vol 13- resettlement due dilligence summary and resettlement policy framework

NGHI SON REFINERY AND PETROCHEMICAL LIMITED LIABILITY COMPANY

RESETTLEMENT DUE DILIGENCE SUMMARY

AND RESETTLEMENT POLICY FRAMEWORK

Ho Chi Minh City March 2011


RESETTLEMENT DUE DILIGENCE SUMMARY AND

RESETTLEMENT POLICY FRAMEWORK

Prepared for


Prepared by

RESEARCH AND DEVELOPMENT CENTER FOR PETROLEUM SAFETY & ENVIRONMENT

Ho Chi Minh City

March 2011

RESETTLEMENT DUE DILIGENCE SUMMARY & POLICY FRAMEWORK NGHI SON REFINERY AND PETROCHEMICAL COMPLEX

i

ABBREVIATIONS

AP Affected Person

AH Affected Household

CPC Commune People‘s Committee

CRC Commune Resettlement Committee

DMS Detailed Measurement Survey

DOLISA Department of Labour Invalids and Social Affairs (province level)

DONRE Department of Natural Resources and Environment

DPC District People‘s Committee

DRC District Resettlement Committee

EMA External Monitoring Agency

HH Household

IFC International Finance Corporation

IOL Inventory of Losses

LURC Land Use Right Certificate

MOLISA Ministry of Labour Invalids and Social Affairs (national level)

NSRP Nghi Son Refinery and Petrochemical

NSRP LLC Nghi Son Refinery and Petrochemical Limited Liability Company

NSRPMB Nghi Son Refinery Project Management Board

NSEZ Nghi Son Economic Zone

NSEZMB Nghi Son Economic Zone Management Board

PIB Project Information Booklet

PPC Provincial People‘s Committee

PRA Participatory Rapid Appraisals

PS Performance Standard

PRC/DRC Provincial Resettlement Committee / District Resettlement Committee

RC Resettlement Committee

RDDR Resettlement Due Diligence Report

RP Resettlement Plan

RPF Resettlement Policy Framework

RS Resettlement Site

ROW Right of Way

SES Socioeconomic Survey

THPPC Thanh Hoa Province People Committee

TGDPC Tinh Gia District People Committee

TOR Terms of References

VND Vietnamese Dong (national currency)


ii

Definitions of Key Terms

Compensation means payment in cash or kind for an asset to be acquired or affected by a project at replacement cost.

Completion audit means an evaluation by an independent third party to assess whether the outcome of the resettlement plan complies with IFC policy on involuntary resettlement.

Cut-off-date means the date after which APs will NOT be considered eligible for compensation, i.e., they are not included in the list of APs as defined by the socio-economic survey.

Displaced Persons means all the people affected by a project through land acquisition, relocation, or loss of incomes and includes any person, household, firms, or public or private institutions who as a result of a project would have their (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house, land (including residential, commercial, agricultural, plantations, forest and grazing land) or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily adversely affected; (iii) business, occupation, place of work, residence, habitat or access to forest or community resources adversely affected, with or without displacement or (iv) loss of access to fishing grounds;

Detailed Measurement Survey (DMS) means the complete measurement and assessment of lost assets. DMS data will be used to determine compensation and entitlements.

Encroachers mean those people who move into the project area after the cut-off date and are therefore not eligible for compensation or other rehabilitation measures provided by the project.

Entitlement means the range of measures comprising cash or kind compensation, relocation cost, income rehabilitation assistance, transport assistance, income substitution, and various other allowances.

Involuntary Resettlement refers both to physical displacement and to economic displacement (loss of assets or access to assets that leads to loss of income sources or means of livelihood) as a result of project-related land acquisition. Resettlement is considered involuntary when affected individuals or communities do not have the right to refuse land acquisition that results in displacement. This occurs in cases of: (i) lawful expropriation or restrictions on land use based on eminent domain: and (ii) negotiated settlements in which the buyer can resort to expropriation or impose legal restrictions on land use if negotiations with the seller fail. In the event of adverse economic, social, or environmental impacts from project activities other than land acquisition (e.g., loss of access to assets or resources or restrictions on land use), such impacts will be avoided, minimized, mitigated or compensated for through the social and environmental assessment process of IFC‘s Performance Standard 1 on social & environmental assessment and management system.

Land acquisition means the process by which the Project acquires land from affected individuals or households in exchange for compensation at replacement value.

Livelihood Restoration means the measures required to ensure that APs have the resources to at least restore, if not improve, their livelihoods.

Project Affected Person (AP) means the same as displaced person within the meaning of IFC‘s Performance Standard 5 on land acquisition and involuntary resettlement, and means any person experiencing loss of asset, access to income whether of a temporary or permanent nature due to the land acquisition process regardless of whether they are physically displaced or relocated or not.

Project Affected Household (PAH) means the family or collection of APs that will experience effects from land acquisition regardless of whether they are physically displaced or relocated or not.

Replacement cost means the rate of compensation for lost assets must be calculated at full replacement cost, that is, the market value of the assets plus transaction costs. With regard to land and structures, IFC defines ―replacement costs‖ as follows:


iii

agricultural land—the market value of land of equal productive use or potential located in the

vicinity of the affected land, plus the cost of preparation to levels similar to or better than those of the

affected land, plus the cost of any registration and transfer taxes;

land in urban areas—the market value of land of equal size and use, with similar or improved

public infrastructure facilities and services preferably located in the vicinity of the affected land, plus

the cost of any registration and transfer taxes;

household and public structures—the cost of purchasing or building a new structure, with an area

and quality similar to or better than those of the affected structure, or of repairing a partially affected

structure, including labor and contractors‘ fees and any registration and transfer taxes.

In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset.

Vulnerable groups mean the people who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by resettlement than others and who may be limited in their ability to claim or take advantage of resettlement assistance and related development benefits.


iv

TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................................................................ 1

1.1 Nghi Son Refinery Project ..................................................................................................................... 1 1.1.1 Overview of the Project ..................................................................................................................... 1 1.1.2 Rationale, Objectives and Benefits of the Project ............................................................................. 1 1.1.3 Evaluation of Alternatives for the Project Location ........................................................................... 2 1.1.4 Main Components of the Project ...................................................................................................... 5 1.1.5 Secondary Project Components ....................................................................................................... 6 1.1.6 Area of Influence............................................................................................................................... 6

1.2 Purpose of the Resettlement Policy Framework ................................................................................. 29

2. ANALYSIS OF PAST RESETTLEMENT ...................................................................................................... 10

2.1 Surveys and Activities Conducted ....................................................................................................... 10 2.1.1 Household Questionnaire ................................................................. Error! Bookmark not defined. 2.1.2 Meetings with Local Authorities and Interviews with Relocated AHs .............................................. 11 2.1.3 Replacement Cost Survey .............................................................................................................. 12

2.2 Characteristics of the Project Area ...................................................................................................... 12 2.2.1 Population ....................................................................................................................................... 12 2.2.2 Nghi Son Economic Zone ............................................................................................................... 12 2.2.3 Land Use ........................................................................................................................................ 13 2.2.4 Tenure ............................................................................................................................................ 13 2.2.5 Average Land Size in the Project Area ........................................................................................... 13 2.2.6 Employment .................................................................................................................................... 13 2.2.7 Income ............................................................................................................................................ 13 2.2.8 Incidence of Poverty ....................................................................................................................... 13 2.2.9 Household Living Conditions .......................................................................................................... 13 2.2.10 Gender Issues ................................................................................................................................ 14 2.2.11 Ethnic Groups ................................................................................................................................. 14

2.3 Status of Resettlement Activities ......................................................................................................... 15 2.3.1 Land Acquisition ............................................................................................................................. 15 2.3.2 Structures Affected ......................................................................................................................... 16 2.3.3 Loss of Source of Livelihoods ......................................................................................................... 16 2.3.4 Resettlement Sites.......................................................................................................................... 17

2.4 Compensation Issues .......................................................................................................................... 18 2.4.1 Replacement Cost Survey .............................................................................................................. 19 2.4.2 Main Concerns of APs .................................................................................................................... 20

2.5 Public Consultation ............................................................................................................................. 21

2.6 Gap Analysis ....................................................................................................................................... 23

3. PROJECT POLICY, LEGAL FRAMEWORK AND ENTITLEMENTS ............................................................ 29

3.1 Legal Framework ................................................................................................................................ 29 3.1.1 Relevant Vietnamese Legislation ................................................................................................... 29 3.1.2 Policy Applied in the Thanh Hoa Province and the Nghi Son Economic Zone ............................... 30 3.1.3 IFC Policy on Involuntary Resettlement .......................................................................................... 34

3.2 Government, IFC, and Project policy .................................................................................................. 35

3.3 Process for Resettlement Plan Preparation ........................................................................................ 37


v

3.3.1 Step 1: Notice of Land Acquisition .................................................................................................. 37 3.3.2 Step 2: Detailed Measurement Survey ........................................................................................... 37 3.3.3 Step 3: Replacement Cost Survey .................................................................................................. 37 3.3.4 Step 4: Preparation of the Draft RP ................................................................................................ 38 3.3.5 Step 5: Public Meetings .................................................................................................................. 38

3.4 Entitlements ........................................................................................................................................ 39 3.4.1 Compensation rates ........................................................................................................................ 39 3.4.2 Cut-off Date .................................................................................................................................... 40 3.4.3 Non Titled Land Users .................................................................................................................... 40 3.4.4 Severely Affected Persons ............................................................................................................. 40

4. VULNERABILITY AND GENDER ISSUES .................................................................................................. 47

4.1 Specific Measures for Gender ............................................................................................................. 47

4.2 Vulnerable Households ....................................................................................................................... 47

5. PROJECT IMPLEMENTATION ARRANGEMENTS ..................................................................................... 48

5.1 Nghi Son Refinery and Petrochemical Limited Liability Company ....................................................... 48

5.2 Thanh Hoa Province Peoples‘ Committee (THPPC) ........................................................................... 48

5.3 Nghi Son Economic Zone Management Board ................................................................................... 48 5.3.1 Tinh Gia District People‘s Committee ............................................................................................. 49 5.3.2 Tinh Gia District Resettlement Committee ...................................................................................... 49 5.3.3 Commune People‘s Committees .................................................................................................... 49 5.3.4 EPC Contractors ............................................................................................................................. 49

6. GRIEVANCE MECHANISM ......................................................................................................................... 51

7. CONSULTATION PROCESS ....................................................................................................................... 53

7.1 Consultations during the Preparation of the Resettlement Plans ........................................................ 53

7.2 Public Disclosure ................................................................................................................................. 53

8. BUDGET ...................................................................................................................................................... 53

LIST OF TABLES

Table 1-1: Evaluation of Regional Site Selection ............................................................................................. 3

Table 2-1: Land already Acquired, Compensated and Handed over to the Project ....................................... 15

Table 2-2:Land already acquired and handed over for Resettlement Sites ................................................... 15

Table 2-3: Status of Relocated HH (March 2011) .......................................................................................... 16

Table 2-4: Characteristics of Resettlement Sites ........................................................................................... 17

Table 2-5: Actions Taken by THPPC and NSEZ to Respond to Recommendations ...................................... 25

Table 3-1: Differences between National Laws and the IFC Policy and Project Policy .................................. 35

Table 8-1: Entitlement Matrix ......................................................................................................................... 41


vi

LIST OF FIGURES

Figure 1-1: Project Area of Influence ............................................................................................................... 7

Figure 1-2: Location of the Nghi Son Refinery Project ..................................................................................... 8

Figure 1-3: Main Project Components ............................................................................................................. 9

Figure 5-1: Organization of Resettlement for the Nghi Son Refinery Project ................................................. 50

Figure 6-1: Grievance Process ...................................................................................................................... 52

LIST OF APPENDIXES

Appendix 1: Public Information Booklet........................................................................................ ................52

Appendix 2: Livelihood Restoration Program................................................................................................54

Appendix 3: Monitoring Program...................................................................................................................59


1

1. INTRODUCTION

1.1 CONTENT OF THE REPORT

This resettlement due diligence summary and resettlement policy framework is prepared for the Nghi Son Refinery Project (NSRP).

It consists of two main parts: 1) a summary of a due diligence that was conducted of past resettlement (before August 2008) to establish the gaps between government lead resettlement and IFC Performance Standards; and 2) a resettlement policy framework that will be applied to all future resettlement conducted by the NSRP.

The Resettlement due-diligence summary is based on a resettlement due diligence reports that was prepared in January 2010 and updated in February 2011. The report contains a detailed analysis of the past resettlement that was implemented by the Thanh Hoa provincial Government in accordance with the IFC Performance Standards requirements for resettlement (PS5).

The Resettlement Policy Framework (RPF) provides policies and entitlements for any future expansion of the NSRP or for any other components of the project that will require permanent land acquisition

1.2 NGHI SON REFINERY PROJECT

1.2.1 Overview of the Project

The Nghi Son Refinery and Petrochemical (NSRP or Project) is a refinery and petrochemical complex. The refinery is designed to process 200,000 BPSD (approximately 10 million tons/year) of imported Kuwait Export Crude (KEC) oil. The complex will produce, among others, LPG, gasoline (92/95 RON), Kerosene/Jet A-1, diesel (premium and regular) fuel oil, Paraxylene/Benzene, Polypropylenes and Sulphur.

The NSRP will be the second major oil refinery in Viet Nam after Dung Quat. It is located in the Nghi Son Economic Zone (NSEZ) in Tinh Gia District, Thanh Hoa Province, approximately 200 km south of the Vietnamese capital, Ha Noi. With a capital investment estimated to be US$ 6 billion, the Project encompasses an onshore development area of about 400 hectares and 260 hectares of offshore marine facilities. Construction is expected to start in 2011, with the petrochemical complex being operational by 2014.

1.2.2 Rationale, Objectives and Benefits of the Project

Viet Nam's energy demand is rising quickly; the country needs to speed up its investment plans for the energy sector. Viet Nam, at present, has to import almost all of its refined oil products for domestic consumption. Vietnamese firms operate a few small processing facilities, which supply small amounts of fuel to the domestic market.

Even with the commissioning of the Dung Quat refinery that came into operation in 2009, less than 40% of the domestic fuel demand is actually met. The rest will have to be covered by imports with the volume increasing sharply over the next few years. Therefore, the purpose of constructing the Nghi Son Refinery and Petrochemical Complex is to reduce the shortage, saving hard currency for imports as well as minimizing the dependence on the international market.

The demand for refined products from other industrial fields is growing very quickly. The capacity of the polypropylene unit in the Dung Quat Refinery (150 kt/y) creates only a small amount of chemical product compared to the market demand. Therefore, securing another source of feedstock for the development of the petrochemical industry is another purpose of the Nghi Son Refinery-Petrochemical Complex Project (PP, P-Xylene, and Benzene). The Project will not only produce petroleum-derived fuels but will also generate the feedstock for the petrochemical industry, partially meeting the domestic demand and minimizing the dependence on imported ones.


2

With the development of the Dung Quat Refinery Project, the rate of investment in the petroleum industry changes dramatically in the regions around Dung Quat, mainly in the Southern and Central areas. Currently, there are almost no oil & gas facilities in the North, except the Tien Hai Gas Field (Thai Binh Province) with a very small production. Thus, in order to implement one of the key targets set for the 2001–2010 Socio-Economic Development Strategy as stated in the Resolution of the 9th National Congress for equally developing all large economic zones in the three areas of the country, the building of the Refinery - Petrochemical Complex in the North is of very great importance.

The objectives and benefits of the Project are the following:

To ensure national security through the basic satisfaction of the domestic fuel demand: the Project will secure long-term imported crude supply of approximately 10 million tons/year.

To supply feedstock for the development of the petrochemical industry and to decrease foreign dependence: starting in 2014 with the commissioning of the Project, the Nghi Son and Dung Quat refineries together will be able to meet 50% of national demand for fuel products.

To contribute to the economic development in the Northern area to ensure equal development of the country: the Project will be a major impetus for socio-economic development in the region of southern Thanh Hoa and northern Nghe An provinces, creating significant employment during both the construction and operation phases.

1.2.3 Evaluation of Alternatives for the Project Location

The Inter-Ministerial Working Group1 carried out an evaluation of regional alternatives for the location of the Project. The criteria included natural conditions, infrastructure and markets for refinery products, socio-economic activities and national security.

Subsequently, a consultant (ABB) working in consultation with the Nghi Son Project Management Board and relevant Ministries and Branches in Thanh Hoa Province conducted a comparative evaluation of local options in the Nghi Son area to site the onshore and offshore facilities. The assessment criteria included safety, environmental protection, available construction area, expansion area, site preparation, construction costs, construction and operations logistics and the ability to connect different facilities within the proposed complex.

1. Minimization of Land Acquisition and Resettlement Impacts

The minimization of physical and/or economic displacement of people and businesses was an important evaluation criterion for the evaluation studies. Particularly with respect to the selection of local sites for onshore and offshore facilities, the number of displaced households and the costs of resettlement were considered in the evaluation of options. 2. Project Region Options

A regional site selection study was carried out from August 1998 to March 1999 to assess four (4) locations in the Northern and Central regions, namely: Dinh Vu (Hai Phong), Nghi Son (Thanh Hoa), Vung Ang (Ha Tinh) and Hon La (Quang Binh). The following table summarizes the advantages and disadvantages of each site with respect to evaluation criteria.

1 The Inter-Ministerial Working Group was comprised of members from the Government Office, Ministry of Planning &

Investment, Ministry of Construction, Ministry of Transportation, Ministry of Industry, Ministry of Science, Technology & Environment and Vietnam Oil and Gas Petroleum Cooperation – presently Vietnam Oil and Gas Group (PetroVietnam).


3

Table 1-1: Evaluation of Regional Site Selection

Location Advantages Disadvantages

Dinh Vu (Hai Phong)

- Located in strategic economic triangle of Ha Noi-Hai Phong-Quang Ninh

- Highly attractive for foreign investment capital

- Good infrastructure services

- Low land, 80% of island area is flooded by tides: high costs to build the plant.

- Long distance from SPM to onshore & difficult for large crude tanker approaching through the edge

- Shallow ship access – require annual high dredging cost

- Close to Ha Long Bay and high potential risk of oil spill accident

Nghi Son (Thanh Hoa)

- Located in largest economic zone of Thanh Hoa Province.

- Nghi Son 2.3 MMTA Cement Plant of Japan under construction.

- Located nearby the North and the Central North Region and close to the key economic triangle of Hanoi - Hai Phong - Quang Ninh.

- Suitable natural condition for constructing refinery & petrochemical projects.

- Open bay suitable for building SPM and sea port.

- Deep enough for large crude tanker from 100,000 DWT to 250,000 DWT.

- Possibility to build the product port at the west-southern side of Nghi Son Island. No need to build the breakwater due to effective utilization of Bien Son Island as natural breakwater.

- Good infrastructure services

- Increased economic development for the North Central and Northern Regions.

- Requires site clearance of a densely populated area and relocation of residents in the region.

-

Vung Ang (Ha Tinh)

- Located in the North-Central Region

- Will become an industrial zone with deep-water port.

- Suitable for refinery & petrochemical project construction with deep seaport.

- Good Infrastructure services

- Promote local industry and service development and ensure equal development between the regions.

- Open sea to the north and east-north, so request the construction of an expansive breakwater for the seaport.

- Low elevation site location – needs huge filling work and longer construction period

- Higher initial investment capital than the other sites.

- Long distance to the industrial centers and other northern provinces.

- Higher transportation cost


4

Location Advantages Disadvantages

- Hon La (Quang Binh)

- Locate in the North-Central Region, 60 km from Dong Hoi and 30 km from the south of Ba Don.

- Suitable for port development with deep water bay and good natural conditions.

- High elevation of construction site and near to National Highway 1A.

- Suitable for constructing refinery & petrochemical projects.

- Poor existing infrastructure

- Not to become a strategic industrial zone due to its size limitation for industrial and residential development.

- Sufficient for the refinery construction only, not for other industrial projects.

- Less convenient for product distribution.

Based on economic and technical criteria and investment capital and transportation expenditure factors, the Inter-Ministerial Working Group concluded that the Nghi Son site was clearly the most suitable location. Other factors such as socio-economic development strategy, regional labor force distribution and national security also favored Nghi Son for the development of the refinery and petrochemical complex. The most important reasons for the selection of the site can be summarized as follows:

Proximity to the key economic triangle of Ha Noi – Hai Phong – Quang Ninh, the northern Delta region and the former Zone IV.

Suitable natural conditions, namely: a large, flat area that is not susceptible to flooding, as well as the potential to use Bien Son Island as a natural breakwater.

Available infrastructure including transportation network, power supply, water supply and a port.

Compatible with the strategic development orientations of Petro Vietnam.

Compatible with the master plans for social and economic development for the North Central Zone, the Northern Zone and, at the national level, Viet Nam.

Compatible with the Master Plan for development in the Nghi Son area.

The recommendation of the Inter-Ministerial Working Group was approved by the Prime Minister of Viet Nam; Decision No. 647/QD-TTg dated August 5, 2002 formally named Nghi Son as the site for NSRP.

3. Preferred Refinery Site

In the Nghi Son area, two sites were identified as possible locations for the NSRP: Mai Lam: a site located in the communes of Mai Lam, Hai Yen and Tinh Hai, along Provincial Road 513

and 5 km to the west of Highway 1A.

Hai Thuong: a site located to the northeast of Xuoc Mountain in the communes of Hai Thuong, Hai Ha, Hai Yen, Mai Lam and Tinh Hai, along Provincial Road 513 and 10 km to the west of Highway 1.

The estimated number of displaced households is similar at each of these sites. Other criteria, however, favored the Mai Lam site: a larger, rectangular area and flat topography that facilitates site preparation and development; no leveling required to a part of the mountain; rapid dispersion of discharged gases; easy to access from many directions; and, easy to install a submarine pipeline transporting crude oil from the SPM to the Complex‘s storage tank farm.

To avoid high expenses related to site filling and leveling, the Vietnamese Government took over responsibility for some preparatory works at the site, including: Compensation and relocation of affected households and communities located at the Project site.


5

Preparation of resettlement sites including infrastructure with access roads, electricity, water supply, school and cultural house, etc, for affected households.

Setting-out the site area and the establishment of boundary markers, benchmarks and survey monuments.

Site filling, leveling and compaction activities.

The selection of ‗borrow-pits‘ to provide suitable materials in very large quantities for site filling.

The selection of a consultant for the basic design of site preparation and the preparation of the EIA for this phase (site filling) of the work.

The location of the site in a densely populated area, however, has the following impacts:

Resettlement of a large number of households into areas where they will no longer be able to pursue agricultural livelihoods

Economic and social disruption of a large number of households;

Relocation of a large number of households far from their former location;

Need to clear area around the site for environmental reason leading to new relocation of households;

Mitigation measures to address these impacts have been prepared by both the Thanh Hoa provincial People‘s Committee and NSRP and are described in this report (Chapter 2).

4. Offshore Facilities

Initially, the NSRP port was planned near the existing Nghi Son port. However, this would have resulted in additional displacement of people and businesses in addition to environmental risks associated with two port facilities in close proximity. As a consequence, following consultations with Vietnamese authorities, NSRP LLC opted to develop port facilities at the proposed location for the NSEZ harbor.

The SPM location that was initially proposed close to the Hon Me Archipelago was moved 20 km farther offshore for technical reasons, but also to protect the remaining coral reefs located around the Hon Me islands. The offshore crude pipeline was aligned farther north of the archipelago to avoid strong currents around the islands and the risks of damage in case of oil spills.

1.2.4 Main Components of the Project

The Project has several components. Figures 1.2 and 1.3 locate these components.

1. Plant Site (Area B, 328 ha)

The main component is the plant site where the refinery will be located. The plant fits on the 327.8 ha site, excluding reservations for future expansion. The plant site is located in 3 communes, Mai Lam, Hai Yen and Tinh Hai. Clearance of the site started in early 2008. The former land use was mostly agricultural.

2. Pipeline (Area E, 35,2 ha)2

A pipeline network will be built to bring the crude oil import to the refinery and to send the refined products from the refinery to the port. The pipeline will have a total length of around 1.5 km onshore. A total area of 35.2 ha will be needed for the pipeline network. This area is located mainly in Hai Yen commune and a small part in Tinh Hai commune.

3. Marine Facility (Area J, 22,2 ha) 2

2 Preliminary figures indicated 30 ha for area E and 36 ha for area J. However, the final land acquisition for area E will be 35.2 ha

because Thanh Hoa Province agreed to take all the land of APs (for those relocated far from their remaining land) even if they are partially affected (at the request of APs). For area J, part of the area (15.6 ha) is on the shore where no land acquisition is necessary.


6

A large quantity of oversized, overweight equipment will need to be unloaded during the construction phase. A port that will service the construction will be built right next to the refinery. The port will also be used to export refinery products by waterways. This area, along the sea is not populated and mostly planted by pines to avoid erosion. This area is located in Hai Yen commune.

1.2.5 Secondary Project Components

The Project has several secondary components that involve land acquisition.

1. Borrow areas

The borrow pits, mainly used for the filing material, are located in different areas. Borrowing activities started in 2008.

Xuoc Mountain (25.5 ha)

Xuoc Mountain is located south-west of the plant site in Mai Lam Commune. This land is managed by the State. The land was allocated to households for forest activities.

Dong Vang Mountain (68,3 ha)

Dong Vang Mountain is located north-east of the plant site in two communes: Tung Lam and Tan Truong. The land was considered productive forest land and managed by the State.

Chuot Chu Mountain (148 ha)

The borrow pits, mainly used for the filing material, are located on Chuot Chu Hill. This area is located in three communes: Hai Thuong, Hai Yen and Tinh Hai. The total area is 148 ha. Most of the land is occupied by a planted forest and belongs to the State.

Coc Mountain (25 ha)

Coc Mountain is adjacent to the plant site; it is located in Mai Lam and Tinh Hai communes. Most of the land is occupied by a planted forest and belongs to the State.

2. Disposal area (25 ha)

The disposal area is mainly located in Tinh Hai Commune; most of the land is currently used as shrimp ponds. Disposal materials from construction and excavation will be stored there.

3. Access road (8 ha)

A road network to access the plant site will be developed. The length of the access road is 1.6 km for a ROW of, on average, 50 m. The access road will cross two communes, Tinh Hai (750 m) and Mai Lam (850 m). Construction work has started for this access road.

1.2.6 Area of Influence

The Project area of influence corresponds to the South-East of Tinh Gia District; from Tinh Gia town, in the North, to the border with Nghe An Province in the South (see Figure 1.1). This area encompasses: (i) the main components of the project; ii) the borrow and disposal areas; iii) the resettlement sites; and iv) all other associated facilities. Risks and impacts will be analyzed in the context of this area of influence.


7

Figure 1-1: Project Area of Influence

Directly Affected Area

Indirectly Affected Area

Borrow Pit Area

Resettlement Site

Map Name: Directly and Indirectly Affected Areas Distribution

Directly Affected Area

Indirectly Affected Area


8

Figure 1-2: Location of the Nghi Son Refinery Project Legend

Borrow areas

Resettlement Sites

Xuan Lam – Nguyen Binh

Mai Lam Tinh Hai

1

3

2

2

1

3


9

Figure 1-3: Main Project Components


10

2. RESETTLEMENT DUE DILIGENCE SUMMARY Resettlement activities for the project started in early 2008 with the levelling of the plant site and the exploitation of borrow-pits. NSRP‘s first objective was to prepare a Resettlement Plan in accordance with IFC policy for all the project components. However, a decision was made to first prepare a Resettlement Due Diligence Report (RDDR) given that, when Consultants were hired, resettlement activities were already planned and compensation and land clearance already started.

This RDDR was prepared in January 2009 and updated in February 2010 and then in February 2011. The objectives of the RDDR are the following:

- Assess land acquisition/compensation/resettlement/rehabilitation activities already undertaken by the Thanh Hoa Province People‘s Committee and other agencies in the project area;

- Identify any gaps between the government‘s implementation of land acquisition and resettlement and Performance Standard 5 on Land Acquisition and Involuntary Resettlement;

- Propose recommendations, if necessary, to bring land acquisition, compensation, resettlement and livelihood restoration into compliance with Performance Standard 5 on Land Acquisition and Involuntary Resettlement.

This section summarizes the resettlement activities which occurred since 2008 and in particular:

- The surveys carried out by the Consultants;

- The current status of resettlement activities (land already acquired, relocated APs etc.);

- The resettlement sites designed for the project;

- The main concerns of APs;

- The public consultation undertaken;

- The gap analysis between the policy applied for the project and IFC policy and how these gaps have been closed.

2.1 SURVEYS AND ACTIVITIES CONDUCTED

In order to assess if compensation and resettlement were in compliance with PS 5, the following surveys and activities were conducted:

- Meetings with all stakeholders (District and Commune People‘s Committees, Nghi Son Economic Zone Management Board, local organizations such as Women‘s Unions);

- Preparation and implementation of a survey among affected persons (by household questionnaire);

- Preparation of a Replacement Cost Survey;

- First Stakeholder Meeting and Public Consultations held respectively on November 4 and 5, 2008;

- Second Stakeholder Meeting and Public Consultations held respectively on January 28 and 29 2010;

- Meetings with local authorities and interviews with relocated AHs on resettlement activities from May to December 2010;

Socio-Economic Surveys and Due Diligence Surveys, using different households questionnaires, have been conducted in the Project area:

a) Due diligence surveys for APs already compensated and/or relocated;

- A due diligence survey was conducted at the time of the survey (August 2008), given that APs in the plant site had already been compensated for land and the site had already been cleared. The purpose of the survey was to collect socioeconomic information (livelihoods, income, etc.), to identify the extent of losses for APs (especially severely affected APs), the current status of already compensated APs,


11

the compensation received (including assistance), and the satisfaction with the compensation policy and the compensation rates.

- In October 2009, a new due diligence survey was conducted among 25 of the 57 APs, all individually relocated households from Mai Lam Commune (formerly located on the plant site). The purpose of the survey was to assess the relocation conditions of HH and the level of restoration of their livelihoods. At the time of the first survey in August 2008, no HH had been relocated.

- Samples were selected randomly from the list of affected persons obtained from the commune authorities;

- Respectively, 230 HH among 1,907 (12 %) were surveyed on the plant site;

- 25 HHs among 57 relocated HHs (43.9%) from Mai Lam Commune were also surveyed.

b) Socioeconomic surveys for APs not yet compensated and/or relocated.

- Regarding the other components (marine facility and pipeline), at the time of the survey and report preparation, the Detailed Measurement Survey (DMS) was ongoing for area J only, but no compensation had yet occurred. Therefore, a socio-economic survey (SES) was conducted for these 2 components. The purpose of the SES was to collect some socioeconomic information (livelihoods, income, etc.), to identify the extent of losses for APs (especially severely affected APs) and the viability of remaining land, and to collect information on the APs‘ needs in terms of income restoration and assistance.

- Samples were selected randomly from the list of affected persons obtained from the commune authorities;

- 350 HH for areas E & J among a total of about 507 affected HH (69%) of which 281 HHs have houses and affected residential land and 284 HHs who have productive land.

The household questionnaires, for socioeconomic survey and due diligence survey, were conducted during two different periods:

- First period in August-September 2008 based on location of Project site in Mai Lam, Tinh Hai and Hai Yen and the original locations of jetties on Bien Son Island and export product pipelines via Hai Yen, Hai Thuong and Hai Ha communes and available information during this period;

- Second period in October 2009 based on new locations of jetties (East of the Complex and export product pipelines via Hai Yen commune only) and the situation of already relocated APs (Mai Lam commune).

A total of 605/2471 APs were surveyed (24.5%) in the Project area.

Household surveys have been conducted only for the plant site and areas E & J. In the borrow pits and the other secondary components, land is mainly public, impacts are limited and no HH needs to be relocated. Therefore no due diligence or socioeconomic surveys were conducted in these areas. However information on how APs have been compensated in these areas was collected from local authorities.

2.1.1 Consultation with Local Authorities and Interviews with Relocated AHs

NSRP carried out frequent meetings with local authorities and interviews to relocated AHs on resettlement activities from May to December 2010. Two stakeholders meetings and two public meetings were conducted in November 2008 and January 2010. Details of these meeting are presented in section 2.5.

During these meetings, resettlement and social issues for NSRP Project were presented including, the project impacts, the project policy, the IFC requirement for land acquisition and involuntary resettlement (PS5), the conformity of Project Policy with IFC Performance Standards as well as status of resettlement activities.


12

2.1.2 Replacement Cost Survey

To assess if the compensation rates paid to APs (based on PPC prices) meet replacement costs, a replacement cost survey was conducted in 2008. This survey focused mainly on residential land because compensation prices for residential land are the most contested by APs. The objective was to undertake an independent classification and valuation of land in the Project area based on current land use and the market value of land in order for APs to buy the same quality and quantity of replacement land. Data were collected from transactions of recently sold land. Direct interviews were undertaken with landowners in the Project‘s affected area, including those whose land is affected and those whose land is not. The interviews covered the following issues:

- Recent transfers (buying/selling transactions) of land use rights in the area.

- The price at which owners are willing to sell their land.

- Government established rates for land.

Results of the replacement cost survey are presented in section 2.4.1

2.2 CHARACTERISTICS OF THE PROJECT AREA

2.2.1 Population

The project is located in the Tinh Gia District (Thanh Hoa Province). It will mainly affect 3 communes: Mai Lam, Tinh Hai and Hai Yen. Tinh Hai and Hai Yen communes are located along the sea (see Figure 1.2). Thanh Hoa is located outside the key economic development belt of North Vietnam, which comprises Hanoi, Quang Ninh Province and Hai Phong City. It is also far from the major national economic centers.

Table: 2-1: Population in the Project Area (2008)

Province/District/Communes Population Number of HH

Thanh Hoa Province 3,697,200

Tinh Gia District 225,300 52,730

Mai Lam Commune 7,510 1,352

Tinh Hai Commune 6,476 1,432

Hai Yen Commune 4,311 1,216

2.2.2 Nghi Son Economic Zone The Nghi Son Refinery Project is located within the Nghi Son Economic Zone (NSEZ). NSEZ was established in 2006 and covers a total area of 18,612 ha in 12 communes. The purpose of this economic zone is to attract more investment projects to the province. Thanh Hoa Province has made a lot of investments in infrastructure in the economic zone since 2006. The infrastructure comprises traffic-road works, wave control dykes, deep-water ports, scratching out port jets, raw water supply systems, resettlement areas, access roads, etc. The zone is already served by a good transport network (Highway 1, railway, waterway) and has an important strategic position. The Government has prepared a master plan for the whole economic zone, which is intended to include heavy industries, such as oil refinery, ship making, etc. At present, the Nghi Son Cement Company, located in the south of the refinery project, is the only major existing industrial establishment. The land in the NSEZ is mainly planned for industrial development.


13

It is planned for NSEZ to be a bridge linking the northern region and the central and southern regions. It will also be a bridge that links Vietnam to the southern region of Laos and the north-eastern region of Thailand. The zone already has a deep water seaport and will be upgraded to accommodate vessels up to 50,000 tonnes. This area has the potential to become one of the major seaports in Vietnam. NSEZ is led by a management board.

2.2.3 Land Use

The NSRP Project Area is generally composed of flat land where agricultural production dominates. We note the presence of the Coc Mountain within the plant site and the Chuot Chu Mountains south-west of the plant site. The mountains are mainly under forest cover.

2.2.4 Tenure

Around 90% of APs in the Project area have a LURC (Land Use Right Certificate). The remaining 10% are still waiting for the issuance of the LURC. There have not been any APs found without any rights to their land. In some borrow areas, (Xuoc and Dong Van Mountains), the land belongs to State forestry companies. These companies allocate land to individual HHs. These HHs are entitled to receive compensation for investments made in the land.

2.2.5 Average Land Size in the Project Area

Farmers in the Project area own an average of 3000 m2 of agricultural land. This area is sometimes divided into several plots. The size of land varies a lot in the Project area. Discussions with APs and local authorities indicate that to be viable, an area of productive land of 500 m2 per family member is necessary. Therefore, for a family of 4 to 5 persons, an average of 2000 m2 to 2500 m2 per family is necessary. This is lower than the average land size in the Project area.

2.2.6 Employment

The project area is dominated by agricultural production, mainly rice production in the components located far from the sea and the mountainous areas (plant site, pipeline). Aquaculture is also an important source of employment. Salt production is a marginal source of income in the project area, except in the area located near the sea.

2.2.7 Income

In the Project area, the average HH income per month is around 4,200,000 VND. It is higher than the average income on the North Central Coast (2,100,000 VND) and for all of Vietnam (3,200,000 VND). However, from one area to another, the household income varies from 2,900,000 to 5,700,000 VND. We should not underestimate the importance of secondary sources (mainly raising animals, small business and pension from the government) of income which contribute to around one third of the total income.

2.2.8 Incidence of Poverty

According to the Department of Labour Invalids and Social Affairs (DOLISA) of Thanh Hoa province, in 2007, among the 3,623 households in the 3 affected communes, 1,320 (36.4%) were poor households. The poverty incidence is quite high. However, the poverty incidence decreased from 41.8% to 36.4% between 2006 and 2007. In the whole Tinh Gia district, the poverty incidence was 26% in 2007. Poverty incidence is higher in the affected communes than in the whole district.

2.2.9 Household Living Conditions

Based on the date from the socioeconomic survey conducted in the project area, the main characteristics of the household living conditions are as follows:

Water

Regarding the water supply, most of the HH (65.1%) use water from deep wells for their daily activities. No

affected households use tap or piped water. Rain water and shallow wells are also used for cooking.


14

Sanitation

Among affected households, around 53.4% of the HH use pit latrines while 45.1% have in-house toilets.

However, in the pipeline area 73.5% of HH have toilets in the house.

Source of Energy for Lighting

All APs are connected to the National Electricity Network and use electricity as their source of lighting.

Source of Energy for Cooking

In the plant site, respectively 71.7% and 94.3% of APs use gas and firewood for their cooking. The

percentage using coal for cooking is lower, only about 7.4% of the total number of affected households.

However, in the marine facility and pipeline areas, most of the HH use coal as their main source of energy

for cooking. We should note that HH usually use several sources of energy for cooking.

2.2.10 Gender Issues

Women are involved in field work as well as men; they share the same tasks as men. In addition, women are responsible for the housekeeping work. They are also involved in animal husbandry and sell animals at the market.

During the two public meetings several women presented their request and concerns on behalf of other affected persons. Most of the concerns of women were similar as those presented by men. However the following preoccupations raised by several women were identified:

Health issues

- Women‘s primary concern is health issues. Operation of borrow pits and transportation of materials generates large quantity of dust. In addition to economic impacts, this situation leads to respiratory problems especially for children.

- Women asked if the project would have adverse impacts on health (degradation of air quality). They already experience very bad air quality due to dust and they are afraid that the air quality will be even worse with the project.

Safety issues

- The large number of trucks going through the village roads to bring borrow materials create dangerous situation in the village especially for children going to school by foot or by bicycle. Women requested measures to ensure traffic safety.

Income restoration

- Women are also deeply concerned by the restoration of their livelihoods. They asked if the refinery could provide them with jobs. For the families who lost their agricultural land, a job in the refinery would be a good opportunity to obtain a stable income.

2.2.11 Ethnic Groups

The Project will take place in peri-urban areas in Thanh Hoa Province, far from the mountain areas where ethnic minority people live. Results from the socio economic survey showed that no APs belonging to ethnic minority groups were found in the Project area.


15

2.3 STATUS OF RESETTLEMENT ACTIVITIES

2.3.1 Land Acquisition

About 685 ha of land are acquired for the Project and 60 ha for resettlement sites.

Land Already Acquired

At the time of the submission of this report (March 2011), nearly 100% of the total project land has been acquired and compensated. The acquired land includes land for the plant site, pipeline, marine facility, the borrow pits, the disposal area and the access roads. The last area acquired (pipeline and jetty areas) have been acquired and compensated at the beginning of 2011. Land for building the three resettlement sites has also been acquired and all affected HH have been compensated. Only agricultural and aquaculture lands were acquired, no HH has to be relocated due to the building of resettlement sites.

Table 2-1: Land already Acquired, Compensated and Handed over to the Project

Project components Total Productive land3 Residential land HH Ha HH ha HH ha

Plant Site (area B) 1907 328 1398 289 509 39

Pipeline (area E) 403 35.2 188 23 271 18.1

Marine Facility (are J) 104 22.2 96 14 10 2.5

Borrow pits 184 266.8 184 248.9 0 0

Disposal area 43 25 43 25 0 0

Access roads 102 8 102 8 0 0

TOTAL 2743 685.2 2011 607.9 790 59.6

Table 2-2:Land already acquired and handed over for Resettlement Sites

Components Total Productive land3 Residential land

HH Ha HH ha HH ha

Mai Lam RS 70 4 70 4 0 0

Tinh Hai 1 RS 38 10 38 10 0 0

Tinh Hai 2 RS 140 6 140 6 0 0

Nguyen Binh RS 656 40.3 656 40.3 0 0

Total 904 60.3 904 60.3 0 0

Future Land Acquisition

At the time of writing of the report, no other land acquisition was publicly announced by the local authorities.

3 Productive land includes agricultural land, forestry land, salt marsh and fish ponds.


16

2.3.2 Structures Affected

About 2,743 HH (11,000 persons) will be affected by the Project. Among these APs, 830 HH will lose most of their land and their main houses and will have to relocate in another location. Three resettlement sites have been designed to accommodate these relocated APs (see section 2.3.4).

Among the 830 HH, 2 APs (1 in the pipeline area and 1 in the jetty area) have not yet been relocated out of these areas at the time of the writing of the report (March 2011). For the plant site, in Mai Lam commune, 57 APs were relocated temporarily because their resettlement status was assessed by authorities. The status has now been assessed and 49 APs eligible for resettlement. Other 8 APs decided not to relocate in the RS and moved outside the NSEZ. They are considered as relocated. All graves (2827) have been relocated. Table 2.3 presents the status of relocated households and structures.

Table 2-3: Status of Relocated HH (March 2011)

Total HH Affected

Relocated HH Graves Removed

Total Already Relocated Not relocated

Plant Site (area B) 1 907 551 551 2459

Pipeline (Area E) 403 269 268 1 357

Marine Facility (Area J) 104 10 9 1 11

Borrow pits 184 0 0 0

Disposal area 43 0 0 0

Access roads 102 0 0 0

TOTAL 2 743 830 828 2 2827

2.3.3 Loss of Source of Livelihoods

Most of the APs displaced by the Project have lost their agricultural land holdings and are relocated into areas where they are no longer able to pursue agricultural livelihoods. Results from the due diligence survey confirm that because HH lost their productive land, which was their main source of income, most of the HH have to change occupations. Secondary sources of income (raising animals, aquaculture, salt making) became the first source of income for some APs.

APs who have lost their sources of agricultural income and/or have been relocated will be eligible for a livelihood restoration program. This program aims to develop sustainable employment and income-generating opportunities for APs. The main concerns expressed by APs regarding their loss of source of livelihoods are the following:

Concerns about their future source of income especially during the transition period

During the first survey in August 2008, it was assessed that some APs who had already been compensated had lost their productive land for more than 6 months and were waiting for relocation in the RS. They had money due to the compensation they received; however, they could not start any new activity because they were waiting to be moved.

During the second survey in 2009, this situation was worsening. Among the 57 already relocated APs in Mai Lam Commune, most of them no longer had productive land. As a result, they had no daily income. They used their allowances for the transition period for food and other expenses due to the lack of jobs. The APs losing more than 30% of their agricultural land received an allowance for the transition period for 6 months for HH that were not relocated and for 12 months for HH that were relocated to provide for the


17

loss of income. After the assistance period, if the HH that was relocated to RS is still in poor condition based on the assessment result of hamlet and commune leaders, allowance can be extended for a maximum of 5 more years at half of the amount of the allowance. In 2009, Thanh Hoa province issued a decision (No. 4366/2009/QD-UBND dated Dec 9, 2009) which extended the transition period. APs losing more 30% to 70% of their agricultural land area will be assisted with allowances for a period of 6 months if they do not have to move away from their residence and for a period of 12 months if they have to move away from their residence. If they have to move to places with difficult socio-economic conditions, they will be entitled for allowances for a maximum of 24 months. APs losing more than 70% of their agricultural land area will be assisted with allowances for a period of 12 months if they do not have to move away from their residence and for a period of 24 months if they have to move away from their residence. If they have to move to places with difficult socio-economic conditions, the assisted time will be a maximum of 36 months

These APs finally relocated in 2010, more than 2 years after receiving compensation.

Jobs in the industrial zone

APs want to be trained in order to be employed in the industrial zone. They want the NSEZ and NSRP to advise them in which field they should be trained to secure employment. They do not want to find themselves in the same situation as the APs from the Nghi Son Cement Factory, located in Hai Thuong, south of the project area, whereby few local APs were employed.

NSRP LLC disclosed a preliminary Recruitment Plan which included the recruitment time, careers and job qualifications required to the public and authorities during the second Public Consultation meeting in January, 2010. In 2010, Tinh Gia District PC and NSEZMB started to implement training program.

The Project needs to give priority to laborers more than 35 years old;

APs are concerned about the future of older APs. According to persons met, it will be difficult for them to find new jobs.

In 2009, Thanh Hoa province issued a decision (No. 4366/2009/QD-UBND dated Dec 09, 2009) which allowed all APs of working age, who have lost agricultural land to be trained in vocational training courses for free.

2.3.4 Resettlement Sites

Characteristics of Resettlement Sites

Three resettlement sites have been built to relocate APs affected by the Project. They are located in Xuan Lam – Nguyen Binh, Mai Lam and Tinh Hai (see Figure 2.2). Two sites, Mai Lam and Tinh Hai, are located within the NSEZ and Xuan Lam-Nguyen Binh is located outside the NSEZ.

At the time of the preparation of this report (March 2011), all RS were completed and APs started to relocate in Xuan Lam – Nguyen Binh and Tinh Hai RS. In Mai Lam the relocation process is ongoing but no APs have been relocated up to now.

APs have to build their houses themselves or hire a contractor and must follow house building regulations of urban areas issued by the Department of Construction of Thanh Hoa Province.

Table 2-4: Characteristics of Resettlement Sites

RS Location Area Nb of plots Availability of plots for future APs

Services

Mai Lam - 4 to 5 km from - 30 ha - 1000 plots - 700 plots of land are - Market, schools,


18

affected area in the same commune

- Phase 1: 7.3 ha; 280 HH from Mai Lam Commune

available with the development of next phases

medical station, cultural house, etc.)

- All infrastructures (electricity, piped) water, sanitation, etc.)

Xuan Lam-Nguyen Binh

- 12 to 18 km from affected area

- Close to Tinh Gia Town)

- 177 ha

- 2800 plots - Phase 1: 25 ha;

650 HH from Hai Yen Commune (including areas E & J)

- More than 2000 plots of land are available with the development of next phases

- Market, schools, medical station, cultural house, etc.)

- All infrastructures (electricity, piped water, sanitation, etc.)

Tinh Hai - 500 m from Tinh Hai commune center

- 3.7 ha - 121 plots - 103 HH from Tinh

Hai Commune

- No plot available for future APs.

- All infrastructures (electricity, piped water, sanitation, etc.)

Main Concerns of APs

Resettlement site development constituted one of the most difficult issues in the Project. The construction of resettlement sites was severely delayed. NSEZ planned to finalize all the RS by the end of April 2009. However, the RS were ready only in mid-2010 more than one year after the planned date. The main problems met by each RS are described below.

- Mai Lam RS

NSEZMB presented, to the APs, the proposed location for the resettlement site in Mai Lam Commune. This RS was not found satisfactory for APs in Mai Lam Commune nor by local authorities due to its situation in flooded area. Therefore, all APs (57) in Mai Lam Commune refused to be relocated in the proposed RS and chose to be relocated themselves. However, the RS in Mai Lam was leveled, to avoid flooding, and completed in 2010. APs are now satisfied with the RS. Among the 57 HH who already moved temporarily, 49 are now registered (up to December 2010) to relocate in the RS. Relocation will take place at the beginning of 2011 according to local authorities.

- Xuan Lam - Nguyen Binh RS

APs from Hai Yen will be relocated in Xuan Lam – Nguyen Binh RS, close to Tinh Gia town. NSEZMB presented the proposed location of the site to APs and it was found satisfactory. However, the main issue is the distance of the RS from their actual location (12 to 18 km). In particular relocated HHs want the project to acquire the total land holding due to the distance from the site even if not all their land is affected. Thanh Hoa PPC agreed to acquire the total land holding of relocated APs whose land is acquired mainly by the NSRP Project. In 2010, APs started to relocate to this RS.

- Tinh Hai RS

APs in Tinh Hai Commune refused the proposed location of the RS in 2008 because they didn‘t agree on the proposed and no underground water available. A new RS was proposed to them in 2009 by NSEZMB, satisfactory to APs.

The RS is now completed and APs started to relocate. As of December 2010, a total of 99 HHs are registered to relocate in the RS and 50 HHs already built a house.

2.4 COMPENSATION ISSUES

Thanh Hoa PC issues every year new compensation rates for all types of assets; this list is very detailed and is based on detailed surveys. As per Decree 188/2004, the principle underlying the determination of land


19

prices is the actual transfer price on the market under normal conditions between a willing seller and buyer without regard to factors such as speculation, changes in planning, etc. Therefore in theory, PPC rates should be at market rates. The yearly update also takes into account inflation rates.

2.4.1 Replacement Cost Survey

A replacement cost survey was conducted in the Project area in October 2008. Local authorities, affected persons and non-affected persons were met. To assess if the compensation prices paid to APs (based on Thanh Hoa PC compensation rates for land, structure, crops, trees etc. updated every year) meet replacement costs, a replacement cost survey was conducted. This survey focused mainly on residential land because compensation prices for this type of land are the most contested by APs. The objective was to undertake an independent classification and valuation of land in the Project area based on current land use and the market value of land in order for APs to buy the same quality and quantity of replacement land. Data have been collected from the transactions of recently sold land. Direct interviews were held with landowners in the Project‘s affected area, including those whose land is affected and those whose land is not. The interviews covered the following issues:

Recent land use right transfers (buying/selling transactions) in the area;

The price at which owners are willing to sell their land;

Government established rates for land;

Residential land

Compensation rates established by the Thanh Hoa PPC, in 2008, for residential land were below market rates for all locations and for all communes. New compensation rates, issued in 2009 and 2010, reflected market rate. However these rates cannot be retroactively applied to communities resettled in 2008 and 2009. Compensation rates for productive land

Compensation rates for agricultural land, according to PPC rates, are 22,000 VND/m2 in Thanh Hoa Province. However, this rate was raised from 22,000 to 55,000 VND/m2 for the Project area by Decision No. 1151/2008/QD-PPC dated 28/04/2008 amending and adjusting some prices for agricultural land in Nghi Son Economic Zone. This new rate for agricultural land is satisfactory to APs. As per residential land, compensation rates cannot be retroactively applied.

In 2010, following Decision No. 4366/2009/QD-UBND issued to reflect the new Decree 69/CP issued by the GoV, HH losing productive land will receive an additional compensation corresponding to 1,5 time the compensation rate for agricultural land. This additional assistance (82,500 VND/m2) is intended to assist affected farmers to find a new occupation. With this additional compensation for productive land, all APs were satisfied with the compensation received.

Summary of compensation rates for houses

In 2008, the investigation showed that the prices of construction materials have increased considerably. The prices for construction materials were 30 to 45% more than in 2007. Therefore, local authorities as well as affected people require the PPC to compensate by applying Decision No. 1048/QD-UBND dated 22 April 2008 but following the inflation rate.

The new compensation rates issued by Thanh Hoa PPC in 2010 (Decision 345/QD-UBND dated 25 January 2010) increased the compensation rates for structures and they now meet market rates.

In addition Decision No. 4366/2009 also stipulated support for the purchasing of construction materials to the amount of VND 10 M/HH.


20

2.4.2 Main Concerns of APs

The main concerns of APs regarding compensation are the following:

Compensation price for residential land too low;

In 2008 and 2009 almost all relocated APs in Mai Lam Commune complained about lower compensation prices for residential land. They were fully compensated in July 2009 with the compensation rate for 2009. All APs have already received compensation but they are still complaining about the lower rate for residential land. Because they wanted first to relocate individually, the compensation received for residential land was not sufficient to buy a piece of land similar to the one they lost inside the NSEZ. However they now all decided to relocate in the resettlement site except for 8 HH who relocate outside the NSEZ.

For APs relocated in a RS, the cost per m2 in the RS is equal to the compensation received. Therefore, APs will not be affected by the low rate of compensation for residential land if any. In addition, the RS are provided with services that APs don‘t benefit from at their current location (piped water, sanitation). The objective of the Tinh Gia District authorities is to move all the APs into a RS. In December 2010 most of the APs in Mai Lam decided to finally move to the RS. Therefore, the compensation rate for residential land is not an issue anymore (the price of land per m2 at the RS is equal to the compensation rate per m2 paid to APs) except for the ones who still decided to relocate individually (8HH) outside of the area. NSRP will monitor the conditions of these families as part of the monitoring program for the resettlement.

APs in Tinh Hai were compensated according to compensation rates issued for 2009, it was confirmed by APs (December 2010) that the compensation received was sufficient to buy a piece of land similar to the one they lost near Tinh Hai RS.

Compensation price for structures too low4;

Compensation rates for structures were established at the beginning of 2008. In 2008, the rate of inflation was high and by the end of 2008, compensation rates for structures didn‘t reflect market prices. However, the due diligence survey conducted in October 2009 among 25 HHs showed that most of them (17/25 HHs, about 68%) were satisfied with the compensation rates for structures. According to local authorities (November 2010) the price for construction material didn‘t change in Thanh Hoa province but rose in Nghi Son area only. Therefore, Thanh Hoa PPC kept, in 2009 and 2010, the compensation rates for structures at the same level. However, Thanh Hoa PPC issued Decision no 2622/QD-UBND dated August 07, 2009, in which ten million of VND is paid to each household to support them for purchasing construction material. All relocated APs benefit from this new assistance, because compensation for structures was paid only in 2010.

Compensation price for graves;

APs had to move graves to new cemeteries. According to APs, the compensation for graves, between 800,000 VND and 3,600,000 VND, did not reflect replacement costs. Most APs hire workers to move their graves. They said that the cost of workers was higher than the compensation proposed. According to local authorities (November 2010) the compensation for graves is reasonable and they didn‘t notice numerous complaints from APs. All APs have already moved their graves. The 2010 compensation rates didn‘t apply retroactively.

4 We should note that since the survey (August 2008), the rate of inflation has increased from 20 to 35% in Vietnam due

to the financial crisis.


21

Compensation for remaining land

APs, especially in Hai Yen Commune, will be relocated to Xuan Lam – Nguyen Binh RS located 15 km away. Some of the APs have remaining agricultural land not affected by the project. However, this land will not be acquired by the project. For APs who will be relocated far away, it will be quite impossible to cultivate the land due to the expenses related to traveling. They are asking the authorities to acquire the remaining land. In 2010, Thanh Hoa authorities agreed to acquire the remaining land of APs losing most of their agricultural or residential land due to the NSRP Project5. For APs losing only part of their agricultural or residential land, Thanh Hoa authorities submitted the requirement for acquisition for remaining land to the Government of Vietnam (GoV). DMS for the all remaining land (both the ones loosing most of their land and the once loosing part of their land) is currently carried out by local Resettlement Committees. This is the first step for the acquisition of the remaining land.

2.5 PUBLIC CONSULTATION

During the preparation of the RDDR, activities were undertaken to inform all stakeholders about the Project and the resettlement process. Two stakeholder meetings and two public meetings were conducted in collaboration between the local authorities and NSRP. The results of these 4 meetings are presented below. Local authorities also conducted public consultation and disclose information to APs. This is a continuous process. Information is provided to APs (posting at commune office) at the following stages:

- Information on DMS process;

- DMS results;

- Compensation plans;

The First Stakeholders Consultation (November 4, 2008)

The first Stakeholders Consultation was held on November 4th, 2008 at Tinh Gia Town. The main project stakeholders were invited to this stakeholder consultation. The meeting included the following stakeholder representatives: Chairman of Thanh Hoa Province, Chairman and Vice-chairman of Tinh Gia District, District Party Committee Secretary, Chairmen or Vice-Chairmen of the affected Commune and different district departments. The main conclusions and recommendations were the following:

- Proposed compensation rates for residential land and structure do not yet reflect market value prices. Thanh Hoa PPC shall reconsider compensation rates for residential land structures and graves in order to reflect replacement costs and take into account inflation.

- The RS construction progress is too slow. Thanh Hoa PPC shall push up RS construction progress as much as possible.

- Give priority to APs for jobs during the construction period (will be mentioned in contractors‘ contract).

- Propose a long term strategy of employment for APs (permanent job in the refinery or in other industries in the Nghi Son Economic Area).

The First Public Consultation (November 5, 2008)

The first Public Consultation was held on November 5th, 2008 at Tinh Hai Commune. The project affected people were invited to this public consultation. The meeting included also the following stakeholder

5 This will be decided on case by case basis by local authorities in consultation with APs. No specific limit is defined.


22

representatives: Vice-Chairman of Tinh Gia District, Chairmen or Vice-Chaimen of the affected Commune and representatives of Nghi Son Economic Zone Management Board. 56 persons attended the meeting. The main issues of affected people (APs) were focused on compensation rate, resettlement sites and job opportunities. The main conclusions and recommendations were the following:

- Proposed compensation rates for residential land and structure do not yet reflect replacement costs. Thanh Hoa PPC shall reconsider compensation rates for residential land, house structures and graves in order to reflect replacement costs and take into account inflation.

- The RS construction progress is too slow. Thanh Hoa PPC shall push up RS construction progress as much as possible.

- Give priority to APs for jobs during the construction and operation periods (need to be included in contractors‘ contracts)

- NSRP shall provide Tinh Gia DPC a detailed recruitment strategy and list of studied subjects for the Refinery and Petrochemical Complex.

- Propose a long term strategy of employment for APs (permanent job in the refinery or in other industries in the Nghi Son Economic Zone).

The Second Stakeholders Consultation (January 27, 2010)

The Second Stakeholders Consultation was held on January 27th, 2010 at Tinh Gia DPC. The main project stakeholders were invited to this stakeholder consultation. The meeting included the following stakeholder representatives: Chairman of Tinh Gia District, Chairmen of the affected Communes and different district departments. The main conclusions and recommendations were the following:

- Compensation and resettlement policies applied in NSEZ appear to be one of the most generous in Vietnam, especially for the NSRP Project. Households affected by NSRP Project have received special compensation rates from Thanh Hoa PPC. Most APs are satisfied with the resettlement policy applied in Hai Yen, Mai Lam and Tinh Hai Communes especially due to the new Decision No. 4366/2009/QD-UBND dated December 5, 2009 reflecting the new Decree 69/CP issued by the GoV.

- Project policy meets the general IFC objectives on resettlement, but it seems that the restoration of income program and training program are not sufficient.

- NSRP Project will give priority to APs for jobs during the construction and operation period.

- Environmental pollution such as dust, noise, flooding and road damages should be urgently solved.

The Second Public Consultation (January 28, 2010)

A second public consultation was held on January 28, 2010. The purpose of the public consultation was to provide the opinions from affected persons related to resettlement issues and environmental and social impacts as well as proposed mitigation and compensation measures.

The participants (42) in the morning session were selected by the People Committee of the three affected communes (Hai Yen, Tinh Hai and Mai Lam). The participation of the people was free and everybody was able to present their concerns and requests to the authorities.

Participants from Hai Yen and Mai Lam Communes strongly reacted to the Project environmental impacts (dust, noise) due to the heavy traffic along Provincial Road 513 as well as sludge (sediment) flooding coming from borrow pit. The main resettlement issues of affected households (AHs) are summarized as follows:

Comments from APs from Hai Yen Commune


23

- APs only received an allowance for a period of 6 months even if the compensation process started two years ago.

- HHs living along Provincial Road 513 are affected by heavy dust. Compensation for production losses is required.

- Compensation rates for structures should meet market rates. HHs want to receive all compensation and allowances before moving to the resettlement site.

- Compensation rates for land should be suitable for each kind of land. Compensation procedures should be presented in advance to affected people for a better understanding.

Comments from APs from Mai Lam Commune

- The resettlement site at Mai Lam Commune should be completed with an access road. APs have not yet received allowances of 35 million/HH and 160million/HH.

- Mai Lam Commune was the first commune to receive compensation and to agree to move to the new resettlement site, but agricultural land compensation rate (640,000VND/m2) for Mai Lam Commune is much lower than the compensation rate paid for Hai Yen Commune agricultural land (1,035,000 VND/m2).

- Presently, some of the HHs removed to the outside of NSEZ have not yet received their allowance of 160million/HH.

- All inter-commune roads are damaged by transportation, this situation creates difficulties for local people. Loss of production due to dust and sludge coming from soil erosion should be compensated.

- NSPM Contractors must have the responsibility to compensate agricultural production losses and to repair and maintain roads.

Comments from APs from Tinh Hai Commune

- A total of 68 HHs living along Provincial Road 513 are flooded by sludge runoff and polluted by dust from borrow pits. Allowances for house rental and production losses are required.

- Local people, especially old people, could not sleep well due to dust and noise pollution from stone crushing machines and trucks.

- There is no priority given for HH receiving social subsidy from the GOV.

- Some APs said that they have to leave their house due to the environmental impacts and are living with relatives; they are asking for allowances to cover their expenses.

- Land along Provincial Road 513 cannot be used for production since 2008 due to dust and sludge coming from the borrow pit (flooding). Assessment of the damages and difficulties of HHs are urgently required.

- Inter-communal roads are totally damaged by heavy transportation. It is urgently required to repair these access roads.

2.6 GAP ANALYSIS

Funded by the Thanh Hoa Province People‘s Committee, the resettlement follows the Government of Vietnam Regulations on involuntary resettlement and Thanh Hoa PC policies on resettlement. It should be noted that specific policies and specific compensation rates (higher rates) have been set out for the NSEZ.

A due diligence survey conducted in 2008 and 2009 assessed the implementation of resettlement activities for the NSRP was not always in accordance with Performance Standard 5. In 2009 and 2010, THPPC and NSEZ responded to most of the proposed recommendations and implemented these recommendations.


24

These recommendations were presented to the Chairman of Tinh Gia DPC, representatives of NSEZMB and Chairmen or Vice Chairmen of Hai Yen, Mai Lam and Tinh Hai communes during stakeholder meetings held on November 4, 2008 and January 27, 2010. These recommendations have been agreed by all stakeholders.

The actions taken by THPPC and NSEZ are presented in the Table below:


25

Table 2-5: Actions Taken by THPPC and NSEZ to Respond to Recommendations

Activity Actions Required (2008-2009) Actions Taken (2009-2010) Remaining Issues/Remarks

COMPENSATION ISSUES

- Compensation rate for residential land

- Proposed compensation rates for residential land are too low, don‘t reflect replacement costs;

- Proposed compensation rates for residential land to APs located in Mai Lam commune are still low.

- Most of the APs from Mai Lam commune (49/57) finally chose to relocate in a serviced RS;

- THPPC increased the compensation rates in 2009 and 2010 so that compensation rates for residential land to Hai Yen and Tinh Hai communes reflect replacement costs.

- No additional assistance has been provided for APs from Mai Lam Commune;

- In a RS, APs have to buy the land at the same rate they were compensated. If the compensated area is larger than the plot in the RS, they keep the difference

- 8 HH from Mai Lam commune decided to relocate outside the NSEZ and Thanh Hoa province; they found a job in another province and have not lived in Mai Lam for several years. No specific action is required

- Compensation for remaining land for APs relocated far from their former location

- It is recommended that the project acquire the APs entire land holding if the AP is relocated far from his land (i.e. APs located in Hai Yen Commune)

- Thanh Hoa Province PC agreed to acquire the remaining land for relocated APs having most of their agricultural or residential land acquired by NSRP.

- Local authorities are now (December 2010) carrying Detailed Measurement Survey (DMS) for the remaining lands.

- Compensation for remaining land was analyzed on a case by case basis by local authorities;

- Follow-up on this issue will be done through monitoring;

- Compensation rates for graves

- Proposed compensation rates for graves are too low, doesn‘t reflect cost of removal.

- THPPC issued new compensation rates for houses and other structures (including graves) (Decision 345/QD-UBND dated in January 25, 2010) which meets market rates.

- The new compensation rates were not retroactively applied

- Allowances not paid to APs

- THPPC and Tinh Gia DRC have to pay all allowances to APs before their relocation;

- THPPC and Tinh Gia DRC

- Accommodation allowances and allowance to purchase construction material have been paid to all APs;

- Training allowances have not been

- Follow-up on the payment of training


26

have to inform APs about a schedule of payment.

paid. allowances is needed.


RESETTLEMENT ISSUES

- Slow progress of RS construction

- APs have to move to RS only once all the infrastructures have been completed in order to avoid temporary relocation of APs;

- If delay is more than 6/12 months, transition allowance has to be extended for the total number of months that the transition period lasts;

- All RS are now completed with the necessary infrastructures; relocation started in Xuan Lam – Nguyen Binh RS and in Tinh Hai RS; No APs have been required to move to the RS before the completion of RS;

- In Mai Lam commune, AH have to move temporarily before the completion of RS.

- The transition allowance has been extended up to 5 years

- Suitability of Mai Lam RS

- NSEZMB should consider measures to avoid flooding in Mai Lam RS and to guarantee water quality to APs;

- NSEZMB raised the level of the site and rehabilitated dykes along the River; the site is now not subject to flooding;

- 49/57 HH from Mai Lam commune agreed to move to the RS;

- Mai Lam RS is now completed;

- Follow-up on the water quality will be done;

- Follow-up on the status of relocation of the 49HHwill be done through monitoring;

- New Resettlement Site in Tinh Hai Commune (former location was not satisfactory to APs)

- NSEZ to find new location for the RS;

- APs have to move to RS only once all the infrastructures have been completed;

- A new location satisfactory to all relocated APs has been identified (near Tinh Hai commune center);

- The RS was completed in May 2010. No APs were required to move to the RS before the completion of the RS;

- APs found the site satisfactory;

- Poor design of new cemetery in Mai

- Tinh Gia DPC and NSEZ need to repair cemetery

- NSEZMB has repaired the cemetery that is satisfactory to APs


27


Lam Commune (graves collapsed)

OTHER ISSUES

- Environmental impacts, along Provincial Road No. 513 (Lack of water for irrigation, dust, noise)

- Thanh Hoa PPC and Tinh Gia DRC should provide allowance for loss of crops;

- Transition allowance for APs who have to move temporarily should also be provided;

- HH located along Provincial Road 513 relocated due to the expansion of the road; however this project is not under the NSRP project; expansion of Provincial Road 513 is for the whole economic zone.

- These APs will be fully compensated for land, crops and structures.

- APs received compensation

- Assistance to HH to manage money

- Local authorities should provide assistance to APs to manage money.

- NSRP LLC proposed a Livelihood Restoration Program (LRP) that includes some assistance for the management of household finances;

- LRP to be implemented

- Absence of a monitoring program

- A monitoring program has to be implemented

- A monitoring program has been prepared; NSRP will implement this program once the FID will be made (in 2011);

- Monitoring program to be implemented;

- Socioeconomic baseline from DMS database is needed to monitor restoration of livelihoods.

- Assistance to vulnerable households

- The Tinh Gia DPC, Women‘ Unions and External Monitoring Agency (EMA) should pay special attention to 2 vulnerable HH to ensure that they do not become poorer and more vulnerable.

- No action taken up to now; the monitoring program included the follow-up of these vulnerable APs;

- Monitoring program to be implemented.


28

These actions, taken by Thanh Hoa PPC, Tinh Gia DPC and NSEZ at the request of NSRP LLC, significantly improve the compensation policy. However, even if the Project policy generally meets IFC objectives and PS5, some differences remain. They are summarized in the Table below:

Table 2-5: Actions Necessary to Close the Gaps

Remaining Gaps Actions to Close the gaps

No livelihood restoration program has been implemented at present: - All compensation has been given in cash; - No training or employment plan has been prepared;

Implementation of the Livelihood Restoration Program

Compensation rates for residential land in Mai Lam community did not reflect market price.

Monitoring the relocated HHs to ensure compensation rates for land were sufficient to buy a new land of the same category.

No monitoring program has been implemented;

NSRP committed to hire an external monitoring agency and to implement the proposed monitoring program.

No baseline for future monitoring - At present, no socioeconomic database covering 100%

of APs is available; socioeconomic surveys covered 20 % of APs;

- Only DMS covers 100% of affected HH with limited socioeconomic information.

The monitoring will be based on the DMS database prepared by Tinh Gia District Resettlement Committee and the 20% socioeconomic survey already undertaken. In addition NSRP will conduct additional socioeconomic survey covering 100% of vulnerable HH and a 20 % random sample of the remaining population.

NSRP LLC is committed to work with the local authorities for the implementation of the livelihood restoration program. The proposed livelihood restoration program is presented in Appendix 2.

NSRP LLC also committed to supervise the implementation of the monitoring program. The monitoring program will be implemented by THPPC/TGDPC/NSEZMB. NSRP LLC will hire an independent monitoring agency to implement the external monitoring. The monitoring program is presented in Appendix 3.


29

3. RESETTLEMENT POLICY FRAMEWORK

3.1 PURPOSE OF THE RESETTLEMENT POLICY FRAMEWORK

This Resettlement Policy Framework (RPF) provides policies and entitlements for any future expansion of the NSRP or for any other components that will require permanent land acquisition. The RPF sets out the resettlement policy and planning procedures that the Project will follow when preparing a resettlement plan, if any, for these new expansion areas.

A Resettlement Plan will be prepared by NSRP LLC in collaboration with local authorities for any future expansion of the NSRP or for any other associated facility that will require permanent land acquisition. The Plan will be prepared based on the policy set out in this Resettlement Policy Framework.

It is important to note that for temporary land acquisition during construction, a specific document (Compensation Framework Management Plan (CFMP) has been prepared. This CFMP will also cover any impacts caused by the construction works under the EPCs during the construction period that affect households and/or communities.

The resettlement activities for the Nghi Son Refinery Project are under the full responsibility of the Vietnamese authorities at various levels. However, NSRP LLC has to ensure compliance of the applied policy for resettlement of the NSRP with the IFC Performance Standard 5.

3.2 LEGAL FRAMEWORK

The legal and policy framework for compensation, resettlement and rehabilitation under the project is defined by the relevant laws and regulations of the Government of Viet Nam and the IFC policies.

3.2.1 Relevant Vietnamese Legislation

The policies of GoV on compensation, resettlement and assistance have been significantly improved from time to time, especially in 2003, when the land law was passed by the National Assembly. Many Laws, Decrees, Circulars and amendments to Laws, were issued by the GoV to improve the policies on land acquisition, compensation and assistance. The policies on land acquisition, compensation and assistance have also been significantly improved on the requirements of consultation, participation, information dissemination, monitoring and evaluation.

The Constitution of the Socialist Republic of Viet Nam (1992) confirms the right of citizens to own and protect the ownership of a house. In addition, the Government has enacted a number of laws, decrees and regulations that constitute the legal framework for land acquisition, compensation and resettlement. The principal documents include the Land Law No. 13/2003/QH11, providing Viet Nam with a comprehensive land administration law; Decree No. 197/2004/ND-CP dated December 3, 2004, on compensation, rehabilitation and resettlement in the event of land recovery by the State, as amended by Decree No. 17/2006/ND-CP; Decrees No. 188/2004/ND-CP and 123/2007, specifying the methods for land pricing and land price frameworks in the event of land recovery by the State. Decree No. 84/2007/ND-CP, dated May 25, 2007 supplementary stipulations on issue of LURC, land acquisition, land use right implementation, procedure of compensation, assistance in the event of land recovery by the state and grievance redress; Circular 116/2004/TT-BTC, December 7, 2004 guiding the implementation of Decree 197; Circular No. 116/2004 TT-BTC set out in detail the types of compensation for different types of users and losses; assistance policies; provisions for individual and group resettlement; and the roles and responsibilities for the implementation of resettlement projects; Circular No. 114/2004/TT-BTC elaborates in detail the methods (direct comparison and income methods) for determining land prices; Decree No. 17/2003/ND-CP, promulgating the regulation on the exercise of democracy in communes, including requirements for consultation with and participation of people in communes. On August 13, 2009, the GoV enacted the Decree 69/2009/ND-CP to amend for planning on land use, cost for land, land recovery, compensation and resettlement. This Decree requires a lot of


30

assistance to the severely affected households, especially households that have to relocate and lose the agricultural land. Circular 14/2009/TT-BTNMT dated October 1st, 2009 provides details to guide the implementation of compensation, resettlement and resettlement assistance, process of land acquisition, land allocation and leasing of land.

Other laws, decrees and regulations relevant to land management, land acquisition and resettlement include the Construction Law 16/2003/QH11 on compensation and relocation of people affected by ground clearance for investment projects, Decree 16/2005-ND-CP guiding on the implementation of the Construction Law, Decree 182/2004/ND-CP on penalties for administrative violations in land issues, Decree 198/2004/ND-CP on land use fees. Laws, decrees and decisions relevant to public disclosure of information include Land Law, No. 13/2003/QH11, Article 39, requiring disclosure of information to affected people prior to recovery of agricultural and non-agricultural land of, respectively, 90 and 180 days minimum and Decision 3037/QD-BGTVT, 2003, making the Project Management Unit (PMU) together with the Resettlement and Site Clearance Committee responsible for public disclosure through mass media of the project policies and the extent of site clearance to local people, particularly those that will be affected.

Decrees relevant to protection and preservation of cultural property include Decree No. 172/1999/ND-CP, Article 25, requiring that sites currently recognized for cultural and historical preservation and that are situated within the boundaries of waterway safety corridors, should be kept intact according to current legal regulations.

3.2.2 Policy Applied in the Thanh Hoa Province and the Nghi Son Economic Zone

Funded by the Thanh Hoa Province People‘s Committee, the Project followed Thanh Hoa regulations6 as presented below:

- Decision No. 3900/2007/QD-PPC dated 13/12/2007 of Thanh Hoa PPC on approval of overall plan on compensation and site clearance for Nghi Son Refinery petro-chemical project in Tinh Gia District, Thanh Hoa Province.

- Decision No. 1511/2007/QD-PPC dated 24/05/2007 of Thanh Hoa PPC on issuance of compensation rates for assets existing on land in the localities of Thanh Hoa Province.

- Decision No. 4328/2007/QD – PPC dated 31/12/2007 of Thanh Hoa PPC on approval of the land prices of Thanh Hoa Province in 2008.

- Decision No. 4302/2008/QD – PPC dated 31/12/2008 of Thanh Hoa PPC on approval of the land prices of Thanh Hoa Province in 2009.

- Decision No. 1151/2008/QD-PPC dated 28/04/2008 of Thanh Hoa PPC on amending and adjusting some prices for agricultural land in Nghi Son Economic Zone.

- Letter No. 1606/PPC-KTTC dated 18/4/2008 of Thanh Hoa PPC on prices of different types of land for compensation during implementation of investment projects in the area of Nghi Son Economic Zone and Tinh Gia District.

- Decision No. 1048/QD-UBND dated April 22, 2008 of Thanh Hoa PPC on compensation rates for structures.

- Decision No.2531/2008/QD-UBND dated August 18, 2008 by Thanh Hoa PPC on assistance policy for the moving and relocation of APs applies to the Nghi Son Economic Zone.

- Resolution No. 128/2009/NQ-HDND of Thanh Hoa Province People‘s Council dated July 15, 2009 on moving and relocation policy applied for Nghi Son Economic Zone; the Guideline No. 2108/HD/STC dated 25/9/2009 of Financial Dept of Thanh Hoa Province on implementation of the moving and relocation policy applied for Nghi Son Economic Zone;

6 Thanh Hoa regulations on resettlement have to be consistent with national regulations.


31

- Decision No. 2622/2009/QD-UBND dated 7/8/2009 of the People‘s Committee of Thanh Hoa Province on the moving and relocation policy applied for Nghi Son Economic Zone.(expired by Decision No 4366/QD-UBND)

- Decision 4366/QD-UBND dated 9/12/2009 modifying some measures of Decision 2622/QD-UBND. - Guideline No 70/HD-STNMT of the Department of Natural Resources and Environment on allowance

and resettlement for land acquisition in the NSEZ dated January 8th, 2010. - Decision 345/QD-UBND dated January 25, 2010, on compensation rates for houses and structures; - Decision No 577/UBND-DMDN dated 5/02/2010 on solution for resettlement issues on NSEZ.

The main decisions on resettlement are presented below:

Decision No. 1048/QD-UBND dated April 22, 2008 on compensation prices for assets existing on land

The Thanh Hoa PPC issued Decision No. 1048/QD-UBND dated April 22, 2008 on compensation prices for assets existing on land, of which a part refers to compensation, resettlement and rehabilitation implementation. Rehabilitation assistance is described below:

- Transport assistance a) Households (according to the registration book) that have to move away from the original

residence when the State recovers land shall be assisted with cash of 3,000,000 VND if they move within their original province or city, and 5,000,000 VND if they move to another province or city.

b) People from whom land is recovered and who have no other place to reside while waiting for the re-establishment of a new residence (arranged for resettlement), will be able to reside in temporary houses or be assisted with money to rent a house. The time and the specific rate of assistance will be provided by the PPC and be consistent with the current situations in localities.

- Assistance for life and production stabilization a) Any household or individual who is directly engaged in agricultural production and from whom

more than 30% of the agricultural land area is recovered by the State will be assisted to stabilize life for a period of 3 months if they do not have to move away from their residence and for a period of 6 months if they have to move away from their residence. If they have to move to places with difficult socio-economic conditions, the assisted time will be a maximum of 12 months. The assistance rate will be paid in money at 270,000 VND for each family member per month (based on registration book).

b) Any economic entity or business and production household holding a business license, which has to discontinue its business and production, will be assisted with a payment equal to a maximum of 30% of one year‘s revenue after taxation, according to the average rate of revenue of the immediate previous 3 years as certified by the tax agency.

- Compensation, resettlement and rehabilitation policy applied for Nghi Son Economic Zone, including Nghi Son Refinery Project. The Thanh Hoa PPC issued a specific assistance policy regarding the relocation of affected households in Nghi Son Economic Zone, including the NSRP. It is worth noting that the Nghi Son Refinery Project was determined to be a priority project in the Nghi Son Economic Zone. Therefore, the Thanh Hoa PPC as well as the Government of VN has prioritized the implementation of activities related to the NSRP. The assistance policy for the moving and relocation of APs applicable to the Nghi Son Economic Zone was issued by the Thanh Hoa PPC by Decision No.2531/2008/QD-UBND dated August 18, 2008. The types of assistance are as follows:

- Assistance for life stabilization and production stabilization (a) Any HH or individual who is directly engaged in agricultural production or salt production from

whom more than 30% of the agricultural land area or salty land is recovered by the State will be assisted to stabilize life for a period of 6 months if they do not have to move away from their


32

residence and for a period of 12 months if they have to move away from their residence. The assistance rate will be an amount of money for each HH member per month, and this amount will be equal to 30kg of rice according to the average market price at that locality.

(b) Business/non-agricultural households who have land acquired by the Project and have to stop their business activity, but do not meet all the conditions to receive assistance based on a defined/stipulated income, will have the right to receive assistance for life stabilization and production stabilization.

- Assistance for house rental HH who have no other residence and who respect the time and progress as defined by the DRC will receive assistance for accommodation/house rental with a lump sum of VND 400,000 per month per household. The period of assistance for accommodation is 5 months for HH moving to a new residence and 4 months for HH reconstructing their house on remaining residential land.

- Assistance for occupational change and job creation Any HH or individual who is directly engaged in agricultural production and from whom 30% or more of their agricultural land area is recovered without compensation with corresponding agricultural land by the State must be assisted toward a change of occupation and job creation. The assistance levels are as follows: (i) 5,400 VND/m2 of affected agricultural land for HH who lose more than 30% to 50% of their agricultural landholdings; (ii) 8,100 VND/m2 of affected agricultural land for HH who lose 50% or more than 50% of their agricultural landholdings; and (iii) 10,800 VND/m2 for HH who lose 100% of their agricultural landholdings.

- Assistance with occupational change for households who are engaged in salt marsh production. Any HH or individual who is directly engaged in agricultural production and from whom an area of 30% or more of agricultural land is recovered without compensation with corresponding agricultural land by the State must be assisted toward a change of occupation and job creation. The assistance rate will be 10,800 VND/m2 for salt march production.

- Education Assistance For 3 years from the date of the handing over of the site to the Project, all pupils from pre-school to high school who have to move and relocate in the resettlement sites will receive 100% of educational fees and other contributions.

- Training Allowance All HH members of working age who have to move and relocate in the resettlement sites and have to change their occupations will, if they prefer to be trained in the vocational college, receive an allowance of 300,000 VND per month per person. This is to cover food and accommodation and 100% of the training fees for the trainee during the training course. The duration of the training course will be 3 years.

- Progress Bonus The bonus is applied for relocating APs who move their house on schedule as specified by the DRC. It is a lump sum of 5,000,000 VND per household.

- Assistance for Individual Relocation (a) Relocating households who opt for individual relocation/resettlement outside of Nghi Son

Economic Zone will receive a lump sum of 35,000,000 VND per household; (b) The communes, wards, and towns in the province (outside of Nghi Son Economic Zone) that

allow more than 5 relocating households to relocate in their locality will receive an allowance of 30 M VND per household. This allowance will be transferred into the communal budget and be used to invest in the construction of infrastructure works for the public interests of that commune, ward or town.

The Thanh Hoa PPC issued a new decision in 2009 specifically for HH located in the NSEZ.


33

Resolution No. 128/2009/NQ-HDND of Thanh Hoa People‘s Council dated July 15, 2009 on moving and relocation policy applies to the Nghi Son Economic Zone; the Guideline No. 2108/HD/STC dated 25/9/2009 of Financial Dept of Thanh Hoa Province on the implementation of the moving and relocation policy applies to the Nghi Son Economic Zone; and Decision No. 2622/2009/QD-UBND dated 7/8/2009 of the People‘s Committee of Thanh Hoa Province on moving and relocation policy applies to the Nghi Son Economic Zone.

The Decision ruled that to obtain a plot of land in an RS, HHs have to meet the following conditions: (a) HH have residential land (with existing house upon it) to be acquired by the Project; (b) HH should have permanent registration and ; (c) HH have to move their place of residence to the RS.

Decision No. 4366/2009/QD-UBND dated December 5, 2009. This regulation was issued to reflect the new Decree 69/CP issued by the GoV.

- Accommodation allowance of VND 12M/HH;

- Support to purchase construction materials in the amount of VND 10M/HH;

- Extension of stabilization allowance up to 5 more years with half of the allowance if APs are still in poor condition;

- Allowance for APs who relocate individually outside of the Nghi Son Economic Zone of VND 160M/HH (before VND 35M/HH by Decision 2531/2008);

- Support for fishermen who have to change jobs - Fishermen with boats with more than 150 HP will receive: 30 million/boat - 90 to 150 HP: 25 M/boat - 50 to 90 HP: 20 M/boat - 20 to 50 HP: 15 M/boat - 20 HP: 10 M/b - Small boat with motor: 5 M/boat - Simple fishing boat: 3 M/boat

- Children from relocated HH who have to change schools will not have to pay school fees for 3 years;

- Host communities that receive more than 5 relocated HH or more will receive 20M/HH;

- Households and individuals doing agricultural production will be given an amount of money equivalent to 1.5 times the price of agricultural land lost, and those of working age will be admitted to vocational training courses for free.

- HH who have 30%-70% of their productive land acquired by the Project will receive 30kg rice/member/month, for 6 months for non-relocated HH and 12 months for relocated HH. HH who have more than 70% of their productive land acquired by the Project will receive 30kg rice /member/ month, for 12 months for non-relocated HH and 24 months for relocated HH.

- HH who have more than one couple living together can obtain a maximum plot of land in RS for the couple living with their parents and a minimum plot of land for a second couple.

Decision no 577/UBND-DMDN of Thanh Hoa Province People Committee dated February 5, 2010.

Households and individuals affected by the NSRP Project that received compensation before October 1st, 2009, that are to be relocated and that do agricultural production work will be given an amount of money that is equivalent to 1.5 times the price of agricultural land for assistance to change field work and for income restoration.


34

3.2.3 IFC Policy on Involuntary Resettlement

The project will follow IFC Performance Standards, especially Performance Standard 5 (PS5) on Land Acquisition and Involuntary Resettlement. The main objectives of PS5 are:

To avoid or minimize involuntary resettlement;

To mitigate adverse social and economic impacts by:

- providing compensation for loss of assets at replacement cost;

- ensuring that resettlement activities are implemented with appropriate disclosure of information and consultation;

To improve or at least restore the livelihoods and standards of living of displaced persons;

To improve living conditions through provision of adequate housing with security of tenure at resettlement sites;

Compensation and Benefits for Displaced Persons

- Compensation for loss of assets at full replacement cost and other assistance to help them improve or at least restore their standards of living or livelihoods;

- The project will provide opportunities to displaced persons and communities to get development benefits from the project.

Consultation

- Informed participation of affected persons and communities, in decision making processes related to resettlement including resettlement sites;

- Consultation will continue during the implementation and monitoring ;

Grievance Mechanism

- Establish a grievance mechanism to receive and address specific concerns about compensation and relocation that are raised by displaced persons;

Relocation of APs

- Displaced persons will be offered: - Choices among feasible resettlement options, including adequate replacement housing or cash

compensation; and - Relocation assistance suited to the needs of each group of displaced persons, with particular

attention paid to the needs of the poor and the vulnerable. - New resettlement sites built for displaced persons that offer improved living conditions.

Economic Impacts

- To persons losing sources of income, provide additional targeted assistance (e.g., credit facilities, training, or job opportunities) to improve or at least restore their income-earning capacity.

- Provide transitional support to economically displaced persons, as necessary, based on a reasonable estimate of the time required to restore their income-earning capacity, production levels, and standards of living

Provisions and principles adopted in this resettlement framework will supplement the provisions of relevant decrees currently in force in Vietnam wherever a gap exists. Key strategies to reconcile the differences will be included in the resettlement plan that will be prepared for each new resettlement.


35

3.3 GOVERNMENT, IFC, AND PROJECT POLICY

The Government of Viet Nam‘s recent laws, decrees and regulations on resettlement policies and practices are largely consistent with the IFC‘s resettlement policies. In the event of discrepancies between the Borrower‘s laws, regulations, and procedures and the IFC's policies and requirements, the latter will prevail. The differences between the Government‘s laws and decrees and IFC Policy with regard to resettlement and compensation, and how to address these gaps are shown in Table 3.1 below.

Table 3-1: Differences between National Laws and the IFC Policy and Project Policy

Key Issues National Laws IFC Policy Project Policy Non-titled users

Decree 69/2009, Article 14 (replacing Decree 197/2004, Article 6), the Peoples‘ Committees of the provinces or centrally-run cities shall consider providing such support on case-by-case basis.

The absence of formal legal title to land by some affected persons should not prevent compensation.

All project-affected people, irrespective of tenure status, social or economic standing, will be entitled to be compensated or assisted for their lost assets, incomes, and businesses, at full replacement cost and provided with rehabilitation measures sufficient to assist them to improve or at least restore their pre-project living standards, income levels and productive capacity.

Compensation of land at replacement cost

Decree 123/2007 (amending Decree 188/2004), sets price limits of land and authorizes Provincial Peoples‘ Committees to set local land prices by establishing ranges for all categories of land and land prices in each category. The price limit would not be allowed to exceed a bench-mark price by more than 20 per cent nor undercut the benchmark price by more than 20 per cent.

Compensate or assist all affected persons, including those without title to land, for all their losses at replacement rates.

Replacement cost surveys have to be carried out to ensure that project compensation rates for all categories of loss will be equivalent to replacement cost to be updated at the time of resettlement implementation.

Houses and structures

Decree 197/2004, Articles 18 and 20: Houses and structures constructed prior to land use plans or the right of way announcements will be assisted with a 60% to 80% replacement cost. Houses and structures constructed after land use plans or the right of way announcements will be provided with assistance on a case-by-case basis.

Compensate all affected persons, including those without title to land, for all of their losses at replacement rates.

All project affected persons will be entitled to compensation irrespective of the legal status in both rural and urban areas

Full compensation at replacement cost will be paid for all affected structures without any deductions for salvageable materials or depreciation.

Full compensation at replacement cost for all project affected structures irrespective of legal entitlement


36

Non-registered business

Decree 187/2004, Articles 26-28: Only registered businesses are eligible for assistance.

For non-land assets, all eligible affected people, whether titled, legalizable, or non-titled, need to be compensated at replacement cost, through cash or replacement assets. Included among these DPs are renters of buildings, tenants and employees of affected businesses.

Non-registered businesses will be eligible for cash or in-kind assistance, this includes renters of structures, tenants and employees


37

3.4 PROCESS FOR RESETTLEMENT PLAN PREPARATION

In the event of any other future expansion of the Project, the following procedures will be used for the preparation and implementation of the Resettlement Plan (RP).

Based on demand of land use, the Project will determine the requirements for preparation of a resettlement plan. All viable options are explored to reduce the requirements for land acquisition and resettlement.

RPs will be prepared in close collaboration with Local Authorities and will involve community participation. The policy agreed in the RP should be fully reflected in the Compensation Plans prepared by Tinh Gia District authorities or NSEZMB. The following steps will be followed.

3.4.1 Step 1: Notice of Land Acquisition

The first step is the issuance by Thanh Hoa province of the notice of land acquisition. This notice is an official document issued by the Thanh Hoa Province Peoples‘ Committee. This notice includes: the reason for land acquisition, the area and location of the land to be acquired, based on the approved design. The notice of land acquisition has to be posted at each commune PC affected by the project.

3.4.2 Step 2: Detailed Measurement Survey

Once land acquisition for a new component is decided, a detailed measurement survey (DMS) will be conducted on 100% of the affected households. The data collected during the DMS will constitute the formal basis for determining AP entitlements and levels of compensation.

To ensure that all the necessary socioeconomic information will be available for monitoring the restoration of livelihoods, a review of the DMS form used in Tinh Gia District will be conducted. NSRP LLC through its Social and Community Manager (SCM) will review the existing DMS form, used by Tinh Gia District, and will revise it to include the necessary information. The revised DMS form will be sent to Tinh Gia District RC. Socioeconomic information will include:

- Demographic, education, income, and occupational profiles;

- Economic activities of all affected people, including vulnerable groups;

- Poor and vulnerable households.

Prior to the initiation of DMS activities, the THPPC will establish a Joint DMS team composed of representatives from TGDPC (NSEZMB) and RCs at lower levels. NSRP LLC will oversee the process through the SCM. The DMS will only be carried out in the presence of the APs, and APs will be given sufficient advance notice prior to conducting the survey. Each AP will be asked to assist in completing the Detailed Measurement Survey Form for their household. This form will identify all the losses that the household will experience from the Project, and will be the basis for the compensation package for them. The AP will then be given the AP Compensation Form, which summarizes the losses and the total amount of compensation. The household can review this form for 7 days, and if they agree with the details, the head of the household will be asked to sign the form.

3.4.3 Step 3: Replacement Cost Survey

Replacement cost surveys have to be carried out to ensure that project compensation rates for all categories of loss will be equivalent to replacement cost. Replacement Costs have to be updated at the time of resettlement implementation. NRRP LLC will hire an agency to carry out the Replacement Cost Survey at the time of the DMS.


38

3.4.4 Step 4: Preparation of the Draft RP

The Draft RP will be prepared in accordance with the Project Resettlement Policy Framework based on DMS data. The requirements for a RP are:

- Identification of project impacts and affected populations; - Identification of vulnerable people and people in risk of becoming vulnerable after resettlement; - A legal framework for land acquisition and compensation; - A compensation framework; - A description of resettlement assistance and restoration of livelihood activities; - A detailed budget; - An implementation schedule; - A description of organizational responsibilities; - A framework for public consultation, participation, and development planning; - A description of provisions for redress of grievances; and - A framework for monitoring, evaluation, and reporting.

3.4.5 Step 5: Public Meetings

Public information and consultation aims to gather information for assessing project resettlement and clarify recommendations on possible alternative technical options to reduce and/or mitigate potential negative resettlement impacts on local population and to proactively address issues or problems that may emerge during implementation.

The draft RP will be presented at the public meeting. A letter of invitation will be sent to all APs at least 2 weeks before the meeting in their commune. This meeting is intended to clarify information that has been given as of that date, and to provide APs with the opportunity to discuss issues of concern and obtain clarification. In addition to the letter, other means will be used to inform APs and the general public about the meeting. These may include the display of posters in prominent locations in the communes and districts where APs currently reside and radio, newspaper and public announcements. The letter and notices will advise the time and location of the meeting, and who can attend. Both men and women from affected households will be encouraged to attend, as well as any other interested community members. In addition, separate meeting for women will be organized in order to incorporate their views and concerns related to resettlement.

The meeting will explain the Project, and households‘ rights and entitlements, and there will be opportunities to ask questions. Such meetings will be conducted periodically during the life of the Project. Meetings will be conducted at times that do not interfere with seasonal agricultural activities or when women are unable to attend due to domestic responsibilities.

Relevant information will be given to the APs at the meetings (verbally, graphically, and/or on printed information sheets). Extra copies of any printed information sheets will be available at the township and district offices throughout the Project area. The meetings are proposed to have the following format: (i) Explanations will be given verbally and in visual format, including written information and drawings of the

proposed design for the different components of the Project.

(ii) Adequate opportunities will be provided for APs to respond with questions and comments. APs will be encouraged to contribute their ideas for APs rehabilitation options.

(iii) The Tinh Gia DRC will establish a complete list of all APs present at the meetings.

(iv) The SCM will record all questions, comments, opinions and decisions that arise during the information/consultation meetings, and present a report of all the meetings to NSRP.

Information about the following will be given to the AP:

(i) Project components and where they can obtain more detailed information about the Project.


39

(ii) Project impacts. Impacts on the people living and working in the affected areas of the sub-project, including explanations about the need for acquiring land for sub-project components.

(iii) APs' rights and entitlements. These will be defined for APs (along with the cut-off date), and explanations will be provided on the rights and entitlements associated with the different types of impacts on each AP, including the entitlements for those losing businesses, jobs and income; options for land-for-land and cash compensation, and options regarding reorganizing and individual resettlement, and provisions and entitlements to be provided in each case, and, entitlement to rehabilitation assistance and opportunities for project-related employment.

(iv) Grievance mechanisms and the appeal process. APs will be informed that Project policies and procedures are designed to ensure that their pre-project living standards are restored. APs will also be informed that if there is any confusion or misunderstanding about any aspect of the Project, the Resettlement Committee7 can help resolve problems. If they have complaints about any aspect of the land acquisition, compensation, resettlement, and rehabilitation process, including the compensation rates being offered for their losses, they have the right to make complaints and to have their complaints heard. APs will receive an explanation about how to access grievance redress procedures.

(v) Right to participate and be consulted. The APs will be informed about their right to participate in the planning and implementation of the resettlement process.

(vi) Resettlement activities. APs will be given an explanation regarding compensation calculations and compensation payments; monitoring procedures which will include interviews with a sample of APs; relocation to an individual location/self-relocation; and preliminary information about physical works procedures.

(vii) Organizational responsibilities. APs will be informed about the organizations and levels of Government involved in resettlement, the responsibilities of each, and the names and positions of the government officials and their phone numbers, office locations, and office hours if available.

(viii) Implementation schedule. APs will receive the proposed schedule for the main resettlement activities and will be informed that physical works will start only after the completion of all resettlement activities and clearance from the Project area. It will be clarified that they will be expected to move only after full payment of compensation for their lost assets. Implementation schedules and charts will be provided to resettlement committees at all levels.

3.5 ENTITLEMENTS

Entitlements are designed to cover compensation for all losses at replacement cost to restore or enhance the livelihoods of all APs as shown in the entitlement matrix (Table 3.1). It should be noted that these entitlements may be enhanced, as necessary, following the conduct of DMS and consultation with APs to ensure that losses are restored and peoples‘ livelihood are stabilized or improved.

The entitlement matrix reflects also the compensation/assistance that APs are currently eligible for but this may change depending on changes in national legislation.

3.5.1 Compensation rates

The Thanh Hoa PC issues yearly new compensation rates for all types of assets; this list is very detailed and is based on surveys. Compensation rates for structures, crops and trees generally reflect market rates.

Compensation for land, as per Decree 188/2004, the principle underlying the determination of land prices is the actual transfer of price on the market under normal conditions between a willing seller and buyer without taking into account factors such as speculation, changes in planning, etc. Therefore in theory, PPC rates for land compensation should be at market rates. The yearly update has also to take into account inflation rates.

7 See section 5.3.2


40

As mentioned in section 3.4.3, replacement cost surveys have to be carried out during the implementation period, to ensure that project compensation rates for all categories of loss will be equivalent to replacement cost.

3.5.2 Cut-off Date

The DMS will establish the cut-off-date for the eligibility of entitlement. Persons not covered in the DMS, because they were not residing, having assets, or deriving an income from the project area, are not eligible for compensation and other entitlements.

As part of the overall management of the project an Influx Management Plan has been prepared to prevent, avoid or minimize direct and indirect adverse impacts associated with Project-induced population influxes.

3.5.3 Non Titled Land Users

All project-affected people, irrespective of tenure status, social or economic standing, will be entitled to be compensated or assisted for their lost land, assets, incomes, and businesses, at full replacement cost and provided with rehabilitation measures sufficient to assist them to improve or at least restore their pre-project living standards, income levels and productive capacity. According to Vietnamese laws, to prevent encroachment on public land, land users who have no formal legal rights nor recognized or recognizable claims8 for lost productive or residential land will not receive compensation for public land and land owned by Government or local authorities9. They will, however, be fully compensated, at replacement cost for non-land assets and investment on land. In addition, for this project they would qualify for the Livelihood Restoration Program. If such land users are poor and vulnerable and do not have other accommodation, as they cannot afford to purchase a plot of land, they will be offered special arrangements such as payment on a lease-to-own arrangements or long-term and low-cost interest payment. No cases of illegal land users have been found to date in the project area.

3.5.4 Severely Affected Persons

Severely affected persons are defined as follows:

APs losing more than 30% of their productive land (agriculture, forestry or fish ponds);

APs losing their main source of income;

APs having to relocate to another location.

All severely APs will be entitled to the Livelihood Restoration Program (LRP). The LRP is presented in the Annex 2.

8 Households using the land in a stable manner as defined in Article 3, Decree 84. Land Law 2003, Decree 197 and Decree 84 are

entitled to get recognition for their land (LURC). Households now have various opportunities, even without formal titles, to prove that they are using the land in a stable manner and would therefore be entitled to full compensation 9 Illegal encroachers on the land having entered after the cut off date are not entitled to this type of compensation.


41

Table 8-1: Entitlement Matrix

No. Type of Loss Application Eligible Persons Entitlements

1.

Productive Land (Agricultural, Aquaculture, Forest, Garden)

Marginal loss

APs losing less than 30% of their productive land

Land Users with LURC; in the process of acquiring LURC; are eligible to acquire LURC;

Cash compensation at replacement cost (THPPC rates will be reviewed to ensure they meet replacement costs).

Cash compensation for loss of crops, trees and aquaculture at replacement cost (THPPC rates will be reviewed to ensure they meet replacement costs).

Cash assistance equivalent to 1,5 time of the compensation rate for agriculture land;

Same application as above Land Users with Temporary or Leased Rights to Use Land that cannot be legalized as long term land user (State forestry land allocated to individual HH)

Compensation at 70% of the compensation rate of productive forestry land;


Same application as above Land Users who have no formal legal rights nor recognized or recognizable claims to such land.

No compensation for public land and land allocated by GoV/ local authorities to institutions or individual AP, but full replacement cost for non-land assets and investment on land to land user.

Productive Land (Agricultural, Aquaculture, Forest, Garden)

Severe loss

APs losing more than 30% of their productive land

Land Users with LURC; in the process of acquiring LURC; is eligible to acquired LURC;

Cash compensation for land aquaculture at replacement cost (THPPC rates will be reviewed to ensure they meet replacement costs).

Cash assistance equivalent to 1,5 time of the compensation rate for agriculture land;


Farmers losing more than 30% to 70% of their agricultural land area will be assisted to stabilize life for a period of 6 months if they do not have to move away from their residence and for a period of 12 months if they have to move away from their residence. If they have to move to places with difficult socio-economic conditions, the assisted time will be a maximum of 24 months.


42


Farmers losing more than 70% of their agricultural land area will be assisted to stabilize life for a period of 12 months if they do not have to move away from their residence and for a period of 24 months if they have to move away from their residence. If they have to move to places with difficult socio-economic conditions, the assisted time will be a maximum of 36 months.

Entitled to take part in the livelihood restoration program

For HH whose remaining residential or agricultural land is no more viable (to be determined by Tinh Gia DRC), the project will acquire their whole land holding;

Same application as above Land Users With Temporary or Leased Rights to Use Land that cannot be legalized as long term land user (State forestry land allocated to individual HH).

Compensation at 70% of the compensation rate of productive forestry land AND


Same application as above Land Users who have neither formal legal rights nor recognized or recognizable claims to such land.


Other assistance will be provided to ensure restoration of income of households (see item 9).

2. Loss of residential land

Marginal loss

(i.e., land is still viable for use and not requiring relocation). To be determined by DRC.

Land Users with LURC; in the process of acquiring LURC; are eligible to acquire LURC;

For the portion to be acquired permanently: Cash compensation at replacement cost (THPPC rates will be reviewed to ensure they meet replacement costs).

For non-land assets, see Items 3 to 7 below

Land Users who have neither formal legal rights nor recognized or recognizable claims to such land.


Severe loss

(i.e., land no longer viable for

Land Users with LURC; in the process of acquiring LURC; is eligible to acquire LURC;

Plot of land with secure tenure in a serviced resettlement site in Mai Lam, Tinh Hai of Nguyen Binh – Xuan Lam communes. AP will buy the land at the same rate than the compensation rate received.


43

No. Type of Loss Application Eligible Persons Entitlements continued use and the entire property to be acquired). To be determined by DRC

If AP is losing an area greater than the largest plot in RS, he will receive compensation in cash for the difference.

AP who is compensated with land for a larger assessed value than the former land, will not have to pay the difference.

OR


Allowance to relocate individually outside of NSEZ (160 M VND/HH) to cover for the costs of infrastructures if they decide to locate outside the RS;

For allowances due to relocation of house, see Item 8 below.

Land Users who have no formal legal rights or recognized or recognizable claims to such land.


For APs who belong to poor and vulnerable households who do not have other accommodation as they cannot afford to purchase a plot of land will be offered special arrangements such as payment on a lease-to-own arrangements or long-term and low-cost interest payment.

If APs who belong to poor and vulnerable households prefer for self-relocation, will be assisted by providing cash assistance.

3. House and Shops Marginal impact

(i.e., unaffected portion of the house/shop is still viable for use and requires no relocation.

Owners of the structures with or without acceptable proof of ownership over the land; with or without building permit.


Severe impact (i.e., house is no longer viable for continued use and the entire structure is to be acquired.

Owners of the structures with or without acceptable proof of ownership over the land; with or without building permit.


Support to cover construction costs : VND 10M/HH

For allowances see Item 8 below

4. Secondary Structures (fences,

Loss of, or damage to, assets Owners of the structures with or without acceptable proof of

Cash compensation at THPPC rates for the NSEZ


44

No. Type of Loss Application Eligible Persons Entitlements concrete yard, etc.) ownership over the land; with or

without building permit.

5. Crops Loss of, or damage to, assets Owners regardless of tenure status


APs will be given notice several months in advance regarding evacuation. Crops grown after issuance of the deadline will not be compensated

6. Trees Loss of, or damage to, assets Owners regardless of tenure status

Cash compensation at THPPC rated for the NSEZ

7 Graves Relocation of graves Owners of the graves Cash compensation for graves, at replacement cost (THPPC rates will be reviewed to ensure they meet replacement costs).

New cemeteries will be identified and designed by NSEZMB.

8. Impacts on Houses and will Require Relocation

Severe impacts on houses Relocating households (houses) regardless of tenure status

Transition subsistence allowance according to THPPC rates for NSEZ;

Materials transport allowance;

VND 3,000,000/HH for relocation within Thanh Hoa Province;

VND 5,000,000 /HH for relocation outside of Thanh Hoa Province;

Bonus Allowance for Timely Moving equivalent to VND 5,000,000 /household for relocated household on time;

HH who relocate into RS and who respect the time and progress as defined by the DRC will receive assistance for accommodations/ house renting with a lump sum of VND 12,000,000 per month per HH;

For 3 years from the date of the handing over of the site to the Project, all pupils from pre-school to high school who have to move and relocate in the resettlement sites will receive 100% of educational fees and other contributions.

Tenants, including residential and business tenants

An allowance equal to the current rental amount for job stability of three (03) months and assistance to find permanent accommodation or premises.


45


In the case of partially affected structures, tenant may remain with permission of owner.

9 Loss of Income/ Livelihood due to acquisition of agricultural land or other productive assets

Severe impacts on livelihood Severely affected APs are: i) APs losing more than 30% of their productive land; ii) Relocated APs; iii) Other APs losing their main source of income (such as fishermen).

Cash assistance equivalent to 1,5 time of the compensation rates (for agricultural land);

Eligible to the Livelihood Restoration Program;

Support for fishermen whose land will be acquired have to change jobs. Fishermen with boats with more than 150 HP, in all affected communes, will receive: - 30 M VND/boat - 90 to 150 HP: 25 M VND/boat - 50 to 90 HP: 20 M VND/boat - 20 to 50 HP: 15 M VND/boat - 20 HP: 10 M VND/boat - Small boat with motor: 5 M VND/boat - Simple fishing boat: 3 M VND/boat

All household members under labor age who have lost productive land and have to change their occupations and if they prefer to be trained in the vocational college will receive an allowance of VND 300,000 per month per person that covers food and accommodation and 100% of training fees for trainee during the training course. The duration of training course will be 3 years.

10. Loss of Income/ Livelihood due to relocation of business

Severe impacts on shops Relocating shop owners regardless of tenure status

For registered and non registered businesses, business disruption allowances will be 30% of annual net income.

Transition subsistence allowance, materials transport allowance and bonus Allowance as indicated in item 8.

11. Vulnerable APs Loss of Land and Non-Land Assets

Affected vulnerable groups regardless of severity of impacts

Support to poor households registered at the commune level, support allowance of 1,800,000 VND per year for a minimum of 3 years not exceeding 10 years.

Extension of stabilization allowance up to more 5 years with half of the allowance if APs are still in poor condition.


46


12. Relocated AP receiving social assistance

Severe impacts on land Relocated AP currently receiving social assistance

Besides of the common entitlements, APs are provided additional social assistance according to level set out by THPPC :

- Viet Nam heroine mothers, Heroes of People's armed forces, Heroes of Labour

- War invalids, sick soldiers

13 Impacts on host communities

Communes and towns The communes and towns in the province (outside of NSEZ) that allow more than 5 relocating HH to relocate in their locality

Host communities will receive an allowance of 20 M VND per household. This allowance will be transferred into the communal budget and be used to invest in the construction of infrastructure works for the public interests of that commune, ward or town.

14. Temporary impacts during construction

Temporary impacts on land Owners with LURC; in the process of acquiring LURC; are eligible to acquire LURC

A compensation framework management plan has been prepared to cover temporary impacts during construction;

The rent will be negotiated with affected households. The land will be restored to its pre-project condition. EPC contractor will be in charge of the negotiation with the owner of the affected business; Compensation will be confirmed by NSEZMB or TGDPC and agreed with the affected household under the supervision of the SCM.

Temporary impacts on business Owner of business EPC Contractor will be responsible for any disruption to businesses resulting in loss of income due to temporary land acquisition, traffic, dust, waste disposal or any other cause during the construction period caused by its activities;

Compensation will be negotiated by EPC Contractor with affected households under the supervision of the SCM;

Compensation for affected assets at replacement cost.


47

4. VULNERABILITY AND GENDER ISSUES

The Project will identify any specific needs or concerns that need to be considered for vulnerable groups such as the landless, the poor, and households headed by women, the disabled, the elderly or children without means of support. A gender strategy will be included in the resettlement plan.

Vulnerable households in the context of this project include female-headed, poor HH or supporting a large number of child/elderly/disabled dependants or otherwise severely poor households. Ongoing analysis of APs as the RP is prepared, monitored and updated is intended to identify such groups and ensure that appropriate impact mitigation measures are implemented.

4.1 SPECIFIC MEASURES FOR GENDER

The following have been identified as the specific measures for gender. - All future socio-economic data collected for the project is to be disaggregated by gender and ethnic group,

including monitoring indicators. - Where the project involves granting of new land or house titles as replacement for acquired land or houses,

the title will be in the name of both spouses; Compensation money will be given to both husband and wife. - Local representatives of the District Women‘s Union will be part of the DRC. - When project information is disseminated to APs, every effort should be made to have husbands and wives

present at meetings, and information will be given/discussed verbally using local languages with information booklets given as a secondary measure.

- As appropriate, separate or additional consultation sessions to discuss important aspects of the project should be held with women including women from poor and vulnerable groups, especially where these groups are under-represented at village or community meetings.

4.2 VULNERABLE HOUSEHOLDS

The implementation of resettlement will be monitored regularly to help ensure that the RPF is implemented as planned and that mitigating measures designed to address adverse social impacts are adequate and effective. Towards this end, resettlement monitoring will be done by an internal body and an external organization.


48

5. PROJECT IMPLEMENTATION ARRANGEMENTS

The following sections present the main stakeholders involved in resettlement activities for the NSRP project. A Stakeholder Engagement Plan (SEP) has also been prepared. The SEP includes details of stakeholder engagement activities which have already occurred and those that are planned in the future (including resettlement activities). This RFP will be implemented in coordination with the SEP. 5.1 NGHI SON REFINERY AND PETROCHEMICAL LIMITED LIABILITY COMPANY

The Nghi Son Refinery and Petrochemical Limited Liability Company Project (NSRP LLC) is the owner of the project. As already indicated, resettlement activities for the Nghi Son Refinery Project are under the full responsibility of the Vietnamese authorities at various levels. Therefore, NSRP LLC is not directly involved in the resettlement activities but has to work with local authorities in order to ensure compliance with Performance Standard 5. More specifically, NSRP LLC will have the following responsibilities:

Due Diligence Survey - Conduct a gap analysis of past resettlement and compensate in accordance with PS5 requirements.

Livelihood Restoration Program (LRP) - NSRP LLC will partially sponsor training programs implemented by local authorities for APs via its

proposed Stakeholder Engagement Plan (SEP). - NSRP LLC (SCM, HSEM and/or HRM) will work closely with local authorities (TGDPC and NSEZMB)

to design, implement and monitor the LRP and will hire a consultant to coordinate the LPR.

Monitoring - NSRP LLC will oversee the internal monitoring of resettlement activities implemented by THPPC,

TGDRC and NSEZMB. - NSRP LLC will engage an organization for the independent monitoring and evaluation of resettlement

activities implementation. The organization will be called the External Monitoring Agency (EMA).

Compensation during construction - NSRP LLC will supervise and monitor the Compensation Framework Management Plan through the

Social and Community Manager (SCM).

Preparation of Resettlement Plan (RP) - NSRP LLC will ensure that the preparation of RP for the future expansion areas will be done in

compliance with the policies set out in this Resettlement Policy Framework; - NSRP LLC will hire an agency to conduct a replacement cost survey to ensure that compensation

rates, issued by PPC, will correspond to replacement costs.

5.2 THANH HOA PROVINCE PEOPLES’ COMMITTEE (THPPC)

The Government of Vietnam assigned the People‘s Committee of Thanh Hoa Province to: i) implement all compensation and resettlement activities; and ii) construct transport roads in Nghi Son Economic Zone and infrastructure in resettlement sites for Nghi Son Refinery & Petrochemical Project (Official Letter No. 1370/TTG-KTN dated 21 August 2008 signed by Prime Minister Nguyen Tan Dung).

Thanh Hoa Province Peoples‘ Committee also issues decisions on resettlement, based on the national legal framework and issue, every year, the compensation rates for land and other assets. 5.3 NGHI SON ECONOMIC ZONE MANAGEMENT BOARD

Nghi Son Economic Zone Management Board (NSEZMB) is in charge of: - Development of the entire infrastructure including the resettlement sites of the NSEZ;


49

- Implement the Livelihood Restoration Program under the monitoring of NSRP LLC and with assistance of a consultant hired by NSRP LLC;

- Implement the internal monitoring of RP implementation, under the monitoring of NSRP LLC.

The Chairman of the Thanh Hoa Province People‘s Committee issued Decision No. 1243/QD-UBND dated May 08, 2008 on the establishment of the Nghi Son Economic Zone Steering Committee. The committee is in charge of planning and building resettlement sites for relocating affected households in the Nghi Son Refinery Project. The members of the committee are as follows:

a) Chairman of PPC: Head of the Committee; b) Head of NSEZ Management Board: Standing Deputy-Head of the Committee c) Chairman of Tinh Gia DPC: Deputy-Head of the Committee d) Director of Provincial Police Office: Member e) Director of Provincial Finance Dept: Member f) Director of Provincial Construction Dept: Member g) Director of Provincial DONRE: Member

Other social organizations of the province are involved as Members of the Committee such as Women‘ Union, Youth Organization, Farmers Union.

5.3.1 Tinh Gia District People’s Committee

The Tinh Gia District People‘s Committee (TGDPC) is in charge of the planning and implementation of resettlement activities. The Tinh Gia DPC issued decisions to: (i) establish a District Resettlement Committee; and (ii) conduct a Detailed Measurement Survey for the Nghi Son Refinery Project. More specifically, TGDPC has the following responsibilities:

Advise on the determination of the compensation level for impacts during construction, based on the policy applied in the NSEZ and set out in this RPF.

5.3.2 Tinh Gia District Resettlement Committee

The Tinh Gia District Resettlement Committee (DRC) is in charge of all resettlement activities implemented in the district area. The members of the committee are as follows:

a) Chairman of DPC: Head of the Committee b) Vice Chairman of DPC: Standing Deputy-Head of the Committee c) Vice-Chairman of NSEZMB: Deputy-Head of the Committee d) Others (representatives of APs, representatives of mass organizations such as Women‘ Union or

Framers‘ Union).

More specifically, TGDRC has the following responsibilities:

Prepare the DMS and compensation plan for new expansion areas; 5.3.3 Commune People’s Committees

Commune People‘s Committees are assisting district authorities with resettlement activities. The 3 affected communes have established a resettlement committee. This committee includes representatives of APs and members of the Women‘ Union and Farmers union.

5.3.4 EPC Contractors

The EPC Contractor will be responsible for effecting repairs of any damage caused by its activities under its responsibility and/or will provide appropriate compensation in compliance with the compensation policy and set out in the Compensation Framework Management Plan.


50

Figure 5-1: Organization of Resettlement for the Nghi Son Refinery Project

Government of Vietnam

Regulation-Budget

Thanh Hoa Province People’s Committee

Policy - Disbursement

Tinh Gia District People’s Committee

Implementation

Nghi Son Economic Zone

Implementation of Resettlement Activities for Resettlement Sites;

Development of Resettlement Sites;

Tinh Gia Resettlement Committee

Implementation of resettlement activities (DMS, compensation plans)

Hai Yen, Mai Lam, Tinh Hai Communes People’s

Committee

Assistance to Tinh Gia Resettlement Committee

Nghi Son Refinery Project LLC

Supervise implementation

Ensure compliances with PS 5


51

6. GRIEVANCE MECHANISM

According to the process for resolution of disputes in Viet Nam, APs are entitled to lodge complaints regarding any aspect of the land acquisition and resettlement requirements; compensation policy, entitlements, rates and payment; and, strategies and procedures for resettlement and rehabilitation assistance programs. AP complaints can be made verbally or in written form. In the case of verbal complaints, the committee hearing the complaint will be responsible to make a written record during the first meeting with the AP. APs who present their complaints to the CPC, DPC or PPC will be exempt from all administrative fees incurred. In addition, APs who lodge complaints and appeals to district courts will be provided with free legal representation.

For the purposes of grievance redress and resolution, the RCs at the commune, district and provincial levels will also serve as the Grievance Redress Committees. The Commune Grievance Redress Committee will make all reasonable attempts to settle AP issues at the commune level through community consultation. Moreover, to avoid a redress process, grievances will be prevented to the extent possible through careful sub-project design and implementation. Effective strategies include full and frank participation and consultation with APs; establishing a rapport between the affected communities and the implementing agencies; and frequent interactions, transparency and monitoring.

A four-stage procedure for redress of grievances is proposed:

Stage 1: Complaints from APs on any aspect of compensation, relocation or unaddressed losses are, first of all, lodged verbally or in written form with the Commune People‘s Committee (CPC). The complaint will then be discussed in an informal meeting with the AP and the CPC. It will be the responsibility of the CPC to resolve the issue within 15 working days from the date the complaint is received.

Stage 2: If no understanding or amicable solution can be reached or if no response is received from the CPC within 15 days of registering the complaint, the AP can appeal to the District People‘s Committee (DPC) in the presence of the District Resettlement Committee (DRC). The AP must lodge the complaint within 30 days of registering the original complaint and must produce documents that support his/her claim. The DPC will provide a decision within 1 month of receiving the appeal.

Stage 3: If the AP is not satisfied with the decision of the DPC or, in the absence of any response, the AP can appeal to the Provincial People‘s Committee (PPC). The PPC together with the Provincial Resettlement Committee (PRC) will provide a decision on the appeal within 30 days from the day it is received by the PPC.

Stage 4: If the AP is still not satisfied with the decision of the PPC on appeal, or in the absence of any response within the stipulated time, the AP as a last resort may submit his/her case to the District Court.

A register for complaints and grievances will be established at the Information Centre in NSEZ. Local authorities (from commune and districts) which receive a grievance will transmit it to the Information Center. The grievances received will be reviewed by the Social and Community Manager (SCM). The SCM will ensure that the grievance has been responded to timely and properly by local authorities.


52

Figure 6-1: Grievance Process

Stage 1

Stage 2

Stage 3

Stage 4 Affected Person (AP)

still not satisfied

AP not satisfied with decision of the PPC (PRC), or in the absence of any response

within the stipulated time. As a LAST RESORT – may submit their

case to the District Court

Affected Person (AP)

still not satisfied

Affected Person (AP)

still not satisfied

Affected Person (AP) has a

grievance with any aspect of

the Resettlement

Process

Complaint lodged verbally or in writing to CRC (CPC)

Complaint discussed informally with AP

CRC (CPC) responsibility to resolve within 15 days of receipt of complaint

Grievance Resolved?

Grievance Resolved?

Grievance Resolved

Yes

Yes

Yes

Yes

No

Grievance Resolved?

No

No

AP appeals to DRC (DPC) within 30 days of registering original complaint

AP must produce documents supporting claim

DPC (DRC) decision within 1 month of receipt

AP appeals to PRC (PPC)

PPC (PRC) decision within 1 month of receipt of appeal


53

7. CONSULTATION PROCESS

7.1 CONSULTATIONS DURING THE PREPARATION OF THE RESETTLEMENT PLANS

Consultation will be undertaken prior to the finalization of acquiring the land location in order that APs‘ requests and suggestions minimize resettlement impacts. During preparation of the resettlement plan, consultation activities such as distribution of project information booklets, community information dissemination and feedback, key informant interviews, individual and public meetings, focus group discussions, and separate consultations with severely affected and vulnerable APs will be carried out (see section 3.3.5).

Consultation and participation activities will continue throughout the project‘s implementation to ensure that information about the overall project and resettlement-related information is properly understood and accepted by the APs prior to any physical or economic displacement.

7.2 PUBLIC DISCLOSURE

This resettlement framework will be disclosed to APs in a form and language that they can understand. The resettlement framework will be disclosed at the Tinh Gia DPC office and in affected communes PC offices. A Public Information Booklet (PIB) has also been prepared for this Project (see Appendix 1). The general content of the PIB includes the following:

- Brief description of the Project;

- Types of impacts expected;

- Basic compensation policy and entitlements;

- DMS process;

- Consultation and participation of APs and community;

- Grievance redress; and

- Who to contact for additional information. The purpose of this PIB is to ensure that the APs and various stakeholders fully understand the details of the resettlement plan program, compensation, and resettlement and rehabilitation options and measures applicable to the Project. The PIB will be disclosed prior to the start of the DMS.

8. BUDGET For the purpose of preparing the Project‘s costs, an estimated budget needs to be prepared. A budget for the future projects‘ RPs shall be prepared based on the updated compensation unit rates. These will reflect replacement cost at the current market value of all affected assets.

54

APPENDIX 1: PUBLIC INFORMATION BOOKLET Nghi Son Refinery and Petrochemical Complex will be the second major oil refinery in Vietnam after Dung Quat (Quang Ngai Province). It will process crude oil imported from Kuwait into LPG, gasoline, jet fuel/kerosene, fuel oil and other petrochemicals for Vietnam. The project is located within the Nghi Son Economic Zone (NSEZ) in Thanh Hoa Province (Tinh Gia District). It will affect mainly three communes: Mai lam, Hai Yen and Tinh Hai. The project will be funded and implemented by the Nghi Son Refinery and Petrochemical Limited Liability Company (NSRP).

Why is this Project necessary to implement?

The Project is expected to ensure national security through the basic satisfaction of the domestic fuel demand and to decrease foreign dependence. The project also hopes to contribute to the economic development in the Northern area to ensure equal development of the country. Scope of construction and impact The project already affects an area of 685 ha. New areas may be necessary for further expansion. Three serviced resettlement sites have been developed for the relocated families.

Who are the affected persons (APs)?

Entitled APs are those persons who are located within the affected area on the date when the project was publicly announced. The cut-off-date for eligibility is the date of the notification for land acquisition. Persons who encroach into the area after the cut-off-date will not be entitled to compensation or any other form of resettlement assistance.

What are the resettlement policies and principles of the Project? The resettlement and compensation activities are being implemented under the responsibility of the Vietnamese Government. The basic resettlement principles of the Project are:

a) All APs are entitled to be compensated for their lost assets (e.g., land, structure, crop, trees), incomes and businesses at replacement cost;

b) Relocated families and farmers losing their agricultural land will be entitled to participate in the livelihood restoration measures with the aim to assist them to improve or at least maintain their pre-Project living standards, incomes and productive capacity;

c) Lack of legal rights to the assets lost, will not prevent APs from entitlement to compensation.

d) Relocated APs will have the choice to receive cash compensation and to find suitable relocation housing on their own, or to be relocated in one of the three serviced resettlement;

e) Vulnerable APs (e.g., poor, elderly, women head of HH, etc.) may be entitled to receive special assistance.

How will the Detailed Measurement Survey be conducted?

This activity will be led by a detailed measurement survey team composed of Project representatives (TGDPC staff) and the Resettlement Committees of each affected commune. The survey will only be carried out in the presence of the APs, and APs will be given sufficient advance notice prior to conducting the survey. Each AP will be asked to assist in completing the Detailed Measurement Survey Form for their household. This form will identify all the losses that the household will experience from the Project, and will be the basis for the compensation package for them. The AP will then be given the AP Compensation Form, which summarizes the losses and the total amount of compensation. The household can review this form for 7 days, and if they agree with the details, the head of the household will be asked to sign the form.

When will consultation take place?

Consultation will take place throughout the resettlement process and will be organized by: commune and district level. Each AP will be

http://en.wikipedia.org/wiki/Vietnam

55

informed in advance of the date and location of the meeting.

How are the constructions impacts supervised and monitored?

NSRP LLC will monitor the contractor during construction work. Any disturbances to the lives of people in the affected area will be recorded and issues reported to NSRP LLC for resolution within 7 days.

A Resettlement Policy Framework detailing AP entitlements and mechanisms for addressing people and properties affected during construction will be available for review at the District People‘s Committee in Vietnamese. All APs will be able to review this plan to better understand the Project and anticipated construction, as well as the entitlements if such construction affects any property or land.

If there are disagreements or problems arising during the Project such as compensation or general project-related disputes, do I have the right to complain?

Any AP may file a complaint or grievance. The Project includes a Grievance Redress Process and APs may present their complaints to the concerned local administrative officials and RCs, either verbally or in writing.

The complaint can be filed first at the commune level and can be elevated to the highest provincial level if the APs are not satisfied with the decisions made by the commune or district. APs will be exempted from all taxes and administrative and legal fees associated with filing and resolving the dispute. Anybody living in the construction site who is affected by the construction or annoyed by the contractors, of anybody who has questions or concerns about the Project, can contact NSRP LLC at the following address:

Mr Hideto Murakami

Office address: 5th floor, Petrovietnam building, 18 Lang Ha stress, Ba Dinh district, Ha Noi.

Tel +84 (4) 37726426

Mr/Mrs (to be determined) NSRP LLC, Social Community Manager

Office address: Tinh Gia District, Thanh Hoa Province

Tel: (to be added)

RESETTLEMENT DUE DILIGENCE SUMMARY & POLICY FRAMEWORK NGHI SON REFINERY AND PETROCHEMICAL

56

APPENDIX 2: LIVELIHOOD RESTORATION PLAN

Objectives Assist all affected APs to improve or at least to restore their livelihoods, incomes and living standards.

Develop sustainable employment and income-generating opportunities for people, taking into consideration their skills, knowledge, education, aptitudes and preferences.

Undertake a fully participatory process, engaging eligible APs in the design, implementation and monitoring of the Livelihood Restoration Plan (LRP).

Target To achieve full restoration of livelihood for all households that have been physically or economically displaced by the project.

No complaints from APs and affected communities about the restoration of their livelihoods, incomes and living standards.

Improvement of living conditions for the APs inthe communes affected by the project within the NSEZ and Tinh Gia district

Action The strategies and actions of the Livelihood Restoration Plan (LRP) will be closely linked with other NSRP management plans, in particular the Stakeholder Engagement Plan (SEP).

As mandated by the Government of Viet Nam, the NSRP resettlement program is the responsibility of the Thanh Hoa Provincial People‘s Committee (THPPC) with delegated responsibilities to the Tinh Gia District People‘s Committee (and the Tinh Gia District Resettlement Committee). The NSEZMB is responsible for development of resettlement sites and NSRP LLC, while not directly involved in the resettlement program, is responsible to ensure that it complies with IFC PS5. NSEZMB and other local authorities will collaborate closely and as appropriate with, and receive support from, the TGDPC and NSRP LLC (the Social & Community Manager (SCM)), Health, Safety and Environment Manager (HSEM) and/or the Human Resources and Training Manager (HRM)) for the design, implementation and monitoring of the LRP.

NSRP LLC will play an active role in coordinating and facilitating the implementation of the resettlement program and the livelihood restoration plan in close collaboration with the local authorities. NSRP LLC SCM will follow-up on the activities defined in the LRP to ensure their timely implementation. NSRP LLC will also provide support throughout the process of implementation in required areas (such as training, equipment etc.) to ensure a successful livelihood restoration program.

Stakeholder analysis and engagement

1. Stakeholder analysis

The NSEZMB will identify the primary and secondary stakeholders, and conduct a participatory analysis of their interests, issues and resources related to livelihood restoration.

Primary stakeholders include the individuals, households and businesses (affected people or APs) that are physically and/or economically displaced by land acquisition and development related to the NSRP.

Secondary stakeholders include agencies and other organizations of the provincial, district and commune governments that have mandated responsibilities for aspects of the NSRP resettlement program; and, NGOs and community organizations that can contribute to the design, implementation and monitoring of livelihood restoration activities.

2. Stakeholder engagement

The NSEZMB will prepare and carry out a LRP consultation process to disseminate information and consult APs at all stages of the development and implementation of the


57

LRP, in compliance with IFC PS5.

The NSEZMB will collaborate with the Social and Community Manager of NSRP LLC to ensure that the NSRP Stakeholder Engagement Plan (SEP) integrates strategies and activities in the LRP consultation process. Constant exchange of information and consultation with APs will allow identification and rapid response to any problems related to livelihood restoration activities.

3. LRP Community Board

The NSEZMB will establish a Community Board including one eligible AP from each commune where eligible APs have relocated (the three communes where resettlement sites have been established and any other communes where eligible APs live).

Members of the Community Board will not be limited by age, sex or education level. Their roles will be to take an active part in the LRP design, implementation, management and monitoring, as well as helping to find solutions for issues that arise during LRP implementation.

4. Grievance redress

NSEZMB will establish a grievance redress process as an integral part of the LRP, reflecting the approaches set out for the NSRP resettlement program.

Identification of eligible APs

In order to design and, subsequently, to administer the LRP, the NSEZMB will implement a process

of registering and creating a database of eligible APs.

1. Registration of eligible APs

An initial list of eligible APs will be established drawing on the Detailed Measurement Survey database prepared by Tinh Gia District Resettlement Committee. As per Project policies, eligible APs include working-age members of households that have lost their sources of agricultural income a result of the significant losses of productive land and/or having been relocated, or who are otherwise designated as vulnerable APs.

Community meetings will be organized to disclose the initial list of eligible APs. At this time, any other APs who believe they are eligible will be encouraged to indicate their interest and to provide information to confirm that they meet the criteria. As relevant, the list of APs will be updated and made public. The NSEZMB will work with commune and village officials to ensure the all men and women who are eligible are included in the list.

The grievance redress mechanisms established for the Project resettlement program will be available to all APs who are not satisfied with the identification of eligible APs for the LRP.

2. Documentation of status of compensation, allowances and other assistance

In order to establish benchmarks for the design of the LRP and monitoring of LRP outcomes, the registration process will collect data from eligible APs about the status of the resettlement implementation.

Data collected will include: a) a summary of losses; b) the compensation awards by types, including the form and date of payment, as well as any outstanding payments; c) the allowances to which the household is entitled, including type, amount, duration , whether and how received, as well as outstanding issues; and, d) for displaced APs, the resettlement option, dates removed from affected land and settled on new land, reasons for discrepancies, coping strategies and assistance received.

Each AP will also be asked to evaluate the positive and negative consequences of their experience to date, particularly as it relates to their livelihood and income conditions.

3. AP capacity and needs assessment:

The LRP registration process will also collect relevant data from eligible APs to assess their capacity, needs and preferences for training and future employment.

For working-age members of eligible households, the scope of information will include: a)


58

age, sex and marital status; b) educational attainment and literacy level; c) working experience: current occupation, occupation prior to resettlement (if changed) and other working experience over past 10 years; d) technical and business skills: summary of skills and knowledge; e) objectives/preferences for future occupation; and, f) objectives/preferences for training.

Market-oriented job skills assessment

The LRP will be designed to provide training and other assistance to APs to enable them to find

employment and/or to establish their own income-generating activities in response to the demands

of the market in the NSEZ region.

1. NSRP Employment Program

As part of the design of the LRP, the NSEZMB will collaborate with the HRM of NSRP LLC to define the recruitment needs and schedules for the construction and operations phases of the NSRP.

The current estimates include: a) a total of 22 000 workers during the construction phase, including 2,000-3,000 unskilled workers: b) direct recruitment of 1,000 workers for the operations phase (2010-2012), of which 90% will be skilled workers with higher education and English language capacity; and, c) outsourced services during the operations phase that will create demands for about 575 skilled workers (for maintenance, marine, fire-fighting and clinic works) and 80 unskilled workers (security, housekeeping and canteen works).

2. NSEZ Employment Program

The NSEZMB will collect data regarding other industries that are proposed or planned for NSEZ, including the types and numbers of unskilled, semi-skilled and skilled jobs that will be available in each industry, along with projected timeframes for recruitment of manpower.

3. Local job skills survey

The demand for goods and services to supply the NSEZ industries will stimulate the growth of existing small and medium enterprises (SMEs) and the creation of new SMEs, thus increasing employment opportunities. The increase in incomes will also stimulate greater spending among workers and other people, creating a wide range of opportunities for APs to gain employment and/or establish their own businesses or income-generating activities.

The NSEZMB will undertake a study to determine market-oriented job skills that are relevant in the Project area. The objective is to identify the market(s) for different skills that could lead to sustainable employment or self-employment for APs. This may include existing small-scale industry or commercial enterprises, as well as those that may be encouraged to establish due to the NSEZ. It may also include opportunities for APs to initiate their own businesses, building on local demand for different goods and services.

LRP Partner Organizations

The NSEZMB in collaboration with NSRP LLC and TGDPC will identify potential partner organizations for the LRP. This will be closely coordinated with the training activities identified in the Influx Management Plan.

1. Technical institutes

The key technical institutes in the NSEZ region include: a) Tinh Gia District Vocational Training College; b) Truc Lam Higher Vocational College; c) Vinashin Shipbuilding College; and, d) Licogi College of High Vocational Economics

Discussions with these institutes will focus on opportunities and capacities of these institutes to provide training; and, negotiation of Memoranda of Understanding (MOU) for programs suited to the needs of APs. The MOUs will also identify the logistics for the development and implementation of the training programs, including schedules, duration, entrance criteria, etc.; and, the financial support to the institutes to defray the costs of


59

providing training, including equipment and other resources.

The scope of MOUs will encompass: a) training to assist APs to meet the technical, skills and linguistic requirements for recruitment at the Nghi Son Refinery; b) training in different sectors that reflect market-oriented demands in the NSEZ region such as construction, trades, electronics/computers, health-care services, accounting, etc.

2. Other partner organizations

Other partner organizations for the LRP may include those that are providing training and other assistance related to job creation and income-generation activities, including credit facilities. These may include, among others: a) mass organizations such as the Women‘s Union and Farmers‘ Associations; b) Government-run training and employment support programs; c) international and Vietnamese NGOs; and, d) international and donor-funded programs.

Livelihood Restoration Program initiatives

The following outlines some of the main features of the LRP, while further details will be possible only when there is further data regarding the eligible APs.

1. Agricultural production and value-added processing

Collaboration with Agricultural Extension Centers, programs offered by technical schools and/or Farmers‘ Associations and Women‘s Unions may result in training and technical assistance programs to improve agriculture and livestock production, as well as to introduce new, higher-value crops and/or home-based or small-enterprise value-added agricultural processing.

The LRP will ensure continuous support through technical training courses and close monitoring of pilot projects to allow timely resolution of constraints and problems. The Farmers‘ Associations and Agricultural Extension Centers will also assist households to access credit facilities through the Social Policy Bank or the Agriculture and Rural Development Bank.

2. Technical training

The technical and vocational institutes will provide a range of training for APs under different scenarios, e.g: a) training to upgrade/ consolidate the skills of APs that may qualify for recruitment by NSRP LLC for semi-skilled/skilled positions during construction and operations phases; b) training to develop/upgrade the skills of APs that may qualify for recruitment by other NSEZ industries for semi-skilled/skilled positions during construction and operations phases; and, c) training in trades, services and other market-oriented job skills for APs that seek employment and/or self-employment outside the industrial sector/NSEZ.

3. Business development training

For APs that choose to establish small businesses or engage in self-employed activities, the LRP will provide technical advice and formal training on business development and entrepreneurship to help APs to know how to set up a business, how to pick the right products, understand the market situation and competition, evaluate and manage investments and profits, and the potential risks.

The LRP may also establish pilot models on small business/services, and will assist households to access credit facilities through the Social Policy Bank or the Agriculture and Rural Development Bank.

4. Life skills training

Depending on demand and need, the LRP may also provide a range of life skills training to assist households in the process of restoring their livelihoods and incomes. The specific subjects will depend on the requirements and interests of APs, but may include managing family finances, family health and nutrition, literacy, etc.

Responsibility As delegated by the THPPC, the NSEZMB has the primary responsibility for the NSRP resettlement


60

program including the Livelihood Restoration Program.

At the same time, the TGDPC and TGDRC is responsible for compensation for NSRP Project and NSRP LLC remains responsible to ensure that the NSRP resettlement program complies with IFC PS5.

Therefore, the NSEZMB will work closely with TGDPC and NSRP LLC (SCM, HSEM and/or HRM) to design, implement and monitor the LRP.

Other partners for the implementation of the LRP will include commune authorities, training institutes, mass organizations (Women‘s Union, Farmers‘ Front), business associations, NGOs and community organizations in the NSEZ.

NSRP LLC will commission a socio-economic baseline to supplement the socio-economic surveys conducted in 2008 and 2009. This will ensure that data is available for 100% of the vulnerable households based on a broad definition of vulnerability (including, but not limited to, households: with disabled family members (mentally and physically); headed by an elder, single person or child, having raised grievances previously; having lost an amount of land that would not allow them to sustain the household; having unclear land titles) and a random sample of 20 % of the remaining affected households

NSRP LLC will coordinate the

activities with NSEZMB to facilitate the implementation of the resettlement program and the livelihood restoration plan.

Monitoring The NSEZMB and the Community Board will develop a set of monitoring indicators to track inputs and outputs of the LRP; and, prepare a quarterly progress report against these indicators, identify issues or gaps and recommend corrective actions and responsibilities. The NSRP SCM will assist NSEZMB in these activities.

NSRP LLC will engage (and pay for) an External Monitoring Agency (EMA) to monitor and evaluate the effectiveness of the LRP. The EMA will develop a set of evaluation indicators, focusing primarily on the outcomes of the LRP, and will conduct bi-annual reviews of the LRP. The EMA annual monitoring reports will provide a time-bound action plan that will identify problems, issues and lessons learned; and, recommend solutions that NSEZMB and the Community Board can implement to improve or resolve problems in a timely manner.

The EMA will monitor ongoing resettlement activities every 6 months to determine the extent to which eligible APs were able to restore their pre-project socio-economic conditions. A closing audit of physical and economic resettlement will be carried out by the EMA in 2011.

The EMA will conduct an audit of livelihood restoration when monitoring results will indicate that livelihood restoration is substantially restored.

NSEZMB will maintain accurate records of any complaints and grievances related to the LRP, actions taken and outcomes.

Reporting NSRP LLC will quarterly report on the progress of the LRP to lenders.


61

APPENDIX 3: PROPOSED MONITORING PROGRAM

1. INTERNAL MONITORING

THPPC, TGDRC and NSEZMB are directly responsible for internal monitoring of RP implementation, under the monitoring of NSRP LLC. In particular, the Social & Community Manager, under NSRP LLC, will closely cooperate with the related authorities and monitor the implementation of the resettlement activities; and, prepare and submit quarterly monitoring reports to Lenders.

1.1. INTERNAL MONITORING INDICATORS

1. NSRP will suggest the principal indicators for internal monitoring of resettlement activities to the related

authorities which include the following:

(i) Payment of compensation to APs in various categories, according to the compensation policy agreed in the RP, with no discrimination according to gender, membership in a vulnerable group or any other factor.

(ii) Delivery of relocation, income restoration and rehabilitation allowances and measures to all APs and, in particular, to severely affected and other vulnerable APs.

(iii) Allocation of replacement land and, in the event of the relocation of APs, development of individual and/or group resettlement sites and infrastructure.

(iv) Public information dissemination and consultation procedures.

(v) Adherence to grievance procedures and identification of outstanding issues that require further attention and resolution.

(vi) Attention given to the priorities of APs regarding the options offered (plots of land in RS or individual relocation).

(vii) Coordination and completion of resettlement activities and award of civil works contracts.

(viii) Livelihood restoration levels.

1.2. INTERNAL MONITORING DATA COLLECTION AND REPORT

2. The NSRP LLC will establish a database for resettlement monitoring data. The database will come from the DMS database. The NSRP LLC will cooperate with the Resettlement Sub-Committees/NSEZMB regarding collection of data on a quarterly basis, and update the database.

3. On bi-annual basis, the NSRP LLC will prepare a resettlement monitoring report. The report will be submitted to lenders every six months. The report will summarize progress on resettlement activities. The scope of the report will include:

(i) The number of APs by category of impact, district, commune and village, and the status of compensation payments, AP relocation and income restoration measures for each category.

(ii) The status of allocation of replacement land and, as required, the development of individual and group resettlement sites and infrastructure.


62

(iii) The activities, levels of participation, outcomes and issues of the Information Dissemination and Consultation Program.

(iv) The status and outcomes of complaints and grievances and any outstanding issues requiring further attention by provincial or district authorities.

(v) Implementation problems, including delays, lack of personnel or capacity, insufficient funds, etc.; proposed remedial measures; and, revised resettlement implementation schedule.

2. EXTERNAL MONITORING

2.1. OBJECTIVES AND SCOPE OF EXTERNAL MONITORING

4. As per IFC requirement (PS5), the client should design and carry out a program of monitoring to assess the progress and implementation of the resettlement and livelihood restoration process with particular attention to those who are poor and vulnerable so as to track their standards of living and effectiveness of resettlement compensation, assistance and livelihood restoration.

5. The general objective for external monitoring is to provide an independent periodic review and assessment of (i) the achievement of resettlement objectives, (ii) changes in living standards and livelihoods, (iii) restoration of the economic and social base of the affected people, (iv) the effectiveness, impact and sustainability of entitlements, (v) the need for further mitigation measures if any, and (vi) to identify strategic lessons for future policy formulation and planning.

6. The scope of external monitoring under the Nghi Son Refinery Project will include:

(i) The three resettlement sites (Mai Lam, Tinh Hai and Xuan Lam - Nguyen Binh) where families from the plant site, the pipeline area and the marine facilities have been (or will be) relocated;

(ii) Adjacent areas of the plant site, the pipeline area, the marine facilities and the disposal areas where families have been partially affected (loss of part of agricultural or residential land without relocation).

(iii) Marine facility where HH have not yet been compensated and relocated (up to December 2010);

(iv) All families that decided to locate outside the RS.

2.2. HIRING, QUALIFICATIONS AND TIMING

7. NSRP LLC will engage an individual or organization for the independent monitoring and evaluation of resettlement activities implementation. The individual or organization, to be called the External Monitoring Agency (EMA), will be a) a specialist and/or specialized in social sciences and b) experienced in resettlement monitoring for international agencies. All candidates will be academically trained as social anthropologists and/or sociologists. The EMA should start its work as soon as the investment has been approved (planned during the year of 2011).

2.3. MONITORING AND EVALUATION INDICATORS

8. The following indicators will be monitored and evaluated by the EMA:

(i) Payment of compensation: a) Full payment to be made to all APs sufficiently before land acquisition; adequacy of payment to replace affected assets. b) Compensation for affected structures should be equivalent to the replacement cost at current market value of materials and


63

labour based on standards and special features of constructions with no deductions made for depreciation or the value of salvageable materials.

(ii) Co-ordination of resettlement activities with construction schedule: The completion of land acquisition and resettlement activities for any sub-project to be completed prior to the approval to award of the civil works contract for that sub-project.

(iii) Provision for technical assistance for house construction: For APs who rebuild their structures on their remaining land, or build their own structures in new places as arranged by the Project, or on newly assigned plots.

(iv) Process of providing allowances to all entitled APs according to Vietnamese Law and the Project policies.

(v) Facilitation of access to economic and income restoration assistance, according to the policies of the Project.

(vi) Public consultation and awareness of compensation policy: a) APs should be fully informed and consulted about land acquisition and relocation activities. b) The monitoring team should attend at least one public consultation meeting each month to monitor public consultation procedures, problems and issues that arise during the meetings and solutions that are proposed. c) Public awareness of the compensation policy and entitlements will be assessed among APs. d) Assessment of awareness of various options available to APs as provided for by the RP.

(vii) Restoration of productive activities: Affected persons should be monitored regarding restoration of productive activities so as to ensure the process is satisfactory for the APs.

(viii) The level of satisfaction of APs with various aspects of the RP: This will assessed, reviewed and recorded, and the operation of the mechanisms for grievance redress and the speed of grievance redress will be monitored.

(ix) Trends in living standards: Throughout the implementation process, this will be observed and surveyed, with special attention being paid to any differences according to gender or ethnicity. Any potential problems in the restoration of living standards will be reported.

9. A list of potential monitoring indicators is attached at the end of the Annex/document.

2.4. METHODOLOGY

10. The methodology for conducting monitoring and evaluation of implementation of the resettlement activities for the Nghi Son project will include the following activities:

2.4.1. Detailed Measurement Survey

11. The Detailed Measurement Survey (DMS) has been conducted for all the affected areas. The DMS will establish a database for each AP in terms of his/her social-economic status, the nature and extent of losses suffered, compensation and entitlements etc. Data will be disaggregated according to commune and district. This database will become the basis for compensation and for monitoring the benefits as well as entitlements the AP receives during the process of implementation.

12. The DMS database will be made available to the EMA to enable them to create their initial database.


64

2.4.2. Socio-Economic Survey

13. Sample socio-economic surveys (SES) are required before, during and after resettlement implementation to provide a clear comparison of success/failure of the resettlement action plan. The sample will include (i) 100% of severely affected HHs and at least 20% of all other APs. Before implementation, the DMS form will be modified to include all the necessary socioeconomic information as described in section 3.3.2.

14. The list of severely affected HH APs will be provided by NSEZMB based on the DMS database. As per the Project policies, they include working-age members of households that have lost their sources of agricultural income as a result of significant losses of productive land and/or having been relocated, or who are otherwise designated as vulnerable APs.

15. A follow-up SES will be conducted every year during the implementation of the resettlement program. The survey sample for follow-up SES will include the same groups of severely affected and other APs.

16. The survey form will be the same as the one used for the SES. It will document demographic, occupational, income and expenditure and other relevant information on the socio-economic conditions of APs.

17. Special attention should be paid so that women, elderly persons and other vulnerable target groups are not omitted and/or overlooked. The sample should have, as far as possible, equal representation of male and female respondents. A certain set of questions in the interview should be specifically marked and answered only by female members of the household and/or those who are vulnerable (such as the lonely elderly, people with disabilities etc). Data should be disaggregated according to gender, age, ethnicity and socio-economic status where appropriate.

2.4.3. Completion Audits

18. The purpose of the completion audit is to establish whether NSRP LLC has implemented and/or overseen all the activities necessary to ensure compliance with the Resettlement Policy Framework (RPF) and applicable policies adopted by the Government of Viet Nam and the THPPC, and whether the compensation and resettlement process can be deemed complete. A key objective of the RPF is to assist affected people to improve, or at least restore, income-generating capacity and living conditions. At such time as this objective can be demonstrated to have been achieved, the process is deemed complete.

19. Two completion audits will be conducted: i) for resettlement activities; and ii) for livelihood restoration.

Completion audit for resettlement. The completion audit for resettlement will be carried out by the External Monitoring Agency (EMA) engaged by NSRP LLC for the Project. Based on progress and outcome indicators, the EMA will review all land acquisition, compensation and resettlement activities associated with the Project, formulate conclusions and, if necessary, recommend corrective actions regarding: Have the objectives of the RPF been reached in terms of:

- Identification of all affected people and identification of impacts


65

- Compensation for all impacts of all affected people - Timely delivery of entitlements related to relocation and/or restoration assistance

Has compensation, allowances and other assistance been fair and adequate to mitigate experienced impacts The completion audit for resettlement will be conducted after all inputs in the RPF and any RPs prepared for the Project – except the livelihood restoration program – have been completed, but with sufficient time to enable NSRP LLC to complete and/or oversee corrective actions, if any, as recommended by the EMA before the financial commitments of the NSRP LLC to IFC have been fully met. It is likely that the completion audit for resettlement will be conducted one year after completion of the resettlement activities. Completion audit for livelihood restoration. The completion audit, for livelihood restoration, will be carried out by the External Monitoring Agency (EMA) 4 years after completion for the resettlement activities. The EMA will review all activities included in the Livelihood Restoration Program and recommend corrective actions regarding: Have income-generating capacity and living conditions been restored.

2.4.4. Participatory Rapid Appraisals

20. Periodic participatory rapid appraisals (PRA) conducting between follow-up SES will allow the EMA to consult with the various stakeholders (local government, resettlement committees, implementing agencies, social organizations, community leaders and APs). PRA will involve obtaining information, identifying problems and finding solutions through participatory means, which will include the following:

(i) Key informant interviews with selected local leaders, resettlement committee members (at Tinh Gia District and communes levels) and NSEZMB members;

(ii) Focus group discussions on specific topics such as compensation payment, income restoration and relocation;

(iii) Community public meetings to discuss community losses and impacts and construction work employment;

(iv) Structured direct field observations on the status of resettlement implementation in addition to individual and groups interview for cross-checking purposes;

(v) Informal surveys and interviews of APs, host communities, special interest or vulnerable groups and women;

(vi) In-depth case studies of problems that have arisen during internal or external monitoring requiring special efforts for resolution.

2.4.5. Database Management and Storage

21. The EMA will maintain a database of resettlement monitoring information that will be updated every 6 months. It will contain certain files on each affected household and will be updated based on information collected on successive rounds of data collection. All databases compiled will be fully accessible by all implementing agencies and those involved in the management of the resettlement component.


66

2.5. REPORTING

22. The EMA is required to submit the findings of the periodic monitoring at intervals to be agreed (but between three and four times a year). These monitoring reports shall be directly submitted at the end of each quarter of the monitoring activity to NSRP and the IFC.

23. The report should contain the following topics:

(i) Progress of RP implementation;

(ii) Deviations, if any, from the provisions and principles of the RP and an explanation thereof;

(iii) Identification of problem issues and recommended solutions so that implementing agencies are informed about the ongoing situation and can resolve problems in a timely manner; and

(iv) Progress of the follow-up of problems and issues identified in the previous report.

2.6. MONITORING REPORT FOLLOW-UP

24. The monitoring reports will be discussed in a meeting, between the EMA, NSRP SCM, TGDPC and NSEZMB and the other implementing agencies, held immediately after submission of the report. Necessary follow-up action will be taken based on the problems and issues identified in the reports and follow-up discussions.

2.7. EVALUATION

25. The EMA will conduct an evaluation of the resettlement process and outcomes 6-12 MONTHS after completion of all resettlement activities, using the same survey questionnaire and sample as used during the monitoring activities.

List of Potential Indicators for Monitoring and Evaluation

Monitoring Indicators Basis for Indicators

Basic information on AP households

Location

Composition and structure, ages, educational and skill levels

Gender of household head

Access to health, education, utilities and other social services

Housing type

Land and other resource owning and using patterns

Occupations and employment patterns

Income sources and levels

Agricultural production data (for rural households)

Participation in neighborhood or community groups

Access to cultural sites and events

Value of all assets forming entitlements and resettlement entitlements


67


Restoration of living standards

Were house compensation payments made free of depreciation, fees or transfer costs to the AP?

Have APs adopted the housing options developed?

Have perceptions of community been restored?

Have APs achieved replacement of key social and cultural elements?

Restoration of Livelihoods

Were compensation payments free of deductions for depreciation, fees or transfer costs to the AP?

Was compensation payment sufficient to replace lost assets?

Was sufficient replacement land available of suitable standard?

Did transfer and relocation payments cover these costs?

Did income substitution allow for re-establishment of enterprises and production?

Have vulnerable groups been provided income-earning opportunities? Are these effective and sustainable?

Do the jobs provided restore pre-project income levels and living standards?

Levels of AP Satisfaction

How much do APs know about resettlement procedures and entitlements?

Do APs know their entitlements? Do they know if these have been met?

How do APs assess the extent to which their own living standards and livelihoods have been restored?

How much do APs know about grievance procedures and conflict resolution procedures?

Effectiveness of Resettlement Planning

Were the APs and their assets correctly enumerated?

Was there assistance from land speculators ?

Was the time frame and budget sufficient to meet objectives?

Were entitlements too generous?

Were vulnerable groups identified and assisted?

How did resettlement implementers deal with unforeseen problems?

Vulnerable HH Did the two vulnerable APs identify in Mai Lam Commune (Mrs. Le Thi Ly and Van Thi La) restore their income?

8 HHs from Mai Lam Commune who decide not to relocate in a RS?

Was the compensation received for residential land sufficient to buy a land of the same category outside the NSEZ?

Other Impacts Were there unintended environmental impacts?


68


Were there unintended impacts on employment or incomes?

vol 13- resettlement due dilligence summary and resettlement policy framework

Documents