosure the updated RP to districts, communes and affected people by February 2014. e. At the third monitoring time in June 2014, basically it is not different from the second monitoring. Most of the affected households have received their compensation and handed over affected land to the project. Exception of remaining issues in the area of Hoang Hoa Railway Station managed by Lao Lai Railway Station under term of upgrading of Lao Cai Railway Station ). Currently, there is no resolution for approval of the compensation plan. f. There are still some households in Lao Cai city and Bao Thang district that have not handed over the site to the project and had queries in Lao Cai city. One household, who has not received compensation in Bao Thang district, has been resolved. Currently, the household had no complaint. There are two households in Bao Yen district who do not agree to receive land plot in Kim Son commune and the households hope to be received compensation by cash. g. The assistance payment in line with the project s policy framework has been basically completed, except for a few cases which have not handed over the affected land to the project. Livelihood restoration activities have yet been conducted. The construction progress of sites has been well and quickly implemented. The sites and relocation households are mainly in territory of Lao Cai city. There are 486 households affected by the component expansion and upgrading of good station yard area under Lao Cai station. Up to now, four sites under CP3 in Lao Cai city have been completed and handed over land to the relocated households to build new houses and stablize their living. In Bao Thang district, there are nine households relocated in accordance with Lao Cai Provincial policy so that sites are not required. The households have built new houses and stabilized their living. For Bao Yen district, there is one site for nine relocated households in Village 6AB, Kim Son commune. The site has been completed and handed handed over land to the households. All the sites are basically supplied sufficient electric and water to serve the relocation households. i. Regarding assistance for temporary (rent house), relocated HHs will be assisted for renting houses for 6 months from the date of site handing over. However, if the site is not available for handing over after 6 months, these HHs will be assisted until the site is available for handing over. To date, the site has 7

already been completed and land lots have been handed over to HHs. HHs have received sufficient amount of assistance for renting house. II. INTRODUCTION The sub component of Yen Vien Lao Cai railway upgrading project will upgrade the railway of 285 km long in the north west direction from Yen Vien railway station, Ha Noi to Lao Cai railway station in the border with China. This railway goes through FIVE provinces including Lao Cai, Yen Bai, Phu Tho and Vinh Phuc and Ha Noi City. The upgrading of the railway is basically composed of: - Selected upgrading in the horizontal and vertical direction of the railway and rail putting; - Slope and embankment stabilization; - Rail upgrading, including bypass; - Bridges upgrading; - Enhancing the safety at selected level crossings; - Upgrading of railway stations and bypass for trains whose loading capacity is up to 1,200 tons and length is of more than 400m; - Modernization of auxiliary equipment and provision of maintenance equipment and facilities as well as engines and coaches. The project will bring great socio economic benefits. The implementation of the project will require compulsory y for some local households. The compulsory is happened when houses and assets of affected households must be relocated and their income source and jobs are affected to serve the Yen Vien Lao Cai project because of community s benefit. Without adequate and suitable measures to minimize and mitigate impacts, negative social impacts may make project affected households (PAHs) be in a difficult and poor condition, particularly, poor households and vulnerable people. In compliance with social safeguards policies by ADB and Vietnamese Government legislation. The RP has been drafted and being updated (dated November 2011). The RP of project is established to integrate the differences between social safeguard policy of ADB and policies of Viet Nam in order to ensure that PAHs at least can recover their living standards before the implementation of the project. The specific scope and level of impacts in the territory of Lao Cai (in the line of updated RP) are as follows: 8

Total 36,23 ha of land will be acquired for construction of package No.3 of the project in Lao Cai city, Bao Thang and Bao Yen districts of Lao Cai province. Total land area acquired for the project construction is 12,69 ha and area acquired for construction of the site is 23,55 ha. There are 685 households acquired land. Summarized requirements of land acquisition for components of the project are presented in the below table: I Table 1: Summary of project s components and land acquisition requirements No. Project component by districts/cities Position Lao Cai City 1 Lao Cai Station Pho Moi and Van Hoa wards 2 Lao Cai Station Goods Yard Pho Moi Ward 3 Pho Moi Resettlement Site Pho Moi Ward 4 Resettlement Site (Ho Dai Phat Thanh Truyen Duyen Hai Ward Hinh) 5 Resettlement Site (Ho so 6) Duyen Hai Ward 6 Resettlement Site (Lang Den) Dong Tuyen Commune II BaoThang District 1 Thai Nien railway station Thai Nien Commune III Bao Yen District 1 Thai Van railway station Kim Son Commune 2 Resettlement site Kim Son Commune There are totally 5 sites with 542 land lots. In which, 4 sites are located in Lao Cai city and 1 site is located in Bao Yen district. The land acquisition for construction of sites was conducted from 2005 to 2012. In detail : Lao Cai city has totally 533 land lots for (including 93 land lots in Pho Moi ward, 103 lots in Resettlement Site (Ho Dai Phat Thanh Truyen Hinh); 139 lots in Resettlement Site (Ho so 6) and 192 lots in Lang Den site). Bao Yen district has 9 land lots for HHs affected by construction of Van Thai station in Kim Son commune. There are 9/37 resettled HHs in Bao Thang district, however, theses HHs will relocate themselves so no site is required in Bao Thang district. 9

District/City Lao Cai City Bao Yen district Table 2: Land acquisition for construction of sites Commune/ Ward Pho Moi Duyen Hai Duyen Hai Dong Tuyen Kim Son Resettlement site Pho Moi Resettlement Site (Ho Dai Phat Thanh Truyen Hinh) Resettlement Site (Ho so 6) Lang Den Kim Son Total 542 III. OBJECTIVES OF THE PROJECT Number of Land acquisition and status of land lots sites 93 Land was acquired in 2005 and site clearance was completed in 2009 ; affected HHs have built new houses and stabilized their life since 2011. 109 Land was acquired in Sept 2009 and site clearance was completed in Nov 2011 ; affected HHs have built new houses and stabilized their life since 2012. 139 Land was acquired in Sept 2009 and site clearance was completed in Oct 2011 ; affected HHs have built new houses and stabilized their life since 2013. 192 Land was acquired in Sept 2011 and site clearance was completed in Apr 2013 ; some affected HHs have built new houses and stabilized their life. 9 Land was acquired in Sept 2011 and site clearance was completed in May 2012 ; affected HHs have not yet built new houses in the site. The overall objective of the policy on compensation and benefits of the project is to ensure that all people affected by the project have ability or at least recover their living conditions as before the project; simultaneously, poor and vulnerable households will be provided with additional assistance to improve their living standards and increase their income as before the project through policies on compensation and transition assistance. Principles of compensation are to be based on the replacement cost or compensation in kind with the same conditions in combination with assistance in cash or in kind, depending on the level of impact. Income recovery measures and income improvement programs reserved for severely affected households and vulnerable households have been designed and are to be implemented with the consultation and participation of affected people and relevant parties in Lao Cai province, during the preparation of the plan since 2006 and during the updating of the plan in 2010 to 2013. 10

The policies of ADB regulate the assistance for the living recovery for all seriously affected households due to the loss of production materials, income, jobs and occupations. Therefore, in order to have sufficient data to provide project managers at all levels and the local authorities where the policy is implemented as well as to recover the lives of project affected people (PAPs), objectives of the External Monitoring Agency (EMA) must be specially identified as follows: - To provide project management units with accurate data used as a tool to evaluate the efficiency of the implementation of land acquisition and plans in different periods; - To identify strengths and weaknesses in the current plans on land acquisition and ; - To identify existing problems and to immediately propose suitable measures to solve the problems to ensure the efficient implementation of policies; - To provide data essential for the additional development and implementation of land acquisition and plans in the time to come; - To evaluate the efficiency of income recovery plan and other recovery plans applied for affected households and communities; - To ensure the effective implementation of Ethnics Development plans in the Project region. The major objective of the external monitoring on land acquisition and is to prevent socio cultural impacts as well as to ensure the socio economic effects of the project. The special emphasis is put on some issues as follows: - The achievement of related objectives; - Changes in the living standards and livelihoods; - The recovery of socio economic facilities of affected people; - The efficiency, impacts and stableness in terms of rights. - Additional needs for impact reduction measures (if required); - Strategic lessons learnt to support the policy planning and making implementation plans. Another important objective of the project is to conduct community consultation in all stages with people and local leaders directly affected by the project to ensure their satisfaction about the selection, design, location and construction of basic routes and encourage the community to jointly take part in the maintenance of those assets. 11

IV. OBLIGATIONS AND MEASURES OF THE EXTERNAL MONITORING 1. Obligations of the external monitoring agency The major objectives of the EMA include: To monitor the updating and implementation of plan; To identify any differences between the policy s requirements and the actual implementation of the ; To monitor the resolution of complaints of affected households; To make recommendations essential for to improve the updating and implementation of the ; To ensure the verification that each household has received the sufficient compensation and assistance; To implement the compensation and audit of the. Specifically, regarding the updating and implementation of, the external monitoring agency will monitor and evaluate some issues as follows: The combination of activities with the construction progress; Land acquisition and handing over procedures Construction and reconstruction of houses, replacement works at the areas or at the new locations of households; Satisfaction of affected households towards the regulations and implementation of the RP; Complain settling mechanism (letter, process and settlement); Efficiency, impacts, sustainability of rights, income recovery programs and the necessity of applying minimizing and improving methods; Develop the areas (houses and markets) ranging from the identification of areas through the consultation with the affected people to the development of the areas and movement of affected households; issues related to the issuance of land use right certificate; The capability of the affected people towards and recovery/restoration of livelihoods and living standards, with the special emphasis on the seriously affected people and vulnerable groups; The impact of during the construction 12

The participation of the affected people into the updating and implementation of plan. 2. Monitoring measures The external monitoring is implemented in steps as follows: Review of records in the office; Observation; Direct interview. Information collection resources included the following: Railway Project Management Unit (RPMU); Construction Projects Management Unit in Lao Cai city; District Compensation, Assistance and Resettlement Boards (DCARBs) in Bao Thang and Bao Yen district; People s committees of communes affected by Yen Vien Lao Cai railway upgrading project going through the territory of Lao Cai province; Project affected households, seriously affected households and comments. V. AFFECTED HOUSEHOLDS AND SCOPE OF LAND ACQUISITION 1. Affected households and scope of land acquisition by the railway There are totally 685 HHs affected by the project in 3 districts/city in Lao Cai province under lot 3. In which, there are 626 affected HHs in Lao Cai city (497 HHs are affected by construction of the railway and 129 HHs affected by construction of 4 sites) and 37 HHs affected by construction of railway in Bao Thang district and 22 HHs affected in Bao Yen district (19 HHs are affected by construction of railway and 3 HHs are affected by construction of sites). Table 3: Summary of HHs affected by location No Location Total AHs Relocated HHs HHs losing land for production 1 Lao Cai City 626 486 42 0 2 Bao Thang District 37 8 29 0 3 Bao Yen District 22 9 9 0 Total 685 503 80 0 HHs have their business affected 13

There are totally 36.23ha of land in Lao Cai province (Lao Cai city, Bao Thang and Bao yen districts) acquired for construction of civil works and sites (five sites). In which, 25.87 ha are owned by private sector and 10.36 ha of public land. Only Lao Cai city has public land acquired which includes the land area owned by the Vietnam Railways Corporation, land for traffic, irrigation and unused land. Almost land acquired is in territory of Lao Cai city (in which there are two civil work components and four sites). Summary of acquired land area is presented in the table below: Table 4: Total Project Land Requirements for Civil Works and Resettlement Sites Unit:m2 Land Type Lao Cai City Bao Thang District Bao Yen District Total Privately Occupied Land (Civil Works) 70,428 13,243 2,443 86,114 Privately Occupied Land (Resettlement Sites) 168,890-3,695 172,585 State Managed Land (Civil Works) 103,648 - - 103,648 Total Project Land Requirements 342,966 13,243 6,138 362,347 There are totally 362,347m2 of land in Lao Cai province acquired for the project. In which, 258,699m2 are owned by private sector (including 86,114m2 of land acquired for civil works, 172,585m2 of land acquired for construction of 5 sites including 4 sites in Lao Cai city and 1 site in Bao Yen district) and 103,648m2 of public land are also acquired. The project does not have any negative impacts on religious structures or other sensitive structrures such as temples, pagodas, churches, etc. The project also has no impacts on businesses or shops. Table 5: Number of affected households in the territory of district and commune No District/City The total number of affected households I Lao Cai City 1 Pho Moi Ward 467 Remarks 2 Van Hoa Ward 30 14

No District/City The total number of affected households Sub total (I) 497 II Bao Thang District 1 Thai Nien Commune 9 2 Xuan Giao Commune 28 Sub total (II) 37 III Bao Yen District 1 Kim Son Commune 19 Sub total (III) 19 Total I+II+III 553 Remarks There are totally 553 HHs in 5 communes of 3 districts/city affected by the project ( 497 HHs in Lao Cai city, 37 HHs in Bao Thang district, 19 HHs in Bao Yen district) including 2,498 people (1,238 men and 1,260 women). Table 6: Area and percentage of residential and agricultural land acquired (m2) Type of land/ percentage Bao Thang Bao Yen (%) District District Lao Cai City Total Residential land (m2) 1,274 1,210 46,221 48,705 Percentage (%) 10% 20% 19% 19% Agricultural land (m2) 11,969 4,927 193,097 209,993 Percentage (%) 90% 80% 81% 81% Total 13,243 6,137 239,318 258,698 Acquired land includes: 48,705m2 of residential land and 209,993 m2 of agricultural land. Generally, level of impacts on land-use right in each locality is different due to different scope of civil works. Lao Cai city has higher impact level than other localities. Two tables below will present clearly the area of land acquired for construction of civil works and sites: Table 7: Land Acquisition for Project Civil Works (m2) Land Type Bao Thang District Bao Yen District Lao Cai City Total I. Privately Occupied Land Residential land 1,274 1,210 44,819 47,303 Residential land (urban) - - 43,367 43,367 Residential land (rural) 1,274 1,210 1,452 3,936 Agricultural Land 11,969 1,233 25,609 38,811 15

Land Type Bao Thang District Bao Yen District Lao Cai City Total Paddy Land - 582-582 Annual cropping land - 390 25,609 25,999 Perennial land - 261-261 Garden, pond land - - - - Hill, forest land 11,969 - - 11,969 Total (I) 13,243 2,443 70,428 86,114 II. State Managed Land Construction land transferred to Railway, of - - 12,483 12,483 which (i) Railway land already acquired - - 9,419 9,419 (ii) Land not yet acquired - - 3,064 3,064 Transportation land - - 20,306 20,306 Irrigation land, flooded land - - 7,959 7,959 Total (II) 40,748 40,748 Total (I+II) 13,243 2,443 111,176 126,862 There are totally 126,861m2 of land acquired for construction of civil works. In which, 86,114m2 are owned by private sector (including residential land and agricultural land); and 40,748m2 of public land (land for railway, traffic, irrigation, etc) are under state management. 2. Land Acquired for Resettlement Sites Table 8: Land Acquired for Resettlement Sites (m 2 ) Land Type Privately Occupied Land Bao Thang District Bao Yen Distri ct Lao Cai City Total Residential land (urban) - - 1,102 1,102 Residential land (rural) - - 300 300 agricultural land Lang Den site - - 31,483 31,483 Agricultural land in Duyen Hai with LURC - - 49,616 49,616 Agricultural land with restricted land use rights - - 42,000 42,000 Agricultural land in Duyen Hai without LURC - - 44,389 44,389 Agricultural land in Kim Son with LURCC 3,695 3,695 Total - 3,695 168,890 172,585 16

There are totally 172,585m2 of land acquired for construction of sites. All of these land areas are owned by private sector (urban land, rural land, agricultural land). In which, Lao Cai city has 168,890m2 of land acquired, Bao Yen district has 3,695m2 of land acquired and Bao Thang district has no land acquired for construction of sites. 3. Project s impacts by location * Lao Cai city: There are totally 626 AHs, including 497 HHs affected by construction of railway project and 129 HHs affected by construction of 4 sites; A total of 486 HHs have been approved to be handed over land. Price application, preparation for compensation options have been completed and approved for 626 HHs. In addition, Lao Cai city s CARB is submitting appraisal options relating to 54 HHs located in the 1ha land area managed by Lao Cai railway station. To date, there is no compensation options, official solutions and approval decision available. Lao Cai city has 4 sites and all of them have been handed over to HHs. Almost of HHs have built new houses and stabilized their life in 3 sites of Pho Moi, Resettlement Site (Ho Dai Phat Thanh Truyen Hinh) and Resettlement Site (Ho so 6). In Lang Den site in Dong Tuyen commune, the site was just handed over in 2013, HHs has received land and some of them are building new houses. * Bao Thang district Thai Nien and Xuan Giao are 2 communes affected by the project. There are totally 37 HHs affected in these two communes (9 AHs in Thai Nien commune and 28 AHs in Xuan Giao commune). 37 AHs have received compensation and handed over the site for project implementation. 10 resettled HHs have received compensation and relocated themselves in accordance to plan of Lao Cai PPC and Bao Thang DPC. Thai Nien railway station (expansion and lengthening of the railway): There are 9 AHs including 2 resettled HHs, all of them have received compensation and handed over the site for project implementation. Xuan Giao commune (re-alignment): there are totally 28 AHs, including 6 resettled HHs; By the third monitoring time, the remaning household of the second monitoring, 17

Mr. Tran Duc Nam s HH in Vong 1 village, who has lost agricultural land has received compensation and handed over the site in March, 2014. Thus, all of the 37 households living in territory of Bao Thang district have received compensation and handed over the site to the Project. The households who relocated themselves have built new houses and stablized their living. Currently, there is no remaining issue in Bao Thang district. People support the Project without any complaint about the site clearance. * Bao Yen district Rehabilitation and upgrading of Thai Van railway station in Kim Son commune, Bao Yen district: There are 19 HHs affected by upgrading Thai Van station and 3 HHs affected by construction of the site in 6AB village (totally 22 AHs). There are 9 HHs losing residential land and have to be relocated. To date, all AHs have received compensation and AHs have received land and handed over the site for project implementation. Exception of two households namely Mr. Nguyen Van Trinh and Mr. Dang Van Hien who do not agree to receive land plot and want to receive compensation by cash. Currently, it is being waited for approval decision of Bao Yen District People s Committee on minimum price for land and expected to be promulgated in June 2014 to compensate for the affected households. The current sites have been completed and handed over land to the affected households. VI. LEGAL FRAMEWORK AND POLICIES Policies of Asian Development Bank Policy on compulsory Resettlement by ADB November 1995 Resettlement Plan of sub projects Information book (RIB) of the project Laws and legal documents of the Government of Vietnam Land law 2003 approved by the National Assembly of Socialist Republic of Vietnam on 26 th November 2003 and takes effective on 1 st July 2003; Decree No. 197/2004/NĐ CP dated 3 rd December 2004 on the compensation, assistance and for land withdrawn by the State; 18

Circular No. 116/2004/TT BTC dated 7 th December 2004 by the Ministry of Finance providing guidelines on the implementation of Decree No. 197/2004/NĐ CP dated 3 rd December 2004 on the compensation, assistance and for land withdrawn by the State; Decree No. 17/2006/NĐ CP dated 27 th January 2006 by the Government on the amendment and supplementation of some Articles of Decrees providing guidelines on the implementation of the land law; Decree No. 84/2007/NĐ CP dated 25 th May 2007 providing supplementary regulations on the issuance of land use right certificates, land acquisition, implementation of land use rights, order and procedures of compensation, assistance and supplementation when the State withdraws land and settle complaints about land; Decree No. 69/2009/NĐ CP dated 13 th August 2009 by the Government providing supplementary guidelines on land use planning, land price, land acquisition, compensation, assistance and. Legal documents as the foundation for the implementation of Yen Vien Lao Cai Railway Upgrading Project. Loan Agreement No. 2302 VIE (SF) signed on 16 th November 2007 between the representative of the Government of the Socialist Republic of Vietnam (the State Bank of Vietnam) and Asian Development Bank (ADB); Agreement No. CVN 6006 01 dated 8 th February 2007 between the representative of the Government of the Socialist Republic of Vietnam (the Ministry of Finance) and Agency of French Development (AFD); financial protocol dated 25 th April 2007 between the representative of the Government of the Socialist Republic of Vietnam (the Ministry of Investment and Planning) and Republic of France (DGPTE); Decision No. 2742/QĐ BGTVT dated 10 th September 2007 by the Minister of Transport of Vietnam approving the investment into the project Yen Vien Lao Cai railway upgrading ; Decision No. 156/QĐ BGTVT dated 16 th January 2008 by the Minister of Transport of Vietnam on the approval of the bidding plan; Decision No. 1378/QĐ BGTVT dated 24 th June 2011 by the Minister of Transport of Vietnam on the approval of amending the bidding plan of some packages under Yen Vien Lao Cai railway upgrading Project; 19

Decision No. 1378/QĐ BGTVT dated 24 th June 2011 by the Minister of Transport of Vietnam on the amendment and supplementation of the bidding plan for the Yen Vien Lao Cai railway upgrading project; Decision No. 1431/QĐ ĐS dated 7 th November 2008 by Vietnam Railways on Regulating the responsibilities and power of the railway projects Management Unit in the management and implementation of the Yen Vien Lao Cai railway upgrading project ; Decision No.45/2009/QĐ UBND dated 25 th December 2009 by the People s Committee of Lao Cai province on issuing regulations on compensation, assistance and when the land is withdrawn by the State for the purposes of national defense, security, national interests, public interests and the purpose of economic development in the territory of Lao Cai province; Official document No. 2538/ĐS RPMU dated 5 th November 2010 by Vietnam Railways to the PC of Lao Cai province on the approval of applying the policy on compensation, assistance and in the line of ADB policy reserved for the Yen Vien Lao Cai railway upgrading project; Official document No. 3465/UBND QLĐT dated 27 th December 2010 by the PC of Lao Cai province to Vietnam Railways, the PC of Lao Cai city, PC of Bao Thang district, PC of Bao Yen district on the application of policy on compensation, assistance and in the line of ADB policy framework for the Yen Vien Lao Cai railway upgrading project; Decision No. 49/2010/QĐ UBND dated 29 th December 2012 by the PC of Lao Cai province on the issuance of Regulations of price of various kinds of land, land classification, classification of land region and classification of streets, land location in the territory of Lao Cai province in 2011; Decision No. 22/2011/QĐ UBND dated 18 th August 2011 by the PC of Lao Cai province on the amendment and supplementation of some Articles in the Regulations on compensation, assistance and when the State withdraws land for the purposes of national defense, security, national interests, public interests and the purpose of economic development in the territory of Lao Cai province issued under the Decision No. 45/2009/QĐ UBND dated 25 th December 2009 by the People s Committee of Lao Cai province in 2011; 20

Decision No. 55/2011/QĐ UBND dated 30 th December 2011 by the PC of Lao Cai province on the issuance of Regulations on price of various kinds of land, land classification, classification of land region and classification of streets, land location in the territory of Lao Cai province in 2012; Official document No. 96/UBND QLĐT dated 12 th January 2012 by the PC of Lao Cai province on the minimum land assistance for self households for the land acquisition of the project: Yen Vien Lao Cai railway upgrading submitted to Departments of Investment and Planning, Finance, Construction, Natural Resources and Environment and the PC of Bao Thang district. VII. RESULTS OF MONITORING ON THE RP IMPLEMENTATION 1. Information dissemination Information dissemination has been conducted for CP3 by CARBs of Lao Cai province. Orientation meetings have been conducted since 2006 with relevant parties and affected households. Project information booklets have been delivered to the affected households. Meetings with the local people and local authorities were organized on 27th and 28th September 2009 with the purpose of planning announcement. Such meeting was followed by meetings with the local people to popularize and inform the general land acquisition plan. After that, CARBs of Lao Cai province has elected representatives for people having withdrawn land, invited secretaries of Party cells, heads of residential groups to take part in a meeting to announce the comprehensive approval (enclosed with the meeting minutes). CARBs in Lao Cai province has basically complied with the implementation of information dissemination in the line of the project policy framework. Basically, the information dissemination has been adequately conducted as regulated in Lao Cai city and Bao Thang district. Exception of Bao Yen district, the information dissemination has been not adequately carried out for instance, leaflets and project information booklets have not been delivered to each affected households, the updated RP has not been delivered to CARBs, districts and communes due to the shortage of fund for copying. However, the insufficient documents have been supplemented by Bao Yen District Compensation Board during the project implementation process. 2. Community participation and consultation 21

Many tools and a wide range of participation and consultation channels were held during the preparation for Plan in 2006 and during the updating of Plan in the period of March to April 2010. Community participation and consultation were conducted with leaders of communes and districts affected by the project and relevant organizations at the provincial and district level in Lao Cai province. The participation and consultation of affected people and relevant parties were witnessed in various aspects including compensation and policy of the Project, the selection of the measure by the affected people, compensation (in cash or in kind) and income recovery programs, mechanism of participation and consultation in various periods of the project, complaints and complaint settlement, issues related to gender and vulnerable group, etc. Concerns and proposals made by relevant parties and particularly, affected people have been mentioned and gathered in the plan. The community consultation for the project has been conducted by the CARB of Lao Cai province. However, such consultation is not very regular and continuous and is limited in the first phase of the project implementation. Thus, through the second and the third monitoring, consultant has acknowledged that community consultation activities have been sufficiently supplemented by Compensation boards of districts/province of Lao Cai province during the Project implementation process. Especially, in the, community meetings have been organized to consult people s opinions about. 3. Land acquisition and compensation payment Table 9: Summary of compensation progress in Lao Cai province* Location Lao Cai City Bao Thang District Bao Yen District Total of AHs Number of HHs affected by the railway Number of HHs affected by constructi on of resettlem ent sites Numbe r of HHs to be relocate d Numbe r of HHs receive d compen sation Number of HHs not received compen sation 626 497 129 486 626 0 37 37 0 9 37 0 Year of compensa tion payment 2010,2011, 2012,2013, 2014 2011, 2012,2014 22 19 3 9 22 0 2011,2012 22

Total 685 553 132 504 685 0 * By June 2014 By June 2014, all affected households in Lao Cai city received compensation and assistance. However, there is 1 HH of Mr. Le Cong Ly HH in 30A group, station area, Pho Moi ward, Lao Cai city who has received compensation but not handed over the site. In Bao Yen district: there are two households of Mr. Trinh and Mr. Hien who do not agree to receive land in Kim Son commune, Bao Yen district and the households want to receive compensation by cash. The reason for the remaining cases is presented in the below table: Table 10: Summary of reasons for above-mentioned issues Location Issues Lao Cai City 1 Household: Mr. Le Cong Ly, Kinh ethnic, Group 3ª of Pho Moi Ward. - the household have house and residential land affected by the implementation of Project Bao Yen district 2 Households of Mr. Nguyen Van Trinh and Mr. Dang Van Hien in Kim Son commune 3.1. Lao Cai City Reason, current status and solving results of CARB - Have received compensation but not handed over the site. The household is proposed to be received two more land plots for one father and his son. But the father and his son locality. are absent from - The district compensation board has answered by written note. The households do not agree to receive land plots and expect to be received compensation by cash- it is being waited for Decision by DPC on promulgating land Price to resolve the case of two households. Comments and recommendations of the Consultant - It is recommended that the DCARB should answer in written documents, explain and encourage them to hand over the site. It is recommended that Bao Yen District Compensation Board should have early decision on land Price to resolve for the two households in order for them to stabilize living. There are totally 626 AHs in Lao Cai city (497 HHs affected by the upgrading of Lao Cai Station Goods Yard and 129 HHs affected by construction of 4 sites). Price 23

N o application, preparation for compensation options have been completed and approved for 626 HHs. Currently, all households have received compensation but there is only one HH who have not handed over the site and had recommendation. In addition, there are 54 HHs located in the 1ha land area managed by Lao Cai railway station and 60 HHs/people residing temporarily in 3 ranges of tenement houses. The CARB of Lao Cai city is now considering assistance options for them in accordance with the Entitlement matrix specified in the updated RP. Currently, the assistance option plan has been submitted to the PPC and waited for approval decision. The total cost in accordance with approval decisions (43 Installments) by June 10, 2014 is 48,814,367,459 VND. In which, total cost for site clearance (2%) is 932,370,105 VND, total amount paid to AHs is 47,881,997,324 VND. 3.2. Bao Thang District Thai Nien and Xuan Giao are 2 communes affected by the project. There are totally 37 HHs affected in these two communes (9 AHs in Thai Nien commune and 28 AHs in Xuan Giao commune). All of the 37 AHs have received compensation and handed over the site for project implementation. 9 resettled HHs have received compensation and relocated themselves in accordance to plan of Lao Cai PPC and Bao Thang DPC. Only Mr. Tran Duc Nam s HH, Vong 1 village, who has lost agricultural land has not yet received compensation in the second monitoring. By the third monitoring time, the household have received compensation and bought one land plot through bidding. Currently, the household of Mr. Nam have received compensation and handed over the site to the project without any complaint. Total cost for payment is 3,699,578,688 VND, in which, cost for site clearance (2%) is 73,574,020 VND, total amount paid to AHs is 3,583,004,668 VND. Table 11: Summary of land acquisition and cost in Bao Thang district Number of Decision 1 Decision No. 4483/QĐ-UBND dated 30/9/2011 Location Thai Nien commune Approved cost Total cost Land acquisitio n cost 2% Total amount of money paid for the local people 1,272,156,592 24,944,247 1,247,212,345 Total amo unt of unpa id mon ey) Unit: VND Remarks 24 0

2 Decision No. 6036/QĐ-UBND dated 27/12/2011 3 Decision No. 710/QĐ-UBND dated 7/3/2012 4 Decision No. 1325/QĐ-UBND dated 5/4/2012 5 Decision No. 2707/QĐ-UBND dated 5/7/2012 6 Decision No. 4934/QĐ-UBND dated 17/9/2013 Xuan Giao commune 1,133,774,109 23,109,296 1,110,621,813 Thai Nien commune 428,400.000 8,400,000 420,000,000 Thai Nien&XuanGiao Thai Nien&XuanGiao 295,800,000 5,800,000 290,000,000 174,632,160 3,424,160 171,208,000 Xuan Giao 394,815,827 7,896,317 386,919,510 Total 3,699,578,688 73,574,020 3,583,004,668 0 3.3. Bao Yen District 0 0 06 resettled HH= 70,000,000d/HH) 0 02 resettled households in Xuan Giao commune & 01 additional household in Thai Nien commune 0 Additional assistance for 26 households 0 Additional payment for land, house, trees and crops affected and 1 minimum land lot Rehabilitation and upgrading of Thai Van railway station in Kim Son commune, Bao Yen district: There are totally 22 Ahs including 19 HHs affected by upgrading Thai Van station and 3 HHs affected by construction of the site. There are 9 HHs losing residential land and have to be relocated. To date, all AHs have received compensation and they have no complaints. According to Bao Yen DCARB, the site has been basically completed and HHs have drawn to receive land lots, however, official handing over procedures have not been implemented yet. The HHs have not built houses in the site because some HHs have land lots in other locations. Two households do not want to receive land plot and they want to receive cash to relocate themselves. Table 12: Summary of compensation payment for HHs affected by Rehabilitation and upgrading of Thai Van railway station Unit: VND No. of HH s Compensatio n for land Compensatio n for assets, structures Compensatio n for trees and crops Assistanc e Total Remark s 19 257.306.200 1.684.558.722 40.214.652 307.783.00 0 2.289.862.57 4 Source: Bao Yen DCARB 25

The total cost approved to pay for 19 AHs is 2,289,862,574 VND. In which, total cost for compensation for land acquisition is 257,306,200 VND, compensation for structures is 1,684,558,722, compensation for trees and crops is 40,214,652 VND and the assistance amount is 307,783,000 VND. 4. Income and livelihood restoration plan Yen Vien Lao Cai railway upgrading project through the territory of Lao Cai province has had certain impacts on households in the Project region during the withdrawal of land, plants and farm products and architectural objects, etc. to support the implementation of the Project. However, such impacts have been carefully studied by the land acquisition board in Lao Cai province in coordination with relevant parties during the Project development to reduce to the minimum level. The project does not have significant impacts on the life of the local people when not too much land is withdrawn. The affected land is mainly residential land, agricultural land, forestry land along with a part of houses of affected households. Some households have to move for. Persons that should be paid attention in income recovery programs are seriously affected households (that have to move for ), households whose owners are females, families under preferential treatment policy, poor households, and minority households, the elderly, etc. Specifically, the Project has had plans to support the local females and enhance their participation through (i) assisting the establishment of handicraft; (ii) providing equipment; (iii) training, providing guidelines and practice; (iv)providing financial assistance, and helping their products to get access into the market. At present, CARBs and local authorities in Lao Cai province have only started the implementation of vocational training for affected households. Currently, consultant of CS2 project has conducted monitoring and assessment of people s need and established plan for income restoration program in June 2014. The implementation of income restoration will be implemented after the Project consultant submits its report. Simultaneously, it is also a basline for implementing next steps. 5. Complaint settlement mechanism A suitable mechanism of complaint and complaint settlement has been developed to solve complaints, questions related to land acquisition, compensation and of the affected people in a timely and satisfactory manner. All of the affected people are fully aware of rights and detailed procedures for complaint and complaint procedure announced through 26

an effective community information campaign. Complaint mechanism and complaint procedures are explained in the project information manual delivered to all affected people. People that have to move to other places reserve the right to complain about land acquisition and, including benefits, compensation and assistance, payment, procedures for and income recovery programs as well as other issues related to land management. The complaints of those people may be made orally or in writing. In the case of oral complaint, the complaint board will be responsible for recording a minute in the first meeting with people who have to move. The movement of such people will be free of charge or railway projects management unit will have to pay administrative costs arising during the complaint process. For the purposes of complaint and complaint settlement, the compensation, assistance and board at the district/town and province/city level will also act as the complaint settlement board. Commune officials are in charge of addressing issues related to the affected people at the commune level through community consultation. Communes and committee are responsible for recording contents of all meetings and a copy will be provided to the people of movement. Copies of meeting minutes will be provided to railway projects management unit and ADB as per requested. Submission and complaints settlement are guided in Article 138 of the Land Law (2003), Article 162, 163 and 174 of Decree 181/2004/NĐ CP providing guidelines on the implementation of the Land Law, Article 63, 64 of Decree 84/2004 and Decree 136/2006/NĐ-CP. On basis as above, the process of complaints and complaint settlement includes 4 stages as follows: Stage 1: Oral or written complaints will be from the people of movement to the Commune People s Committee. Such complaints will be discussed in an official meeting between the people of movement and the Commune PC. The Commune PC is in charge of settling the complaint within 15 days since the date of receiving the complaint. Contents of this meeting will be recorded in a meeting minute whose copies will be provided to the people of movement. Stage 2: If the complaint is not settled or if the Commune People s Committee does not have any reply within 15 days since the date of receiving the complaint, the affected people are possible to submit their complaint to the city/district Board. The people of movement are requested to submit their complaints within 30 days since the date of submitting 27

their first complaint and must have records to prove their complaints. The city/ district board are responsible for making a decision within 30 days since the date of receiving the request for settlement. Stage 3: If the people of movement are still not satisfied with the decision of the city/ district Board or if the city/district Board does not have any responses, people of movement can submit their complaint to the provincial People s Committee. The Provincial PC will review and make decision on the complaint within 15 days since the date of receiving the request for settlement. Stage 4: If the people of movement are not satisfied with the decision of the Provincial PC or if the Provincial PC does not have any response within the time as per regulated above, the people of movement can submit their complaint to the district court. Through the third monitoring of the updated RP implementation in the land acquisition and, EMA realizes that the compensation, assistance and settlement board in Lao Cai province has fully complied with procedures and process of complaint settlement as per regulated in order to solve arising complaints. 6. Issues concerning gender and ethnic minorities 6.1. Gender Gender equality is one of the important criteria to evaluate the development of a community. Gender issues have been detailed in the RP that is being updated in terms of the socio economic situation of females and gender strategy to ensure the effective integration of gender related issues into such documents. Activities of RP implementation in the locality have been recognized by the EMA during the field monitoring such as: community consultation, information dissemination through meetings with the local people, answering questions arising during meetings of community consultation, posting leaflets in the headquarters of the commune People s Committee, propagandizing through the system of loudspeakers, creating favorable conditions for affected households whose owners are females, creating favorable conditions for the ethnic minorities to get access to essential information, regulations and policies on the compensation, land acquisition and rights of people affected by the project. 28

Training programs to enhance the awareness of the local people about HIV/AIDS and border crossing trafficking of females in the project communities are being implemented. The development will result in a lot of positive things; however, it is impossible to avoid negative things caused by development projects. There may be a lot of complicated social problems arising during the project implementation whose aftermaths should be anticipated. Specifically, females and children may be directly affected by such problems when the project implementation and various activities conducted in the project area will result in the continuous increase of a huge number of workers, mainly males from other regions. This is the negative problem of the social movement, negative impacts of the social development that can have adverse impacts on the females, particularly, young females who are likely to become objects of sexual abuse as well as highly risky at suffering from sexually transmitted diseases caused by male workers from other regions. However, by the time of monitoring, no issue relating to HIV and trafficking of females has been found. 6.2. Ethnic minorities Social economic data of ethnic households that are affected by the project have been collected since 2011 as a part of SES and DMS to support for the updated plan in Lao Cai province. Such social economic data are presented in the following table and compared with some major socio economic indicators applied for all of the affected households in the project region. In general, such indicators are similar to each other; however, ethnic households are likely to be less prosperous (based on the assets of such households) and more vulnerable (in terms of poverty and households whose owners are females) than the average level. There are 36 ethnic households (Tay and Day people) in the project region with the main concentration in two areas including Pho Moi ward in Lao Cai city and Xuan Giao commune in Bao Thang district. However, they are well integrated in the local communities, speak Vietnamese and are not distinguiable in their life styles and livelihood practices from others in their local communities. Table 13: Summary of ethnic households in terms of location 29

No District/ Commune Total number of affected households Number of affected ethnic households I Lao Cai city 497 71 1 Pho moi 467 24 69 2 Van Hoa 30 1 2 II Bao Thang district 37 11 46 1 Thai Nien 9 0 0 2 Xuan Giao 28 11 46 III Bao Yen district 19 0 0 1 Kim Son 19 0 0 Total 553 36 117 Number of people Right in the design phase, the Project has paid attention to the plan on ethnic minority development including such issues as beliefs, regions, cultures and spirits of the native communities. All technical designs of the Project have been carefully studied to actively avoid and minimize the impacts on the spiritual regions such as pagoda, temples and cemeteries, etc. of the ethnic minorities. During the project implementation, both construction contractors and relevant parties are recommended to respect the cultural values of the native communities. Construction units are requested by the Project to sign commitment with the investor in order not to have impacts on the spiritual life of such communities. The community consultation, Project information disclosure to all PAPs, including ethnic minorities have been conducted in all Project regions during the Project implementation by RPMU, Resettlement Boards of Lao Cai Province, People s Committees of districts and communes in the project region. Seriously affected households in the vulnerable group including ethnic minorities have been provided with a certain amount to support for their life recovery and livelihood development as per complied with the updated RP and assistance policy framework by the Asian Development Bank. 7. Institutional arrangements and cooperation among relevant parties The implementation responsibilities are clearly described in Decrees No. 197/2004, 84/2007 and 69/ 2009. Following major organizations (including project owner, local 30

authorities, non government organizations in the locality, etc.) shall be in charge of implementing the plans. Railway projects management unit RPMU belongs to Vietnam Railways and is responsible for all of the components in this project including updating the Plans, implementing, monitoring and evaluating the implementation of Plans. People s Committee of Lao Cai province and relevant departments The responsibilities of the People's Committees of Lao Cai province, relevant departments and units (including Department of Natural Resources and Environment, Department of Finance; Department of Construction and Committee of ethnic minorities) and lower administrative levels are regulated in Decree No. 197/2004, Decree No. 84/2007 and Decree No. 69/2009 related to the compensation and. To their tasks related to ethnic minorities, the provincial Committee of ethnic minorities needs to consult with CEMMA to have support and guidance. The People s Committee of Lao Cai province take general responsibilities for activities within their management power. District Compensation, Assistance and Resettlement Board (DCARB) The director of the district compensation, assistance and boards are often the Vice Chairman of the District PC. Members of these boards are heads of departments of finance, department of natural resources and environment, department of transport, department of agriculture, chairman of affected communes and social protection staff of the Railway projects management unit along with representatives of public organizations and mass organizations such as farmers union, women s union in the province, representatives of ethnic minorities and representatives of affected households. The responsibilities of the district PC are clearly regulated in the Decree No. 197/2004 and Decree No. 84/2008. Commune People s Committee (PC) Commune PCs will support the compensation, assistance and boards in doing their responsibilities. Project monitoring consultation 31

To ensure the effective implementation of plans, the project monitoring consultants shall be responsible for: Establishing two monitoring and evaluation systems to ensure the favorable implementation of the plans. The collaboration among the relevant parties in the implementation of compensation and has been established and described in the updated RP in terms of the roles of RPMU, the PC of Lao Cai province, the land fund development center of Lao Cai city along with relevant departments (Construction, Finance, Agriculture &Rural Development, Natural Resources and Environment, Committee of Ethnic Minorities, District Compensation, Assistance & Resettlement Boards) and Commune PCs in the Project region. It is recognized by the EMA that the cooperation among relevant parities during the project implementation is quite good and effective and has gained initial achievements. This is an important foundation to ensure and confirm the success of the Project s objectives. 8. Implementation difficulties encountered in land acquisition Up to now, the land acquisition in the territory of Lao Cai province has been basically completed. Most of the affected households have received their compensation and handed over the site to the project. However, there remain some specific shortcomings as follows: Lao Cai city: 1 HH has not handed over the site, in group 30A, Pho Moi ward. In addition, 54 households s houses built on land (in zone 1A) which is managed by Lao Cai Railway Company and 60 households/individuals, the staffs of Lao Cai Railway Company, not temporarily live in three dormitories. Lao Cai Compensation Board has conducted DMS and established Compensation Plan in accordance with entitlement matrix in the upgraded RP. Currently, the plan has submitted to PPC and it is being waited for approval decision. - Bao Yen district: there are two households namely, Mr. Trinh and Mr. Hien in Kim Son commune who do not agree to receive land plot in Kim Son site. The households expect to be received compensation by cash to relocate themselves. XIII. RESETTLEMENT IMPLEMENTATION There are 5 sites under lot 3 in Lao Cai province, including 4 sites located in Lao Cai city and 1 site located in Bao Yen district. There are 9 AHs to be relocated in Bao Thang district, however, these AHs will be relocated in accordance with Lao Cai provincial policy so that site is not required. Basically, 32

the activity in Lao Cai province is quite well-implemented, sites are convenient for local people. Most of AHs have moved to and built houses in sites. The construction of sites and status of sites are as follows: 1. Resettlement sites in Lao Cai city 1.1. Pho Moi site This site is located in Pho Moi ward with a total of 93 land lots and the area of 80m2/lot. This site has been constructed since 2009 and handed over to all AHs. All AHs have moved and built houses here with sufficient water and power supply. The price of land in this site is 1.5mil VND/m2. 1.2. Resettlement Site (Ho Dai Phat Thanh Truyen Hinh) The site has totally 109 land lots in Duyen Hai ward, Lao Cai city, with the minimum of 65m2/lot and maximum of 131m2/lot. The site is convenient for local people. All AHs have moved and built houses here with sufficient water and power supply. The price of land in this site is 1.5mil VND/m2. 1.3. Resettlement Site (Ho so 6) This site is located in Duyen Hai ward, Lao Cai city. The site has totally 139 land lots with the minimum of 65m2/lot and maximum of 131m2/lot. The site is convenient for local people and there is a market for local people to do business. All AHs have moved and built houses here with sufficient water and power supply. The price of land in this site is 1.5mil VND/m2. 1.4. Lang Den Resettlement This site is located in Dong Tuyen commune, Lao Cai city. The site has totally 192 land lots with the area of 100m2/lot. Water and power supply are available. The price of land in this site is 700,000 VND/m2, equivalent to 70 mil VND/lot. This site is constructed for AHs under category 3 (without being compensated for land, being assisted with 80% of value of assets and to be resettled with the price of 130% of the approved price). 2. Bao Thang district There are totally 9 AHs to be relocated in Bao Thang district (7 AHs in Xuan Giao commune and 2 AHs in Thai Nien commune). All of these AHs have voluntarily relocated 33

themselves in accordance with the Decision No.06 /UBND- QLĐT of Lao Cai PPC on minimum assistance for for AHs who relocate themselves for site clearance for Yen Vien Lao Cai railway upgrading project. Accordingly, each AH in Thai Nien is assisted with 70 mil VND, equivalent to the land lot of 200m2, and each AH in Xuan Giao commune is assisted with 110 mil VND, equivalent to the land lot of 150m2. To date, these AHs have handed over the site and built their new houses. 3. Bao Yen district s site The is located in 6AB village, Kim Son commune, with the area of 1,400m2 (equivalent to 200m2/lot) for 9 AHs to be relocated by the item upgrading Thai Van railway station. 3 HHs have their agricultural land acquired for construction of this site and all of them have been paid compensation. At present, the site is under construction and land lots have been handed over to 9 AHs. However, there are two households who have not wanted to receive the plot and they wanted to receive money. Currently, Bao Yen District s Compensation Board is waiting for provincial decision on approval of land price to handle the situation of these households. It is expected to be handled in June 2014. Table 14: Summary Matrix of Entitlement Gaps and Corrective Actions Required Requirement Status No. of HHs Gap and Corrective Actions Loss of Land and Non-land Assets (i) Compensation rates Compensation was based on No action required other than for land and non- replacement costs assessed payment of supplementary land assets by the Provincial People s compensation for those whose Committee on an annual houses were built on land not basis. Compensation rates considered residential land were revised prior to (indicated below). disbursement to ensure that the rates paid were current. Compensation for residential land was land based with HHs not required to pay additional money for lots if the latter 34

Requirement Status No. of HHs Gap and Corrective Actions was higher. Compensation rates for other land as well as non-land assets assessed as equivalent to replacement values. Impacts on Housings/Relocation (ii) Affected house built on residential land with legally Entitlements provided as per RP entitlement framework 287 None recognized land use rights (iii) Affected house built on non-residential land (e.g. farming land) with legally recognized land use Compensated at full replacement cost for land and non-land assets. Provided rental assistance and bonus. 96 Transport allowance; Stabilization living allowance; rights Garden/ agricultural land provided additional compensation equivalent to 30% value of residential land for affected area if located in urban area. (iv) Affected house built on land with no legally recognized land use rights and land which is ineligible for Compensated for non-land assets at 80% replacement cost. Entitled to purchase site lot. Difference in cost not met by Project. If poor, payment over 5 years and 50% 102 Compensation for difference for full replacement cost for nonland assets; Transportation allowance; Living Stabilization allowance; 35

Requirement Status No. of HHs Gap and Corrective Actions reduction of purchase cost. No other relocation assistance. Rental assistance (6 months); Bonus (v) Affected house built on land with no legally recognized land use rights and land which is ineligible for compensation (1ha site belonging to Vietnam Rail). Affected persons are employees of Vietnam Rail and receive a regular monthly salary. Already compensated and relocated Not yet displaced 54 Compensation at full replacement cost for non-land assets; Transportation allowance; Living Stabilization allowance; Rental assistance (6 months); Bonus No special assistance. However, entitled to purchase plot pending availability of lots (vi) Provision of replacement land at site for eligible households with affected houses Impacts on Livelihood A number of households in Lao Cai City have not yet relocated to a site due to delays in full completion of Lang Den site (Electric, water ) 73 Completion of the Lang Den site (Lao Cai City) (vii) HH losing garden land (Lao Cai City) (Bao Thang Dist) Garden land not used for productive purposes or otherwise severity of loss represents less than 10% of income source. None Garden land provided additional compensation equivalent to 30% value of residential land for affected 36

Requirement Status No. of HHs Gap and Corrective Actions area located in residential area. No other income restoration assistance. (viii) HH losing productive land with LURC Lao Cai City (Lang Den Resettlement Site) 5 HHs (Bao Thang) 27 HHs Stabilization allowance for period of 6-12 months depending on severity of loss. Assessed as severely affected if losing 10% or more of productive land. Cash assistance for occupational change equivalent to 2 times the value of farming land acquired land. 33 Supplementary income restoration assistance as needed to restore livelihoods. (see Income Restoration below). Cash assistance for farming (Bao Yen) 1 HH materials (Bao Yen) (ix) HH losing productive land with lease rights Stabilization allowance for period of 6 months. Cash assistance equivalent to 30% of the value of affected land. Cash allowance for farming materials. No such cases. 0 None (x) Affected businesses/ shops None 0 None (xi) Income Restoration Most HHs livelihoods were not primarily land based. No shops were affected. Monetary assistance was provided according to GoV policies for loss of productive land. Market built at one To be determined following livelihoods needs assessment. (Provisionally Needs assessment for other nonmonetary livelihood restoration assistance to be conducted. Consultations with severely affected HHs and provincial service providers (e.g. DOLISA, Women s Union, DARD) to be 37

Requirement Status No. of HHs Gap and Corrective Actions site (Ho So 6) estimated at 20 HHs for planning purposes) conducted to identify preferences for livelihood restoration assistance and appropriate activities. Livelihood restoration activities (such as vocational training and agricultural extension) to be free of charge as indicated in RP. Project related employment opportunities to be extended to APs as indicated in RP. Other (xii) Other HHs not yet compensated* 1 affected household in Bao Thang District not yet compensated due to disagreement basis of compensation offered. 1 Consultation and negotiation with AP as needed. Resolution of AP s grievance to be expedited. (xiii) Consultation & Disclosure Disclosure of RP entitlements disclosed during RP preparation via consultation meetings, PIB and uploading of RP. During implementation DMS data and entitlements according to GoV requirements disclosed during implementation. All The updated RP (including required corrective actions) needs to be disclosed. Consultations regarding livelihood restoration to be conducted for those whose livelihoods are severely affected. Consultations regarding options to be conducted for those still to be displaced. Table 15: ISSUES RELATED TO LAND ACQUISITION, RESETTLEMENT AND RP COMPLIANCE Issue Issue s nature Proposed resolution Responsible unit Time A. Information dissemination, community consultation 38

Issue Issue s nature Proposed resolution Responsible unit Time - - Households are basically aware of project information and compensation and policies. The information dissemination need being sufficiently supplemented during the project implementation process Project information books and leaflets have not been delivered to AHs; Community consultation meetings have not been organized frequently during project implementation; the updated RP has not been delivered fully to districts, communes - Project information books and leaflets including major contents of the project; rights of the PAPs specified in the project s updated RP reserved for Lao Cai province and complaint settlement mechanism shall be delivered to PAPs or posted in affected hamlets to create favorable condition for the easy access to the project information of PAPs. - The updated RP will have to be delivered to the DCARB and commune people s committee; - Meetings must be fully held while The land fund development center of Lao Cai city, DCARBs and commune PCs shall have to comply with information dissemination processes. July 2014 community consultation must be conducted during the project implementation. B. Detailed Measurement Survey - The actual number of affected households is 553 households and 05 organizations; there is not much difference in comparison with the updated RP. - The identification of the land origin and land classification in the records in comparison with the actual usage is often the key of questions related to the land compensation; - There is a gap between RP and actual situation when the area of agricultural land is considered as of one household. However, the practical DMS realizes that many households Review the actual situation of complaining households and do additional DMS for the lack of land area or the number of architectural objects if essential. - The PC of Lao Cai province, PC of Lao Cai city and the land fund development center of Lao Cai city, Vietnam Railways should cooperate with relevant communes/ wards for the implementation. Quarter II, 2014 have split land for their children with legal records; therefore, there may be some households in one parcel of land. C. Compensation 39

Issue Issue s nature Proposed resolution Responsible unit Time One household living in territory of Lao Cai city has not handed over the site to the Project because the household required - 01 household has not handed over the site to the Project because the household required to be provided one land plot but the household has been provided two - The Land fund development center of Lao Cai city, CARBs of districts and communes are requested to mobilize households in handing over the site The PC of Lao Cai province, the land fund development center of Lao Cai city, CARBs of districts and communes. July 2014 to be provided one land plots so more that its proposal is accepted. land plot D. Assistance - Affected households have basically received all kinds of assistance as per regulated in the project policy framework. E. Income recovery program - There have been no plans for the implementation of income recovery program. - There have been no specific plans and time for the implementation of income recovery program. - Income recovery program needs - RPMU, CARBs of Lao Cai to be timely implemented; province in Activities related to training, job cooperation with monitoring searching and capital borrowing consulting agency need to be intensified. Quarter II, 2014 F. Complaints and complaint settlement 40

Issue Issue s nature Proposed resolution Responsible unit Time - Some complaints related to land compensation, legal basis related to land compensation or ineligibility to - There have been responses to households regarding the settlement of their complaints about unit price, residential land, and DMS; however, such problems have not been completely solved; - CARBs of Lao Cai - It is recommended to review complaints about the residential land, especially households expectation of and it is needed to answer by official dispatch for the local people; The land fund development of Lao Cai city. June 7/2014 land province is still slow in compensation, finding out resolutions to rights of households that have not land received their allocation, unit compensation and have price, DMS, etc. questions about land and have not been. satisfactorily solved. X. CONCLUSIONS AND RECOMMENDATIONS 1. Conclusions The updated action plan has initial success. The cooperation among RPMU and CARBs is highly effective. The implementation of site clearance and has been basically completed with 95% of work volume. Especially, the was early and favourably conducted. To date, almost all AHs under category 1 have moved to sites and built new houses. Almost all AHs have received compensation and handed over the site. There are only some small issues such as: one household has not handed over the site to the project; two households have not wanted to receive land plot in Kim Son commune, Bao Yen district and the household wants to receive money. In addition 54 AHs living in 3 ranges of tenement houses in Lao Cai station goods yard area and 60 households temporarily living in Lao Cai station dormitory have not been approved of compensation plan. Relocation and compensation payment have been basically in compliance with the updated RP during project 41

implementation i.e. the price application for different types of assets have accessed and ensured the replacement value. Project information dissemination, community consultation, DMS, OIL, etc are quite effectively implemented by RPMU, Lao Cai provincial CARB and districts and communes. However, the project information dissemination, community consultation have not been implemented frequently so it is necessary to conduct these activities during project implementation. Special attention to assistance for APs, vulnerable groups has been paid by Lao Cai PPC. Lao Cai PPC has sent a document (No. 3465/UBND-QLĐT) on applying ADB s compensation policies to Vietnam railway corporation and CARBs in Lao Cai province. Other assistance policies for income restoration for HHs who lost agricultural land complied with the ADB s policies. Lao Cai PPC, CARBs and communes are trying their best to solve all issues and listen to ideas and expectations of APs to avoid disadvantages for APs. Based on information provided by representatives of local governments and AHs, interviews by the EMA with different stakeholders, including AHs, governmental representatives, field observations, the concluding aspects of the report are as follows: The compensation, assistance and of Yen Vien Lao Cai railway upgrading and improvement project, the package CP3 have complied with the laws and regulations of the Government of Vietnam and the involuntary policy of the ADB. The people in the project area have been compensated mainly in 2010 and 2011. The compensation, assistance and board of Lao Cai province have paid compensation and allowances for lands, trees, crops, structures to the households at the compensation rate as specified in the compensation option of the city and district PCs applicable at the time of payment and the households have received compensation in accordance with the approved option. The due diligence survey shows that generally the AHs concur with the compensation rates and they were able to buy replacement assets such as land and build houses. The APs realize that the socio-technical infrastructure of their new accommodation is of much higher standard than their affected houses. At the time of the survey, almost all the relocated households had taken over the land in the sites and had built or were building houses for their living settlement. 42

The compensation rate for houses, other main structures and secondary structures as well as perennial trees, the replacement cost survey shows that the compensation rate was close to the then current market prices. 2. Recommendations on the land acquisition for land acquisition boards in Lao Cai province Land acquisition and boards in Lao Cai province need to review cases of households who have received the compensation and handed over the site to the project, households having illegal land, households who cannot improve the legal origin of the land but expect for as per mentioned in the shortcomings to find the most suitable resolutions to avoid disadvantages of such households. The PC of Lao Cai province, the PC of Lao Cai city, the land fund development center of Lao Cai city need to timely find suitable resolutions to the compensation and for households in 03 apartment buildings and households in the one hectare area managed by Lao Cai Railway Station under the assignment of the provincial PC to help such households to stabilize their lives early and to help the project to be implemented as scheduled. The PC of Lao Cai province and CARBs of Lao Cai province should pay special attention and put emphasis on households and create favorable conditions for households moving to the concentrated area. RPMU should closely cooperate with the PC of Lao Cai province, the PC of Lao Cai city and CARBs of Lao Cai province to support and create favorable conditions on compensation funds, to help the locality to resolve shortcomings related to land acquisition and in an effective and timely manner to ensure the planned implementation of the project. It is recommended to have detailed plans and timely implement such programs as income recovery programs. It is required to strengthen the coordination between the RPMU and the city and district compensation boards so as to speed up the progress on site handover for construction. The RPMU and the compensation boards should hold progress meetings to seize situation of compensation and site clearance so that they can make proposals and recommendations to the city and district PCs for issuing timely policies to contribute in faster progress on site clearance. 43

ANNEX I: LIST OF INTERVIEWED PEOPLE No Full name Position Address Notes I Lao Cai City 1 Nguyen Than Ngan Director of the CPMU of Lao Cai CPMU of Lao Cai city city 2 Nguyen Manh Hung Land acquisition staff of CPMU of CPMU of Lao Cai city Lao Cai city 3 Ngo Ngoc Ha Deputy Director of the CPMU of Lao Cai city CPMU of Lao Cai city 4 Nong Thi Ngu Affected household by Lao Cai Resettlement area in Pho Railway station that needs Moi bridgehead 5 Ba Dua Affected household by Lao Cai Railway station that needs 6 Mr. Cu Affected household by Lao Cai Railway station that needs 7 Mrs. Huyen HH has the agricultural land affected 8 Mrs. Gioi Affected household by Lao Cai Railway station that needs 9 Pham Thi Phuong Affected household by Lao Cai Railway station that needs 10 Vi Thi Luong Affected household by Lao Cai Railway station that needs 11 Vi Van Khanh Affected household by Lao Cai Railway station that needs 12 Ho Manh Long Affected household by Lao Cai Railway station that needs 13 Nong Van Thin Affected household by Lao Cai Railway station that needs 14 Ho Thi Ngoc Affected household by Lao Cai Railway station that needs 15 Nguyen Phu Phu Affected household by Lao Cai Railway station that needs 16 Nguyen Danh Tuan Affected household by Lao Cai Railway station that needs Resettlement area in Pho Moi bridgehead Resettlement area in Pho Moi bridgehead Group 30A, Pho Moi ward Resettlement area in Pho Moi bridgehead Resettlement area in Pho Moi bridgehead Group 31, Pho Moi ward Group 31, Pho Moi ward Group 31, Pho Moi ward Group 31, Pho Moi ward Group 30A, Pho Moi ward Group 30A, Pho Moi ward Group 30A, Pho Moi ward 17 Le Cong Ty Affected household by Lao Cai Group 30A, Pho Moi ward Railway station that needs 44

No Full name Position Address Notes 18 Nguyen Hung Affected household by Lao Cai Group 30A, Pho Moi ward Railway station that needs 19 Phan Khac Nga Affected household by Lao Cai Group 30A, Pho Moi ward Railway station that needs 20 Pham Huy Nhat Affected household by Lao Cai Group 30A, Pho Moi ward Railway station that needs 21 Nguyen Thi Tan Affected household by Lao Cai Group 30A, Pho Moi ward Railway station that needs 22 Nguyen Tien Luc Affected household by Lao Cai Group 30A, Pho Moi ward Railway station that needs 23 Do Thi Nhan Affected household by Lao Cai Group 30, Pho Moi ward Railway station that needs 24 Le Viet Binh Affected household by Lao Cai Group 30, Pho Moi ward Railway station that needs 25 Nguyen Thi Duyen Affected household by Lao Cai Group 30, Pho Moi ward Railway station that needs 26 Nguyen Xuan Hung Affected household by Lao Cai Group 30, Pho Moi ward Railway station that needs 27 Pham Cong Binh Affected household by Lao Cai Group 30, Pho Moi ward Railway station that needs 28 Nguyen Van Dan HH has the agricultural and Group 30, Pho Moi ward residential land affected II Bao Thang district 1 Nguyen Cong Binh Vice Chairman of CARB of Bao Bao Thang DCARB Thang District 2 Do Ba Hung Head of the Department of Natural Bao Thang DCARB Resources and Environment of Bao Thang district 3 Nguyen Tien Sy Land acquisition staff of Bao Thang Bao Thang DCARB district Xuan Giao Commune 1 Trinh Van Vuong Affected household Xuan Giao Commune 2 Trinh Van Nham Affected household Xuan Giao Commune 3 Tran Duc Nam Affected household Xuan Giao Commune 4 Hoang Van Hau Affected household Xuan Giao Commune 5 La Van Suong Affected household Xuan Giao Commune 45

No Full name Position Address Notes 6 La Van Dai Affected household Xuan Giao Commune 7 La Thi Chien Affected household Xuan Giao Commune 8 La Van Vang Affected household Xuan Giao Commune 9 La Van Tu Affected household Xuao Commune 10 Hoang Thi Men Affected household Xuan Giao Commune Thai Nien Commune 1 Cao Thi Quyen Affected household that needs Thai Nien Commune 2 Nguyen Van Hung Affected household that needs Thai Nien Commune 3 Le Trong Thuy Affected household that needs Thai Nien Commune 4 Pham Thi Phe Affected household that needs Thai Nien Commune 5 Vu Hong Canh Affected household that needs Thai Nien Commune 6 Vu Van Dong Affected household that needs Thai Nien Commune 7 Do Thi Tam Affected household that needs Thai Nien Commune III Bao Yen district 1 Nguyen Van Dung Vice Chairman of Bao Yen DCARB Bao Yen DCARB 2 Bui Bao Trung Land acquisition staff of Bao Yen Bao Yen DCARB district Kim Son Commune 3 Lam Sy Quang Chairman of the PC Kim Son Commune 4 Bui Trinh Hai Land registry officer Kim Son Commune 5 Doan Van Du Head of the village Kim Son Commune 6 Trieu Hong Affected household Kim Son Commune 7 Nguyen Duy Huan Affected household Kim Son Commune 8 Hoang Van Tinh Affected household Kim Son Commune 9 Vu Dinh Loi Affected household Kim Son Commune 10 Ha Cong Son Affected household Kim Son Commune 11 Nguyen Van Trinh Affected household Kim Son Commune 12 Đang Van Hien Affected household Kim Son Commune 46

ANNEX 3: SOME PHOTOS ON THE FIELD No compensation plan is available for households in 03 tenement houses in the one hectare, goods yard of Lao Cai railway station No compensation plan is available for households in 03 tenement houses in the one hectare, goods yard of Lao Cai railway station One household out of 54 households in the one hectare area, goods yard of Lao Cai railway station Mr. Le Cong Ty s HH, who has not yet handed over the site Goods yard of Lao Cai railway station is being constructed Goods yard of Lao Cai railway station is being constructed Duyen Hai market is located in the site (Ho so 6) Newly built houses in Resettlement Site (Ho Dai Phat Thanh Truyen Hinh) 47