RP1467 VIETNAM: CENTRAL HIGHLAND POVERTY REDCUTION PROJECT Resettlement Policy Framework August 2013 PART I. INTRODUCTION A. Overview 1. The proposed project development objective of the Central Highlands Poverty Reduction project is to: improve livelihoods of poor households in targeted communes in 26 upland districts of the Central region of Vietnam. The project will target the 26 poorest districts in six provinces of the Central and Central Highlands regions, namely: Dak Lak, Dak Nong, Kon Tum, Gia Lai, Quang Nam and Quang Ngai. Current targeting strategies propose to reach approximately 284,600 households in the poorest 130 communes in this area. A majority of these beneficiaries would be members of the various ethnic minority groups from these areas. 2. The project will have four components: village and commune infrastructure development, sustainable livelihoods development, connective infrastructure development and strengthening of linkages, and project management.  Component 1: Village and Commune infrastructure development would support the design, construction or repair of small-scale village and commune level infrastructure (such as simple access roads, terracing; irrigation/water supply, basic/essential social infrastructure, etc.). Building upon recently completed New Rural Areas communal plans, sub-projects would be prioritized through a participatory planning process and managed by commune and village authorities with the help of community facilitators.  Component 2: Sustainable Livelihoods Development would support EMs and other households in the Central Highlands to enhance food security and nutrition; productive capacities to create diversified income sources; and agriculture market linkages to create sustainable incomes. The component would consist of two sub- components: (i) self-reliance and income generation; and (ii) market linkages initiatives.  Component 3: Connective infrastructure development and strengthening of linkages would finance selective intra and inter-commune level infrastructure that would seek to support productive inter-connections within and related to local economic zones (such as roads, bridges, irrigation systems, etc.).  Component 4: Project management, monitoring and evaluation is organized into two sub-components addressing (i) project coordination and implementation, and (ii) monitoring, evaluation (M&E) and learning. 3. Although subprojects components would not cause large scale impacts, land acquisition will be required. In this project, land acquisition is required mainly under subprojects in component 1 and component 3. B. Definition of key terms i) Displaced Persons (DPs) The DPs include the person or persons, household, firm, or a private or public institution to be identified by the baseline information collected for each of the Inventories and Resettlement Plans (RPs) as specified in E, Surveys and Documentation, Para. (iii), who, on account of the execution of the Project, has experienced or would experience direct economic and social impacts caused by: (a) the involuntary taking of land, resulting in:  relocation or loss of shelter;  loss of assets or access to assets; or  loss of income sources or means of livelihood, whether or not such person must move to another location; or (b) the involuntary restriction of access to legally designated parks and protected areas, resulting in adverse impacts on the livelihood of such person. ii) Compensation Compensation includes the process of financial or material reimbursement of DPs who lost partial or the absolute value of their assets as a result of the Project. Compensation also includes the valuation and reimbursement in monetary terms or in kind of financial and physical losses as a result of impacts of the Project. iii) Cut-off date Normally, the cut-off date is the date the census begins. The cut-off date could also be the date the project area was delineated, prior to the census, provided that there has been an effective public dissemination of information on the area delineated, and systematic and continuous dissemination subsequent to the delineation to prevent further population influx. iv) Rehabilitation Rehabilitation means providing assistance to DPs severely affected due to the substantial or entire loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets in order to improve, or at least achieve full restoration of incomes and living standards to the pre-project levels. v) Replacement Cost Replacement Cost is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into. For losses that cannot easily be valued or compensated for in monetary terms (e.g., access to public services, customers, and suppliers; or to fishing, grazing, or forest areas), attempts are made to establish access to equivalent and culturally acceptable resources and earning opportunities. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standard. vi) Resettlement Resettlement refers to all measures taken by the Project Proponent to mitigate any and all adverse social impacts of a project on the DPs, including compensation for lost assets and incomes and the provision of other entitlements, income rehabilitation assistance, and relocation, as needed. vii) Vulnerable Groups Vulnerable groups include those distinct groups of people who might suffer disproportionately or face the risk of being marginalized by the effects of resettlement, and specifically include: a) Poor and very poor household as identified by regulations of Government of Vietnam. b) Ethnic minority household (Ethnic Minority Planning Framework). c) Household covered by decree 67/2007/ND-CP of April 13th, 2007 on support policies for social protection beneficiaries and decree 13/2010/ND-CP of February 27th, 2010 amending and supplementing a number of articles of the Government's Decree No. 67/2007/ND-CP. viii) DPs Without Legal Title DPs without legal title are occupants of land and housing without legal ownership rights and individuals or groups of people with shops conducting business in the immediate project areas without official registration and will be adversely impacted by the Project through displacement. DPs without legal title are entitled to compensation provided their assets affected by the project were documented in the pre-project census prior to the cut-off date. ix) Ethnic Minority / Indigenous People Ethnic/Indigenous People are defined as persons who belong to a minority tribal group affected in part or in total (temporarily or permanently) by the Project due to acquisition of their lands, dwellings, disturbance of their place of work, and other Project-related adverse impacts. x) Land Use Registration Certificate (LURC) LURC is similar to a title granted to DPs that legalize their use of the lands and/or houses they occupy. xi) Relocation Site The relocation site is defined as the area allocated for the resettlement of DPs living in the areas of sub-projects that are severely affected and who choose relocation over cash compensation. C. Objectives and Principles 4. This Resettlement Policy Framework (RPF) prepared based on the OP/BP 4.12 of the World Bank on involuntary resettlement (December, 2001) to ensure that all displaced persons (DPs) will be compensated for their losses at replacement cost and provided with rehabilitation measures to assist them to improve, or at least maintain, their pre-project living standards and income earning capacity. 5. The RPF lays down the principles and objectives, eligibility criteria of DPs, entitlements, legal and institutional framework, modes of compensation and rehabilitation, peoples participation features and grievances procedures that will guide the compensation, resettlement and rehabilitation of the DPs. In this regard the following principles would be applied: (a) Acquisition of land and other assets, and resettlement of people will be minimized as much as possible. (b) All DPs are identified in the project impacted areas as of the date of the baseline surveys are entitled to be provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income earning capacity and production levels. Lack of legal rights to the assets lost will not bar the PAP from entitlement to such rehabilitation measures. (c) The rehabilitation measures to be provided are: (i) compensation at replacement cost, without deduction for depreciation or salvage materials for houses and other structures; (ii) agricultural land for land of equal productive capacity acceptable to the DPs or in cash at replacement cost according to DP’s choice ; (iii) replacement of residential/premise land of equal size acceptable to the DP or in cash at replacement cost according to DP’s choice; and (iv) transfer and subsistence allowances. (d) Particular attention will go to households that fall within the definition of vulnerable groups. Specific assistance measures will be included in RP. (e) Replacement residential and agricultural land will be as nearby as possible to the land that was lost, and acceptable to the DPs. (f) The resettlement transition period will be minimized and the rehabilitation means will be provided to the DP's prior to the expected start-up date of works in the respective project sites. (g) Plans for acquisition of land and other assets and provision of rehabilitation measures will be carried out in consultation with the DPs, to ensure minimal disturbance. Entitlements will be provided by DPs prior to expected start-up of works at the respective project site. (h) The previous level of community services and resources will be maintained or improved. (i) Financial and physical resources for resettlement and rehabilitation will be made available and as where and when required. (j) Civil works contractors will not be issued a notice of possession or a notice to proceed for any sub-project unless the Government has (a) Completed, satisfactorily and in accordance with the approved RP for that sub-project, compensation payments, and (b) ensured rehabilitation assistance is in place prior to starting civil work. Entitlements will be provided to DPs no later than one month prior to expected start-up of civil works at the respective project site. (k) Institutional arrangements will ensure effective and timely design, planning, consultation and implementation of RPs. (l) Effective and timely supervision, monitoring and evaluation of the implementation of RPs will be carried out. (m) Engage active participation of women in the planning and implementation of the resettlement program as well as other programs. D. Resettlement Instruments 6. The scope and level of detail of the resettlement plan vary in accordance to the magnitude and complexity of resettlement. The decision criteria guiding the decision on specific resettlement instruments (full resettlement plan or abbreviated resettlement plan) is described in the following table: Resettlement Instrument Type of impact Abbreviated Resettlement 1. Less than 200 affected people and; Plan (ARP) 2. No physical relocation required OR 1. More than 200 affected people and; 2. Minor impact (less than 20% (or 10% for vulnerable households) of any holdings) and; 3. No physical relocation required Abbreviated Resettlement 1. Less than 200 affected people and; Plan (with Livelihood 2. Physical relocation required Rehabilitation) (Full) Resettlement Plan 1. More than 200 affected people and; 2. Significant impact (more than 20% (or 10% for vulnerable households) of any holdings) and; OR 1. More than 200 affected people and; 2. Minor impact (less than 20% (or 10% for vulnerable households) of any holdings) and; 3. Physical relocation required 7. The Abbreviated Resettlement Plan will cover the following minimum elements: (1) a census survey of displaced persons, and valuation of assets; (2) description of compensation and other resettlement assistance to be provided: (3) consultation with displaced persons about acceptable alternatives; (4) institutional responsibility for implementation and procedures for grievances redress; and (5) a timetable and budget. The Abbreviated Resettlement Plan (with Livelihood Rehabilitation) will be developed in case of minor impact but physical relocation required. This plan also covers a socioeconomic survey and income restoration measures. 8. The Full Resettlement Plan will include: (1) description of the project; (2) project potential impacts; (3) objectives; (4) socio-economic studies 1 ; (5) legal framework; (6) institutional framework; (7) eligibility; (8) valuation and compensation for losses; (9) resettlement measures; (10) site selection, site preparation and relocation; (11) housing, infrastructure, and social services; (12) environmental protection and management; (13) participation and consultation; (14) integration with host populations; (15) grievances procedures; (16) organizational responsibilities; (17) implementation schedule; (18) cost and budget; and, (19) monitoring and evaluation. 9. The implementation of Resettlement Plans should be sufficiently completed before the land is likely to be required for construction. The activities to be completed before construction typically include the following; (i) detailed census and socio-economic survey 1 The breadth, depth, and type of the socioeconomic study is proportional to the nature and scale of the potential effect of project. Specific description will be included in the TOR for such kind of study. of affected households; (ii) payment of compensation for affected assets; (iii) Identification of residential and agricultural resettlement sites (if required) that are acceptable to DPs; (iv) Development of resettlement sites, including provision of civic amenities and the basic agricultural inputs required; (v) Offer of resettlement sites for occupation by DPs; (vi) Offer of jobs, if provision of alternative employment is part of the resettlement package; (vii) Offer of training, seed capital, credit, and other agreed entitlements, if the resettlement package includes assistance for self-employment; and (viii) Payment of cash compensation for economic rehabilitation, if cash option is selected by DPs. 10. In this project, the resettlement plan will prepared on annual basis (for all investments planned to implement in that given year) and at provincial level. Annual Resettlement Plan will be prepared by Provincial Project Management Unit, reviewed/cleared by the World Bank and approved by provincial people’s committee. Annual resettlement plans are subject to public consultation and disclosure (at project sites, VDIC in Vietnamese) as required in The World Bank’s policy. Activities descirbed under Annual Resettlement Plan can only be implemented after having above mentioned clearance/approval. PART II. LEGAL AND INSTITUTIONAL FRAMEWORKS A. Legal Framework 11. This section reviews the legal framework and policies of the Government of Vietnam and WB’s policies related to land acquisition, compensation and resettlement. It then compares the two approaches. Since there are differences between the WB’s policy and the Vietnamese’s, the project requires a waiver of the Vietnamese Government articles of decrees and regulations concerning compensation and resettlement. Subsequently, compensation and resettlement plans will be implemented according to the project policies. 12. The Legal Framework of the Government of Vietnam: The key national laws, decrees governing land acquisition, compensation and resettlement in Vietnam consists of the following:  The Constitution of Vietnam, 1992 confirms the right of citizens to own a house and to protect the ownership of the house.  The Land Law 2003 issued on December 10th, 2003.  Decree 181/2004/ND-CP issued on October 29, 2004 guiding the implementation of the Land Law revised 2003.  Decree 197/2004/ND-CP issued on December 3, 2004 on compensation, support and resettlement when land is recovered by the state.  Decree 188/2004/ND-CP issued on November 16, 2004 on methods to determine land prices and assorted land price brackets.  Circular 145/2007/TT-BTC issued by November 26, 2007 guiding the implementation of the Government’s decree No 188/2004/ND-CP  Decree 17/2006/ND-CP dated January 27, 2006 on revision and supplementation of some regulations in decrees guiding the implementation of the Land Law.  Decree 84/2007/ND-CP dated May 25th 2007 on revision of issuing LURC, land acquisition, implementation of land use right, procedure for compensation, resettlement when land acquired by State and grievance redress.  Decree No. 69/2009/ND-CP, effective 1st October 2009; an amendment to Decree No. 197/2004/ND-CP; supplementary regulations on land use planning, land prices, land acquisition, compensation, support and resettlement.  Circular 14/TT-BTNMT dated 1st October 2009 providing detailed regulations on compensation, assistances, relocation and process and procedures for land acquisition, land hand-over and land lease.  Circular 57/2010/TT-BTC issued on April 16, 2010 prescribing the estimation, use and settlement of funds for compensation, support and resettlement upon recovery by the State. 13. World Bank Policy on Involuntary Resettlement (OP/BP 4.12): a) The primary objective of the World Bank policy is to explore all alternatives to avoid or at least minimize involuntary resettlement. Where resettlement is unavoidable, the living standards of displaced persons should be restored or improved relative to those conditions that prevailed prior to the Project. The policy applies to the taking of land and other assets when land acquisition results in the loss of shelter, the loss of all or part of productive assets, or access to them, and the loss of income sources or other means of livelihood. b) Measures required ensuring that resettlement has a positive outcome include:  Consulting with potential Project-affected people on feasible measures for resettlement and rehabilitation;  Providing Project-affected persons with options for resettlement and rehabilitation;  Enabling their participation in planning and selecting these options;  Providing compensation at full replacement cost for losses;  Choosing relocation sites that provide, at a minimum, the same benefits and services as the sites they replace;  Providing allowances, training and income support to assist in making a smooth transition;  Identifying vulnerable groups and providing special assistance to these groups; and,  Establishing an institutional and organizational structure that supports this process to a successful end. c) Eligibility Criteria and Compensation: 13.c.1. The displaced or project-affected people eligible for compensation will include: (a) those who have formal legal rights to land or other assets; (b) those who initially do not have formal legal rights to land or other assets but have a claim to legal rights based upon the laws of the country; upon the possession of documents such as land tax receipts and residence certificates; or upon the permission of local authorities to occupy or use the project affected plots; and (c) those who have no recognizable legal right or claim to the land they are occupying. 13.c.2. Persons covered under (a) and (b) are provided compensation for the land they lose, and other assistance. Persons covered under (c) are provided resettlement assistance, in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project area prior to a cut-off dates defined in RPs. Persons who encroach on the areas after the cut-off date defined in RPs are not entitled to compensation or any other form of resettlement assistance. 14. Valuation of and Compensation for Losses: The methodology to be used in the valuation of losses for Bank-associated Projects is based on their replacement cost (cf. the definition in section B). In this Project, losses comprise land, structures and other assets. Replacement cost for land includes the value of land at market price plus the cost taxes and fees to get Land Use Right Certificate (LURC). For houses and other structures, the market cost of the materials should be used to calculate the replacement cost to build a replacement structure with an area and the quality should be at least as good as those affected. For both totally and partially affected structures, compensation includes market cost of material, plus the costs of material transport, labor and contractor fees, registration and transfer taxes. Depreciation of the asset and amount saved in materials will not form a part of replacement cost. During the implementation phase, an independent land appraiser (s) will be mobilized to survey and propose a set of replacement costs for all types of affected land (both agriculture and residential land) and assets, which will be approved by Provincial People’s Committee (s) and acceptable to WB. B. Comparison between Government of Vietnam and World Bank Approaches 15. Recent Laws, Decrees and Regulations bring the Government of Viet Nam resettlement policies and practices to be more consistent with the World Bank’s resettlement policies. The differences between the Government’s Laws and Decrees and World Bank Policy with regard to resettlement and compensation, and how to address these gaps are shown in Table 1. Table 1: Differences between National Laws and the World Bank Policy and the DEP Policy World Bank ‘s GoV’s Policy Proposed policy for the Policy Policy Project (OP 412) Land/ Property World Bank ‘s GoV’s Policy Proposed policy for the Policy Policy Project (OP 412) Policy DP (Displaced Resettlement site and Livelihood and income objectives People) should be its infrastructure sources are restored assisted to restore should have equal or or improved their better development living standards to conditions than the the pre-project existing one. levels. Treatment of Rehabilitation Rehabilitation Rehabilitation assistance informal or assistance to all assistance at different to all DPs, regardless of not legal land displaced persons levels depending on their legal status. users to achieve the the “illegal� status of policy objective. land users. Compensation Compensation at Provided to cover the Assistance at replacement for illegal replacement cost new structure costs. cost for all structures, and structures for all structures Depending on the provided regardless of regardless of “illegality status� legal status. legality status. attributed, covering between 80% and 100% of the total costs. Compensation Methods for Compensation for Compensation for lost Independent appraiser determining lost land and other assets is calculated at identifies market price as assets should be price close to a reference for PPC to compensation paid at full transferring the assets define compensation rates replacement cost. in the market. price. Provincial governments are granted to annually set up the price for different categories of assets. Compensation All income losses Income loss is assisted All income losses are to for income should be only for registered be compensated and loss compensated. business. restored. World Bank ‘s GoV’s Policy Proposed policy for the Policy Policy Project (OP 412) Compensation It is good practice It is not addressed. Social assessment for indirect for the borrower to undertaken and impact caused undertake a social measures taken to by land or assessment and minimize and mitigate structures implement adverse impacts, taking measures to particularly upon poor minimize and and vulnerable groups. mitigate adverse economic and social impacts, particularly upon poor and vulnerable groups. Livelihood Provision of Livelihood restoration Provision of livelihood restoration livelihood and assistance restoration and assistance and assistance restoration and measures are provided. to achieve the policy assistance to Not a follow up for full objectives. achieve the policy livelihood restoration objectives. after resettlement completion. Consultation Participation in Is limited mostly to Participation designed and disclosure planning and information sharing and implemented to implementation and disclosure. achieve policy objectives specially confirming the eligibility criteria for compensation and assistance and access to Grievances Mechanisms. Grievance Grievance and The same body makes Independent grievance and redress redress decisions on and redress mechanisms mechanisms mechanisms compensation, to be established should be resettlement and initial independent handling of grievances World Bank ‘s GoV’s Policy Proposed policy for the Policy Policy Project (OP 412) Monitoring & Internal and There is no explicit Both internal and external Evaluation External requirement on monitoring are defined. independent monitoring, including monitoring are both internal and required. independent (external) monitoring. C. Required Waivers 16. To satisfy WB OP/BP 4.12 policy on Involuntary Resettlement, articles in the laws and regulations of Vietnam that do not guarantee the DPs’ right to compensation at replacement costs, or eligibility articles that do not extend the right of being restored and/or assisted to households without valid land papers, or otherwise limit the compensation required by WB OP/BP 4.12, will not apply. The requirements of WB OP/BP 4.12 will fully apply in all cases. This is in accordance with Decree No. 38/2013/ND-CP, which states that “in case of discrepancy between any provision in an international treaty on Official Development Assistance, to which the Socialist Republic of Viet Nam is a signatory, and the Vietnamese Law, the provision in the international treaty on ODA shall take precedence� (Article 6, Item 7). D. Institutional Arrangement The Central Project Management Board will have the following key responsibilities related to resettlement: a. Prepare the Resettlement Policy Framework and submit to Prime Minister (or the delegated agency) for approval. Ensure a proper compliance to RPF during the project implementation in project provinces. b. Coordinate project provinces to timely prepare and submit provincial annual resettlement plan for World Bank review and clearance. c. Collaborate with the project provinces to organize training for RP implementation and/or workshops on the compensation, assistance and resettlement for the responsible staff in the project provinces. d. Cooperate with PMUs (Provincial and District) to carry out internal monitoring of activities defined in annual resettlement plan. e. Submit quarterly progress report to the World Bank on the implementation of annual resettlement plan. f. Select and monitor the implementation of the Independent Resettlement Monitoring Consultant. g. Coordinate with the PPCs to timely resolve difficulties in the RP implementation of the district compensation committees. Provincial People’s Committee (PPC) will have the following key responsibilities: a. Approve the annual resettlement plan submitted by Provincial Project Management Unit. b. Approve land prices; issue the price table of property compensation, provide assistance levels and support measures under the authority; provide resettlement plans, training plans for job change under the authority; c. Allocate adequate and timely counterpart funds for the preparation and implementation of annual RPs of the provinces a. Approve (or delegate to District People's Committee) the detailed compensation, assistance and resettlement plans applied to sub-project level; b. Approve the unit prices which are detailed in the replacement cost survey report of the qualified appraisers to facilitate the district compensation and site clearance committees to complete compensation plans. c. Urge the District Compensation and Site Clearance Committees to implement the approved compensation plan. Instruct relevant agencies to implement the settlement of complaints of citizens on compensation, assistance and resettlement under the authority prescribed by law; d. Direct, inspect and handle violations in compensation, assistance and resettlement. e. Coordinate with other stakeholders to timely resolve difficulties in the RP implementation of the district compensation committees. Provincial Project Management Unit will have the following key responsibilities: a. Prepare and submit the annual resettlement plan to PPC, MPI, WB for approval/clearance. b. Cooperate with other departments/agencies and the project’s DPCs in implementing resettlement plan, ensuring that the progress is in line with the construction schedules. c. Conduct internal monitoring of RP implementation; Prepare and submit provincial quarterly report to Central Project Management Board. d. Collaborate with independent monitoring consultant. e. Coordinate with other stakeholders to timely resolve difficulties in the RP implementation of the district compensation committees. District People’s Committee will have following key responsibilities. a. Directing, organizing, disseminating propaganda and motivating all concerned organizations, households and individuals to comply with the compensation, assistance, resettlement policies, and implementing site clearance in accordance with the decision of competent State agencies; b. Approve the detailed compensation, assistance and resettlement plans of subproject (investment) in the locality. c. Coordinate with departments, branches, organizations and the investor to implement the construction investment project and plan for construction of resettlement areas under the assignment of the PPCs. d. Settle citizens' complaints and grievances regarding compensation, assistance and resettlement within their competence; making decisions to organize and force site clearance and land acquisition involving unwilling cases within their authority; coordinate with competent agencies to organize the enforcement under the decision of the authorized agencies. e. Coordinate with other stakeholders to timely resolve difficulties in the RP implementation of the district compensation committees. District Committee for Compensation Support and Resettlement will have following key responsibilities: a. Lead development the detailed compensation, assistance and resettlement plan for subproject/investment in the locality (in collaboration with District PMUs). b. Assist the PPC and DPCs in the dissemination of information on the RP; provide guidance and answers to land users on the compensation, assistance and resettlement; c. The DCCR are responsible for the accuracy and reasonableness of the inventory data, the legality of land and properties which are compensated and supported or are not compensated and supported according to the resettlement plan; Assign the organizations to implementation of the compensation, assistance and resettlement; Plan compensation, assistance and resettlement; organize the implementation of compensation, assistance and resettlement approved by the competent authorities; conduct consultations and participation activities, income restoration programs and cooperate with the other stakeholders in the implementation of the resettlement plan. d. Carry out payment of compensation, assistance and allowance for DPs after the RP has been agreed approved. Ensure the timely provision of payments for compensation and support and other benefits for the affected people; e. Organize resettlement for affected households under the project policy f. Support the DPCs in resolving complaints at the district level. g. Provide monthly report to DPC, Provincial PMU on the implementation of the compensation, assistance and resettlement and complaints and complaints settlement. h. Coordinate with other agencies in the design and implementation of income restoration measures and relocation of households. i. Other duties as prescribed by law by the PPCs and in accordance with the agreement with the Donor. District Project Management Unit will have the following key responsibilities: a. Collaborate with DCCR in developing the detailed compensation, assistance and resettlement plan for subproject/investment in the locality. b. Cooperate with other departments/agencies and the project’s DPCs in implementing resettlement plan, ensuring that the progress is in line with the construction schedules. c. Conduct internal monitoring of RP implementation; Prepare and submit quarterly report to Provincial Project Management Board. d. Collaborate with independent monitoring consultant. e. Support the DPCs in resolving complaints at the district level. f. Coordinate with other stakeholders to timely resolve difficulties in the RP implementation of the district compensation committees. Commune People's Committees The CPC will assist the DCCR in the compensation, assistance and resettlement tasks. Specifically, the CPC will be responsible for the following: a. Organize the propaganda on the purpose of land acquisition, compensation, assistance and resettlement policy of the project; b. Perform the RP preparation and implementation daily; c. Establish commune mission teams and assign the tasks for them; assign commune officials to support the district compensation and site clearance committee in the implementation of the DMS, preparation of land acquisition documents for the project, preparation and implementation of resettlement activities; d. Identify replacement land for affected households which are eligible and propose income restoration programs in accordance with the conditions of the local people and; e. Sign the DMS samples, certify legal papers or history of land use, land transfer for the affected households to carry out the requirements for the preparation of the compensation plan for them; f. Settle of complaints and inquiries at the first level as required by law; g. Actively participate in all land acquisition activities, payment of compensation, support and resettlement and other related works. h. Report to the district compensation and site clearance committee on the implementation of compensation, assistance and resettlement as well as complaints and resolve complaints of DPs monthly. SECTION 3 ENTITLEMENT POLICY 17. DP's will be entitled to the following types of rehabilitation and assistance measures: (a) DPs losing agricultural/productive land and crops. The general mechanism for compensation of lost agricultural land will be through provision of "land for land" of equal productive capacity, and satisfactory to the DP. If replacement land is smaller in size or of lower quality, DPs will be entitled to compensation in the cash equivalent of the differences. However, if land is not available or if the DPs prefer to receive cash compensation then the following will apply: (i) if the portion of the land to be lost less than 20% of the total area of the landholding (for the poor and vulnerable group, portion of the land to be lost present less than 10%) cash compensation, at full replacement cost for the acquired area may be provided to the DP (ii) if the portion of the land to be lost present 20% or more of the total area of the land holding (for the poor and vulnerable group, portion of the land to be lost present 10% or more), then the project will acquire the entire landholding and provide "land for land" arrangements of equal productive capacity, satisfactory to the DP. However, if the DP prefers to receive cash instead of land, then cash compensation at replacement cost is applied. (iii) DP’s will be compensated for the loss of standing crops at market price, productive trees will be compensated at replacement cost. (iv) DP’s whose land is temporarily taken by the works under the project will be compensated for their loss of income, standing crops and for the cost of soil restoration and damaged infrastructure. Land will be rehabilitated after the project construction by investor. (v) With respect to garden land or ponds which are attached to the affected residential land, and the affected agricultural land which is located within the residential/settlement area, the Project will provide an assistance of 50% of price of the neighboring residential land in addition to compensation at replacement cost for agricultural land as regulated by the laws. (b) DPs losing residential land and house/structure (i) The mechanism for compensating loss of residential land and structures will be: (1) the provision of replacement residential land (house site and garden) of equivalent size, satisfactory to the DP or cash compensation at replacement cost according to DPs’ choice; and (2) cash compensation reflecting full replacement cost of the house/structures, without deduction for depreciation or salvage materials or compensate in kind according to DPs’ options. (ii) If residential land is only partially being affected by the project and the remaining areas are not sufficient for reorganizing DP’s house then at the request of the DP, the entire residential land will be acquired at full replacement cost. (iii) If house/other structure is only partially being affected by the project and the remaining areas are not convenient to using, the house/ structure will be acquired at full replacement cost, without depreciation. (iv) Tenants, who have leased a house for residential purposes will be provided with a cash grant of six months rental fee at the prevailing market rate in the area, and will be assisted in identifying alternative accommodation. (c) DPs losing business (i) The mechanism for compensating loss of business will be: (1) the provision of alternative business site of equal size and accessibility to customers, satisfactory to the DP; (2) cash compensation for lost business structure reflecting full replacement cost of the structures, without depreciation; and (3) cash compensation for the loss of income during the transition period. (d) DPs will also be provided compensation at full replacement cost, without deduction for depreciation and salvage materials for any other fixed assets affected in part or in total by the project, such as tombs and water wells, etc. 18. In cases where community infrastructure such as schools, factories, water sources, roads, sewage systems is damaged, the PPC of the project provinces and investor will ensure that these would be restored or repaired as the case may be, at no cost to the community. 19. Besides the direct compensation for the losses, DPs also will be entitled to additional assistance (subsidies/allowances) as stipulated in the Decree No.197/2004/ND- CP and Decree No.69/2009/ND-CP. These subsidies/ allowances are as below: a) Transportation allowance All DPs relocating within the province are entitled to a maximum allowance of (04) million VND. All DP relocating out of the province are entitled to a maximum allowance of 05 million VND. This subsidy allowance is for the transportation of their salvageable materials and living facilities. All DP relocating and while waiting for establishment of new resettlement residences at resettlement sites are (i) to be provided with temporary residence or (ii) temporary rent cost. b) Subsistence allowance for relocating All DPs (i) relocating within province shall receive a cash allowance equal to 30 kg of rice per month in uninterrupted 03 months; (ii) relocating out of province shall receive a cash allowance equal to 30 kg of rice per month in uninterrupted 06 months; (iii) who are in a severe socioeconomic difficulty or who relocating to areas of socioeconomic difficulty shall be receive cash allowance equal to 30 kg of rice per month in uninterrupted 12 months. c) Production and Living Rehabilitation: All DPs DP whose portion of the land to be lost more than 20% of the total area of the landholding (or 10% in case of ethnic minority people or vulnerable groups), will be entitled to supported by cash equivalent to 30 kg rice per month per person for duration of 6 months if not to be relocated and for duration of 12 months if relocated. In case more than 70% agricultural land acquired, the users will be supported for duration of 12 months if not to be relocated and for duration of 24 months if relocated; d) Vocational Training and Job Creation: The minimum support will be at least 1.5-5 times of agricultural land price for the whole acquired area (the land for annual tree only); AND in case, households need a vocational training, they will be admitted to a vocational center in the province and are exempted from tuition fees for such training course (including level of primary, secondary training and vocational college) for those in the working age (not applicable for those who enroll for a vocational training outside the province)2. e) Relocation bonus A bonus will be awarded to DP who handover land and vacate their premises in accordance with the resettlement schedule. The amount will be in conformity with the locality's actual conditions. f) Other Rehabilitation Measures In addition to aforementioned information, any DP exposed to any impact other than those considered to be minor, will have a range of programs to support their full livelihood restoration and assure asset compensation at replacement values either consider each structure separately or if they consider structures by “types� to consider the most expensive structure in that group as bench mark. 2 Based on Decree 69/2009, all households whose agriculture land is affected by the project will be entitled to participate in vocational training program, that fee for the training course is calculated as compensation/assistance expenses. The Entitlement matrix for the affected persons under this project is shown in the Table 2 below. Table 2: An Entitlement Matrix Type of Impact/Loss Eligibility/ application Entitlement 1. LOSS OF 1.1 Owners of land with (i) The affected land (i) Cash compensation for their acquired land at 100% AGRICULTURAL LAND LURC or (ii) in the is less than 20% replacement cost. process of acquiring of the total land (ii) Compensation for affected assets at 100% replacement cost. LURC or (iii) are eligible area or less than (iii) Cash assistance per m2 as set out in PPC’s policies. to obtain LURC 10% for vulnerable group. The affected land (i) As priority, compensation "land for land" with equivalent is from 20% of productive capacity at a location acceptable to the APs, or, total land or from if requested by the DPs, or if "land for land" is not available, cash compensation for the lost land at 10% for replacement cost. vulnerable group. (ii) Compensation for affected assets at 100% replacement cost. (iii) Cash assistance per m2 as set out in PPC’s policies. (iv) Receive income restoration assistance and other assistances. 1.2. Land user are not eligible to legalize (i) Will not be compensated for land but will be compensated for loss of assets on land such as structures, crops and trees at 100% replacement cost. (ii) If DP is mainly earning income from agriculture, local authorities could consider allocating land for the DP based on the conditions of locality. Type of Impact/Loss Eligibility/ application Entitlement 1.3. Agricultural lands that are rented Compensation for land will be paid to Land use owner but between households or individuals. compensation at 100% replacement cost of the assets will be paid to the land-users. 2. LOSS OF 2.1. Owners of land with Fully affected (i) Relocation options are to be provided to DPs: RESIDENTIAL LAND (i) LURC or (ii) in the - Self-relocate: Beside of compensation for acquired land at (Includes DPs process of acquiring replacement cost, DPs are entitled to receive an allowance whose remaining LURC or (iii) are eligible for preparing and levelling ground floor at the new resettled area is not enough to obtain LURC: place as regulated in Decree 69/2009/ND-CP or for reconstruct of their houses). - Allocated land in the resettlement sites with full infrastructure. (ii) Compensation for affected assets at 100% replacement cost. (iii)Provision of allowances due to relocation of house, as regulated in item 8 below. Partially affected (i) Cash compensation for their acquired land at 100% replacement cost. (DPs whose remaining area is (ii) Compensation for affected assets at 100% replacement cost. enough to rebuild the house) 2.2. Land users are not eligible for (i) Compensation for affected assets at 100% replacement cost. compensation (illegal land users). (ii) If the land-user is not eligible for compensation and has no other place to reside, the user will be assisted to buy a plot or an apartment in a tenement house or with cash equivalent. Type of Impact/Loss Eligibility/ application Entitlement 3. IMPACT ON Regardless of ownership/usage conditions. (i) DPs will be compensated for their affected structures by 100% STRUCTURES replacement cost without deduction of salvage material or depreciation. Impact on Houses and building facilities and (ii) The compensation prices are calculated based on the actual Impact on other structures. affected areas. Each structure should be evaluated individually. 4. GRAVES/TOMBS Households whose graves/tombs are affected by DPs are fully compensated for the moving expenses, reburial and the Project. other related costs. 5. AFFECTED Persons having crops/trees damaged. Compensation is paid to DPs currently in cultivation at the CROPS/TREES market price of crops/trees and/or at the replacement cost of damaged crops/trees. 6. IMPACTS ON Eligible owners of registered business (i) Compensation for loss of income for business registered will INCOME AND BUSINESS be at 50% of income after tax of one year (equivalent 100% of income after tax of six months) according to average income in previous 03 years. (ii) To provide a support equal to 70% of the basic salary for permanent laborers for economic establishments, production and households. The period to calculate support must not exceed 6 months. (iii)To provide compensation for the loss of business structures, production materials at full replacement costs of the structures, excluding depreciation. Type of Impact/Loss Eligibility/ application Entitlement Eligible owners of non- registered business Compensation for loss of income for business registered will be at 50% of income after tax of six month (equivalent 100% of income after tax of three months) according to average income in previous 03 years. 7. TEMPORARY DPs having residential land temporarily (i) To compensate for all affected assets attached to land at the IMPACTS IN THE affected. replacement cost IMPLEMENTATION (ii) To restore the land to its original condition. PHASE DPs having agricultural land temporarily (i) To compensate for a crop of crops/ plants at the full market affected. price. (ii) To compensate for loss of income for the next crops during the time land is temporarily affected (iii) To restore the land to its original condition or improve land quality to equal or better levels prior to the project implementation. Business householders temporarily affected. (i) To compensate and support for lost income of collectives, private or individual enterprises if they are directly affected during construction stage. (ii) To compensate for affected assets attached to land at the replacement cost. 8. AFFECTED PUBLIC Communes, wards, administrative units having To restore or repair depending on each circumstance and the Type of Impact/Loss Eligibility/ application Entitlement ASSETS public housing, structures, schools, bridges, community do not have to pay for the expenses. factories, water sources, roads, wastewater For cultural structures, churches, communal dwelling houses, systems, and irrigation systems damaged. pagodas, hermitages, shrines under the local governance that need to be relocated, the Provincial People’s Committee shall make decisions based on proposals of the Resettlement and compensation Council and opinions of local authority and community in areas where there are affected structures. 9. ALLOWANCE AND All relocating households (i) Assistance for moving/resettlement: Relocated HHs will RESTORATION receive cash assistance for moving to the new place as per SUPPORT PPC’s regulation. (ii) Assistance for life stabilization: Relocated HHs will receive life stabilization support in cash, equivalent to 30kg of rice per person per month, at average market price at compensation time notified by Financial Department. Assistance for a period of 6 months for relocating to other places, and 3 months for reorganizing on the remaining land or repairing the remaining house. (iii)Assistance for renting house will be provided as per Provincial People’s Committee regulations. (iv) Assistance for Self-Relocation: DPs are entitled to receive an allowance for preparing and leveling ground floor at the new resettled place as regulated in Decree 69/2009/ND-CP. The amount will be provided as per Provincial People’s Committee regulations. Type of Impact/Loss Eligibility/ application Entitlement Loss of Income/Livelihood All DPs All affected households are entitled to monetary support for due to loss of productive job retraining equivalent from 1.5 to 5 time of agricultural land land price of recovered agriculture land. The amount will be provided as per Provincial People’s Committee regulations DPs that lose (i) DPs will be entitled to receive Life stabilization assistance as 20% or more follows: productive land a) Losing from 20% to 70% (or from 10% to 70% for holding (or from vulnerable group). 10% for  30 kg of rice per person per month for 6 months if not vulnerable relocating group)  30 kg of rice per person per month for 12 months if relocating b) Losing more than 70%  30 kg of rice per person per month for 12 months if not relocating  30 kg of rice per person per month for 24 months if relocating (ii) Other rehabilitation measures will be provided such as assistance with seeds or improved young animals, agricultural extension training, services, plant protection or veterinary services, technical assistance for business or non-farm production. The type of rehabilitation measures will be identified during the implementation of the RP in consultation with the DPs. Type of Impact/Loss Eligibility/ application Entitlement Affected vulnerable groups Vulnerable households will receive life stabilization of 30 kg of rice/ person / month for 24 months at the time of compensation. Bonus for timely handover of land for all Households who hand-over their affected properties on time DPs. (partially or totally affected land) will be provided with bonus allowance. The amount will be in conformity with the locality's actual conditions. SECTION 4: RELOCATION 20. If there are families have to be relocated because of the project impacts and resettlement sites are required. The PPCs and local authorities will clearly describe in RP about alternative relocation sites considered and explanation of those selected, covering: a) institutional and technical arrangements for identifying and preparing relocation sites, for which a combination of productive potential, location advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources; b) any measures necessary to prevent land speculation or influx of ineligible persons at the selected sites; c) procedures for physical relocation under the project, including timetables for site preparation and transfer; and d) legal arrangements for regularizing tenure and transferring titles to resettlers. e) housing, infrastructure, and social services. Plans to provide (or to finance resettlers' provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services); plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities. f) a description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement). SECTION 5 CONSULTATION AND INFORMATION DISCLOSURE 21. The local authorities and its relevant organizations, DPs and host communities will participate throughout the various stages of the planning and implementation of RPs. 22. The DPs will be fully informed of the provisions of this Policy Framework and annual resettlement plan in public meetings held by local authorities, project management unit. Each DP will be fully informed and consulted about their entitlements and rehabilitation choices. 23. Annual resettlement plans are subject to public consultation and disclosure (at project sites, VDIC in Vietnamese) as required in The World Bank’s policy. SECTION6 IMPLEMENTATION ARRANGEMENTS A. Implementation Schedule 24. A detailed implementation schedule of the various activities to be undertaken will be included in each annual resettlement plan. The implementation schedule must be developed based on the linkage to the civil work implementation schedule. 25. Payment of rehabilitation and furnishing of other restoration/assistance entitlements (in cash or in-kind), and relocation if that be the case, have to be completed prior awarding contracts for civil works. B. Complaints and Grievances 26. DPs are entitled to the complaints regarding their interests and responsibilities in the Project implementation including but not limited to such things entitlements to compensation, compensation policy, unit prices, land acquisition, resettlement and other entitlements related to the recovery support programs. Complaints can also concern issues related to construction safety and nuisances caused by construction. Grievance procedures should be affordable and accessible procedures for third party settlement of disputes arising from resettlement; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. All complaints will be recorded, recognized and processed by the functional units at all levels. 27. Local mass organizations such as Fatherland Front, Farmers Association, Women’s Association etc. are mobilized to participate actively in the process of resolving complaints, questions. DPs can report their complaints (without any administrative and legal charges) to the responsible units under district and commune/ward people’s committee. Implementing agencies must ensure having assigned staff in these responsible units to work on the project and maintaining a throughout reporting system. Following the aforementioned arrangement, the grievance procedure will be:  Step 1. Any persons who are not satisfied with any contents of the program of economic recovery and resettlement can report verbally or in writing to their Ward/Commune People’s Committee (CPC) who will be responsible for resolving their complaints within 15 days through inspection, and identification and proposal to upper authorities.  Step 2. After the due date, if there is no agreement, conciliation formed between DPs and CPC or no answer from CPC, DPs can appeal to the District People’s Committee (DPC) who will give their decisions within 30 days after receiving the complaints.  Step 3. If after the due date, there is no agreement, conciliation formed between DPs and DPC or no answer from DPC no agreement/conciliation/answer is made, DPs may appeal to the responsible unit of Provincial People’s Committee (PPC) who will give their decisions within 30 days after receiving the complaints.  Step 4. If they are not satisfied with the decisions at the provincial level, DPs may present their petition to their district administrative court. 28. DP’s will be exempted from all administrative and legal fees. Besides that, an escrow accounts for resettlement payments should be used when grievance is resolving to avoid excessive delay of the project while ensuring compensation payment after the grievance has been resolved. All GRC should maintain a system to register queries, suggestions and grievances of the DPs. All queries, suggestions and grievances and their resolution should be recorded and forwarded to the PC and its functioning monitored monthly. All the cost of GRM establishing and functioning should be included in the project cost. C. Supervision, Monitoring and Evaluation 29. Implementation of RPs will be periodically supervised and monitored by the respective PC/its PMB in a close coordination with the respective Peoples' Committees at different administrative units and independent monitoring agencies. The findings will be recorded in quarterly reports to be furnished to Central Project Management Board, PPCs, and World Bank. 30. Internal monitoring and supervision will: (a) Verify that the baseline information of all DP’s has been carried out and that the valuation of assets lost or damaged, and the provision of compensation, resettlement and other rehabilitation entitlements has been carried out in accordance with the provisions of this Policy Framework and the respective RP. (b) Oversee that the RPs are implemented as designed and approved. (c) Verify that funds for implementing the RPs are provided to the respective PMBs in a timely manner and in amounts sufficient for their purposes, and that such funds are used by the respective PMB’s in accordance with the provisions of the RP and policy framework. (d) Record all grievances and their resolution and ensure that complaints are dealt with in a timely manner. 31. Independent Monitoring: An independent agency or agencies or individual consultant will be retained by Provincial Project Management Unit to periodically carry out external monitoring and evaluation of the implementation of annual RPs. The independent agencies will be academic or research institutions, non-Governmental Organizations (NGO) or independent consulting firms, all with qualified and experienced staff and terms of reference acceptable to the World Bank. Independent monitoring begins about the same time as implementation activities and continues until the end of project/subproject. The independent monitoring agency will: (a) Determine whether the procedures for DPs participation and delivery of compensation and other rehabilitation entitlements has been done in accordance with this Policy Framework; and (b) Assess if the Policy Framework objective of enhancement or at least restoration of living standards and income levels of DPs have been met. (c) Gather qualitative indications of the social and economic impact of Project implementation on the DPs. (d) Suggest modification in the implementation procedures of s, as the case may be, to achieve the principles and objectives of this Policy Framework. 32. In addition to verifying the information furnished in the internal supervision and monitoring reports of the respective project management units, the external monitoring agency will collect information from affected households. Depending on the magnitude of project impact, borrower with consultation from Task’s Team of the World Bank will decide the extent of using independent monitoring consultant. 33. A Resettlement Plan cannot be considered complete until a completion audit or survey confirms that all entitlements have been received by beneficiaries and livelihood restoration is progressing on schedule. SECTION 7 COSTS AND BUDGET 34. Each RP will include detailed cost of rehabilitation and other restoration/assistance entitlements and relocation of DPs, if that be the case, with a breakdown by agricultural land, residential land, business land, houses, businesses and other assets. The cost estimates will make adequate provision for contingencies. 35. Sources of funding for the various activities will be clearly specified in the cost tables. For this project, funds for implementing annual RPs will be from counterparts. Form 1: A template of Annual Resettlement Plan (ARP) Executive summary I. INTRODUCTION 1.1 Introduction of project and subproject 1.2 Mitigation measures of adverse impacts 1.3 Purpose of resettlement action plan II. IMPACTS OF SUB-PROJECT 2.1 Procedures and methods of Estimation of Loss 2.2 Project impacts III. RESULTS OF SOCIO-ECONOMIC SURVEY 3.1 Socio-economic survey in the affected sub-project area 3.2 Demographic characteristics of affected HHs 3.3 Gender issues IV. POLICY FRAMEWORK AND ENTITLEMENT 4.1 Legal documents on land acquisition and resettlement 4.2 Compensation policy 4.3 Compensation procedures V. INCOME RESTORATION MEASURES VI. RESETTLEMENT ARRANGEMENT VII. INFORMATION DISCLOSURE, PUBLIC CONSULTATION AND PARTICIPATION. 7.1 Information disclosure 7.1 Public consultation 7.3 Grievance Mechanism VIII. GRIEVANCE REDRESS MECHANISM IX. INSTITUTIONAL ARRAGEMENT 8.1 Central level 8.2 Responsibility of People Committees (provincial, district and communal levels) 8.3 Responsibility of resettlement committees X. MONITORING AND EVALUATION 34 10.1 Internal monitoring 10.2 External monitoring XI. BUDGET SOURCE AND COST ESTIMATE 11.1 Financial sources for all resettlement activites 11.2 Compensation and allowance cost estimate 11.3 Contingencies XII. TIMETABLE OF RESETTLEMENT IMPLEMENTATION 35 Form 2 Vietnam: Central Highland Poverty Reduction Project Inventory of Displaced People Component: _______________ Province: _______________ District: _____________ Commune: _______________ Sub-Project: _______________ No. Total Su of Land Name of Land- Land Loss Loss rve Pers to be Head of holdin Use as % of y ons Acqui Househ g of Type of Loss of Assets Loss of Crops Other Other Losses No in red old Hhold * Total Assets . Hho (M2) -M2 ld Stru Fruit Eg., Struct cture Area of trees gravey ures s resident lost ards, Reside Paddy Other Busine Inco perm temp ial land Type wells, nce area (Spec ss me anent orar lost and etc. (rented (M2) ify) Lost Loss (M2) y (M )2 Num (Type ) (M2) ber & No.) 36 * Land Types are as follows: (please fill in the types of land appropriate for Vietnam) 1. Rice land 4. Forest 7. Etc. 2. Upland 5. Residential 3. Garden 6. Commercial 37 Form 3 Vietnam: Central Highland Poverty Reduction Project Entitlements of Displaced People Component: _______________ Province: _______________ District: _____________ Commune: _______________ Sub-Project: _______________ Compensation for Surv Name of Numb Other Assets and Total Compensation for Losses ey Head of er in Compensation for Land Compensation for (VN Crops & Trees No. Household Hhold Structures (e.g., graveyards, D) wells, businesses, etc.) Quantit Unit Land Cash Quanti Unit Entitlem Quanti Unit Entitlem Quantit Unit Entitlem y (M2) Price for ty Price ent ty Unit Price ent y Unit Price ent Land (VND) (M2) (VND (VND) (VND (VND) (VN (VND) (VND M2 per M2) ) D) per M2 ) 38 Form 4 Vietnam: Central Highland Poverty Reduction Project Socio-Economic Household Data Sheet of Displaced People Component: _______________ Province: _______________ District: _________________ Commune: _______________ Sub-Project: _______________ Occupation Estimated Survey Address of Name of Household Member Sex Age Ethnic Educatio and Sources Employme Total No. Household Group n of Income nt Income per Year (VND) 39 40 41