power transmission investment program: pleiku-my phuoc-cau

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DUE DILIGENCE REPORT AND CORRECTIVE ACTION PLAN Project Number: 42039-035 August 2012

Multitranche Financing Facility Socialist Republic of Viet Nam: Power Transmission Investment Program PLEIKU-MY PHUOC-CAU BONG 500 KV TRANSMISSION LINE

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ACRONYMS AND ABBREVIATIONS ADB - Asian Development Bank (or the Bank) APs - Affected Persons

CPC - Commune Peoples’ Committee CPPMB - Central Vietnam Power Projects Management Board DCARC - District Compensation and Resettlement Committee

DPs - Displaced Persons EA - Executing Agency

EMA - External Monitoring Agent DMS - Detailed Measurement Survey GoV - Government of Vietnam GRC - Grievance and Redress Committee HHs - households IOL - Inventory of Losses

LAR - Land Acquisition and Resettlement LARPs - Land Acquisition and Resettlement Plans LURCs - Land User Rights Certificates

MFF - Multi-tranche Financing Facility NPT - National Power Transmission Corporation ODA - Overseas Development Assistance

PIB - Project Information Booklet PPC - Provincial Peoples’ Committee

PPTA - Project Preparatory Technical Assistance REMDPs - Resettlement and Ethnic Minority Development Plans

ROW - Right-of-way SPS - Safeguards Policy Statement SR2 - Safeguard Requirements 2 SR3 - Safeguard Requirements 3

TL - Transmission Line

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I. INTRODUCTION

A. Overview

1. The CPPMB has initiated the acquisition of lands for the tower foundations in the absence of a resettlement plan duly approved by Asian Development Bank (ADB). The land acquisition was implemented at the time when the PPTA Consultants were assisting the National Power Transmission (NPT) Corporation in preparing the six social safeguard documents for the 500 KV Transmission Line Project. As such, due diligence was conducted to evaluate if the REMDP/LARP implemented by the Central Vietnam Power Projects Management Board (CPPMB) met the requirements defined in ADB’s 2009 Safeguards Policy Statement (SPS) and the relevant land acquisition laws in Vietnam. This report covers the land acquisition and resettlement in five provinces and a city from central towards the southern part of Vietnam, namely: Gia Lai, Dak Lak, Dak Nong, Binh Phuoc, Binh Duong and Ho Chi Minh City. A Resettlement and Ethnic Minority Development Plan (REMDP)/ Land Acquisition and Resettlement Plan (LARP) has been prepared for clearing the rights-of-way (ROWs) and the tower foundations of the proposed 436.673 km 500kV Transmission Line Project (or the Project) under the Power Transmission Investment Program of the Government of Vietnam (GoV). The Project shall be financed by equity from the GoV and loan through the Multi-tranche Financing Facility (MFF) of ADB under Tranche 21

2. This Due Diligence Report (DDR) accompanies the LARPs and REMDPs prepared for the 500kV section of the project. As land acquisition for the tower bases commenced prior to the preparation of these documents, this report has been prepared and includes a corrective action plan (CAP) which will be implemented concomitantly to the implementation of the REMDP/LARPs. The acquisition of land ahead of Project implementation has prompted ADB to conduct due diligence to assess the adequacy of land acquisition vis-à-vis the social safeguard requirements of the Bank and provide corrective actions, if necessary, as condition to the approval of the Project loan. The purpose of this is to ensure that upon implementation of the CAP any acquisition completed to date will be compliant with the SPS.

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3. The following were required in due diligence exercise:

(i) determine the gaps between the procedures undertaken by CPPMB and the policy requirements of ADB as detailed in REMDPs/LARPs;

(ii) validate if the landowners were already paid and ask for their perceptions on compensation; and

(iii) identify the weaknesses in the implementation of land acquisition and trace their causes as basis for the design of corrective actions.

4. The suite of documents including LARPs, REMDPs and this DDR, when fully implemented will ensure the project’s compliance with ADB’s Social Safeguards.

1 Also included in Tranche 2 is the 220kV Transmission Line for Cu Chi – Duc Hoa (13.42 km) and Cau Bong Hoc

Mon (15.97 km).

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II. RELATIONSHIP BETWEEN DUE DILIGENCE REPORT (CORRECTIVE ACTION PLAN) AND REMDPs/LARPs

5. The DDR and CAP are part of a fully integrated suite of social safeguard documents prepared for the project. People affected by acquisition of land for tower bases to date are the subject of this document while people to be affected by future acquisition activities for both additional tower bases and the ROW are covered under LARP and REMDP documents. Together, these documents ensure compliance with SPS.

6. By definition, any person affected by tower base acquisition (either in the past or in the future) will also be affected by the ROW. Accordingly, the documentation has been designed to work together effectively. This DDR and CAP has been prepared using the same core aspects as the LARPs and REMDPs as follows:

• Policy and principles • Consultation and disclosure • Grievance Redress Mechanism • Implementation arrangements • Replacement Cost Survey data

7. Because any person affected by this DDR and CAP for tower bases will also be affected by the ROW, and the above core components are common to all documents, all people will be fully consulted during CAP implementation and LARP/REMDP updating and will benefit from the consistency ensured by common implementation arrangements and replacement cost survey data. All APs will also have access to the same Grievance Redress Mechanism. The following diagram illustrates the general relationship between the DDR/CAP and LARP/REMDP documents:

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General relationship between the DDR/CAP and LARP/REMDP documents

Due Diligence Report and Corrective Action Plan preparation.

Draft LARPs and REMDPs for each Province preparation.

Common components to all safeguard documents:

• Policy and principles • Consultation and

disclosure • Grievance Redress • Implementation

arrangements • Replacement Cost Survey

Updating of LARPs/REMDPs and implementation of CAP prior to first disbursement

Acquisition activities to date

Acquisition activities in future

Full SPS compliance for all land acquisition activities

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III. SCOPE OF DUE DILIGENCE

9. Safeguard Requirements 2 (SR2) and Safeguards Requirements 3 (SR3) of the Bank’s 2009 SPS prescribed the following general policy procedures in land acquisition and resettlement, for compliance by the EA: (i) project disclosure and public consultation; (ii) consultation of the REMDPs/LARPs with APs; (iii) official concurrence from ADB prior to the implementation of REMDPs/LARPs; and (iv) payment of compensation and entitlement satisfactory to the APs, based on replacement costs. As the focus of this report, the procedures applied by CPPMB were evaluated as to their consistency with the Bank’s policy.

IV. APPROACH AND METHODOLOGY

10. Information presented in this report were largely obtained from primary sources in the field and enhanced with selected statistics from the REMDPs and the LARPs of the 500kV transmission lines. Field investigations were carried out by the ADB Social Sector Specialist and the PPTA Consultants2

11. Detailed records of the field work and consultations are held at: Annex 2 (Minutes of consultation meetings); Annex 3 (List of people met); Annex 4 (pictures taken during field investigations)

from 9 to 16 July 2012 during which time site inspections, consultations and questionnaires were completed. The questionnaire for the sample APs (see Annex 1) aimed to validate if the necessary steps were followed prior to the acquisition of APs’ lands. It provides direct questions if: (i) there were Project disclosure and public consultations undertaken; (ii) they were informed of their rights; (iii) they were consulted on their compensation; and (iv) if they were satisfied or dissatisfied with their compensation. The APs in each province were selected to be representative of the AP group and include farmers, store-owners, female headed households, and members of ethnic minority groups. A total of 27 sample APs were interviewed in host Project communes from four provinces: (i) 7 APs in Gia Lai, (ii) 8 in Dak Lak, (iii) 7 in Dak Nong, and (iv) 5 APs in Binh Phuoc. Ethnicity of the APs consists of Kinh (11), Tay (9) and Jarai (5) as well as Nung (1) and Muong (1). The Kinh represent the country’s mainstream society as the four other groups belong to the ethnic minorities.

12. The REMDP and LARP documents for Tranche 2 of the Power Transmission Investment Program establish a set of agreed principles for social safeguards. This Due Diligence was prepared using these principles as a reference point.

V. LAND ACQUISITION AND COMPENSATION

13. A total of 908 APs shall have their lands permanently acquired, 728 have LURCs, 169 are without LURCs but are eligible to apply for LURCs, 5 are renters and 6 are encroachers. About 339,138 m² of lands which are largely used for agriculture shall be permanently acquired for the 926 tower foundations; 808 for suspension towers and 118 for tension towers. The acquisition shall affect 333 houses and 923 other structures. Based on the impacts of land acquisition, 64 HHs shall be severely affected, of which, 48 HHs are headed by Kinh and 16 by ethnic minorities. They were categorized as severely affected since they shall experience 10% or more impacts of permanent acquisitions from their total landholdings. Summarized in the table below are the relevant statistics from REMDPs/LARPs.

2 The PPTA Consultants consisted of Ms. Khuc Thi Thanh Van and Mr. Mr. Tran Minh who were later joined by Ms.

Michiko Suga, ADB Social Sector Specialist.

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Table 1: Statistical Information on Permanent Land Acquisition For the 500Kv Transmission Lines

Provinces Number of APs

Severely Affected HH

No. of Towers

Affected Lands (m²)

Affected Houses

Other Structures

Gia Lai 128 5 173 46,220 39 43 Dak Lak 90 3 163 66,538 33 59 Dak Nong 279 16 237 106,855 103 349 Binh Phuoc 212 1 200 73,351 83 229 Binh Duong 103 7 99 27,046 66 230 Ho Chi Minh 96 32 54 19,128 9 13

Total 908 64 926 339,138 333 923 Source: REMDPs and LARPs prepared by PPTA Consultants

VI. Policy Requirements in REMDP/LARP

14. Tranche 2 of the Power Transmission Investment Program has 20 common policy requirements, stated as NPT’s policy commitments, which were written in the REMDP and LARP documents. They were reconciled from the relevant legislations of the Government of Vietnam (GoV) and the policy requirements of ADB and reflected in this report as among the bases in assessing the CPPMB’s compliance on land acquisition. While the policies were prescribed for the updating of REMDPs/LARPs, they are also applied to the DDR and CAP. They cover the activities in planning and implementation as well as the management of the social safeguard documents, such as follows:

Policy for CAP implementation, DMS and Updating of REMDP/LARPs (i) No land acquisition or site clearing will be done for the ROWs and towers ahead of

Project implementation. Land acquisition or clearing of the ROWs will only be undertaken upon completion of payment for compensation based on updated REMDP/LARP duly approved by ADB drawn from detailed design of the Project.

(ii) Permanent or temporary acquisition and/or clearing of lands that will result to physical and/or economic displacements of persons or households will be avoided or minimized, as much as possible, by identifying feasible alternatives in Project engineering design, alignment of ROWs, access roads, and work stations.

(iii) Joint participatory consultations and meetings with Project-based stakeholders, displaced persons (DPs also known as APs) and community organizations will be carried out prior to detailed measurement survey (DMS), during the updating and implementation of the REMDP/LARP. Women, disabled, the elderly and ethnic minorities will be invited to participate in the consultations and meetings. The comments and suggestions of the DPs will be recorded and taken into account for consideration in the updating or implementation of the REMDP/LARP, where legally acceptable and ethically relevant.

(iv) DPs will be systematically informed and consulted about the Project, the rights and options available to them, the proposed mitigating measures, special assistance measures to vulnerable groups and the need for the preparation of REMDP/LARP. The REMDPs/LARPs will be disclosed in a language according to the ethnicity of the DPs and involve them in decision-making process concerning their resettlement.

(v) The NPT will conduct due diligence on the ownership of affected assets, with assistance from representatives of the commune or village government, and identify 100% of the DPs who are severely and marginally affected by land restriction and/or land acquisition. Severely affected DPs are those who stand to lose 10% or more of their economic and

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important assets while marginally affected DPs are those who will lose below 10% of the same.

(vi) Detailed measurement survey will use a survey tool that will enable to segregate important data on DPs by sex and ethnicity as basis for updating the compensation and assistance due them.

(vii) The authority that should declare the cut-off date of eligibility of the DPs who are eligible to receive compensation and assistance will be vested on the respective district resettlement and compensation committee.

(viii) Replacement cost surveys will be carried out as bases for compensation of DPs, based on replacement costs, in compliance with the compensation policy of the GoV and ADB.

Policy on REMDP/LARP Implementation (i) Compensation on the affected properties of DPs will be based on replacement cost,

without provisions for deduction of the following: (i) stamp, duties, fees or other payments in case of land; and (ii) depreciation and salvage value of construction materials in case of houses and other structures.

(ii) Payment of compensation to DPs will not be differentiated between the male and the female household heads and between the member of mainstream society and the ethnic minority.

(iii) DPs residing, working, cultivating land and/or doing business during the DMS for the update of the REMDP/LARP are entitled to be compensated for their lost assets, incomes and businesses at market prices prevailing at the time of compensation.

(iv) All DPs whose names are included in the cut-off date established by the district compensation and resettlement committee are entitled to receive compensation. DP from the mainstream society who has no title or any recognizable legal rights to land will be compensated for non-land assets, at replacement cost.

(v) DP from any of the recognized ethnic minority groups without title to the affected land but with claim to such land will be compensated based on replacement value, if it remains viable for use, or replacement land that is culturally appropriate to their environment or habitats.

(vi) Special assistance measures will be provided to the severely affected DPs who shall become vulnerable due to the project, with particular attention to women, children without means of support, disabled, the elderly and landless as well as ethnic minorities and people with incomes below the poverty line. Institutional DPs are excluded from receiving such assistance.

(vii) Resettlement of people will be implemented only upon confirmation on the availability of resettlement site/s that was consulted with DPs and culturally appropriate for DPs who are ethnic minorities. DPs who decide to be relocated in the earth grounding zones will be provided with fireproof materials and lighting arrestors.

Management and Administration (i) Effective institutional arrangements and human resources for consultation, liaison,

land acquisition, resettlement and monitoring will be established to ensure the efficient implementation of REMDP/LARP

(ii) Effective mechanism for arbitration of grievance redress will be established with their members will come from the project-based stakeholders, DPs, women representatives and ethnic minorities.

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(iii) Adequate budgetary support for payment of compensation, assistance, and resettlement will be committed and released to DPs during REMDP/LARP implementation.

(iv) Reliable and efficient database system will be established for the internal monitoring of REMDP/LARP implementation.

(v) The NPT will hire an external monitoring agent (EMA), in behalf of ADB, for the bi-annual external monitoring and evaluation of REMDP/LARP implementation. Confirmation by EMA on the satisfactory compliance on REMDP/LARP implementation will pave the way for NPT to request for “No Objection” from ADB for the award of civil works contract/s.

VII. Findings from Field Investigations

15. Land acquisition activities were mostly carried out in late November and early December of 2011. The process was as follows:

(i) Representatives of the CPPMB and DCARB in cooperation with PECC4 handed over each tower foundation.

(ii) Representatives of the CPPMB and DCARB worked with the CPCs to ask for permissions to directly negotiate with the APs by land acquisition for towers.

(iii) Representatives of the CPPMB and DCARB, commune cadastral officials and representatives of the contractors met the heads of AP households to ask for permissions to start construction activities. If the APs agreed, the construction contractors would pay compensation in advance (about 70% of the total compensation). Otherwise, they would wait for the official compensation plans approved by the DPC, payment of compensation and then land acquisition and construction activities.

(iv) During that time, the inventory groups of the DCARB conducted public meetings, DMS, applied prices, prepared for compensation plans and then posted at the public places. The compensation payment took 2 to 5 months, depending on each province.

(v) CPPMB assigns officials of the Compensation Department to be in charge of the site clearance and compensation activities in each project province. Normally, 2 officials are in charge of one province. They are responsible for cooperating with the DCARBs during the processes of public meetings, DMS, handing over of tower foundations and reviewing compensation plans.

(vi) The compensation payment is carried out by the Accounting Department of CPPMB. Compensation is directly paid to APs with the attendance of the representatives of the DCARBs and CPCs.

(vii) CPPMB has to secure budget for compensation payment. After the compensation plans are approved, the DCARBs post these in public places and informs the CPPMB about the payment date. Then CPPMB will withdraw compensation cash from the Treasury and carry out compensation payment on the date required by the DCARBs.

16. For compensation unit prices the following was applied:

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(i) Compensation unit prices applied are those issued by the PPCs. For affected trees, crops and structures (if any) of the households whose land is acquired for tower foundations, unit prices issued by the PPCs are also applied.

(ii) Assistances are also applied in accordance with the decisions of PPCs. Because land is only acquired for towers, most of the assistances are not applied. In Daklak Province and some districts of Gialai Province, job changing assistance is applied for acquisition of agricultural land; the assistance amount is from 2.5 to 3 times of the unit prices of the agricultural land of the same type.

(iii) Assistances for vulnerable groups and EMs are not applied since the policies of the provinces do not have this provision.

(iv) Other assistances including assistances for the poor, families of wounded soldiers and martyrs, families with contribution to the revolution, and Heroic Vietnamese Mothers are defined by regulations; however, it depends on the levels of impacts to be applied.

17. Outstanding issues related to compensation and land acquisition that were reported during the field investigations were:

(v) As reported by CPPMB, there is no complaint related to land acquisition because (i) before land acquisition, CPPMB and DCARB negotiated with the APs and only upon agreement and payment, construction began; and (ii) public meetings were held several times.

(vi) APs’ concerns mostly related to low compensation prices. The unit price of agricultural land for growing perennial crops is only VND 14,000 to VND 16,000 per m2. Or, the compensation unit price for coffee is VND 210,000 while the harvest value per year of coffee is about VND 500,000. The compensation unit price for pepper is VND 400,000 while its harvest value is VND 500,000. In order to address this issue, the CPPMB has sent an official letter to the PPCs to adjust the unit prices or provide more assistances to meet the value of the affected crops.

18. Based on the field investigation updated information on the actual land acquisition and the number of APs have been obtained. The confirmation of land acquisition by CPPMB and the disclosure of data associated with it were the most important findings during the field investigations. Based on the target of CPPMB, a total of 964 towers shall be established on the ROWs that consist of 867 suspension towers and 97 tension towers. The ROWs will traverse to 21 districts of five provinces and the city of Ho Chi Minh. However, land acquisition has yet to be completed since negotiations with APs on the compensation of lands are still on-going in four districts, one district each in Dak Nong and Ho Chi Minh and two districts in Binh Duong Province. Based on the data from relevant CPPMB departments3

, a total of 702 APs have been compensated for their affected lands, 335,930 m² of lands were acquired and VND 23.916 billion has been paid for the compensations. The table below shows the summary by province.

3 These refer to Engineering Department that provided the data on number of towers; Compensation Department on

the number of APs; and Appraisal Department on lands that have been acquired.

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Table 2: Status of Land Acquisition for the 500Kv Transmission Lines

Provinces

Number of Towers No. of APs

Acquired Lands (in m²)

Amount Paid

(VND’000,000) Suspension

Towers Tension Towers

Total

Gia Lai 183 16 199 138 71,254 11,310 Dak Lak 150 13 163 83 64,465 1,646 Dak Nong 222 26 248 267 113,542 4,724 Binh Phuoc 181 20 201 214 86,669 6,236 Binh Duong 86 13 99 - - - Ho Chi Minh 45 9 54 - - -

Total 867 97 964 702 335,930 23,916 Source: Three departments of CPPMB (see Footnote No. 5). Note: Amount paid to APs represents compensation for land and other assets.

19. Variances between the data in the above table and those from the REMDPs and LARPs are noted particularly in the number of towers, APs with permanent land acquisitions and the size of acquired lands. Actual final numbers will be known upon completion of detailed engineering design at which time all safeguard documentation will be updated.

VIII. DUE DILIGENCE FINDINGS

20. Project Disclosure and Consultations. Across the four provinces, all respondent APs disclosed that there were consulted by CPPMB and the respective District Compensation and Resettlement Committee (DCARC). From the sample respondents, 80% were aware of the TL Project and 20% were not. The APs who were unaware of the Project could be assumed that they did not attend the consultations in their communes. The CPCs were active in disseminating information to their constituents when it comes to public meetings of great importance.

21. Consultation on Compensation. All respondents have confirmed that it was explained to them the purpose of taking their lands. However, 20% disagreed that they were consulted on their compensation compared to the 80% APs who confirmed that they were consulted.

22. Feedbacks on Compensation. Only 45% of the respondent APs were satisfied on the compensation they received. The primary issue is the low valuation of their affected properties including the lands which, accordingly, were based on the unit prices issued by the Provincial Peoples Committees (PPCs). The APs have prior knowledge on the prices of lands in their localities but the compensations they received were much lower by 30% to 40% from the market prices. The same practice on payment of compensation was applied to affected coffee, pepper and fruit trees as well as industrial trees. Investments on these economic assets are much higher than the compensation being offered, citing the case of private companies that refused the payments.

23. An issue on the manner of payment of compensation to APs was also noted. About 30% of the respondents disclosed that they were paid in instalment, 70% in advance and 30% for latter payments, with 5% of the respondents were paid three times.

24. The foregoing approaches applied by CPPMB are not compliant if matched against the provisions of Decree No. 197/2004/ND-CP and the policy requirements of ADB particularly the Safeguard Requirements 2 (SR2) and Safeguard Requirements 3 (SR3).

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IX. Grievance Redress Mechanism

25. The CPPMB will ensure that all grievances and complaints on any aspect of land acquisition, compensation and resettlement are addressed in a timely and satisfactory manner. All possible avenues will be made available to DPs to air their grievances by establishing a well-defined grievance redress mechanism. Complaining DPs can send their complaints or grievance to all parties involved in Project implementation related to compensation, entitlement, compensation policy, rates, land acquisition, resettlement, allowance and income restoration. The complaining DPs will not be charged of any fee during the resolution of their grievances and complaints. Nothing in this GRM removes APs ability to pursue the matter through the Vietnamese legal system. There are three (3) stages in the resolution of grievances and complaints under the Project.

First Stage: Commune Peoples’ Committee - An aggrieved affected DP may lodge his/her complaint before any member of the CPC through the Village Chief or directly to the CPC, in written or verbal form. It is incumbent upon the village chief to notify the CPC about the complaint. The CPC will meet personally with the aggrieved affected household and will have 15 days to resolve the complaint. The CPC secretariat is responsible for documenting and keeping file of all complaints that it handles.

Second Stage: District Peoples’ Committee - If after 15 days the aggrieved affected household does not hear from the CPC, or if the affected household is not satisfied with the decision taken on his/her complaint, the complainant may bring the case, either in writing or verbally, to any member of the DCARC or the District Peoples’ Committee (DPC). The DPC or DCARC will have 15 days to resolve the grievance or complaint. The DPC is responsible for documenting and keeping file of all complaints and will inform the DCARC of its decision. The DCARC will ensure that the DP is notified of the decision.

Third Stage: Provincial Peoples’ Committee – If after 15 days the aggrieved affected household does not hear from the DPC, or if the affected household is not satisfied with the decision on his/her complaint, the affected household may bring the case, in verbal or in writing, to the PPC. The PPC has 15 days within which to resolve the complaint to the satisfaction of all concerned. The PPC is responsible for documenting and keeping file of all complaints and inform the DPs of its resolution.

26. The above grievance redress mechanism will be disclosed and discussed again with the DPs prior to loan appraisal by ADB and during the updating of this LARP to ensure their understanding of the process. The CPPMB and the DCARC of the relevant Districts are responsible for following-up the grievance process of the DPs.

X. CORRECTIVE ACTION PLAN

27. The above findings demonstrate that further activities are required during implementation to ensure that land acquisition covered by this DDR is compliant with SPS requirements. During the implementation of the REMDP and LARPs, a detailed replacement cost survey and consultation/disclosure consistent with the provisions of the project REMDF and the REMDPs/LARPs will be undertaken for each province during which time the needs of APs affected by the land acquisition of this DDR will also be addressed.

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27. The corrective actions required are detailed below. The CAP is fundamentally simple. The backbone of the process is a detailed replacement cost survey (RCS) along the entire corridor, which by definition will include the tower bases. Any difference between the amount paid to date, and the amount which should be paid based on the RCS, will then be paid to the APs and any other necessary support provided in accordance with the project’s resettlement policy and principles.

28. The corrective actions required to achieve full SPS compliance are:

Corrective Action Responsible Entity Timeline

Prepare a list of APs detailing impact.

Information is to include: socioeconomic information such as sex, ethnicity, size of total lands, affected lands, impact from permanent land acquisition and other affected assets like house, other structures, trees and crops.

NPT/CPPMB/SPPMB

Prior to the first

withdrawal for the 500 kV Pleiku – My

Phuoc – Cau Bong

transmission line

Prepare a list of APs detailing compensation paid to date.

The list will also detail the compensation and assistance to each AP reflecting the cost of land, houses, other structures and trees.

NPT/CPPMB/SPPMB

Undertake Replacement Cost Survey

A replacement cost survey in each District is required to ensure the compensation paid to date reflects the true replacement cost.

NPT/CPPMB/SPPMB

Retro-pay the gap between the amount paid and the findings of the Replacement Cost Survey

NPT/CPPMB/SPPMB

Ensure APs are compensated in the same manner as specified in the REMDPs and LARPs for the District/Province

NPT/CPPMB/SPPMB

Verification report and documentation of above steps and SPS compliance.

XI. BUDGET AND FINANCING

29. The full cost of implementation of the above CAP will be borne by NPT/CPPMB. A total of VND 24 billion compensation has been paid to date. The final budget for CAP will be based on the Replacement Cost Survey findings for land, crops and other assets.

30. This DDR finds that approximately half of the respondents consider they were under-compensated by 30-40%. This will be tested during CAP implementation against the RCS to be prepared. For budgeting purposes, the following formula has been applied:

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32. This formula is based on the total payments to date (VND 24 billion) and that half of the respondents consider they were under–compensated by 30-40%. For budgeting purposes, the worst case scenario (40% rather than 30%) has been applied.

VND 24 Billion

2 X 0.4 = 4.8 billion = USD 240,000

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Annex 1 PART I: AFFECTED LAND OWNER

Village: __________________________ Commune: ___________________

District: __________________________ Province: ___________________ Introduction. Thank you very much for giving your valuable time to this meeting. Our purpose is to get your opinion on the acquisition of your land for the construction of the suspension and tension towers. As you should know, the National Power Tower Corporation of Vietnam Electricity will establish a 500kV transmission line from Gia Lai Province to Ho Chi Minh City. Lands will be acquired for the towers in order to build the 436.673 km transmission line. The Project shall be financed by loan from Asian Development Bank and counterpart funds from the Government of Vietnam. And since lands will be acquired, there should be corresponding compensation to its owners. Please, provide us the following information as they are important in formulating the compensation policy under the Project.

Name: ___________________________ Sex: □Male □ Female Ethnicity: ___________ 1. Total area of land _________ m² 2. Area of acquired land __________ m²

3. Use of the land: □agricultural land □ land for growing rice □ forest land

□ residential land □ garden land 4. Are you aware of the transmission line that will be established here in your commune?

□ Yes □ No 5. Was there a public meeting and consultation held in your commune before the CPPMB

initiated the acquisition of your land? □ Yes □ No 6. Did the CPPMB or District Compensation and Resettlement Committee (DCARC)

representatives distribute written information during the public meeting and consultation?

□ Yes □ No 7. Were you informed of your rights in case you have complaint about your compensation?

□ Yes □ No

8. Were you informed of other assistance you are entitled to under the Project? □ Yes □ No

9. Do you still remember when did the CPPMB acquire your land? ___________________.

10. Did they explain to you the purpose of taking your land? □ Yes □ No

11. When did you receive the compensation to your affected properties? _______________.

12. Have you been consulted by CPPMB or DCARC on the compensation of your affected

properties? □ Yes □ No

13. Which office that handed the payment for the affected properties of your households, CPPMB or DCARC? ______________.

14. How much did you receive? VND_______________________.

15. What are the compositions of the amount paid to you? (a) land VND_______________; (b) house VND______________; (c) crops VND_____________; (d) fruit trees VND_______________ (e) industrial trees _______________; (f) special assistance VND _______________.

16. Are you satisfied with the amount of compensation paid to your properties? □ Yes □ No 17. Give your opinion on the compensation of your affected properties. ___________________

____________________________________________________________________.

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Annex 2

MINUTES OF THE MEETING WITH CPPMB and PECC4

Date: July 9 2012

CPPMB

Participants:

Nguyen Van Chien – Official of Appraisal Dept. under CPPMB;

Ong Thanh Tuan – Official of Compensation Dept. under CPPMB. In charge of Gialai Province

Nguyen Truong Son – Official of Compensation Dept. under CPPMB. In charge of Daknong Province

PECC4

Nguyen Duc Hoang – Official of Environmental and Social Center under PECC4.

Hoang Duc Khai – Official of Surveying Center under PECC4.

TA Consultant

Khuc Thi Thanh Van

Social safeguards documents are prepared to comply with the requirements of ADB’s SPS (2009). The preparation is divided into 2 phases. Phase 1- in early 2011, CPPMP signed a contract with PECC4 to prepare for LARP and REMDP. Until the middle of the year, a consultant team of ADB reviewed these documents and required to conduct replacement cost survey, additional consultations and restructure the documents to be consistent with the outline required by ADB (The meeting minutes have been sent to TA Consultant for reference).

The final documents were submitted by PECC4 to CPPMB after completing the requirements mentioned above. The version was October 2011. This version has been sent to TA Consultant for review.

Due to pressure of power supply and weather of the region (construction activities can only be carried out in dry season; the rainy season lasts about 6 months which are difficult for construction activities), CPPMB is allowed by NPT to negotiate with the PAPs in order to speed up the site clearance progress, which, in fact, is not contrary to the regulations of the Government.

The negotiation with the PAPs was carried out in late 2011. Depending on each province, the time was different. For example, in Gialai province, in some districts, negotiation with PAPs

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was carried out in August and September. Land acquisition activities were mostly carried out in late November and early December of 2011. The process is as follows:

- Representatives of the CPPMB and DCARB in cooperation with PECC4 handed over each tower foundation.

- Representatives of the CPPMB and DCARB worked with the CPCs to ask for permissions to directly negotiate with the people affected by land acquisition for towers.

- Representatives of the CPPMB and DCARB, commune cadastral officials and representatives of the contractors met the heads of PAHs to ask for permissions to start construction activities. If the PAPs agreed, the construction contractors would pay compensation in advance (about 70% of the total compensation). Otherwise, they would wait for the official compensation plans approved by the DPC, payment of compensation and then land acquisition and construction activities.

- During that time, the inventory groups of the DCARB conducted public meetings, DMS, applied prices, prepared for compensation plans and then posted at the public places. The compensation payment took 2 to 5 months, depending on each province.

Compensation unit prices applied:

- Compensation unit prices applied are those issued by the PPCs. For affected trees, crops and structures (if any) of the households whose land is acquired for tower foundations, unit prices issued by the PPCs are also applied.

- Assistances are also applied in accordance with the decisions of PPCs. Because land is only acquired for towers, most of the assistances are not applied. In Daklak Province and some districts of Gialai Province, job changing assistance is applied for acquisition of agricultural land; the assistance amount is from 2.5 to 3 times of the unit prices of the agricultural land of the same type.

- Assistances for vulnerable groups and EMs are not applied since the policies of the provinces do not have this provision.

- Other assistances including assistances for the poor, families of wounded soldiers and martyrs, families with contribution to the revolution, and Heroic Vietnamese Mothers are defined by regulations; however, it depends on the levels of impacts to be applied.

Cooperation between CPPMB and CARBs:

- CPPMB assigns officials of the Compensation Department to be in charge of the site clearance and compensation activities in each project province. Normally, 2 officials are in charge of one province. They are responsible for cooperating with the DCARBs during the processes of public meetings, DMS, handing over of tower foundations and reviewing compensation plans.

- The compensation payment is carried out by the Accounting Dept. of CPPMB. Compensation is directly paid to PAPs with the attendance of the representatives of the DCARBs and CPCs.

- CPPMB has to secure budget for compensation payment. After the compensation plans are approved, the DCARBs will post at public places and inform the payment

16

date to the CPPMB. Then CPPMB will withdraw compensation cash from the Treasury and carry out compensation payment on the date required by the DCARBs.

Understanding of LARAPs:

- CPPMB officials in charge of the project provinces are those who have more than 5 year experience in site clearance and compensation fields. They often carry out compensation, site clearance and cooperate with the DCARBs and provinces in the state budget projects. Therefore, they are aware of the Government’s policies on compensation and land acquisition for transmission line and substation projects.

- However, these officials do not have thorough understanding of the social safeguards policies of ADB.

- Concerning LARAP prepared by PECC4, most of the officials have not read the LARAP yet. Land acquisition master plan of each province prepared by PECC4 is sent to the DCARBs; however, the DCARBs do not necessarily apply these assistances. This document is only used to refer to the list of affected households and to make sure to have sufficient procedures.

Outstanding issues related to compensation and land acquisition:

- As reported by CPPMB, there is no complaint related to land acquisition because (i) before LA, CPPMB and DCARB negotiated with the PAPs and only when they agreed, did the advance payment and construction activities carry out; and (ii) public meetings were held several times.

- People’s concerns (not complaint/grievance) are mostly related to low compensation prices. The unit price of agricultural land for growing perennial crops is only VND 14,000 to VND 16,000 per m2. Particularly, the compensation prices for economic crops including coffee, rubber and pepper. The compensation unit price for coffee is VND 210,000 while the harvest value per year of coffee is about VND 500,000. The compensation unit price for pepper is VND 400,000 while its harvest value is VND 500,000.

- Concerning this, the CPPMB has sent an official letter to the PPCs to adjust the unit prices or provide more assistances to meet the value of the affected crops. However, there has not been any answer from the PPCs.

Construction unit:

- Contractors for 16 packages of the TL Project are nominated because the budget of CPPMB is limited; the contractors will advance cash for construction activities.

- The contractors are not provided with information or documents related to safeguard policies of the Project.

- There is no mandatory clause for the contractors to implement mitigation measures for environmental and social adverse impacts during project implementation process.

- For emerging impacts during construction period, the DCARBs will carry out additional DMS and compensate for affected assets.

17

Minutes of the Meeting with DCARB in Chu Prong

Date: July 10 2012

Chu Prong DCARB

Participants:

Doan Ngoc Hai Deputy Manager of Chu Prong DCARB;

Nguyen Thanh Tuan Site clearance staff;

CPPMB


Ong Thanh Tuan – Official of Compensation Dept. under CPPMB. In charge of Gialai Province.

Nguyen Truong Son – Official of Compensation Dept. under CPPMB. In charge of Daknong Province.

PECC4



TA Consultant

Khuc Thi Thanh Van

Tran Minh

In Gialai Province, lands for 173 towers have been acquired and lands for 163 towers have been compensated. Thus, lands for 10 towers and 20 PAHs have not been acquired and compensated.

DCARB and CPPMB handed over landmark and negotiated with PAPs in December 2011 to carry out DMS, apply prices and advance 70% of compensation value. Until February and March 2012, the remaining will be provided.

Before negotiation with the PAPs, the DCARB held public meetings with the PAHs losing lands for tower foundations in Dec 2011. In each commune, 2 meetings were organized. In each meeting, unit prices were informed to the PAPs. However, because there were several types of unit prices for several categories, the DCARB could not inform to the PAPs all of them. People always concern about the low compensation prices.

18

When handing over land mark, there was presence of DCARB, the Consultant (Surveying Center of PECC4), CPPMB, commune cadastral officials, head of villages and PAHs. DMS was carried out in 1 month.

Compensation plans are carried out in accordance with the policies and decisions of the PPCs, including the Decision No. 407/2010 dated June 21 2010 on compensation for houses and structures; Decision No. 36/2011 dated Dec 21 2011 on compensation for land; Decision No. 818/2010 on compensation for trees and crops; and Decision No. 05/2011 on assistances and resettlement. People are concerned about the land prices. For example, the value of 1ha of productive land is VND 200,000,000 while the compensation price for 1ha is VND 110,000,000.

During the implementation period, it shows that the compensation prices for houses and structures are quite satisfactory. For the cash crops such as pepper, the market price is VND 500 million/ha/year while the compensation price is VND 350 million/ha. To invest in pepper, people have to spend VND 1,200,000/pepper but the compensation price is only VND 622,000. DCARB and CPCs, Fatherland Front, WU and other associations have to explain to and encourage the PAPs.

To invest in 1ha of rubber trees, it costs about VND 70 million/ha; however, according to the PPC’s regulation, the compensation price is only VND 30 million/ha.

Concerning the organizations (companies), there is official letter of Vietnam Rubber Group requires to secure capital. The district has official document requiring to address the issue, However, there is no answer. Quang Duc Enterprise has not received compensation because the enterprise does not accept the compensation prices.

Concerning 10 tower foundations of Gialai Province, the DMS is being carried out. DMS for losses under the ROW is being prepared to carry out. Since the Decision No. 19 issued by the PPC only specifies the assistances for losses under ROW of the structures with the voltage of 35 kV and below, the districts are requesting the Department of Natural Resources and Environment to advise the PPC on compensation for lands under the ROW of the 500kV TL.

In Chu Prong District, there are 24 houses under the ROW. In compliance with the principle that land is not acquired but assistance is provided for restricted land use capacity (waiting for the official document of the province). There is no grave under the ROW. The graves of the EMs are often near the spring (according to their customs), it can be sure that there is no grave of the EMs under the ROW. However, there might be graves of Kinh people under the ROW.

There are 7 main houses affected among 24 households losing houses and structures under the ROW. 6 houses are built on agricultural land. For the cases of houses built on agricultural land, the affected houses are still compensated at 100% of the value.

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Among these households, there are households who have no land in other places but they can build houses on the remaining area of agricultural land. For these cases, if the households want to change land use purpose to residential land, the CPCs have to verify that there is no dispute. Then, the DONRE will organize a meeting, apply Law on land use purpose to change the land use purpose for these households.

In Chu Prong and Chu Puh, no assistance is applied, including the assistances specified in Decree No. 69 on agricultural land support while other districts apply the assistance level from 2.5 to 3 times of the agricultural land prices corresponding to the land category.

Chu Prong DCARB will review and have official document to the DONRE about the assistances defined in the Decree 69 to provide additional assistances.

As for workers losing jobs in the rubber companies cannot be identified and no assistance is provided for these workers.

It is unable to identify the households who have disabled member(s).

Other assistances will be applied according to ADB’s requirements only when the PPC approves.

No complaint/grievance is recorded. There are some concerns about the low compensation prices. In general, people are not satisfied with the prices. However, since the prices are issued by the PPCs, they have to accept.

Additional information during interviews with the PAHs in Ia Bang Commune, Chu Prong District, Gialai Province.

PAH: Vuong Manh Long Nung ethnic group Nguyen Thi Luong Kinh ethnic group

Mr. Long did not participate in any public meeting. His wife, Mrs. Nguyen Thi Luong, participated once. The household has 4 persons including husband and wife and two children. The household is classified as poor household by the local authorities (2012) and is affected more than 10% of their agricultural landholding. Mr. Long is a worker of Quang Duc Rubber Company. The house was identified to relocate since it was under the ROW and affected by tower foundation. However, the tower foundation has been adjusted to avoid resettlement for Mr. Long’s household. The main impacts are on land, 5 pepper towers and 30 pepper without towers and 320m2 of cassava. He cannot remember the compensation amount. His wife kept the money.

Mrs. Luong said that the compensation prices were low. The household wanted to be compensated for impacts caused by construction activities, temporarily affected lands to be returned so that they could continue growing pepper. The household also wanted to be informed with effects of electromagnetic on people’s health.

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Ia Bang Commune People’s Committee

Ms. Bui Thi Ngoc – Deputy Chairman of Ia Bang CPC.

Before, consultation was organized by PECC4. Last year, public meetings were held by the DCARB with the PAHs at the CPC.

People said that the compensation prices were low. At first, about 5 to 6 households did not accept and thus did not allow construction activities. Then the CPC and the Fatherland Front had to explain to them and encourage them to support the project. In the commune, lands were acquired for 14 to 16 tower foundations but I do not remember the exact number of PAHs.

Among the PAHs, there is a poor household. No household has disabled person. No household is single woman-headed household. The Deputy Chairman cannot remember the specific compensation unit prices. According to her, Kinh people are more disadvantaged because most of them grow economic trees and cash crops and thus the differences between the investment and compensation prices are bigger. Meanwhile, the EMs often grow crops including cassava and maize.

Under the ROW, 6 households have to relocate. These households built houses on agricultural land. According to the CPC’s opinion, the DCARB and DPC should change the land use purposes for them to ensure their entitlements because they do not have residential land in other places.

Among 6 relocating households, 5 houses were built before July 1 2004 and 2 households are EM HHs, namely Siu Nhip (Jarai) and Long (Nung).

Other households who are Giarai EM people said that the compensation prices for land, trees and crops are low.

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DAKLAK PROVINCE

July 12 2012

CPPMB

Participants:


Tran Huu Lai – Official of Compensation Dept. under CPPMB. In charge of Daklak Province.

PECC4



ADB Staff and TA Consultant

Michiko Suga

Khuc Thi Thanh Van

Tran Minh

Quang Hiep Commune, Cu Mga District, Dak Lak Province.

Ho Van Ngoc Hai Cadastral official of Quang Hiep CPC

The commune has 17 tower foundations. DMS and public meetings were conducted by the Land Fund Development Center and the Fatherland Front. DMS was carried out in Dec 2011. 20 households are affected. The majority of people in the commune are Kinh people, ethnic minorities people are mainly immigrants from the Northern provinces; there is no indigenous people.

In general, there is no outstanding issue related to compensation. Some households are concerned about the compensation prices (VND 14,000/m2 of agricultural land). People hope that the compensation prices will be increased.

For construction activities, people want to know that for how long land will be returned for them to continue production activities.

The commune cadastral official knows that the project is funded by ADB but is not aware of the project’s policy.

Household of Nguyen Thi Hai Kinh

Hoang Van Doi Tay

22

The household has 6 members with a yearly income of VND 50 million. The main income sources are from coffee, cashew and cattle breeding.

The compensation amount was about VND 54 million. The household has used this amount to invest in 100 pepper towers.

PAH. Luu Xuan Bach- Kinh group. Selling agricultural materials and purchasing agricultural products.

The household has just received compensation for lands for towers. Impacts caused by access road and material site have not been compensated yet.

The main income sources are from growing pepper and coffee. Sales from the shop are not great since last year the crop was poor. We often do credit sales of materials for people growing coffee and pepper with low interests; after that when they sell their coffee or pepper, they will pay back to us.

Public meetings were organized at the CPC but I cannot remember the compensation unit prices. The compensation payment should be carried out one time and construction activities should be speed up so that people can stabilize their production activities.

PAH. Be Ich Ca and Nguyen Thi Loi – Tay ethnic group.

The coffee price is 193 x 82 trees. However, the DMS record is not given to the PAH, so the household does not know exactly the number of trees as well as their categories. Therefore, the household is concerned that although coffee are grown in the same year but classified differently as A and B. Representative of the CPPMB (Mr. Lai) explained that the classification of trees does not entirely depend on the year but the harvest quality, output.

The household is affected by access road. 50 cashew trees have been inventoried but the earthing conductor has not been inventoried yet.

The household thinks that the compensation prices are low and classification of trees is not reasonable.

PAH. Hoang Minh Phuong and Hoang Thi Tam

Impacts caused by access road and material site have not been compensated yet.

The household is not satisfied with the compensation prices. At first, the price applied was VND 16,000 (as negotiated) but then the payment price was VND 14,000/m2 (since land for growing cashew has lower prices than land for growing rubber trees).

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DAKNONG PROVINCE

Date: July 13 2012

Cu Jut DCARB

Participants:

Truong Thanh Tung Deputy Chairman of DPC;

Ta Buu Duc Deputy Manager of the DCARB;

Nguyen Tu Anh Tuan Member of DCARB

CPPMB


Nguyen Truong Son – Official of Compensation Dept. under CPPMB. In charge of Daknong Province.

PECC4




Michiko Suga

Khuc Thi Thanh Van

Tran Minh

The section of TL traversing Cu Jut district is 21km long, affecting 4 communes.

Most of the people support the project.

The basis for calculating the compensation prices is the unit prices issued by the PPC.

So far, 10 households (affected by 9 tower foundations) of 3 communes have not agreed. In which, 2 households in Truc Son Commune, 4 households in Nam Jong Commune and 4 households in Eapo Commune. These households do not accept as the compensation for lands and trees is low.

3 households have to relocate due to impacts caused by tower foundation, namely Nguyen Van Khanh (Truc Son Commune), Tran Van Hong and Nguyen Van Hong (Nam Jong Commune).

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These households have relocated and built houses on the remaining areas (Nguyen Van Hong and Nguyen Van Khanh) or bought land and built houses near the previous place (Tran Van Hong).

Houses built on agricultural land are compensated at 80% of the value. If house is built after July 1 2004 compensation is not provided.

Land:

Agricultural land support is specified as follows:

compensated according to the unit prices issued by the PPC. Land is classified based on locations and area.

Perennial crop land: >3,000 2 times

Annual crop land: 2000 2 times

Wet rice land: 1000 2 times

Among the households affected by tower foundations, no household is entitled to this assistance. The PPC provides the limits as above to apply assistance because the Decree 69/2009/ND-CP stipulates that it depends on the situation of each province.

Assistances for relocating household include:

- Life stabilization: 6/12/24 months corresponding to number of members - Rental (corresponding to number of members)

o < 2 persons: 6 months - Relocation allowances - Poor household allowances

However, all assistance listed above have not provided for 3 relocated households since these assistances are being calculated for each household. The DCARB and CPPMB will provide these assistances for 3 households this year.

There is no

- Assistance for EMs

:

- Assistance for single women - Assistance for the disabled - Assistance for business disruption - Assistance for workers losing jobs

In case these assistances are required by ADB, the DCARB will ask for the approval of the PPC. If the PPC approves, these policies will be applied.

Most of the queries are in Nam Dong Commune since the agricultural land prices in Nam Jong are higher because lands are better.

25

CPPMB in cooperation with the DCARB conducted public meetings. DMS was carried out with the participation of the CPPMB officials, PECC4, DCARB and PAHs. Compensation plans were posted at the public places for the PAHs to review. DMS records were not given to the PAHs.

PAH. Lung Van Dan and Rau Thi Lung

The household has received compensation and participated in the public meeting. However, there are emerging impacts during the construction period. Foundation is done during rainy season, thus rain water has dragged soil and affected other coffee bushes of the household.

The household is concerned that whether temporarily affected land is compensated for PAH or not.

PAH. Ly Thi Hoa – Mong ethnic group

The household did attend the public meeting but cannot remember information provided in the meeting. The household has received compensation and used to invest in growing pepper and pay back the Bank. There are 7 members in the family. The main income sources are from growing cashew, crops, coffee, pepper and livestock husbandry. Annual income is about VND 240 million. Before, the household was poor household. For the last 2 years, the household has escaped from poverty. Cannot speak Mong language and no longer contact/come back to the native place.

PAH. Tran Van Hong – Kinh

Relocated household.

List of PAHs, compensation plans were posted at the public places. The household did attend the public meeting held at the CPC. Before the DMS, through public meeting, the household knew that they have to relocate. On the occasion of the neighboring household (opposite) wanted to sell land, the household bought new land. Until December, the household received an advance payment of 70% of the compensation amount and thus used to build new house. In 2012, the household moved to the new house. The new house is bigger and nicer but the residential land area is smaller than the previous one. The compensation amount is only enough for buying residential land and building house. No assistance has been provided. The head of household as his wife are more than 65 years old. The main income sources are from growing crops. However, the crop was poor last year so the income was very little. The household has just been engaged in growing coffee so there has not been any harvest yet. The cost for hiring labor to do agriculture is about VND 130,000 to VND 150,000/day. Residential land bought: VND 200,000/m2; compensation price: VND 80,000/m2. Building house cost VND 400 million.

26

PAH. Nguyen Van Hong and Dinh Thi Thanh- Kinh

The household is affected by the same tower foundation with household of Tran Van Hong. The remaining area is 7x50m. By late 2013, the household will have to relocate. So, they are not in the rush to move now. The household plans to reorganize on the remaining area. However, they are worried about the effects of electromagnetic on people’s health. The household is a fertilizer agent; however, according to the regulations of the Government of Vietnam, the household is not provided with assistance for business disruption.

MINUTES OF THE MEETING IN BINH PHUOC PROVINCE

Dong Phu DCARB

Date: July 14 2012

Dong Phu DCARB

Participants:

Nguyen Van Thanh Deputy Chairman of DPC – Chairman of DCARB;

Nguyen Manh Hung Chief of the Secretariat of Dong Phu DPC;

Pham Duc Chuyen Staff of the Office of Dong Phu DPC;

Pham Phu Dien Deputy Director of Land Fund Development Center. Member of the DCARB.

CPPMB


Lam Thanh Que – Official of Compensation Dept. under CPPMB. In charge of Binh Phuoc Province.

PECC4




Michiko Suga

Khuc Thi Thanh Van

Tran Minh

27

Surveying and identifying the affected households according to the cadastral map. The Consultant and CPPMB handed over site clearance landmark. PAPs list their affected assets and the DCARB will check and compare. Prices are applied in accordance with the prices issued by the PPC.

People in general support the Project. The Land Fund Development Center directly works with the CPCs and PAPs. Compensation is paid in advance and the remaining is paid according to the approved compensation plan. Some households did not attend the meeting, so information is provided through mass media. To avoid problems, the Land Fund Development Center has informed the notary public’s office to stop notarizing land to prevent land transactions during implementation period.

In the district, there are 56 tower foundations. DMS and decision approving compensation plan for 46 towers have been completed. Lands for 10 towers are being done.

In principle, for households who have not received compensation and opposed, administrative sanctions will be applied 15 days after 3 negotiations. After the sanctions, if the household still opposes, enforcement will be conducted (10 days).

Referred to the Master plan prepared by PECC4. In the master plan, there is no assistance for poor households or EM households.

In case of special assistances, DCARB requires the CPCs to classify poor households, households in need of special assistance and then propose. The DCARB will review case by case.

Houses, depending on built time, will be compensated from 80% to 100%.

Grievance redress will be undertaken by Head of Justice Dept. and Fatherland Front.

PAH. Hoang Van Do – Tay ethnic group

The household has not received compensation, waiting for accurate documents. The documents have been corrected since June 2012, and are approved. On July 17, compensation will be provided.

According to Mr. Do, public meetings were held. People think that the compensation prices are low.

PAH. Ngan Van Toan – Tay ethnic group

No opinion. The household requires that temporarily affected land should be compensated for and construction activities should be completed soon.

PAH. Hoang Van Phu – Tay ethnic group

28

The household requires to be relocated since their house is only 2m from the ROW (next to the tower foundation).

The household is worried about safety.

PAH. Ngan Van La- Tay ethnic group

House will be displaced due to impacts caused by ROW.

However, the household does not know the compensation unit prices for affected house. The household will organize on the remaining area.

Worried about people’s health.

BINH DUONG PROVINCE AND HOCHIMINH CITY

Date: July 16 2012

CPPMB

Participants:


Cong – Official of Compensation Dept. under CPPMB. In charge of Binh Duong Province.

PECC4




Michiko Suga

Khuc Thi Thanh Van

Tran Minh

In Tan Phu Trung Commune, TA Consultant has visited some tower foundations. At present, there is no land acquisition carried out in the commune.

In Binh Duong Province, visited some tower foundations. According to the official in charge, the status is as follows:

29

In Binh Duong Province, there are 99 tower foundations. Negotiations with PAPs are being carried out to ask for their permission to start construction activities. Negotiations have been done for nearly 50 tower foundations. In July, 70% of the compensation amount will be paid in advance and construction activities will be started.

For some foundations, people do not agree because the compensation prices are low. Compensation prices for land and rubber are lower than the average transaction/market prices in the area.

30

Annex 3

LIST OF PEOPLE MET NO. Full name Position Address Note/Ethnic group

I CPPMB 1 Nguyen Van Chien Official Appraisal Department CPPMB 2 Mr. Thanh Tuan Official Compensation Department In charge of Gia Lai

province. 3 Tran Huu Lai Official Compensation Department In charge of Dak Lak

province. 4 Nguyen Truong Son Official Compensation Department In charge of Dak Nong

province. 5 Lam Thanh Que Official Compensation Department In charge of Binh Phuoc

province. 6 Cong Official Compensation Department In charge of Binh Duong II PECC4 7 Nguyen Duc Hoang Official Environment and Social

Centre PECC4. In charge of data

8 Hoang Duc Khai Official Survey centre PECC4. In charge of survey III Gia Lai province - Chu Prong district Doan Ngoc Hai Deputy-Head District Compensation

Board

Nguyen Thanh Tuan Expert District Compensation Board

Bui Thi Ngoc Chairman of CPC Ia Bang commune Vuong Manh Long AP Thoong village, Ia Bang

commune Nung

Nguyen Thi Luong AP Thoong village, Ia Bang commune

Kinh

Ro Lang Gio AP Phul village, Ia Bang commune

Gia Rai

Kpa Tih AP Phul village, Ia Bang commune

Gia Rai

Kpa Thik AP Phul village, Ia Bang commune

Gia Rai

Ro Lang Bik AP Phul village, Ia Bang commune

Gia Rai

Klah Ap Phul village, Ia Bang commune

Gia Rai

IV Dak Lak province – Cu Mga district Ho Van Ngoc Hai Cadastral official Quang Hiep commune Kinh Nguyen Thi Hai AP Hiep Doan village, Quang

Hiep commune Kinh

Hoang Van Doi AP Hiep Doan village, Quang Hiep commune

Tay

Luu Xuan Bach AP Hiep Doan village, Quang Hiep commune

Kinh

Be Ich Ca AP Hiep Doan village, Quang Hiep commune

Tay

Nguyen Thi Loi AP Hiep Doan village, Quang Hiep commune

Tay

Hoang Minh Phuong AP Hiep Doan village, Quang Hiep commune

Kinh

Ha Duy Do AP Hiep Doan village, Quang Hiep commune

Kinh

Hoang Thi Tam AP Hiep Doan village, Quang Kinh

31

Hiep commune V Dak Nong province – Cu Jut district Truong Thanh Tung Deputy Chairman Cu Jut DPC Ta Buu Duc Deputy Chairman District Compensation

Board

Nguyen Tu Anh Tuan Member of the Compensation Board

Cu Jut district

Luong Van Dan AP Village 4 Truc Son commune

Tay

San Thi Luong AP Village 4 Truc Son commune

Tay

Ly Thi Hoa AP Village 5 Truc Son commune

Mong

Nguyen Van Dien AP Village 6 Truc Son commune

Kinh

Tran Van Hong AP Tan Ninh commune, Nam Dong district

Kinh – affected on house due to construction of pole foundation. Having relocated. Stabilized in new accommodation.

Nguyen Van Hong AP Tan Ninh commune, Nam Dong district

Kinh – Affected on house due to construction of pole foundation. Having not relocated.

Dinh Thi Thanh AP Tan Ninh commune, Nam Dong district

VI Binh Phuoc commune – Dong Phu district Nguyen Van Thanh Deputy Chairman of PC – Head of Compensation

Board

Nguyen Manh Hung Chánh văn phòng Dong Phu DPC Pham Duc Chuyen Chuyên viên DPC office Pham Phu Dien Phó giám đốc District Land Fund

Development Centre Member of the Compensation Board

Dinh Van Do AP Thuan Tan village, Thuan Loi commune

Tay – Having not received compensation because of mistake in documentation.

Ngan Van Toan AP Thuan Tan village, Thuan Loi commune

Tay

Hoang Van Phu AP Thuan Tan village, Thuan Loi commune

Tay

Ngan Van La AP Thuan Tan village, Thuan Loi commune

Tay – affected house due to the ROW

Nguyen Thi Phu AP Thuan Tien village, Thuan Loi commune

Tay

32

Annex 4

PICTURES TAKEN DURING FIELD INVESTIGATIONS

MEETING WITH COMPENSATION COUNCIL OF CHU

PRONG DISTRICT IN GIA LAI PROVINCE POWER FOUNDATION POSITION AT VUONG MANH

LONG’S HOUSE IN IA BANG COMMUNE, CHU PRONG DISTRICT, GIA LAI PROVINCE

VUONG MANH LONG’S HOUSE MIGHT NOT BE RELOCATED BECAUSE THE POWER AREA WAS

RELOCATED

WORKING WITH AUTHORITY OF IA BANG COMMUNE IN CHU PRONG DISTRICT, GIA LAI PROVINCE.

POWER FOUNDATION POSITIONS AT MS.HAI AND MR. HIEN’S HOUSE IN QUANG HIEP COMMUNE, CU MGA DISTRICT, DAK LAK PROVINCE

OBSERVING POWER FOUNDATION POSITIONS IN QUANG HIEP COMMUNE, CU MGA DISTRICT, DAK LAK PROVINCE

33

CONSTRUCTION AT POWER FOUNDATION POSITION AT MR. NGUYEN VAN HONG AND MR. TRAN VAN HONG’S HOUSES IN NAM DONG COMMUNE, CU

JUT DISTRICT, DAK NONG PROVINCE

MR. TRAN VAN HONG’S NEW HOUSE IN NAM DONG COMMUNE, CU JUT DISTRICT, DAK NONG PROVINCE

BOTTOM PART OF POWER ON MR. NGUYEN VAN HONG’S LAND IN NAM DONG COMMUNE, CU JUT DISTRICT, DAK NONG PROVINCE

CONVERSATION WITH HOUSEHOLD NGUYEN VAN HONG IN NAM DONG COMMUNE, CU JUT DISTRICT, DAK NONG PROVINCE

MEETING WITH COMPENSATION COUNCIL OF DONG PHU DISTRICT, BINH PHUOC PROVINCE

POWER FOUNDATION POSITION AT MR. HOANG VAN PHU’S HOUSE IN THUAN LOI COMMUNE, DONG PHU DISTRICT, BINH PHUOC PROVINCE

34

MR. PHU’S HOUSE, 2METRES AWAY FROM THE ROAD’S ROW. HE IS REQUESTING TO RELOCATE HIS HOUSE.

CURRENT SITUATION OF POWER FOUNDATION 7403 IN BINH PHUOC PROVINCE

SITE CLEARANCE MARKER AT THE LAST

FOUNDATION CONNECTING TO BONG BRIDGE STATION IN CU CHI DISTRICT, HO CHI MINH CITY

HOUSES BUILT AFTER CUT – OFF DATE IN DAK

SONG DISTRICT, DAK NONG PROVINCE.

power transmission investment program: pleiku-my phuoc-cau

Documents