Socialist Republic of Vietnam - Network Improvement Project

E-1 Resettlement Action Plan: Umbrella Report Prepared with assistance of The Louis Berger Group, Inc.

EXECUTIVE SUMMARY A. THE ROAD NETWORK IMPROVEMENT PROJECT The economic growth rate of Vietnam is one of the highest in Southeast Asia. Agriculture is the backbone to the economy, employing the majority of the country’s labor force, while certain industries, such as manufacturing, and the service sector also employ a large number of workers. Vietnam has made substantial gains in poverty reduction in recent decades, but poverty still remains high particularly in rural areas. One of the strategies of the Government of Vietnam (GOV) for reducing rural poverty is improving rural road infrastructure and connectivity with urban centers. The Network Improvement Project (NIP) aims to contribute to this strategy by improving rural road networks in Northern provinces in Vietnam. By doing so, the project expects to (i) reduce road transit times in selected rural areas in northern Vietnam; (ii) reduce vehicle-operating costs; (iii) improve overall road access to poor and isolated agricultural communities; and (iv) facilitate the delivery of goods from agricultural production centers to markets. The NIP will focus on the rehabilitation and strategic widening of approximately 635 kilometers of roadways over a three-year period. The GOV will finance the NIP through the lending facilities of international development institutions. For the sub-projects scheduled to be implemented in the first year, the Ministry of Transport (MOT) will apply for loan assistance from the World Bank. However, the MOT has to comply with certain requirements prior to World Bank appraisal of the sub-projects. Among them are compliance to World Bank guidelines for the Resettlement Action Plans (RAP) (i.e., current document) and the Policy Framework for Compensation, Resettlement and Rehabilitation of Displaced Persons (hereafter referred to as the Policy Framework). B. THE NIP SUB-PROJECTS The first year program of the NIP covers three national highways with a total length of 124.2 km. Their existing widths are varied with rough pavements and uneven edges. These sub-projects are as follows. (i) NH 37 spans two provinces with 26.7 km of road improvements planned for

Bac Giang and 23 km for Thai Nguyen. (ii) NH 47 is located in the province of Thanh Hoa. It is a part of the national

highway that leads to the Vietnamese border with Laos. The proposed upgrading shall cover 20.5 km, spanning two districts in the province.

(iii) NH 48 is located in Nghe An province. The road upgrading shall cover three

distinct sections, which are referred in this report as Sections 1, 2, and 3 and which have a road length of 8, 20, and 26 km, respectively.

The civil works on the three sub-project roads will include modifications on the current height and width of road embankments and repaving of road surfaces.



C. SUB-PROJECT IMPACTS All the three first-year sub-projects are anticipated to produce favorable impacts over the long-term that will promote economic development and an improvement in living standards in the sub-project areas. However, the sub-projects may also lead to some negative impacts, particularly during the construction period. The Detailed Measurement Surveys (DMS) conducted in the first two weeks of April 2003 indicated that there are 7,404 Displaced Persons (DPs) within the Corridor of Impact of the first-year NIP roads. Extensive project-related documentation – including an Environmental Assessment (EA), Environmental Management Plan (EMP), Social Assessment (SA), and Ethnic Minority Development Plan (EMDP) – has been prepared to set out measures to mitigate negative socio-environmental impacts that potentially would result from NIP works. D. SCOPE OF RAP This RAP aims to ensure that all DPs are adequately compensated for any project-related acquisition or damage to private assets and that sufficient measures are taken to provide relocation services and economic rehabilitation assistance for the sub-project populations. This RAP follows the Policy Framework for the compensation and entitlement of DPs, which is based on existing Vietnamese laws and Work Bank policy, particularly OP No. 4.12. The ultimate goal of this RAP is that no DP is worse off because of the NIP. Determination of DP-level compensation and entitlements are based on the Policy Framework and particularly bear in mind the issues of Eligibility, Legal Framework, and Compensation and Entitlement Policy. E. ELIGIBILITY All persons whose houses and other structures; agricultural and residential land; businesses, occupation or place of work; crops and trees; and access to community resources are temporarily or permanently affected as a result of the NIP will be entitled to compensation and other rehabilitation measures outlined in the RAP. The cut off date for eligibility is the last day of the DMS for each sub-project.

F. LEGAL FRAMEWORK A series of GOV laws, decrees and regulations relating to resettlement, compensation and rehabilitation and the World Bank Operation Directive 4.12 with Annexes on “Involuntary Resettlement” are the guiding legal documents for the NIP. Discrepancies among them have been resolved in the Policy Framework. To comply with World Bank guidelines, GOV has agreed to waive Decree No. 172/1999/CP for DPs without legal or legalizable rights over affected assets; Articles 7, 8, 16, 17, 18 and 25 of Decree No. 22/1998/CP-ND; and Decree No. 87/1994/CP. G. COMPENSATION AND ENTITLEMENT POLICY Based on relevant laws of the GOV and Operating Policy (OP) No. 4.12 of the World Bank, a compensation and entitlement policy has been developed to guide PMU 18



in awarding compensation and other entitlements to DPs. The overall objective of the compensation and entitlement policy is to restore DPs to pre-project living standards, income earning capacity and production levels. Compensation payments will be awarded at replacement cost. Land for land arrangements will be made unless replacement land is unavailable or at the informed request of the DP for cash payment. Different subsidy allowances and other forms of assistance are also available to different categories of DPs. Severely affected DPS will be entitled to food aid and/or training and income restoration programs run through the District Agricultural Extension Office and other relevant offices. H. INSTITUTIONAL ARRANGMENTS The MOT is the project investor for the NIP, while the Project Management Unit 18 (PMU-18) under MOT is responsible for project implementation. Compensation Committees will be established at provincial and district level to assist PMU-18 in all activities related to the RAPs. They will be supervised by the provincial and district People’s Committee, respectively, as well as PMU-18. At least 3 DP representatives from each commune, including men and women, and the Head of the Commune People’s Committee in relevant communes will be members on the District Compensation Committees. I. PUBLIC PARTICIPATION AND CONSULTATION According to World Bank guidelines, DPs will be adequately informed and consulted to enable their active participation in the planning and implementation of RAPs. PMU 18 will be responsible for carrying out a Public Information Campaign and preparing a Project Information Manual for distribution to all DPs. Phase 1 of this campaign has already been carried out with considerable achievements, while Phase 2 will be carried out after the GOV has signed a loan agreement with the World Bank for the NIP. J. COMPLAINTS AND GRIEVANCES The NIP will ensure that effective mechanisms are available and accessible to DPs for addressing grievances and complaints. The timeframes and procedures for addressing grievances and complaints are explained in the Public Information Manual to be distributed to DPs. In sum, DPs may address grievances and complaints at any time, beginning with the Commune People’s Committee (PC). If the DP is unsatisfied with the decision or the Commune PC is unable to resolve the issue, then the DP may refer to the District PC, then Provincial PC, and finally the District People’s Court. External monitoring and evaluation will also verify that complaints by DPs have been resolved appropriately and in accordance with the RAP and Policy Framework. K. MONITORING AND EVALUATION The NIP will include both internal and external monitoring and evaluation measures. PMU-18 will be primarily responsible for internal monitoring and evaluation, in close collaboration with district and provincial Compensation Committees, through



the preparation of quarterly RAP Implementation Status Reports submitted to GOV. An independent agency shall be retained to carry out external monitoring and evaluation. External monitoring and evaluation will focus on social impacts of the NIP on DPs and whether DPs have been able to maintain pre-project living standards, income earning capacity and production levels. Internal and external monitoring and evaluation will be carried out regularly throughout implementation of the RAPs and external monitoring and evaluation will continue for up to 2 years after DPs have been paid for compensation. L. ROAD IMPROVEMENT FOR NATIONAL HIGHWAY 37 The NIP section of NH 37 spans the provinces of Bac Giang and Thai Nguyen and is located approximately 60 km north of Hanoi. These provinces are located in the North Mountain and Midland region of Vietnam. The sub-project road section traverses a relatively flat area of rice paddies and some urban areas. The road alignment is flat and straight on a low embankment that ranges between 1 and 3 meters in height. The existing width of the road varies from 3.5 to 7 meters with rough pavement and uneven edges. Proposed improvement measures for the sub-project include widening of the road formation and paving with asphalt concrete materials. All resettlement issues associated with improvement works for the sub-project roads will follow the guidelines laid out in the Policy Framework and the Umbrella Report of the RAP of the NIP. M. SUB-PROJECT IMPACTS AND ENTITLEMENTS A total of 2,108 households in Bac Giang and 1,198 households in Thai Nguyen will be affected by the NIP. A total of 1,012 households of Displaced Persons (DPs) have agricultural landholdings that will be acquired by the project, of which 164 will be severely affected. A total of 1,497 DPs have residential landholdings that will be acquired by the project, of which 283 will be severely affected. The large majority of the severely affected DPs have requested cash compensation. Because only one (1) DP requested replacement of residential land in Thai Nguyen, the development of a resettlement site for group relocation is not foreseen. Another two (2) DPs without legal or legalizable land use rights in Bac Giang will require provision of land to meet the minimum standard for residential land. N. RESETTLEMENT COSTS AND IMPLEMENTATION PLAN Resettlement costs cover both compensation for damages and/or losses to physical assets, entitlement payments for DPs with specific circumstances and additional costs for administration, monitoring and evaluation. Compensation costs were estimated at the district level, based on the results from an independent market survey conducted in July 2003 in all the affected districts of Bac Giang and Thai Nguyen provinces.



The total resettlement costs for NH 37 are: • Bac Giang: VND 51,707,048,000 equal to USD 3,380,000) and • Thai Nguyen: VND 66,951,909,000 equal to USD 4,376,000).

The total resettlement budget for the NH 37 sub-project is USD 7,756,000. Implementation of the RAP for NH 37 will occur over a period of six (6) months. Implementation of income rehabilitation assistance programs will continue for some time afterwards, depending on the scale and nature of these programs as identified by the eligible DPs. Based on the information available in July 2003, it is expected that civil works will start in June 2004, which would mean that resettlement activities would be initiated in January 2004.

Socialist Republic of Vietnam – Road Network Improvement Project

10-1 Resettlement Action Plan: NH 37 Prepared with the assistance of The Louis Berger Group, Inc.

10. INTRODUCTION 10.1 Sub-Project Description National Highway 37 (NH 37) is a road sub-project proposed for the first-year program of the Network Improvement Project (NIP). The section proposed for rehabilitation and upgrading begins at Km 70 in Dinh Tram at the intersection with NH 1. It runs generally northwest and ends at Huong Street at the intersection with NH 3 in Thai Nguyen City for a total length of 49.7 km. The sub-project road alignment is flat and straight on a low embankment that ranges between 1 and 3 meters in height. The existing width of the road varies from 3.5 to 7 meters with rough pavement and uneven edges. Proposed improvement measures for the sub-project include widening of the road formation and paving with asphalt concrete materials. 10.2 Sub-Project Area The NIP section of NH 37 spans the provinces of Bac Giang and Thai Nguyen and is located approximately 60 km north of Hanoi, as shown in Figure 10-1. These provinces are located in the North Mountain and Midland region of Vietnam. The sub-project road section traverses a relatively flat area of rice paddies and some urban areas. Figure 10-1: Map of NH 37 Sub-Project



Starting at the intersection with NH 1, the sub-project portion of NH 37 begins in Bac Giang province. Going northwest it passes through the town of Bich Dong and 6 other communes in Viet Yen district. It then continues through Hiep Hoa district, crossing the town of Thang and 6 other communes. Figure 10-2 provides a more detailed map of the Bac Giang portion of the NH 37 sub-project. Figure 10-2: Map of Bac Giang Portion of NH 37 Sub-Project with

Approximation of Road Alignment

Xa Huong Mai

Xa Hoang Ninh

Xa Hong Thai



Continuing northwest, the sub-project portion of NH 37 crosses into Thai Nguyen province. It passes through 6 communes and the town of Uc Son in Phu Binh district. It then continues through one commune and 3 precincts in Thai Nguyen City, ending near the intersection with NH 3. Figure 10-3 provides a more detailed map of the Thai Nguyen portion of the NH 37 sub-project. Figure 10-3: Map of Thai Nguyen Portion of NH 37 Sub-Project with Approximation of Road Alignment



10.3 Resettlement Issues The Resettlement Action Plan for the NH 37 sub-project aims to ensure that all DPs located in Bac Giang and Thai Nguyen provinces are adequately compensated for any project-related acquisition or damage to private assets and that sufficient measures are taken to provide relocation services and economic rehabilitation assistance for the sub-project population. It follows the Policy Framework for Compensation, Resettlement and Rehabilitation of Displaced Persons and the Umbrella Report of the RAP for the NIP.


11 - 1 Resettlement Action Plan: NH 37 Prepared with the assistance of The Louis Berger Group, Inc.

11 - IMPACTS

The following information on impacts was derived from the DMS, which was conducted with 100% of DPs in Bac Giang and Thai Nguyen provinces, except for questions where sample size is indicated below (see Chapter 2 for more detail). This chapter describes, first, socio-economic characteristics of affected area and, second, impacts of the NIP on DPs.

11.1 Socio-Economic Characteristics

11.1.1 DP Count The number of households and individuals affected by the project are shown in Table 11.1a below (Bac Giang) and 11.1b (Thai Nguyen) below.

Table 11.1a - Distribution of DPs Along NH 48-3 Corridor of Impact (Bac Giang)*

Commune District # DP DP

Households Population Hoang Ninh Viet Yen 79 366 Hong Thai Viet Yen 151 675 TT Bich Dong Viet Yen 186 511 Bich Son Viet Yen 91 332 Tu Lan Viet Yen 299 1,191 Houng Mai Viet Yen 37 186 Viet Tien Viet Yen 170 758 Sub-Total Viet Yen 1,013 4,019 Doan Bai** Hiep Hoa 0 0 Luong Phong Hiep Hoa 441 1,317 Duc Thang Hiep Hoa 80 318 TT Thang Hiep Hoa 111 422 Ngoc Son Hiep Hoa 63 234 Hoang An Hiep Hoa 279 930 Thanh Van Hiep Hoa 121 492 Sub-Total Hiep Hoa 1,095 3,713 Bac Giang Total 2,108 7,732 *The order in which the communes are listed follows their relative location from the beginning to the end of the project road. ** Doan Bai has no DPs, but does have one affected public institution.



Table 11-1b - Distribution of DPs Along NH 37 Corridor of Impact

(Thai Nguyen)*

Commune

District

# DP DP Households Population

Kha Son Phu Binh 51 231 Huong Son Phu Binh 80 336 TT Uc Son Phu Binh 180 645 Xuan Phuong Phu Binh 114 482 Nha Long Phu Binh 105 475 Diem Thuy Phu Binh 163 668 Thoung Dinh Phu Binh 69 311 Sub-Total Phu Binh 762 3,148 Luong Son Thai Nguyen City 186 679 P. Tan Thanh Thai Nguyen City 115 484 P. Trung Thanh Thai Nguyen City 32 112 P. Houng Son Thai Nguyen City 94 353 Sub-Total Thai Nguyen City 427 1,628 Thai Nguyen Total 1,189 4,776 *The order in which the communes are listed follows their relative location from the beginning to the end of the project road.

11.1.2 Marital Status The respondents of the DMS in Bac Giang province have the following marital status: 87.9 percent are married, 1.5 percent are single, a rather high 8.8 percent are widowed and 1.8 percent are either divorced or separated.

Figure 11-1:

The respondents of the DMS in Thai Nguyen province have the following marital status: 93.9 percent are married, 3.2 percent are single, 2.5 percent are widowed, and the remainder (0.4 percent) are either divorced or separated. Figure 11-1 shows the marital status of the DPs in Thai Nguyen Province.



11.1.3 Size of Household The average household size of DPs in Bac Giang is 3.57 persons, while average household size in Thai Nguyen was reported at 5 persons.

11.1.4 Income Of the DPs surveyed in Bac Giang, both husband and wife work in 66percent of households, while the head of household is the only income earner in 18 percent of households (Figure 11-2a). The survey revealed that some families receive financial support from parents and working children (5.8 percent).

Figure 11-2a:

18%

66%

11%

4%

0% 10% 20% 30% 40% 50% 60% 70%

Head of HH

Husband & wife

Parents &children

Support fromchildren

Ngêi cung cÊp thu nhËp chÝnhr (n=1096)

The main source of income for 67 percent of DPs was from sale of animals and agricultural products. For 24 percent, main income was from only agriculture. Nine percent depended on government pensions.

Figure 11-2b

9%

0%

24%

67%

0% 20% 40% 60% 80%

Governmentpension

Lease/rent ofproperty

Agriculture

Animals andagriculture

Source of income (n=1012)

Of the DPs surveyed in Thai Nguyen, both husband and wife work in 66 percent of families. The head of household is the only income earner in 10percent of households. Only 2 percent of DPs depend mainly on financial support from children (Figure 11-2c).



Figure 11-2c:

10%

66%

23%

2%

0% 20% 40% 60% 80%

Head of HH

Husband & w ife

Parents & children

Support from children

Main income provider (n=807)

The main source of income was agricultural products and raising livestock for 84% of DPs. Another 16% depend on government pensions (Figure 11-2d).

Figure 11-2d:

16%

0%

0%

84%

0% 20% 40% 60% 80% 100%

Government pension

Lease/rent of property

Agriculture

Animals and agriculture

Source of income (n=382)

11.1.5 Indebtedness A total of 34.2 percent of DPs in the Viet Yen district and 6.3 percent in Hiep Hoa district in Bac Giang are debtors to banks and/or private sources. In Thai Nguyen province, the corresponding figures are 19.4 percent of DPs in Phu Binh district and 14 percent in Thai Nguyen city.

11.1.6 Household Utilities and Facilities 11.1.6.1 Water Supply

Figure 11-3: As with other areas in Vietnam, DPs usually boil water drinking and cooking, whether from deep wells or water pipes. Approximately 34 percent of DPs in Bac Giang own a deep well (Figure 11-3), which is used for a range of activities, including



drinking, bathing, washing clothes and utensils, and watering gardens. Because the two areas affected by the project in Thai Nguyen are a mix of urban and rural areas, DPs obtain their water from a variety of sources, including deep wells, water pipes, rain water and bottled water from vendors. DPs consider rain water as the cheapest and most reliable and use it for drinking and cooking. The proportion of DPs who own deep wells is 32.2 percent, due primarily to limited land availability on residential plots and because DPs in urban areas prefer to be connected to a water piping system because of pollution in ground water. Some DPs own a deep well and are also connected to the piped in water system. In these cases, they usually use deep well water for washing and bathing, while piped water is used for drinking and food preparation. 11.1.6.2 Electricity Connection

Power lines are available in all districts of Bac Giang. However, only 33.6 percent of DPs have electricity connected to their home and 32 .1 percent have lighting facilities (Figure 11-3). Similarly, power lines are available in all project areas in Thai Nguyen, but only 34.4 percent of DPs have electric connections to their homes and 33.3 percent have lighting facilities.

11.1.7 Age and Gender Distribution In Bac Giang, 14.2 percent of DPs are young males (below 20 years old), while 14.7 are young females. Males over 70 years old represent 1.6 percent of the DP population, while females in the same age range represent 2.1 percent. There is a high concentration of young people between the ages of 20 and 39 years (65.3 percent). The percentage of females in different age groups is higher than the percentage of males, except in the age range of 20 to 29 years. The details are shown in Figure 11-4a.

Figure 11-4a: In Thai Nguyen, the largest age group is between 40 to 49 years of age, accounting for 29 percent of DPs. The oldest age group (70 and above) accounts for only 3.7 percent of DPs. There are relatively high concentrations of DPs between the ages of 30 to 39 (15.9 percent) and 50 to 59 (15.2 percent). Overall, the percentage of females is lower than that of males. The details are shown in Figure 11-4b.



Figure 11-4b:

11.1.8 Human Settlement Distribution The existing NH 37 shows a direct influence over the settlement patterns in both provinces, many of which are high-density neighborhoods. Houses and structures run parallel to the road. 11.1.9 Socio-Economic Activities in the Affected Districts 11.1.9.1 Crop Cultivation

Lands affected by the NIP in Bac Giang are predominantly agricultural. Almost all of this land is used to cultivate two rotations of crops (e.g. rice and vegetables during the winter-spring and the summer-autumn seasons). Households also grow fruits and vegetables in their home gardens to sell and supplement household diet. Because the two affected areas in Thai Nguyen province are highly urbanized, land for crop cultivation is mixed in with land for residences. Many DPs along the road operated small businesses or services, as well as practice farming. Because Thai Nguyen is a midland area, terrain is favorable for tea, cinnamon, and other silvicultural products, which are the main sources of income for many of the DPs. 11.1.9.2 Animal Husbandry

Animal husbandry is a secondary source of income among most DPs in Bac Giang and Thai Nguyen, who raise mainly pigs, ducks, chickens, goats and cows. Water buffaloes are numerous in the sub-project areas, but are mainly used for plowing the fields to cultivate rice. Animal and human wastes are also used as fertilizers in cultivation. 11.1.9.3 Services Industry

The nature of the service industry is varied in Bac Giang and Thai Nguyen. It consists mainly of local restaurants, mechanic shops, tailors, and entertainment services such as karaoke and hair salons. Small variety stores are found in all of the communes affected by the sub-project. Other services include carpentry, masonry and craft work.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Below20 yrs

old

20-29yrs old

30-39yrs old

40-49yrs old

50-59yrs old

60-69yrs old

70 andabove

Age and sex of PAPs

Male Female



11.1.10 Public Services The children of DPs have access by road to primary and secondary schools. For college, the national government provides some support for fees for higher education. Health centers exist in the communes because health care is a priority program of the national government. Children at different ages and pregnant women are given tetanus injections and appropriate vaccinations. In practice, however, for popular diseases, people often buy medicine and engage in self-treatment at home. People only go to the health center if the treatment at home does not work. For this reason, patients’ diseases often become more serious or are not treated at the right time by professionals.

11.2 Project Impacts A summary of project impacts on DPS is provided in Table 11.2. Note that the total count of of DPs in Table 11.2 will be larger than the total number of DPs (above) because the categories of impact are non-exclusive. For example, a single DP may be reported three times for compensation of agricultural land, trees and crops, and allowances.



NH 37Loss type Definition of entitled

personApplication/Compensation policy

Viet Yen District

Hiep Hoa District Total Phu Binh

District

Thai Nguyen

CityTotal TOTAL:

1. Agricultural land 1.1 Legal or legalizable rights

Cash for affected area 583 162 745 167 30 197 942

Cash for entire holding 9 0 9 57 2 59 68Land for land 0 0 0 0 0 0 0

1.2 Without legal or legalizable rights

Resettlement assistance in lieu of compensation

1 1 2 0 0 0 2

Provision of land a/c local standard

0 0 0 0 0 0 0

2. Residential land 2.1 Legal or legalizable rights

Cash for affected area 265 265 530 311 349 660 1190

Cash for entire holding 111 41 152 79 49 128 280Land for land* 0 0 0 0 1 1 1

1.2 Without legal or legalizable rights

Resettlement assistance in lieu of compensation

20 3 23 0 1 1 24

Provision of land a/c local standard

2 0 2 0 0 0 2

3. Houses and structures

3.1 Partially affected Cash comp. for affected area 12 1 13 15 72 87 100

3.2 Entirely affected Cash comp. for entire structure

18 19 37 119 226 345 382

4. Rented residences

4.1 Renters Cash allowance 1 272 273 0 4 4 277

4.2 Temporarily displaced DPs

Cash allowance 13 16 29 49 176 225 254

DP HouseholdsBac Giang Province Thai Nguyen Province

Table 11.2: Summary of Impacts on NH37



NH 37Loss type Definition of entitled

personApplication/Compensation policy

Viet Yen District

Hiep Hoa District Total Phu Binh

District TN City Total TOTAL:

5. Crops trees 5.1 DPs before cut-off date

Cash compensation 687 726 1,413 273 209 482 1895

6. Fixed assets 6.1 DPs before cut-off date

Cash compensation 232 152 384 70 111 181 565

7. Business 7.1 DPs before cut-off date


8. Allowances 8.1 DPs left without viable residential land holdings

Transport & transition allowance

111 41 152 79 50 129 281

8.2 DPs experiencing partial damage to building structures

Repair allowance per partially affected structure

6 7 13 15 79 94 107

8.3 DPs with 20% or greater loss of agricultural land or those forced to relocate residence or business

Income rehabilitation assistance

280 26 306 275 80 355 661

9. Community infrastructure

9.1 Public Institutions with affected infrastructure


DP HouseholdsBac Giang Province Thai Nguyen Province



11.2.1 Land Tables 11.2a and b respectively present the land impacts of the NIP in Bac Giang and Thai Nguyen provinces.

Table 11.2a Land Impacts - Bac Giang

Viet Yen District Hiep Hoa District TOTAL Level of Rural Urban Rural Urban Rural Urban Rural & Urban

Type and Use of Land Impact #

M^2 #

M^2 #

M^2 #

M^2 #

M^2 #

M^2 #

M^2 Plots Plots Plots Plots Plots Plots Plots

Partial 262 6,923 3 217 332 13,467 3 16 594 20,390 6 234 600 20,624 Residential Entire 93 8,160 11 192 41 5,616 0 0 134 13,776 11 192 145 13,968 Illegal Min.* 1 59 0 0 0 0 0 0 1 59 0 0 1 59 Sub-Total 356 15,142 14 409 373 19,083 3 16 729 34,225 17 426 746 34,650 Partial 9 108 0 0 0 0 0 0 9 108 0 0 9 108 Commercial Entire 7 567 0 0 4 400 0 0 11 967 0 0 11 967

Illegal Min.* 1 82 0 0 0 0 0 0 1 82 0 0 1 82 Sub-Total 17 756 0 0 4 400 0 0 21 1,156 0 0 21 1,156 Partial 429 86,219 176 25,893 246 31,030 0 0 675 117,249 176 25,893 851 143,141 Agricultural Entire 9 10,100 0 0 3 1,504 0 0 12 11,603 0 0 12 11,603

Illegal Min.* 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub-Total 438 96,319 176 25,893 249 32,533 0 0 687 128,852 176 25,893 863 154,745 Partial 700 93,250 179 26,110 578 44,497 3 16 1,278 137,747 182 26,126 1,460 163,873 Total Land Entire 109 18,827 11 192 48 7,519 0 0 157 26,346 11 192 168 26,538 Illegal Min.* 2 141 0 0 0 0 0 0 2 141 0 0 2 141

Sub-Total 811 112,217 190 26,302 626 52,016 3 16 1,437 164,233 193 26,318 1,630 190,551

* Amount of land required to provide DPs without legal land rights with the minimum standard for their respective localities. Hence, sub-totals refer to amount of land that must be acquired by the NIP, but the total amount of land affected by the NIP within the COI is the sum of “Partial” and “Entire” only



Table 11.2b - Land Impacts (Thai Nguyen)

Phu Binh District Thai Nguyen City TOTAL Level of Rural Urban Rural Urban Rural Urban Rural & Urban

Type and Use of Land Impact #

M^2 #

M^2 #

M^2 #

M^2 #

M^2 #

M^2 #


Partial 187 14,786 11 3,016 99 23,455 189 9,609 286 38,241 200 12,625 486 50,866 Residential Entire 45 5,212 0 0 36 4,747 6 448 81 9,959 6 448 87 10,407 Illegal Min.* 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub-Total 232 19,998 11 3,016 135 28,202 195 10,058 367 48,200 206 13,074 573 61,273 Partial 117 6,273 1 35 20 4,043 43 1,398 137 10,316 44 1,433 181 11,749 Commercial Entire 34 3,703 0 0 8 1,011 0 0 42 4,714 0 0 42 4,714

Illegal Min.* 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub-Total 151 9,976 1 35 28 5,054 43 1,398 179 15,030 44 1,433 223 16,463 Partial 160 17,755 10 1,279 27 18,240 4 4,128 187 35,995 14 5,407 201 41,402 Agricultural Entire 51 6,567 6 1,025 1 336 1 72 52 6,903 7 1,097 59 8,000

Illegal Min.* 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub-Total 211 24,322 16 2,304 28 18,576 5 4,200 239 42,898 21 6,504 260 49,402 Partial 464 38,814 22 4,330 146 45,738 236 15,135 610 84,552 258 19,465 868 104,017 Total Land Entire 130 15,482 6 1,025 45 6,094 7 520 175 21,576 13 1,545 188 23,121 Illegal Min.* 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Sub-Total 594 54,296 28 5,355 191 51,832 243 15,655 785 106,128 271 21,010 1,056 127,138

* Amount of land required to provide DPs without legal land rights with the minimum standard for their respective localities. Hence, sub-totals refer to amount of land that must be acquired by the NIP, but the total amount of land affected by the NIP within the COI is the sum of “Partial” and “Entire” only



11.2.1.1 Agricultural Land

In Bac Giang province, a total of 863 plots of agricultural land will be affected by the NIP, affecting a total of 756 DPs (Table 11.2). A total of 851 plots will be partially affected and 12 plots will be entirely affected or partially affected but rendered non-viable. Among the DPs with legal or legalizable land use rights, 716 will be marginally affected and 38 DPs will be considered as severely affected (see Chapter 12). The severely affected DPs include 9 DPs whose agricultural plot will be entirely acquired or the remaining landholding will be non-viable and, therefore, considered as entirely acquired; and another 29 DPs who will lose more than 20% of their landholding. Each of the severely affected DPs has opted for cash compensation. Two (2) of the DPs are without legal or legalizable land use rights. In both cases, their remaining landholding meets the minimum standard of the locality and, therefore, will not require provision of replacement land.

In Thai Nguyen province, a total of 260 plots of agricultural land will be affected by the NIP, affecting a total of 256 DPs (Table 11.2). A total of 201 plots will be partially affected and 59 plots will be entirely affected or partially affected but rendered non-viable. All DPs in Thai Nguyen have legal or legalizable land use rights. A total of 130 will be marginally affected and 126 DPs will be considered as severely affected (see Chapter 12). The severely affected DPs include 59 DPs whose agricultural plot will be entirely acquired or the remaining holding will be non-viable and, therefore, considered as entirely acquired; and another 67 DPs who will lose more than 20% of their landholding. Each of the severely affected DPs has opted for cash compensation.

11.2.1.2 Residential Land and Commercial Land Use

In Bac Giang province, a total of 746 plots of residential land (without a commercial use) will be affected by the NIP. A total of 600 plots will be partially affected and 145 plots will be entirely affected or partially affected but rendered non-viable. Another 21 plots of residential land that is used for commercial purposes will also be affected by the NIP, including 9 plots partially affected and 11 plots entirely affected or partially affected but rendered non-viable1

Loss of residential land (with and without commercial uses) will affect 707 DPs. Among the DPs with legal or legalizable land use rights, 530 DPs will be marginally affected and 152 DPs will be severely affected (see Chapter 12), as they will be left with less than the minimum standard of residential land in Vietnam (i.e., 40 m2 in urban areas and 100 m2 in rural areas). Each of the severely affected DPs opted for cash compensation for the entire holding. A total of 25 DPs are without legal or legalizable land use rights for residential land. Of these, two (2) DPs will require provision of residential land to meet the minimum standard and, hence, relocation.

.

Because only two (2) DPs in Bac Giang require relocation, the development of a resettlement site for group relocation will not be required.

In Thai Nguyen province, a total of 573 plots of residential land (without a commercial use) will be affected by the NIP. A total of 486 plots will be partially affected and 87 plots will be entirely affected or partially affected but rendered non- 1 DPs using residential land for commercial purposes are also entitled to a business allowance, as described below.



viable. Another 223 plots of residential land that is used for commercial purposes will also be affected by the NIP, including 181 plots partially affected and 42 plots entirely affected or partially affected but rendered non-viable.

Loss of residential land (with and without commercial uses) will affect 790 DPs. Among the DPs with legal or legalizable land use rights, 660 DPs will be marginally affected and 129 DPs will be severely affected (see Chapter 12), as they will be left with less than the minimum standard of residential land in Vietnam (i.e., 40 m2 in urban areas and 100 m2 in rural areas). Only one (1) of the severely affected DPs opted for relocation, while the rest opted for cash compensation for the entire holding. One (1) DP is without legal or legalizable land use rights for residential land, but that DP’s remaining holding is sufficient to meet the minimum standard for residential land and, hence, will not require relocation.

Because only one (1) DP in Thai Nguyen requires relocation, the development of a resettlement site for group relocation will not be required.

11.2.2 Houses and other Structures As shown in Table 11.3a for Bac Giang, a total of 36 houses or structures will be affected by the NIP. Of these, a total of 13 will be only partially affected, while 23 will be entirely affected or partially affected but rendered non-viable. The latter will be considered as entirely affected in both cases.

As shown in Table 11.3b for Thai Nguyen, a total of 467 houses or structures will be affected by the NIP. Of these, a total of 94 will be only partially affected, while 373 will be entirely affected or partially affected but rendered non-viable. The latter will be considered as entirely affected in both cases.

A total of 100 DPs have houses or other structures that will be partially affected but still viable and, therefore, will receive compensation for reconstruction of the affected area and a repair allowance. However, 382 DPs have houses or other structures that will be entirely affected by the NIP or partially affected but rendered non-viable. These DPs will be compensated for reconstruction of the entire structure. Whether DPs will re-organize the reconstruction the structure on current landholdings or relocate will depend on the viability of their remaining residential land, as described above. Compensation of houses and other structures will be made regardless of whether DPs have legal or legalizable land use rights.



Table 11.3a Building Structure Impacts – Bac Giang

Viet Yen District Hiep Hoa District TOTAL

Construction Level of Rural Urban Rural Urban Rural Urban Rural & Urban

Class Impact # M^2

# M^2

# M^2

# M^2

# M^2

# M^2

# M^2

Plots Plots Plots Plots Plots Plots Plots Partial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Temporary Entire 1 8 0 0 0 0 0 0 1 8 0 0 1 8 Sub-Total 1 8 0 0 0 0 0 0 1 8 0 0 1 8 Partial 3 20 3 33 0 0 0 0 3 20 3 33 6 52 Grade 4 Entire 1 50 2 84 16 358 3 47 17 408 5 131 22 539 Sub-Total 4 70 5 117 16 358 3 47 20 428 8 164 28 592 Partial 0 0 6 79 0 0 1 7 0 0 7 86 7 86 Grade 3 Entire 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub-Total 0 0 6 79 0 0 1 7 0 0 7 86 7 86

Partial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Grade 2 Entire 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Partial 3 20 9 111 0 0 1 7 3 20 10 118 13 138 All Classes Entire 2 58 2 84 16 358 3 47 18 417 5 131 23 548

Sub-Total 5 78 11 195 16 358 4 54 21 436 15 249 36 686



Table 11.3b - Building Structure Impacts (Thai Nguyen)

Phu Binh District Thai Nguyen City TOTAL

Construction Level of Rural Urban Rural Urban Rural Urban Rural & Urban Class Impact #

M^2 #

M^2 #

M^2 #

M^2 #

M^2 #

M^2 #


Partial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Temporary Entire 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Partial 4 85 2 45 0 0 16 382 4 85 18 427 22 512 Grade 4 Entire 112 6,535 5 364 91 5,789 57 3,482 203 12,324 62 3,846 265 16,170 Sub-Total 116 6,620 7 409 91 5,789 73 3,864 207 12,409 80 4,273 287 16,682 Partial 9 316 0 0 0 0 63 1,386 9 316 63 1,386 72 1,702 Grade 3 Entire 14 999 0 0 19 1,735 74 5,574 33 2,734 74 5,574 107 8,308 Sub-Total 23 1,315 0 0 19 1,735 137 6,960 42 3,050 137 6,960 179 10,010

Partial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Grade 2 Entire 1 76 0 0 0 0 0 0 1 76 0 0 1 76 Sub-Total 1 76 0 0 0 0 0 0 1 76 0 0 1 76

Partial 13 401 2 45 0 0 79 1,768 13 401 81 1,813 94 2,214 All Classes Entire 127 7,610 5 364 110 7,524 131 9,056 237 15,134 136 9,420 373 24,554

Sub-Total 140 8,011 7 409 110 7,524 210 10,824 250 15,535 217 11,233 467 26,768



11.2.3 Renters and temporary displacements A total of 273 DPs in Bac Giang province and 4 DPs in Thai Nguyen province are renting houses that will be affected by the NIP (Table 11.2). They will be entitled to a cash allowance corresponding to 6 months rent for lost residence and assisted in identifying an alternative place of residence. Another 29 DPs in Bac Giang province and 225 DPs in Thai Nguyen province will be temporarily displaced due to impacts on houses. They will also be entitled to a cash allowance corresponding to 6 months rent and will be assisted in securing a temporary residence during the time of displacement.

11.2.4 Crops and Trees Tables 11.4a & b show the impacts on trees and crops for Bac Giang and Thai Nguyen, respectively.



Table 11.4a Impacts on Crops and Trees (Bac Giang)

Item Unit Viet Yen District Hiep Hoa District TOTAL

Rural Urban Rural Urban Rural Urban R & U Almond # 0 0 4 3 4 3 7 Bamboo # 0 0 20 0 20 0 20 Banana # 0 0 568 0 568 0 568 Bang Lang # 0 0 2 5 2 5 7 Bead # 0 0 52 3 52 3 55 Bean M^2 707 0 96 0 803 0 803 Bombax # 5 0 0 0 5 0 5 Coconut # 0 0 1 0 1 0 1 Custard Apple # 0 0 5 0 5 0 5 Dau da # 0 0 0 3 0 3 3 Dracontomelum # 15 0 115 105 130 105 235 Eucalyptus # 6 0 13 0 19 0 19 Fig # 0 0 0 2 0 2 2 Flamboyant # 0 0 0 1 0 1 1 Ironwood # 0 0 0 1 0 1 1 Jackfruit # 0 0 3 2 3 2 5 Litchi # 0 0 2 0 2 0 2 Longan # 5 0 12 4 17 4 21 Lucuma Mamosa # 0 0 3 5 3 5 8 Mango # 2 0 3 0 5 0 5 Nacre # 1 0 0 1 1 1 2 Papaw # 0 0 4 0 4 0 4 Peanut M^2 3,126 20,872 84 0 3,210 20,872 24,082 Pomelo # 1 0 0 0 1 0 1 Rice M^2 58,329 5,020 16,392 0 74,721 5,020 79,741 Rose Apple # 1 0 0 0 1 0 1 Sapodilla # 0 0 1 0 1 0 1 Shade Tree # 0 0 1 0 1 0 1 Soapberry # 0 0 0 1 0 1 1 Sophora Japonica # 0 0 1 1 1 1 2 Star Apple # 0 0 0 5 0 5 5 Sweet Potato M^2 298 0 0 0 298 0 298 Tamarind # 244 0 0 0 244 0 244 Unspecified Tree # 26 0 86 0 112 0 112



Table 11.4b - Impacts on Crops and Trees (Thai Nguyen)

Item Unit Phu Binh District

Thai Nguyen City TOTAL

Rural Urban Rural Urban Rural Urban R & U Almond # 67 92 41 199 108 291 399 Apple # 0 23 3 0 3 23 26 Areca # 14 1 0 0 14 1 15 Bamboo # 71 145 602 50 673 195 868 Banana # 754 221 309 0 1,063 221 1,284 Bang Lang # 0 2 0 0 0 2 2 Bead # 89 32 51 0 140 32 172 Benjamine Fig # 3 1 0 0 3 1 4 Betel # 1 0 0 0 1 0 1 Bombax # 5 6 0 0 5 6 11 Bonsai # 20 4 0 0 20 4 24 Chinese Fig # 2 0 0 0 2 0 2 Coconut # 5 0 0 0 5 0 5 Corn M^2 0 0 170 0 170 0 170 Custard Apple # 30 1 27 0 57 1 58 Dau da # 19 5 0 7 19 12 31 Dracontomelum # 96 130 16 16 112 146 258 Duoi # 0 1 0 0 0 1 1 Eucalyptus # 2 15 0 0 2 15 17 Fig # 1 2 0 0 1 2 3 Flamboyant # 0 0 0 8 0 8 8 Flower # 0 1 0 0 0 1 1 Guava # 6 2 0 0 6 2 8 Ironwood # 0 1 0 0 0 1 1 Jackfruit # 61 6 19 2 80 8 88 Keo # 0 3 0 13 0 16 16 Litchi # 6 5 44 0 50 5 55 Longan # 30 1 93 7 123 8 131 Lucuma Mamosa # 0 3 0 0 0 3 3 Mango # 7 4 114 4 121 8 129 Manh # 0 1 0 0 0 1 1 Mulberry # 0 1 0 0 0 1 1 Nacre # 0 9 32 0 32 9 41 Orange # 0 0 0 6 0 6 6 Orchid # 0 0 0 1 0 1 1 Palm # 6 0 0 0 6 0 6 Papaw # 20 3 0 0 20 3 23



Table 11.4b – (continued) Peanut M^2 0 0 352 0 352 0 352 Persimmon # 0 0 0 2 0 2 2 Pine # 1 0 0 0 1 0 1 Pomelo # 0 2 11 0 11 2 13 Pomelo # 1 0 0 0 1 0 1 Rice M^2 0 0 10,943 0 10,943 0 10,943 Rose Apple # 156 3 0 0 156 3 159 Sapodilla # 0 0 3 0 3 0 3 Soapberry # 5 1 0 0 5 1 6 Star Apple # 1 41 4 5 5 46 51 Sweet Potato M^2 0 0 48 0 48 0 48 Tamarind # 0 8 0 0 0 8 8 Tea # 0 0 320 0 320 0 320 Thistle # 0 0 1 1 1 1 2 Unspecified Timber # 0 0 110 0 110 0 110 Unspecified Tree # 0 0 40 0 40 0 40 Vi # 0 0 3 0 3 0 3 Wootung # 0 1 0 0 0 1 1

In Bac Giang, a total of 104,925 m² of land with annual crops are affected by the NIP, of which 76% are used for the culture of rice and 23% for peanut. A total of 1,344 trees will be affected by the NIP. The largest numbers are found for banana trees (43% of total), tamarind and dracontomelum (both 18%).

In Bac Giang, a total of 11,513 m² of land with annual crops are affected by the NIP, of which 95% are used for the culture of rice and 3% for peanut. A total of 4,420 trees will be affected by the NIP. The largest numbers are found for banana trees (29% of total), banana (20%) and almond (9%).

A total of 1,413 DPs in Bac Giang province and 482 DPs in Thai Nguyen province will lose trees and crops from lands acquired by the NIP (Table 11.2). They will be compensated at full replacement cost, regardless of whether they have legal or legalizable land use rights.

11.2.5 Fixed Assets Tables 11.5a & b show the impacts on fixed assets for Bac Giang and Thai Nguyen, respectively.

A total of 384 DPs in Bac Giang province and 181 DPs in Thai Nguyen province will lose fixed assets from lands acquired by the NIP (Table 11.2). They will be compensated at full replacement cost regardless of whether they have legal or legalizable land use rights.

Although all fixed assets have been inventoried, those corresponding to public utilities (electricity, telephone, water) will not be compensated under this RAP but, rather, are included in the construction cost.



Table 11.5a - Fixed Asset Impacts (Bac Giang)

Item Material / Unit Viet Yen District

Hiep Hoa District TOTAL

Descriptor Rural Urban Rural Urban Rural Urban R & U Balcony M^2 0 0 9 0 9 0 9 Concrete M^3 39 0 0 0 39 0 39 Culvert # 0 0 72 0 72 0 72 Ditch M 1,517 0 11,834 0 13,351 0 13,351 Door # 0 0 23 0 23 0 23 Fence M 0 0 104 0 104 0 104 Foundation M^3 0 0 24 0 24 0 24 Iron M^2 5 0 14 0 19 0 19 Kitchen M^2 0 0 1 0 1 0 1 Parterre M^2 0 0 1 0 1 0 1 Patio M^2 0 0 486 10 486 10 496 Photo shop M^2 0 0 12 0 12 0 12 Pipe M 0 0 12 0 12 0 12 Pole Concrete # 0 0 4 0 4 0 4 Pond M^2 1,028 0 28 0 1,056 0 1,056 Pond bank M^2 0 0 5 0 5 0 5 Roof M^2 51 0 72 83 123 83 206 Tomb # 4 0 0 0 4 0 4 Wall M^2 80 0 255 48 335 48 383 Wall Brick M^2 0 0 113 0 113 0 113 Well # 2 1 131 6 133 7 140 Well Drill # 0 0 72 0 72 0 72 Yard Cement M^2 3,102 0 1,026 0 4,128 0 4,128 Yard Brick M^2 390 0 91 0 481 0 481 Yard Concrete M^2 5 0 31 0 36 0 36 Yard Lime M^2 50 0 296 0 346 0 346



Table 11.5b - Fixed Asset Impacts (Thai Nguyen)

Item Material / Unit Phu Binh District

Thai Nguyen City TOTAL

Descriptor Rural Urban Rural Urban Rural Urban R & U

Auxiliary structures M^2 0 0 30 0 30 0 30 Chicken coop M^2 0 0 4 0 4 0 4 Culvert # 4 8 0 0 4 8 12 Ditch M 52 465 0 0 52 465 517 Fence M^2 574 280 156 36 729 316 1,045 Foundation M^3 72 0 12 0 84 0 84 Outhouse M^2 0 9 0 0 0 9 9 Pipe culvert # 0 20 0 0 0 20 20 Roof M^2 651 0 106 90 757 90 847 Sign Concrete # 1 24 0 0 1 24 25 Slab culvert # 0 24 0 0 0 24 24 Square sign # 3 12 0 0 3 12 15 Tomb # 3 0 0 0 3 0 3 Triangular sign # 5 14 0 0 5 14 19 Wall Brick M^2 0 0 22 0 22 0 22 Water pipe M 0 2,870 0 0 0 2,870 2,870 Well # 3 1 185 18 188 19 207 Yard Cement M^2 197 0 179 1,241 376 1,241 1,617 Yard Concrete M^2 53 0 133 0 186 0 186

11.2.6 Business allowance A total of 45 DPs in Bac Giang province and 276 DPs in Thai Nguyen province have businesses on the residential land that will be acquired by the NIP. They will be provided with a cash allowance for lost business income for the duration of the transitional period at 100% of revenue estimated foregone, as described in Chapter 5. Compensation of land and structures used for businesses will be covered under the entitlement policy for residential land and structures, respectively.

11.2.7 Allowances A total of 154 DPs in Bac Giang province and 129 DPs in Thai Nguyen province will receive allowances for transportation and transition, according to Decree 22/CP-ND, and economic rehabilitation assistance because of relocation. A total of 13 DPs in Bac Giang province and 94 DPs in Thai Nguyen province will receive a repair allowance for partially affected structures. Another 306 DPs in Bac Giang province and 355 DPs in Thai Nguyen province will be eligible for income rehabilitation assistance.



11.2.8 Community Infrastructure A total of 32 public institutions in Bac Giang province and 33 institutions in Thai Nguyen province are expected to have their assets damaged or fully acquired by the NIP. PMU 18 and PCC will ensure that community infrastructure will be restored or replaced to previous condition and operational capacity.

11.2.9 Temporary Impacts No temporary impacts were recorded in the DMS. However, in the case of temporary impacts on DPs for the purpose of road construction, the PCC will assist DPs in negotiating a rental contract with the construction company that will recognize costs for land restoration, reconstruction of houses and structures, and loss of income incurred during the period of land use. Impacts that will last for more than 2 years will be considered as permanent.



12. ENTITLEMENTS Based on the impacts described in the previous chapter, DPs on NH37 will be entitled according to the compensation and rehabilitation policies described in the Entitlement Matrix (Tables 12.1a and b) to achieve the policy objective.



Table 12.1a Entitlement Matrix for Bac Giang Province Type of Loss Application Definition of Entitled

Person Compensation Policy Implementation Issues

1. Agricultural land 756 DPs

1.1 Less than 20% of affected land holding and remainder of holding is economically viable (marginal impact) 718 DPs

1.1.1 DP has legal or legalizable land use rights 716 DPs

- Cash compensation at 100% replacement cost for affected land area - Cash compensation for crops and trees at market price

- If temporary impacts, DP will be compensated for loss of income, standing crops and land restoration costs to previous level of productivity

1.1.2 DP is without legal or legalizable land use rights 2 DPs

- No compensation for land - Cash compensation for lost crops, houses and other assets at market price

1.2 More than 20% of affected land holding or remainder of holding is economically non-viable (severe impact) 38 DPs


- Choice of “land for land” or cash compensation at 100% replacement cost - Compensation for or replacement of entire landholding, if remainder of holding is economically non-viable - Cash compensation for lost crops and trees at market price - Eligibility for income rehabilitation assistance



- No compensation for land, but provision of income rehabilitation assistance in lieu of land compensation - Cash compensation for lost crops, houses and other assets at market price - Provision of minimum standard of land (defined by locality), if DP is left with less than this minimum



Type of Loss Application Definition Compensation Policy Implementation Issues 2. Residential land 707 DPs

2.1 Loss of land and remaining landholding is viable (i.e., at least 40m2 in urban area and 100m2 in rural area) (marginal impact) 553 DPs


- Cash compensation at 100% replacement value for land

- Self-reorganizing: DPs that re-organize onto remaining lands will be provided with a rental allowance, as required


- No compensation for land


2.2 Loss of land and remaining landholding is insufficient for re-organizing (i.e., at least 40m2 in urban area and 100m2 in rural area) (severe impact)


- Cash compensation at 100% replacement value for land and structures, without deductions for depreciation or salvage materials

- Relocation

-

: All relocated DPs will be provided with transport and transition allowances, in accordance with Decree 22

Group relocation: Development of resettlement site, if clusters of DPs require replacement land

154 DPs 2.2.2 DP is without legal or legalizable land use rights 2 DPs

- No compensation for land, but provision of income rehabilitation assistance in lieu of land compensation - Compensation for structures at market cost, without deduction for depreciation or salvage materials - Provision of minimum standard of land (defined by locality)

Ibid.



Type of Loss Application Definition Compensation Policy Implementation Issues 3. Structures 50 DPs

3.1 Partially affected structure and remaining structure is viable 13 DPs

3.1.1 All DPs 13 DPs

- Cash compensation at 100% replacement cost for affected area of structure - Repair allowance for partially affected structures - Rental allowance for renters, as required

- No deductions for depreciation or salvage materials

3.2 Entirely affected structure or partially affected but remaining structure is non-viable 37 DPs


- Cash compensation at 100% replacement cost for entire structure - Rental allowance for renters, as required


4. Businesses 45 DPs

4.1 Independent shops on residential land acquired by the project 45 DPs

4.1.1 All DPs operating independent shops or other businesses 45 DPs

- Business allowance for temporary loss of business income during the transition period - Eligibility for income rehabilitation assistance if business will be relocated

- Compensation for “residential land” equal to value of “commercial land”



Table 12.1b Entitlement Matrix for Thai Nguyen Province Type of Loss Application Definition of Entitled

Person Compensation Policy Implementation Issues

1. Agricultural land 256 DPs

1.1 Less than 20% of affected land holding and remainder of holding is economically viable (marginal impact) 130 DPs


- Cash compensation at 100% replacement cost for affected land area - Cash compensation for crops and trees at market price



- No compensation for land - Cash compensation for lost crops, houses and other assets at market price

1.2 More than 20% of affected land holding or remainder of holding is economically non-viable (severe impact) 126 DPs


- Choice of “land for land” or cash compensation at 100% replacement cost - Compensation for or replacement of entire land holding, if remainder of holding is economically non-viable - Cash compensation for lost crops and trees at market price - Eligibility for income rehabilitation assistance



- No compensation for land, but provision of income rehabilitation assistance in lieu of land compensation - Cash compensation for lost crops, houses and other assets at market price - Provision of minimum standard of land (defined by locality), if DP is left with less than this minimum



Type of Loss Application Definition Compensation Policy Implementation Issues 2. Residential land 790 DPs

2.1 Loss of land and remaining landholding is viable (i.e., at least 40m2 in urban area and 100m2 in rural area) (marginal impact) 661 DPs


- Cash compensation at 100% replacement value for land



- No compensation for land


2.2 Loss of land and remaining landholding is insufficient for re-organizing (i.e., at least 40m2 in urban area and 100m2 in rural area) (severe impact)


- Cash compensation at 100% replacement value for land and structures, without deductions for depreciation or salvage materials - Eligibility for income rehabilitation assistance

- Relocation

-

: All relocated DPs will be provided with transport and transition allowances, in accordance with Decree 22

Group relocation: Development of resettlement site, if clusters of DPs require replacement land

129 DPs 2.2.2 DP is without legal or legalizable land use rights 0 DPs

- No compensation for land, but provision of income rehabilitation assistance in lieu of land compensation - Compensation for structures at market cost, without deduction for depreciation or salvage materials - Provision of minimum standard of land (defined by locality)

Ibid.



Type of Loss Application Definition Compensation Policy Implementation Issues 3. Structures 432 DPs

3.1 Partially affected structure and remaining structure is viable 87 DPs


- Cash compensation at 100% replacement cost for affected area of structure - Repair allowance for partially affected structures - Rental allowance for renters, as required


3.2 Entirely affected structure or partially affected but remaining structure is non-viable 345 DPs


- Cash compensation at 100% replacement cost for entire structure - Rental allowance for renters, as required


4. Businesses 276 DPs

4.1 Independent shops on residential land acquired by the project 276 DPs

4.1.1 All DPs operating independent shops or other businesses 276 DPs

- Business allowance for temporary loss of business income during the transition period - Eligibility for income rehabilitation assistance if business will be relocated

- Compensation for “residential land” equal to value of “commercial land”



13. RESETTLEMENT COSTS AND BUDGET 13.1 Overview The budget outlined in this chapter comprises the total amount required to fund the implementation of the RAP for both the Bac Giang and Thai Nguyen portions of the NH 37sub-project. It covers direct compensation and rehabilitation costs, administrative expenses, and monitoring and evaluation. Direct compensation and rehabilitation costs have been calculated in accordance with the compensation and entitlement policies discussed in Chapter 5. Based on costs estimates provided by the PDOTs of Bac Giang and Thai Nguyen and PMU-18, administrative costs were calculated at five percent of direct costs. 13.2 Direct Compensation and Rehabilitation Costs Direct costs cover both compensation for damages and/or losses to physical assets and entitlement payments for DPs with specific circumstances. Chapter 11 presents the quantities of affected assets. These include land, building structures, fixed assets, crops, and trees. Budget calculation for asset compensation involves multiplying individual item quantities by their respective replacement costs. An independent market survey was conducted in July 2003 in all the affected districts of Bac Giang and Thai Nguyen provinces. Based on the results of this survey, district-level replacement rates were estimated and are provided below. Budget allocations for entitlement allowances are based on the Entitlement Matrix provided in Chapter 12 and are also discussed below. 13.2.1 Land The replacement rates for agricultural, residential, and commercial land are presented in Tables 13-1A and 13-1B. These rates are based on the weighted average land prices reported in the independent market survey for each classification of land1

.

Table 13-1A: Land Replacement Rates for Bac Giang Province (VND / M^2)

Type of Land Viet Yen District Hiep Hoa District Rural Urban Rural Urban

Residential 785,200 1,987,000 785,200 1,987,000 Commercial 975,300 - 975,300 - Agricultural 60,000 60,000 60,000 60,000

1 Average prices are weighted based on the number of DPs represented by each data collection point.



Table 13-1B: Land Replacement Rates for Thai Nguyen Province (VND / M^2)

Type of Land Phu Binh District Thai Nguyen City

Rural Urban Rural Urban Residential 235,000 1,226,000 235,000 1,226,000 Commercial 187,200 1,045,000 187,200 1,045,000 Agricultural 23,000 33,500 23,000 33,500

13.2.2 Building Structures The replacement rates for building structures by construction classification are presented in Tables 13-2A and 13-2B. These rates are based on the weighted average construction costs per square meter reported in the independent market survey for each building class.

Table 13-2A: Building Structure Replacement Rates for Bac Giang Province (VND / M^2)

Type of Land Viet Yen District Hiep Hoa District

Rural Urban Rural Urban Temporary 200,000 - 200,000 - Grade 4 306,800 306,800 306,800 306,800 Grade 3 - 900,000 - 900,000 Grade 2 - - - -

Table 13-2B: Building Structure Replacement Rates for Thai Nguyen Province

(VND / M^2)

Type of Land Phu Binh District Thai Nguyen City Rural Urban Rural Urban

Temporary - - - - Grade 4 353,300 353,300 353,300 353,300 Grade 3 844,600 1,210,100 844,600 1,210,100 Grade 2 854,800 - 854,800 -

13.2.3 Rental Allowances Calculation of the rental allowances is based on either the average reported rent per residential unit, which was collected in the DMS, or on the rental price information collected by the independent market survey. The estimation of monthly rent is detailed in Table 13-3. Reported or estimated month rent is then multiplied by six months to arrive at the budgeted rental allowances.



Table 13-3: Estimation of Monthly Rent of DPs

Province Average M^2 Average Monthly Estimated Monthly Average Reported Per Affected Rental Rate Per M^2 Rent Per Monthly Rent Residence of Residential Land Residence Per Residence

Bac Giang Rural - - - 13,500 Urban 40 4,000 160,000 - Thai Nguyen Rural 40 1,600 64,000 - Urban 40 4,000 160,000 - 13.2.4 Crops and Trees The replacement rates for crops and trees are presented in Tables 13-4A and 13-4B. These rates are based on the weighted average replacement costs reported in the independent market survey for each type of crop or tree. Replacement rates provided by the Bac Giang and Thai Nguyen PDOTs are utilized to address any gaps in the coverage of the market survey with respect to specific types of crops or trees. Replacement rates for unspecified trees or timber trees are based on the average price for each sub-category reported in the market survey.



Table 13-4A: Crop and Tree Replacement Rates for Bac Giang Province (VND)

Item Unit Viet Yen District Hiep Hoa District Rural Urban Rural Urban Almond # 19,000 19,000 19,000 19,000 Bamboo # 19,300 - 19,300 - Banana # 26,000 - 26,000 - Bang Lang # 19,000 19,000 19,000 19,000 Bead # 25,000 25,000 25,000 25,000 Bean M^2 1,470 - 1,470 - Bombax # 19,000 - 19,000 - Coconut # 110,000 - 110,000 - Custard Apple # 195,000 - 195,000 - Dau da # - 21,000 - 21,000 Dracontomelum # 300,000 300,000 300,000 300,000 Eucalyptus # 25,000 - 25,000 - Fig # - 50,000 - 50,000 Flamboyant # - 19,000 - 19,000 Ironwood # - 100,000 - 100,000 Jackfruit # 86,000 86,000 86,000 86,000 Litchi # 903,000 - 903,000 - Longan # 500,000 500,000 500,000 500,000 Lucuma Mamosa # 80,000 80,000 80,000 80,000 Mango # 855,500 - 855,500 - Nacre # 25,000 25,000 25,000 25,000 Papaw # 35,000 - 35,000 - Peanut M^2 14,520 4,290 14,520 4,290 Pomelo # 100,400 - 100,400 - Rice M^2 2,580 2,580 2,580 2,580 Rose Apple # 80,000 - 80,000 - Sapodilla # 80,000 - 80,000 - Shade Tree # 6,000 - 6,000 - Soapberry # - 80,000 - 80,000 Sophora Japonica # 900,000 900,000 900,000 900,000 Star Apple # - 80,000 - 80,000 Sweet Potato M^2 3,783 - 3,783 - Tamarind # 300,000 - 300,000 - Unspecified Tree # 18,000 - 18,000 -



Table 13-4B: Crop and Tree Replacement Rates for Thai Nguyen Province (VND)

Item Unit Phu Binh District Thai Nguyen City Rural Urban Rural Urban Almond # 19,000 19,000 19,000 19,000 Apple # 65,900 69,000 65,900 69,000 Areca # 120,000 120,000 120,000 120,000 Bamboo # 1,800 6,500 1,800 6,500 Banana M^2 23,000 16,100 23,000 16,100 Bang Lang # - 19,000 - 19,000 Bead # 25,000 25,000 25,000 25,000 Benjamine Fig # 80,000 80,000 80,000 80,000 Betel # 10,000 - 10,000 - Bombax # 50,000 50,000 50,000 50,000 Bonsai # 10,000 22,300 10,000 22,300 Chinese Fig # 80,000 - 80,000 - Coconut # 125,700 - 125,700 - Corn M^2 672 - 672 - Custard Apple # 70,000 57,400 70,000 57,400 Dau da # 21,000 21,000 21,000 21,000 Dracontomelum # 150,000 150,000 150,000 150,000 Duoi # - 100,000 - 100,000 Eucalyptus # 50,000 50,000 50,000 50,000 Fig # 53,000 61,300 53,000 61,300 Flamboyant # - 50,000 - 50,000 Flower # - 10,000 - 10,000 Guava # 60,100 53,300 60,100 53,300 Ironwood # - 100,000 - 100,000 Jackfruit # 93,500 116,000 93,500 116,000 Keo # - 70,000 - 70,000 Litchi # 552,600 415,900 552,600 415,900 Longan # 243,300 266,200 243,300 266,200 Lucuma Mamosa # - 80,000 - 80,000 Mango # 109,500 150,000 109,500 150,000 Manh # - 49,300 - 49,300 Mulberry # - 15,000 - 15,000 Nacre # 74,000 36,500 74,000 36,500 Orange # - 160,000 - 160,000 Orchid # - 100,000 - 100,000 Palm # 20,000 - 20,000 - Papaw # 30,000 30,000 30,000 30,000 Peanut M^2 90 - 90 - Persimmon # - 150,000 - 150,000 Pine # 37,700 - 37,700 - Pomelo # 183,000 183,000 183,000 183,000 Pomelo # 160,000 - 160,000 - Rice M^2 1,097 - 1,097 - Rose Apple # 80,000 80,000 80,000 80,000 Sapodilla # 100,000 - 100,000 - Soapberry # 120,000 120,000 120,000 120,000



Table 13-4B (continued) Star Apple # 95,000 95,000 95,000 95,000 Sweet Potato M^2 1,238 - 1,238 - Tamarind # - 150,000 - 150,000 Tea # 5,000 - 5,000 - Thistle # 80,000 80,000 80,000 80,000 Unspecified Timber # 5,123 - 5,123 - Unspecified Tree # 49,312 - 49,312 - Vi # 84,500 - 84,500 - Wootung # - 50,000 - 50,000 13.2.5 Fixed Assets The replacement rates for fixed assets are presented in Tables 13-5A and 13-5B. These rates are based on the weighted average replacement costs reported in the independent market survey for each type of fixed asset. Replacement rates provided by the PDOTs of Bac Giang and Thai Nguyen are utilized to address any gaps in the coverage of the market survey with respect to specific types of fixed assets.

Table 13-5A: Fixed Asset Replacement Rates for Bac Giang Province (VND)

Item Material / Unit Viet Yen District Hiep Hoa District Descriptor Rural Urban Rural Urban Balcony M^2 65,000 - 65,000 - Concrete M^3 400,000 - 400,000 - Culvert # 80,000 - 80,000 - Ditch M 20,000 - 20,000 - Door # 165,000 - 165,000 - Fence M 16,600 - 16,600 - Foundation M^3 341,000 - 341,000 - Iron M^2 20,000 - 20,000 - Kitchen M^2 220,000 - 220,000 - Parterre M^2 50,000 - 50,000 - Patio M^2 60,000 60,000 60,000 60,000 Photo shop M^2 60,000 - 60,000 - Pipe M 80,000 - 80,000 - Pole Concrete # 250,000 - 250,000 - Pond M^2 10,000 - 10,000 - Pond bank M^2 6,500 - 6,500 - Roof M^2 60,000 60,000 60,000 60,000 Tomb # 530,000 - 530,000 - Wall M^2 45,000 45,000 45,000 45,000 Wall Brick M^2 45,000 - 45,000 - Well # 900,000 900,000 900,000 900,000 Well Drill # 2,500,000 - 2,500,000 - Yard Cement M^2 20,000 - 20,000 - Yard Brick M^2 21,000 - 21,000 - Yard Concrete M^2 35,000 - 35,000 - Yard Lime M^2 35,000 - 35,000 -



Table 13-5B: Fixed Asset Replacement Rates for Thai Nguyen Province (VND)

Item Material / Unit Phu Binh District Thai Nguyen City Descriptor Rural Urban Rural Urban Auxiliary structures M^2 146,000 - 146,000 - Chicken coop M^2 40,000 - 40,000 - Culvert # 240,000 870,000 240,000 870,000 Ditch M 30,500 35,000 30,500 35,000 Fence M^2 16,600 20,000 16,600 20,000 Foundation M^3 341,000 - 341,000 - Outhouse M^2 - 50,000 - 50,000 Pipe culvert # - 220,000 - 220,000 Roof M^2 146,000 - 146,000 - Sign Concrete # 200,000 200,000 200,000 200,000 Slab culvert # - 220,000 - 220,000 Square sign # 200,000 200,000 200,000 200,000 Tomb # 510,000 - 510,000 - Triangular sign # 200,000 200,000 200,000 200,000 Wall Brick M^2 306,900 - 306,900 - Water pipe M - 80,000 - 80,000 Well # 1,093,100 1,125,000 1,093,100 1,125,000 Yard Cement M^2 37,500 40,000 37,500 40,000 Yard Concrete M^2 75,000 - 75,000 - 13.2.6 Business Allowances Calculation of business allowances is based on the income information provided by DP business operators in the DMS. The average six-month income of project-affected businesses in Bac Giang is 3,840,000 VND, while in Thai Nguyen it is 3,722,609 VND. 13.2.7 Resettlement Allowances and Other Income Rehabilitation Assistance Other allowances include transport and transition allowances for DPs needing to relocate.

Transport allowance: 1,000,000 VND/DP household Transition allowance: 30 kg rice x person x 6 mo.

Income rehabilitation assistance as has been budgeted at the following rate: Income rehabilitation assistance: 1,100,000 VND/DP household



13.3 Summary Budget Tables 13-6A and 13-6B present a summary of the budget required for the implementation of the RAP for the Bac Giang and Thai Nguyen portions of the NH 37 sub-project, respectively. Table 13-6C presents a summary resettlement budget for the entire NH 37 sub-project.

Table 13-6A: Summary Budget for Bac Giang

TOTAL VND TOTAL US$ A. Compensation and rehabilitation 40,875,136,056 2,671,578 1. Agricultural Land 9,284,674,200 606,841 2. Residential Land 28,846,696,900 1,885,405 3. Houses and Structures 260,253,560 17,010 4. Rental Allowances 28,857,000 1,886 5. Crops and Trees 529,028,436 34,577 6. Fixed Assets 794,925,960 51,956 7. Business Allowances 172,800,000 11,294 8. Relocation Allowances 957,900,000 62,608 B. Administrative Costs (5%) 2,043,756,803 133,579 C. Monitoring and Evaluation (5%) 2,043,756,803 133,579 TOTAL (A + B + C) 44,962,649,661 2,938,735 D. Contingency (15%) 6,744,397,449 440,810 GRAND TOTAL (A + B + C + D) 51,707,047,110 3,379,546 APPROXIMATION 51,707,048,000 3,380,000

Table 13-6B: Summary Budget for Thai Nguyen

TOTAL VND TOTAL US$ A. Compensation and rehabilitation 52,926,409,976 3,459,242 1. Agricultural land 1,204,535,730 78,728 2. Residential land 31,665,836,290 2,069,663 3. Houses and other structures 16,957,069,664 1,108,305 4. Rental allowances 146,688,000 9,587 5. Crops and trees 223,527,458 14,610 6. Fixed assets 752,212,834 49,164 7. Business allowances 1,027,440,000 67,153 8. Relocation allowances 949,100,000 62,033 B. Administrative costs (5%) 2,646,320,499 172,962 C. Monitoring and Evaluation (5%) 2,646,320,499 172,962 TOTAL (A + B + C) 58,219,050,973 3,805,167 C. Contingency (15%) 8,732,857,646 570,775 GRAND TOTAL (A + B + C + D) 66,951,908,619 4,375,942 APPROXIMATION 66,951,909,000 4,376,000



Table 13-6C: Summary Budget for NH 37

Total NH 37 (US$) A. Compensation and rehabilitation 6,130,820 1. Agricultural Land 685,569 2. Residential Land 3,955,068 3. Houses and Structures 1,125,315 4. Rental Allowances 11,474 5. Crops and Trees 49,187 6. Fixed Assets 101,120 7. Business Allowances 78,447 8. Relocation Allowances 124,641 B. Administrative Costs (5%) 306,541 C. Monitoring and Evaluation (5%) 306,541 TOTAL (A + B + C) 6,743,902 D. Contingency (15%) 1,011,585 GRAND TOTAL (A + B + C + D) 7,755,487 APPROXIMATION 7,756,000

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