Indigenous Peoples Plan

Project Number: 42203-022 Grant Number: 0235-LAO January 2015

Lao People’s Democratic Republic: Northern Rural Infrastructure Development Sector Project

Prepared by the Ministry of Agriculture and Forestry for the Asian Development Bank.

This indigenous peoples plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the ‘term of use’ section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Annex-10 Ethnic Groups Development Plan Nam Xang Irrigation Subproject

A Hor (Hani) woman and her child Laos, circa 2003.

Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province

TABLE OF CONTENTS

Topics Page LIST OF ABBREVIATIONS AND TERMS v EXECUTIVE SUMMARY A10-1 A. Introduction A10-1 B. The Nam Xang Irrigation Subproject A10-1 C. Ethnic Groups in the Subproject Areas A10-2 D. Socio-Economic Status A10-2 a. Land Issues A10-2 b. Language Issues A10-3 c. Gender Issues A10-3 d. Social Health Issues A10-4 E. Potential Benefits and Negative Impacts of the Subproject A10-4 F. Consultation and Disclosure A10-5 G. Monitoring A10-5 1. BACKGROUND INFORMATION A10-7 1.1 Objectives of the Ethnic Groups Development Plan A10-7 1.2 The Northern Rural Infrastructure Development Sector Project A10-7 (NRIDSP) 1.3 The Nam Xang Irrigation Subproject A10-7 2. LEGAL FRAMEWORK A10-8 2.1 Ethnic Groups in Lao PDR A10-8 2.2 Ethnic Groups and Development: Policy Context A10-8 2.3 ADB Safeguards for Indigenous Peoples A10-9 2.4 Indigenous Peoples Planning Framework (IPPF) for NRIDSP A10-10 2000 3. SOCIAL IMPACT ASSESSMENT A10-10 3.1 Ethnic Groups in the Subproject Areas A10-10 3.2 Socio-Economic Status A10-14 3.2.1 Land A10-14 3.2.2 Language A10-15 3.2.3 Gender A10-15 3.2.4 Health and Hygiene A10-16 3.2.5 Social Impact and Inequality A10-17 3.2.6 Social Benefits A10-18 3.2.7 Expected Sustainable Outcomes A10-19 4. BENEFICIAL AND MITIGATING MEASURES A10-20 5. INFORMATION DISCLOSURE, CONSULTATION AND A10-23 PARTICIPATION 6. COMPLAINTS AND GRIEVANCE REDRESS MECHANISM A10-25 A10-i

Northern Rural Infrastructure Development Sector Project Annex 9 Feasibility Study on Nam Ngene (Ban Namark) and Nam Hin Irrigation Subproject

Topics Page 7. INSTITUTIONAL ARRANGEMENT A10-26 8. BUDGET AND FINANCING PLAN A10-27 9. MONITORING A10-27 9.1 Internal Monitoring A10-27 9.2 External Monitoring A10-27 TABLES Table A10-1. List of Ethnic Groups by Ethno-Linguistic Group in Lao PDR A10-8 Table A10-2. Ethnic Groups in Subproject Areas A10-11 Table A10-3. Ethnic Groups Population in Nam Xang Irrigation Subproject A10-14 Table A10-4. Subproject Intervention Strategies A10-20 Table A10-5. Consultation, Participation and Disclosure A10-24

FIGURES Figure A10-1. Location Map of NRIDSP Subprojects A10-iii Figure A10-2. The Nam Xang Irrigation Subproject A10-iv

A9 - ii Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province

Figure A10-1. Location Map of NRIDSP Subprojects

A10-iii

Northern Rural Infrastructure Development Sector Project Annex 9 Feasibility Study on Nam Ngene (Ban Namark) and Nam Hin Irrigation Subproject

Figure A10-2. The Nam Xang Irrigation Subproject

A10 - iv Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District Phongsaly Province

List of Abbreviation and Terms

ADB : Asian Development Bank Chaokok or Chaolau : A village elder that plays lead role in addressing grievances, a traditional grievance mechanism. DAFO : District Agriculture and Forestry Office DCO : District Coordination Office DOP : Department of Planning EA : Executing Agency EGDP : Ethnic Group Development Plan EIA : Environmental Impact Assessment EMP : Environmental Management Plan Farmers : In this report, means people or households owning and/or cultivating agricultural lands (irrigated and non-irrigated) FS : Feasibility Study FPG : Farmers’ production Groups GAP : Gender Action Plan GOL : Government of Lao PDR HH : Household IA : Implementing Agency IEE : Initial Environmental Examination IPP : Indigenous Peoples Plan ISF : Irrigation Service Fee Lao PDR : Lao People’s Democratic Republic LACR Land Acquisition and Compensation Report LFNC : Lao Front for National Construction LWU : Lao Women’s Union MAF : Ministry of Agriculture and Forestry MOM : Management, Operation and Maintenance NRI or NRIDSP : Northern Rural Infrastructure Development Sector Project NSC : National Steering Committee NPMO : National Project Management Office O&M : Operation and Maintenance PAFO : Provincial Agriculture Forestry Office PPO : Provincial Project Office SIA : Social Impact Assessment SIR : Subproject Investment Report Villagers : Refers to people residing in a village in general. “Consulted villagers” in this report means representatives of village authorities, LWU, LFNC, youth, men, women and ethnic groups WUA : Water User Association WUG : Water User Group

A10 - v Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District Phongsaly Province

EXECUTIVE SUMMARY

A. Introduction

1. This Ethnic Groups Development Plan (EGDP) is prepared for the Nam Xang Irrigation Subproject located in Nhot Ou District, Phongsaly Province under the Northern Rural Infrastructure Development Sector Project (NRIDSP). The EGDP is prepared in accordance with the Lao PDR Constitution, relevant laws and policies, the ADB’s Safeguards Policy Statement (SPS) 2009 and the Indigenous People Planning Framework (2000) developed for NRIDSP. Sources of data and information for the EGDP include: i) Annex 7 – Social Impact Assessment of the Feasibility Study Report for the Subproject; ii) Annex 8 – Initial Environmental Assessment of the Feasibility Study Report for the Subproject; iii) Annex 9 – Land Acquisition and Compensation Report of the Feasibility Study Report for the Subproject; and (iv) the Rapid Social Assessment for ethnic groups in the subproject area conducted on July 2014.

2. The Plan emphasizes a specific action plan for the Nam Xang Irrigation Subproject in order to: (i) address appropriate requirements for, including consultations with, the affected ethnic groups in the subproject areas; (ii) ensure that the benefits are culturally appropriate and equally distributed by the subproject for those ethnic groups; (iii) avoid potentially adverse impacts on ethnic groups; (iv) minimize, mitigate or compensate for such effects when they cannot be avoided; (v) provide implementation measures to strengthen social, legal and technical capabilities of government institutions in addressing ethnic group issues; and (vi) specify monitoring and evaluation of the EGDP implementation.

3. The series of consultations and meetings with various stakeholders and ethnic groups within the subproject area conducted from July 2012 to July 2014 revealed that the proposed subproject is supported by the people/ethnic groups within the subproject coverage. The subproject will not be associated with any negative impacts to people/ethnic groups. It will not involve land acquisition because it involves rehabilitation and improvement of existing irrigation facilities and structures. There is no physical relocation or associated form of removal of assets along the irrigation channels. Furthermore, the subproject will not affect or interfere with the ethnic groups’ way of using land and natural resources and their indigenous knowledge.

4. This EGDP highlights how the subproject will bring about positive benefits for the ethnic groups that are culturally appropriate and distributed equitably. Actions are specified to ensure that the Executing Agency (EA) and engaged specialists carry out appropriate measures to achieve beneficial results for the ethnic groups and avoid negative impacts. The EGDP will be implemented in synergy with the project’s Gender Action Plan (GAP), which addresses women’s participation in the project to ensure that gender equality measures reach women in ethnic groups in the subproject areas.

B. The Nam Xang Irrigation Subproject

5. The Nam Xang Irrigation Subproject is located in Nhout Ou District, Phongsaly Province (Figure 1). The proposed Subproject involves: i) improvement of existing Nam Xang weir (removal of upstream sediment, raising of the weir crest, and repair of intake and sluice gates); ii) improvement of main and secondary canals (1,500 m of concrete lining of main canals, raising of the top bank of LMC with 450 m long, and improvement of 4,550 m of secondary earth canals); and iii) construction of canal related structures (43 farm turnouts along the main and secondary canals).

6. The proposed subproject will benefit the four villages of: i) Ban Nong Ngai; ii) Ban Navone; iii) Ban Don Ngeng; and iv) Ban Xiengkhone.

A10 - 1 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District Phongsaly Province

7. The subproject was selected from the priority list of subprojects identified during the PPTA for NRIDSP. The list was identified in coordination with the district and provincial government units. The subproject is selected in line with the NRIDSP aim of providing rural infrastructure and associated initiatives to support increased commercialization of agriculture in the area. The NRIDSP through the subproject will provide the rural community with access to, and participation in the market economy. This is to be realized through increase in incremental production of saleable commodities and the promotion of agricultural productivity.

8. Besides the irrigation improvement, productivity and impact enhancement initiatives will be delivered for the Subproject. These initiatives will comprise of compulsory and optional initiatives. The compulsory initiatives will include: (i) support for WUGs established to operate and maintain the rehabilitated facilities; and (ii) water catchments identification and zoning. Optional initiatives will be further discussed with the beneficiaries during detailed design stage and could be selected from production, post-harvest handling, processing and the development of market linkage initiatives.

C. Ethnic Groups in the Subproject Areas

9. Phongsaly province has a great diversity of ethnic groups and languages. According to the official classification by the Provincial Cabinet Office, there are 15 distinct ethnic groups in the province. In Nhout Ou District, based on data and information gathered during the Rapid Social Assessment done in June 2014, there are 10 sub-ethnic groups, three (3) belong to the Lao-Tai Ethno-Linguistic Group (Lue, Yang and Tai Neua), one (1) Hmong- Iumien Ethno-Linguistic Group (Iumien) and six (6) Tibeto-Chinese Ethno-Linguistic Group (Akha, Phunoi, Sila, Hor, Hani and Lolo).

10. The 374 Households (HHs) in the four (4) villages covered by Nam Xang Irrigation Subproject are composed of 95% Lue, 2% Hor, 3% Hayi and less than 1% (1 HH) Phunoi. Two Villages (Ban Nong Ngai and Ban Navone are of 100% Lue. Ban Don Ngeng is inhabited by 3 ethnic groups (88% Lue, 5% Hor and 7% Hani/Hayi). In Ban Xiengkhone, there is one Phunoi ethnic group HH composed of a single male member.

D. Socio-Economic Status

11. The results of the SIA 1 conducted in the late part of 2013 show that rice deficiency and poverty is not a concern. All HHs are rice sufficient and within the medium income level with average HH income of 385,357 Kips/person/month which is much higher than the 2009/2012 Poverty Line Income of 180,000 Kips/person/month.

a. Land Issues

12. The subproject will not in any way affect land ownership or the right of land cultivation of people/ethnic groups in the area. Instead, it will encourage increased activities on land cultivation with the expected improvement in water availability due to the rehabilitation and improvement of the existing irrigation system.

13. Land ownership document in the area is generally Land Tax Certificate (LTC) which is reported to be in the name of both spouses in some cases and in the name of only the husband in some cases. The LTC are recognized by the village, district and provincial authorities for the security of tenure for the land being cultivated by a HH. Land titling (ownership) is now recognized and approved by the Lao Government in the name of both spouses.

1 Annex 7 of the Subproject Feasibility Report

A10 - 2 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District Phongsaly Province

14. The Lue ethnic group HHs which composes about 96% of the total HHs in the subproject area own 450.47 has. of the total 461.98 has of the total agricultural lands within the subproject coverage, an average landholding of more than one hectare per HH. Of the total 114.02 has. of currently irrigated lands, 110.21 has. are owned by Lue ethnic group HHs. The lone Phunoi ethnic group HH owns a 0.40 ha. Irrigated land. The six (6) Hor ethnic group HHs own 4.71 has. agricultural lands, 1.50 has of which are irrigated lands. The 9 Hayi HHs owns 6.41 has agricultural land, with 1.91 has irrigated lands. Although all the 16 minority ethnic groups have lands, obviously, the average landholding for these ethnic group HHs is way below one ha. per HH.

15. The HHs with irrigated lands will directly benefit from the subproject with those owning rainfed lowland (199.39 has.) as potential beneficiaries depending on the expansion of irrigated area that will result from the subproject. The HHs that will not directly benefit from irrigation could benefit from associated initiatives that will be delivered under the subproject such as: 1) participatory land use planning and management; 2) agriculture, marketing and value adding initiatives which includes yield improvement, contract farming; and 3) poultry raising. In addition, the poor ethnic group HHs will potentially benefit from labor during subproject construction, increase demand of agriculture labor due to intensive farming resulting from the improvement of irrigation, and from associated initiative on poultry raising.

b. Language Issues

16. The Lue ethnic group can speak the Lao National Language and hence, has no problem on communication with Project implementors. The other ethnic groups, besides being less in number have their own distinct language (dialect) and may encounter limitations on communicating through the Lao National Language. About 46% of the adult population are not literate (can’t read and write on the Lao National Language). Literacy percentages among ethnic groups are: 1) 55% for the Lue HHs; 2) the lone Phunoi is literate; 3) 24% for the Hor HHs; and 4) 42% for the Hani/Hayi HHs. The low literacy rate is an issue in the conduct of consultations, meetings, trainings and similar forums during the subproject planning and implementation stages. Hence, the subproject implementation units at the Province (PPO) and District (DCO) must ensure that project staff who can speak the local languages should be assigned during conduct of such forums where different ethnic groups are involved.

c. Gender Issues

17. Women’s voice and participation has steadily advanced in Lao PDR. Women’s rights are recognized in the legal system, and women’s political representation in the National Assembly has grown nearly 20% since 1990. It is now the highest in the region. However, this has not filtered down to the provincial and local levels where significant gender gaps in representation persist, despite the efforts of the Lao Women’s Union (LWU) in reaching out to women at the national to village levels 2.

18. The SIA results3 for the Subproject in October 2013 show that the Leadership of the Village Administration, the Lao National Front for Construction (LNFC), the Lao Youth Union (LYU) and Village Security and Army Units are dominated by men except that of the Lao Women Union being an organization for women. Women are represented by the Head of the Lao Women Union in Village Administration meetings.

2 Country Gender Assessment for Lao PDR – Reducing Vulnerability and Increasing Opportunity, World Bank, 2012 3 Annex 7 of the Subproject Feasibility Study Report.

A10 - 3 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District Phongsaly Province

19. For all ethnic groups, household works are dominantly performed by women. Men are dominantly responsible of house repair/construction. The responsibility of earning money and fire wood gathering for the household is seen to be shared responsibility of men and women, although some households consider it as more of male’s responsibility. Agriculture production responsibilities are shared by men and women although men are seen to be performing more responsibilities than women. Decision-making responsibilities based on the results of HH interviews are generally considered shared responsibilities between men and women.

d. Social Health Issues

20. There are pharmacies and dispensaries in the villages. Bigger and more equipped health facilities are located at the Nhout Ou District. All houses have their own sanitary latrines.

22. The construction of the subproject may bring about health hazards such as: (i) dust and noise pollution; (ii) danger from construction material storage and construction sites; and (iii) construction and workers’ waste disposal/management. These, however, are temporary in nature, and mitigation measures are included in the Environmental Management Plan (EMP) developed for the subproject included in Annex 8 – Initial Environmental Examination of the Feasibility Study Report for the subproject.

23. During the Operation and Maintenance (O&M) stage of the subproject, potential health hazard may result from the effects of intensified use of chemical fertilizers and pesticides. However, these can be minimized, if not eliminated through the timely and correct implementation of the proposed measures contained in the EMP mentioned above.

E. Potential Benefits and Negative Impacts of the Subproject

24. Prominent among the potential positive impacts of the subproject is the increase in income due to increase in yield and production brought about by the irrigation subproject as well as additional source of income (labor) for poor households.

25. The subproject is promoting the enhancement of agricultural production in a culturally appropriate manner and aims to equitably distribute the benefits within the subproject coverage area while ensuring the active participation of ethnic groups, including women. The subproject will ensure the provision of maximum benefits while avoiding any potential adverse impacts on the environment and ethnic groups. The subproject will exert effort, where potential negative impacts occur, to minimize, mitigate, and/or compensate for the adverse impacts on the environment and ethnic groups. This EGDP has therefore been developed to assist the subproject in designing and implementing its activities in a way that fosters full respect for the ethnic groups’ dignity, human rights, livelihood systems and cultural uniqueness as defined by the ethnic groups themselves so that they: (i) receive culturally appropriate social and economic benefits; (ii) do not suffer adverse impacts as a result of the subproject; and (iii) can participate actively in projects that affect them.

26. All of the consulted villagers which included the village authorities, men and women focus groups, youths and ethnic group leaders were unanimous in their support of the improvement of the irrigation system as they expect the irrigation system to increase household income and hence, reduce poverty due to: (i) the availability and sufficiency of the water supply for the irrigated areas; (ii) an increase in irrigated areas in both seasons for all four villages will lead to an increase in rice yield and production; (d) the high yields of other crops that can be grown during the dry season; and (e) the resulting increase in income from the sale of this agricultural produce.

A10 - 4 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District Phongsaly Province

27. Besides the rehabilitation of the irrigation system and the enhancement of productivity, there are other benefits that the ethnic groups from these four villages can expect to receive. These will include: (i) the establishment of WUGs to operate and maintain the rehabilitated facilities; and (ii) the capacity building initiatives for the local authorities which will include the targeted villages. These consist of various training programs such as those for WUGs in the areas of operation and maintenance, financial management, identification of water catchments and zoning, as well as other demonstrations of agricultural technology.

28. Initial assessment in the feasibility stage of the subproject shows that the rehabilitation and improvement works of the Nam Xang Irrigation Subproject will not result in: (i) loss of agricultural and residential land; (ii) loss of crops and trees; (iii) loss of primary and secondary structures and hence, no relocation of houses; (iv) cases of economic displacement and effect to vulnerable people; and (v) loss of common property. This will be also closely monitored during detailed design and construction phase of the subproject.

F. Consultation and Disclosure

29. The subproject will ensure that consultations with men, women and ethnic groups are conducted at various stages of subproject implementation. Such had been done at feasibility stage and will continue during the detailed engineering stage, construction stage and the operation and maintenance (O&M) stage at subproject completion. Consultations will be done in the local ethnic group’s language using interpreters to translate from Lao to the ethnic group’s language. The subproject will ensure equal participation of men and women, and where information is needed for specific purposes rather than providing general information, separate discussions for women and men will be conducted as women are often reluctant to participate in mixed group settings. Furthermore, the subproject will ensure that training and other capacity building activities are conducted in the ethnic groups’ languages to avoid exclusion/inability to participate in the subproject activities.

30. Important results of consultations, plans and studies/surveys shall be disclosed through meetings in local dialects as well as written excerpts posted in public places in the four villages covered.

G. Monitoring

31. Internal monitoring and collection of information on the subproject’s progress, effectiveness and results will largely be the responsibility of PPO in cooperation with DCO. There will also be an emphasis on the identification of activities to enhance agricultural production whilst recognising constraints so as to provide appropriate remedial actions. Internally the provincial and district officers from the different departments will jointly prepare monitoring reports, which in turn the PPO will use to prepare monthly reports for the NPMO. The NPMO will validate these reports and include in the project’s progress reports progress reports. The project has engaged an external monitoring entity in charge of social and environmental safeguards, participation, and gender. The external monitoring entity submits quarterly monitoring reports on these aspects.

A10 - 5 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province 1. BACKGROUND INFORMATION

1.1 Objectives of the Ethnic Groups Development Plan (EGDP)

32. This Ethnic Groups Development Plan (EGDP) is prepared for the Nam Xang Irrigation Subproject located in Nhot Ou District, Phongsaly Province under the Northern Rural Infrastructure Development Sector Project (NRIDSP). The EGDP is prepared in accordance with the Lao PDR Constitution, relevant laws and policies, the ADB’s Safeguards Policy Statement (SPS) 2009 and the Indigenous People Planning Framework (2000) developed for NRIDSP.

33. The objectives of the NRIDSP Subproject EGDP are to:

(i) address appropriate requirements for, including consultations with, the affected ethnic groups in the subproject areas; (ii) ensure that the benefits are culturally appropriate and equitably distributed for the ethnic groups within the subproject coverage; (iii) avoid potentially adverse impacts on ethnic groups; (iv) minimize, mitigate or compensate for such effects when they cannot be avoided; (v) provide implementation measures to strengthen social, legal and technical capabilities of government institutions in addressing ethnic group issues; and (vi) specify monitoring and evaluation of the EGDP implementation

34. The EGDP will be implemented in synergy with the subproject’s Gender Action Plan (GAP), which addresses women’s participation in the project to ensure that gender equality measures reach women in ethnic groups in the subproject areas.

1.2 The Northern Rural Infrastructure Development Sector Project (NRIDSP)

35. The NRIDSP is operating in four Lao PDR Northern Provinces: i) Bokeo; ii) Oudomxay; iii) Luang Namtha; and iv) Phongsaly. In each of these provinces, 2-3 districts have been selected to be covered by NRIDSP, and in each of these districts, a number of subprojects are identified.

36. The Project will provide rural infrastructure and associated initiatives to support increased commercialization of agriculture. The NRIDSP’s main aim is to provide the rural community with access to, and participation in, the market economy. This is to be realized through increase in incremental production of saleable commodities and the promotion of agricultural productivity.

37. The NRIDSP has the following main outputs:

(i) Production and productivity enhancing rural infrastructure constructed and/or rehabilitated. (ii) Productivity and impact enhancing initiatives adopted. (iii) Capacities of national, provincial and district agencies strengthened to enable a sector development approach. (iv) Efficient and effective delivery of subprojects and project management.

1.3 The Nam Xang Irrigation Subproject

38. The Nam Xang Irrigation Subproject is located in Nhot Ou District, at a distance of about 22 Km North East of Nhot Ou District Center and 177 km from Phongsaly Provincial Capital through an all-weather laterite and asphalt road passable by all types of vehicles (Figure 1).

39. The subproject was selected from the priority list of subprojects identified during the PPTA for NRIDSP. The list was identified in coordination with the district and provincial government units. The subproject is selected in line with the NRIDSP aim and expected outputs as mentioned above. This is to be realized through increase in incremental production of saleable commodities and the promotion of agricultural productivity. It will benefit 4 villages, Xiengkhone, Don Ngeng, Navone

A10 - 6 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province and Nong Ngai. Ban Don Ngeng and Ban Xiengkhone were established before the French Colonial Period, while Ban Navone and Ban Nong Ngai were established in 1962. There are 374 HHs in the four (4) villages, 150 HHs in Don Ngeng, 76 HHs in Xiengkhone, 78 HHs in Navone and 70 HHs in Nong Ngai. The total population is 1,609 people, mostly of the Lao-Tai Ethno- Linguistic Group (Lue ethnic group) with 15 HHs and 88 people of the Tibeto-Chinese Linguistic Group (Phunoi, Hor and Hani/Hayi ethnic group).

40. Nam Xang scheme has an existing reinforced concrete weir of about 1.30m in length, constructed by the government. It has an approximately 960m Main Canal (MC) which branches into a Left Main Canal (LMC) with a length of 3,500m and a 1,060m Right Main Canal (RMC). (See Figure 2).

41. Presently, the weir basin is filled with sand, the sluice gate is broken and cannot be operated, portions of the main canal are seriously silted and with leakages, and turnouts are damaged. Some HHs resort to shifting cultivation upstream of the catchment area for additional food/income due to the insufficient irrigation water from the Nam Xang Irrigation System.

42. There is an existing WUG but such is not performing well. The WUG has no roles, rules and regulations and water fees are not collected as source of funds for the O&M of the system. There is no scheme of water allocation and distribution. Maintenance is done only at the start of the cropping season through free labor contribution from irrigation beneficiaries. The WUG will be re-organized and established as WUA. WUA Roles, Rules and Regulations will be formulated through the assistance of the DCO as guide for the WUA in the management, operation and maintenance (MOM) of the system. Training and technical assistance will be provided to the WUG/WUA to develop its capacity to manage, operate and maintain the irrigation system after rehabilitation. The collection of irrigation service fees at appropriate rates will be introduced to support the funding needs for O&M.

43. Based on the Village Household Masterlists, the existing irrigated lowlands are about 114 ha during the wet season benefiting about 167 HHs with 919 HH members. GIS information collected during the subproject identification in May 2013 indicate that the total potential irrigation service area of the scheme after rehabilitation is about 164 ha, composed of lowland irrigated farms, rainfed lowland and sugarcane fields.

44. The proposed subproject will involve removal of the sand out of the weir basin, and rehabilitation/improvement of the intake, sluice gate, main canal and turnouts. Consultation with the Nhot Ou District Office was conducted to develop Catchment Management Plan for the area upstream of the river, establishment of a Water Users’ Association (WUA) to include formulation of WUA Rules, Roles and Regulations (RRR), WUA registration and WUA capability development. The WUA capacity building will focus on WUG/WUA Management, WUA/WUG financial management and irrigation system O&M training.

45. Besides the irrigation improvement, productivity and impact enhancement initiatives will be delivered by the Project. These initiatives will comprise of compulsory and optional initiatives. The compulsory initiatives will include (i) support for WUGs established to operate and maintain the rehabilitated facilities; and (ii) water catchments identification and zoning. Optional initiatives will need to be further discussed with the beneficiaries during detailed design stage and could be selected from production, post-harvest handling, processing and the development of market linkage initiatives.

46. During the Rapid Social Assessment (RSA) done for the Subproject EGDP in July 2014, it was found out during Focus Group Discussions that the people in the 4 villages are aware and support the implementation of the Subproject. Project information had been disseminated during the consultation meetings for the feasibility stage of the subproject.

A10 - 7 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province 2. LEGAL FRAMEWORK

2.1 Ethnic Groups in Lao PDR

47. Lao PDR has the most ethnically diverse population on the Southeast Asian mainland, which was officially identified in the 2005 census as consisting of 49 ethnic groups. The Ministry of Information and Culture of Laos currently promotes the use of an ethno-linguistic classification system to distinguish the various ethnic groups in the country. The major ethno-linguistic groups in Lao PDR are Lao Tai, Mon-Khmer, Chinese-Tibetan and Hmong Mien.

48. The Lao-Tai dominate politically, culturally and economically and generally inhabit the river plains, particularly along the Mekong River. According to the United Nations Permanent Forum on Indigenous Issues, the majority of the other ethnic groups inhabit the rugged mountain territory that covers about 79 percent of the country and experience high-levels of marginalization. The lifestyle of these non-Lao-Tai ethnic groups reflects the working definition of Indigenous Peoples used by the ADB’s Safeguards Policy Statement (SPS).

49. Although there are 49 ethnic groups, the National Assembly‘s official Agreement N˚213 of 24 November 2008 only recognized Lao nationality, and therefore regardless of which ethnic background people come from, they are all Lao citizens. The government promotes equal rights and opportunities among all Lao citizens and has declared that all ethnic groups are equal by law in terms of dignity and rights. For this reason the term ‘ethnic minority’ is not used and instead the term ethnic group has been officially accepted.

50. The government has made efforts to promote equality among Lao citizens, but apart from the lowland Lao-Tai, most of the other ethnic groups, experience perpetual poverty and lack infrastructure and government services. This is partly because they are mostly living in the most remote and least accessible areas of the country. These factors create elements of structural marginalization associated with a lack of education, healthcare, opportunities, political participation and representation. In order to tackle these challenges, the Government is officially committed to embracing a multi-ethnic dimension in development issues and to improving people’s living conditions as well as to continue promoting equality of all Lao people in the country.

Table A10-1. List of Ethnic Groups by Ethno-Linguistic Group in Lao PDR

Hmong- Chinese- Lao-Tai Mon-Khmer Iumien Tibetan

1. Lao 9. Khmu 18. Khmer 26. Oey 34. Taoey 41. Hmong 43. Akha or Ko 2. Leu 10. Pray 19. Moy 27. Kadang 35. Katu 42. Iumien 44. Singsily/Sila 3. Xaek 11. Xingmoon 20. Phong 28. Lavy 36. Kriang 45. Hor 4. Tai 12. Katang 21. Thene 29. Toum 37. Suay 46. Phounoy 5. Nhuane 13. Yru 22. Eudou 30. Kree 38. Pako 47. Lahou 6. Tai Neua 14. Yae 23. Makong 31. Bid 39. Nguane 48. Hayi 7. Phutai 15. Hahak 24. Triang 32. Lamed 40. Tri 49. Lolo 8. Yang 16. Jeng 25. Brao 33. Samtao 17. Nhaheun

Source: The Ethnic Committee, National Assembly‘s Official Agreement N˚213 of 24 November 2008

2.2 Ethnic Groups and Development: Policy Context

51. The Constitution of Lao PDR ratified in 1991, uses the term “citizens of all ethnicity” throughout the document. It specifically recognizes the need to incorporate the concerns of ethnic groups in developing policy in all sectors, and has reaffirmed its commitment to strengthen the rights of all ethnic groups in various congresses, conferences, decrees, and laws since the 1980s (Articles 8 and 22). Article 75 of the constitution specifically indicates that “the Lao language and script are the official language and script”.

A10 - 8 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province 52. Constitutionally, Lao PDR is recognized as a multi-ethnic society, and Article 8 of the 1991 constitution states, “All ethnic groups have the right to preserve their own traditions and culture, and those of the nation. Discrimination between ethnic groups is forbidden.” Furthermore Article 8 declares that:

“The State pursues the policy of promoting unity and equality among all ethnic groups. All ethnic groups have the right to protect, preserve and promote the fine customs and cultures of their own tribes and of the nation. All acts of creating division and discrimination among ethnic groups are forbidden. The State implements every measure to gradually develop and upgrade the economic and social level of all ethnic groups.”

53. The 1992 Ethnic Group Policy, Resolution of the Party Central Organization Concerning Ethnic Group Affairs in the New Era, focuses on gradually improving the lives of ethnic groups, while promoting their ethnic identity and cultural heritage. It is the cornerstone of current national ethnic group policy. The general policy of the Party concerning ethnic groups can be summarized as follows:

(i) Build national sentiment (national identity). (ii) Realize equality between ethnic groups. (iii) Increase the level of solidarity among ethnic groups as members of the greater Lao family. (iv) Resolve problems of inflexible and vengeful thinking, as well as economic and cultural inequality. (v) Improve the living conditions of the ethnic groups step by step. (vi) Expand, to the greatest extent possible, the good and beautiful heritage and ethnic identity of each group as well as their capacity to participate in the affairs of the nation.

54. The Ethnic Groups Committee under the National Assembly is charged with the responsibility to draft and evaluate proposed legislation concerning ethnic groups, lobby for its implementation as well as the implementation of socio-economic development plans. Ethnic group research is the responsibility of the Institute for Cultural Research under the Ministry of Information and Culture. The lead institution for ethnic affairs is the mass (political) organization, the Lao National Front for Construction (LFNC), which has an Ethnic Affairs Department.

55. In terms of the development of the agricultural sector, the government has for a long-time acknowledged that ethnic groups in rural villages are highly dependent on agriculture. According to the National Agricultural Census and the National Population Census 2012, the sector generated and contributed over 30 percent of the GDP and provided employment for more than 80 percent of the people in rural areas. Most of those employed in agriculture are self-employed or unpaid family workers and almost 66 percent of all the people’s work hours are on their own farms. The sector is dominated by smallholder farming families engaged mainly in subsistence production.

2.3 ADB Safeguards for Indigenous Peoples

56. The ADB Safeguards Policy Statement (SPS) affirms that environmental and social sustainability is the cornerstone of economic growth and poverty reduction in Asia and the Pacific. ADB’s goal as outlined in its SPS is to promote the sustainability of project outcomes by protecting the environment and people from the projects’ potential adverse impacts. ADB’s safeguard objectives are to:

(i) avoid adverse impacts of projects on the environment and affected people, where possible; (ii) minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and

A10 - 9 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province (iii) help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

57. ADB safeguard objective for indigenous people is to design and implement projects in a way that fosters full respect for Indigenous Peoples’ identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the Indigenous Peoples themselves so that they: (i) receive culturally appropriate social and economic benefits; (ii) do not suffer adverse impacts as a result of the projects; and (iii) can participate actively in projects that affect them.

58. ADB’s SPS uses the term indigenous peoples (ethnic groups in the Lao context) to refer to a distinct, social and cultural group who self-identify as members of a distinct indigenous cultural group and recognition of this identity by others; have collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; have customary cultural, economic, social or political institutions that are separate from those of the dominant society and culture; and a distinct language, often different from the official language of the country or region. These definitions apply directly to some of the populations classified in Lao PDR as ethnic groups particularly the ethnic groups outside the Lao- Tai Ethno Linguistic Group.

2.4 Indigenous Peoples Planning Framework (IPPF) for NRIDSP 2000

59. The EGDP for Nam Xang refers to the Indigenous People Planning Framework (IPPF) for NRIDSP. The IPPF was developed in CY2000 as a guideline for developing EGDP for all subprojects planned to be implemented under the NRIDSP. The IPPF sets out the requirements for pre-screening of subprojects and for processes to be followed in the preparation of each subproject. Analysis of present situations within the NRIDSP covered areas found that ethnic minorities are the majority population in the participating provinces and that certain groups have significantly higher levels of poverty and associated disadvantages. The main concerns are communication difficulties, particularly for women, together with opportunity to access project benefits. Recommended mitigation measures include effective consultation requirements, employment during the construction phase, membership of committees and capacity building for disadvantaged and vulnerable ethnic minorities. All monitoring and evaluation data are required to be disaggregated for the four major ethno-linguistic groups. The IPPF specified potential concerns and recommendations for loss of land, communication and social cohesion. It also provides guidance on conduct of socio-economic surveys for beneficial as well as mitigating measures, capacity building, grievance and redress mechanism, institutional arrangements, consultation and disclosure, monitoring and evaluation, and the budget and financing.

3. SOCIAL IMPACT ASSESSMENT

3.1 Ethnic Groups in the Subproject Areas

60. Phongsaly province has a great diversity of ethnic groups and languages. According to the official classification by the Provincial Cabinet Office, there are 15 distinct ethnic groups in the province. This number is based on official government records. In reality, some might argue that there are more than 40 groups that have diverse and distinctive linguistic background, traditions, social organizations, clothing and architecture. For instance, under the official Akha or Kho ethnic group, there are about 15 sub-ethnic groups that may share similar livelihoods, but wear different clothing and have a distinct social structure. About 51% of HHs in Phongsaly belongs to the Tibeto-Chinese Ethno-Linguistic Group, 22% are Lao-Tai, 21% are Mone-Khmer and 6% are Hmong-Iumien. Up until very recently one would not have found two ethnic groups inhabiting the same village due to their remote location and limited access to government services. This factor is one of the main reasons why most of the ethnic groups in Phongsaly often have very high illiteracy rates and are unable to understand the Lao language.

61. In Nhout Ou District, based on data and information gathered during the Rapid Social Assessment done in June 2014, there are 10 sub-ethnic groups, three (3) belong to the Lao-Tai

A10 - 10 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province Ethno-Linguistic Group (Lue, Yang and Tai Neua), one (1) Hmong-Iumien Ethno-Linguistic Group (Iumien) and six (6) Tibeto-Chinese Ethno-Linguistic Group (Akha, Phunoi, Sila, Hor, Hani and Lolo). In terms of the four major ethno-linguistic grouping, about 41% of HHs in Nhout Ou District are of the Tibeto-Chinese, 39% of HHs are Lao-Tai and 20% are Hmong-Iumien. In terms of ethnic groups 33% of HHs are Lue, 21% are Khmu, 18% are Akha and other ethnic groups (Yang, Tai Neua, Phunoi, Singsily/Sila, Hor, Hayi/Hani and Lolo) composing the remaining 28%.

Table A10-2. Ethnic Groups in Subproject Areas

Ethnic Groups in Phongsaly Province Lao-Tai (22%) Mone-Khmer (21%) Hmong-Iumien (6%) Tibeto-Chinese (51%) 1. Lao (5%) 6. Khmu (21%) 8. Hmong (2%) 10. Akha or Ko (26%) 2. Leu (10%) 7. Bid (<1%) 9. Iumien (4%) 11. Singsily/Sila (1%) 3. Tai (4%) 12. Hor (3%) 4. Tai Neua (<1%) 13. Phunoi (20%) 5. Yang (2%) 14. Hayi/Hani (<1%) 15. Lolo (<1%) Ethnic Groups in Nhout Ou District Lao-Tai (39%) Hmong-Iumien (20%) Tibeto-Chinese (41%) 1. Lue (33%) 4. Iumien (20%) 5. Akha or Ko (18%) 2. Yang (2%) 6. Phunoi (1%) 3. Tai Neua (3%) 7. Singsily/Sila (6%) 8. Hor (9%) 9. Hayi/Hani (4%) 10. Lolo (3%) Ethnic Groups in Nam Xang Irrigation Subproject Lao-Tai (96%) Tibeto-Chinese (4%) 1. Lue (96%) 2. Phunoi (0.27%) 3. Hor (2%) 4. Hayi/Hani (2%) Source: Rapid Social Assessment, July 2014; The percentages reflected are in percent of total HHs

62. In Phongsaly, the ethnic groups predominantly plant dry-upland rice using shifting cultivation practices because the entire province is mountainous and covered with forests. It was once quite a difficult place to reach and therefore remained under-populated for a long time. Given the geography it should be noted that there are only a few valleys suitable for paddy rice cultivation. Shifting cultivation is extremely labor intensive and provides very low yields in comparison to paddy rice cultivation that applies stable techniques. Majority of paddy rice cultivation is rainfed and therefore limits the farmers’ ability to practice intercropping or produce yields over two seasons. Unlike rainfed cultivation, irrigated paddy rice provides better yields as the farmers can control the water and therefore the level the rice needs. This control also means that they are able to enjoy yields more often. According to the National Agriculture Census, most of the irrigated land is under a government regulated irrigation schemes and only a handful of irrigation schemes are owned by farmers. As Phongsaly province recognizes the importance of an improved irrigation system, it is working in partnership with different donors including bilateral- partnerships with other governments and international development agencies. These include the Northern Upland Development Programmes (NUDP), the UN and World Bank’ Poverty Reduction Fund as well as the ADB Northern Rural Infrastructure Development Project.

63. According to the Phongsaly Socio-Economic Development Plan for 2011-2015 (PSEDP 2011-2015), Phongsaly province expects to attain a GDP of 1,137 billion kip in the next five years and local people’s annual income should reach US$754 per capita. The plan outlines efforts to expand the provincial agricultural and forestry sector to account for 43 percent of GDP and the services sector for 23 percent. Phongsaly province is implementing its strategic plans to attract both domestic and international investors, with an investment target of 818.4 billion kip over the

A10 - 11 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province five-year period. That means the province aims to increase investment by around US$20 million per year in order to achieve its goal. However, the plan has some challenges especially in terms of social and economic development, as the local people in remote areas lack the knowledge and equipment to bolster agricultural production. Many poor families are still involved in slash and burn agriculture and the number of families classified as poor remains high. Other challenges are that basic infrastructure is of poor quality and is considered to be inconvenient by investors, most of the roads are not sealed, and some villages in the rural areas lack access to clean water, schools and medical services. In order to overcome these challenges, the plan specifies actions for the government officials to undertake which aim at improving infrastructure. This will attract more investors and will help local people to improve their living standards, reduce poverty and achieve the Millennium Development Goals by 2015, in line with government’s poverty reduction strategies.

64. Expanding from the Phongsaly Socio-Economic Development Plan for 2011-2015 (PSEDP 2011-2015), there are some specific action plans to address ethnic group development which have been initiated by the Phongsaly provincial authorities. These development strategies include, but are not limited to, the effort to improve basic services, which especially includes infrastructure development so as to provide year-round/all-weather access to the provincial capitals and several districts and to improve access and reduce travel times for commercial interchange of the local people. The aim is also to improve and develop irrigation systems to enhance agricultural production. Furthermore, the urban and rural water and public health/sanitation systems are to be upgraded, and the provincial administration’s capacity to rehabilitate critical infrastructure strengthened. A multi-sectoral approach was encouraged in the PSEDP 2011-2015 aiming at the improvement of transport, access to markets and the water supply in all districts while at the same time trying to strengthen administrative and technical capacities of the local government staff. This is also consistent with the national strategy for the decentralization of planning and administrative responsibility to sector-based provincial units.

65. Phongsaly province has worked actively in partnership with leading international development organizations such as the World Bank, the UN and other development agencies to address social issues and challenges, especially related to access to public health and sanitation/hygiene awareness, education as well as other cross-cutting issues. In the education sector for instance, the Department of Education is currently working together with the Global Partnership for Education (GPE) to address the drop-out rate in the early grades and overall low quality of education for the ethnic groups’ students. This initiative focuses on the quality of education that ethnic group children receive in the early grades, and includes: (i) the development of a pedagogical approach and instructional materials for teachers and students; (ii) ethnic group teacher training; and (iii) capacity building of school principals and the provision of pedagogical advisors to promote and sustain strategies towards better teaching and learning environments in primary schools.

66. Based on the result of the Socio-Economic Survey 4 conducted in September to October 2013 and the RSA done in July 2014 in Nam Xang Irrigation Subproject, the ethnic group composition of HHs in the subproject coverage is 96% Lue, 2% Hor, 3% Hani/Hayi and less than 1% (1 HH) Phunoi. (Refer to Tables A10-2 and A10-3). Since the subproject coverage is dominated by Lue and minority of Phunoi, Hor and Hayi, it is necessary that subproject planning, implementation and O&M activities/strategies consider involvement and representation of the minority ethnic groups. The Hor, Hayi and the lone Phunoi HHs are beneficiaries of irrigation and belong to the Tibeto-Chinese Ethno Linguistic Group. These ethnic groups must have at least two (2) representatives in the WUG/WUA and FPG executive committees to ensure that their interest, needs and concerns are properly represented.

67. The Tai Lue or Lue Ethnic Group is part of the larger Tai-Kadai linguistic family, which includes the Lao and Tai Dam peoples. The origin of the Tai Lue can be traced back to Sipsong Panna, which is now southern Yunnan Province in China. In Laos, they reside in the North, from

4 Annex 7 of the Subproject Feasibility Study Report.

A10 - 12 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province Sayaboury and Luang Prabang provinces all the way to Phongsaly. The group traditionally live in the lowlands and commonly do lowland farming (irrigated and rainfed). Tai Lue practices a mix of animism and Buddhism. Most villages have a temple and monks as well as a sacred pillar where they hold rituals for natural spirits. Each village has its sacred tree which harbors the village’s guardian spirit. The majority of Tai Lue men become monks for a period of their lives. Tai Lue women are well known for producing beautiful cotton and silk textiles, and their skilled use of natural dyes 5.

68. The Phunoi or formerly called Khong in Vietnam are a tribal people of Lao, Northern Thailand and Vietnam. They speak Phunoi, a Tibeto-Burman language that is classified as one of the Loloish languages. Ancestors of the Phunoi migrated from the Tibetian highlands bringing a religion based on animism and ancestor worship. They settled near streams in forested mountain areas, build houses on stilts and live on slash and burn farming, gathering forest products and hunting.

69. The Hor people have their own local language (spoken and written) similar to Chinese. They believe in spirits and are related to the Hani Ethnic Group.

70. The Hani or Hayi people are an ethnic group of Southeast Asia and of Tibet Chinese origin. They are one of the 56 officially recognized nationalities of the People’s Republic of China (PRC), and one of the 54 officially recognized groups of Vietnam. In Lao PDR, the Hani are commonly known as Hor. The Hor reside in the mountainous northern regions of Phongsaly Province in Lao, near the Chinese and Vietnamese borders. The Hani are polytheists and they profess a special adoration toward the spirits of their ancestors. Some Hani also practice Theravada Buddhism. The traditional clothing of the Hani is made out of dark blue fabric. The men dress in short jackets and in long wide pants. They also wear turbans which are white or black. The women dress depending on which clan they belong to. There is no gender difference in the clothing of children under the age of seven. The Hani language spoken by many of the Hani belongs to the Lolo-Burmese branch of the Sino-Tibetan language family. Oral tradition tells of an ancient written script. Tradition says it was lost on the migration from Sichuan. They now use a Romanization of the Luchun dialect as a written script.

71. The Hor and Hani/Hayi originally lived on the highlands, did shifting cultivation, even opium growing for their main income, before such was banned by the government. The Hor and Hani/Hayi ethnic groups within Nam Xang are now cultivating farms for rice, corn, sugar cane and vegetables, following the program of the government to stop shifting cultivation and growing opium.

72. The ethnic groups in Nam Xang Subproject are following the Lao government political, legal and economic system considering that the villages had been established for quite a long time. Population of legal age of all the ethnic groups in a village participate in the election of the village authority (Village Chief). One representative from each ethnic group is selected by the group to represent their ethnic group in the village executive committee. The three (3) ethnic groups in Ban Don Ngeng therefore are represented within the village executive committee, who are at the same time the LFNC representatives.

73. Each of the ethnic group has their own traditional grievance mechanism. Each ethnic group has an elder called “Chaokok” or “Chaolau” who plays the lead role in addressing grievances. The Village LFNC supports and works through this traditional mechanism. Normally, these informal leaders represent the ethnic groups in the Village LFNC.

74. The Village Authorities in the four villages are composed of a Village Chief and two Deputy Village Chiefs who are all men. All the other village organizations are also led by men except the LWU. It is worthwhile to note that all of the Executive Committees of the village organizations

5From Wikipedia, the free encyclopedia

A10 - 13 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province (LFNC, LWU, Youth, Village Security and Village Police) in Nam Xang Subproject, particularly Don Ngeng with three ethnic groups, have representatives from each ethnic group.

3.2 Socio-Economic Status

75. The subproject is expected to benefit four (4) ethnic groups in four (4) villages with a total of 374 HHs and total population of 1,974. The villages of Ban Don Ngeng and Ban Xiengkhone were established during the Pre-French Colonial Period, while Ban Navone and Ban Nong Ngai were established in 1962.

76. The results of the SIA6 conducted in the late part of 2013 show that rice deficiency and poverty is not a concern. All HHs are rice sufficient and within the medium income level with average HH income of 385,357 Kips/person/month which is much higher than the 2009/2012 Poverty Line Income of 180,000 Kips/person/month.

Table A10-3. Ethnic Groups Population in Nam Xang Irrigation Subproject

Population Village and Ethnic No. of Households Male Female Total Groups No. % No. % No. % No. % 1. Ban Xiengkhone 76 20.32 203 19.19 190 20.74 393 19.91 a. Lue (Lao-Tai) 75 98.68 202 99.51 190 100.00 392 99.75 b. Phunoi (Tibet- 1 1.32 1 0.49 0 0.00 1 0.25 Chinese) 2. Don Ngeng 150 40.11 401 37.90 378 41.27 779 39.46 a. Lue (Lao-Tai) 135 90.00 352 87.78 331 87.57 683 87.68 b. Hor (Tibeto- 6 4.00 17 4.24 24 6.35 41 5.26 Chinese) c. Hani/Hayi 9 6.00 32 7.98 23 6.08 55 7.06 (Tibeto-Chinese) 3. Ban Nong Ngai 78 20.86 207 19.57 186 20.31 393 19.91 (100% Lue) 4. Ban Navone (100% 70 18.72 247 23.35 162 17.69 409 20.72 Lue) Lue Total 358 95.72 1,008 95.27 869 94.87 1,877 95.09 Phunoi Total 1 0.27 1 0.09 0 0.00 1 0.05 Hor Total 6 1.60 17 1.61 24 2.62 41 2.08 Hayi Total 9 2.41 32 3.02 23 2.51 55 2.79 Overall Total 374 100.00 1,058 100.00 916 100.00 1,974 100.00

3.2.1 Land

77. The SIA2 done in October to December 2013 shows disparity in land ownership in the area among the four ethnic groups. The Lue ethnic group HHs which composes about 96% of the total HHs in the subproject area own 450.47 has. of the total 461.98 has of the total agricultural lands within the subproject coverage, an average landholding of more than one hectare per HH. Of the total 114.02 has. of currently irrigated lands, 110.21 has. are owned by the Lue ethnic group HHs. The lone Phunoi ethnic group HH owns a 0.40 ha. Irrigated land. The six (6) Hor ethnic group HHs own 4.71 has. agricultural lands, 1.50 has of which are irrigated lands. The 9 Hayi HHs owns 6.41 has agricultural land, with 1.91 has irrigated lands. Although all the 16 minority ethnic groups have

6 Annex 7 of the Subproject Feasibility Report

A10 - 14 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province lands, obviously, the average landholding for these ethnic group HHs is way below one ha. per HH.

78. The subproject will not in any way interfere with land ownership or the right of land cultivation. The subproject will not support nor result in displacement of ethnic groups/households from their lands or from the land they are presently cultivating.

79. Land ownership document in the area are generally Land Tax Certificates (LTC) which is reported to be in the name of both spouses in some cases and in the name of only the husband in some cases. The LTC are recognized by the village, district and provincial authorities for the security of tenure for the land being cultivated by a HH. Land titling, however, is now recognized and being implemented by the Lao Government under the name of both spouses.

80. The HHs with irrigated lands will directly benefit from the subproject with those owning rainfed lowland (199.39 has.) being potential beneficiaries depending on the expansion of irrigated area that will result from the subproject. The HHs who will not directly benefit from irrigation could possibly benefit from associated initiatives that will be delivered under the subproject such as: 1) participatory land use planning and management; 2) agriculture, marketing and value adding initiatives which includes yield improvement, contract farming; and 3) poultry raising.

81. The poor ethnic group HHs will potentially benefit from labor during subproject construction, increase demand of agriculture labor due to intensive farming resulting from the improvement of irrigation, and from associated initiative on poultry raising.

3.2.2 Language

82. The Lue ethnic group can speak the Lao National Language and hence, has no problem on communication with Project implementors. The other ethnic groups, besides being less in number have their own distinct language (dialect) and may encounter limitations on communicating through the Lao National Language.

83. Overall literacy rate2 (reading and writing) of the Lao National Language within the subproject coverage is 54%. Literacy percentages among ethnic groups are: 1) 55% for the Lue HHs; 2) the lone Phunoi is literate; 3) 24% for the Hor HHs; and 4) 42% for the Hani/Hayi HHs. Communication will be a challenge in project planning and implementation due to the literacy rate. Although it is reported that most of the ethnic groups speak the Lao national language, measures must be undertaken to ensure the presence of project staff who can speak the local languages to help in translation during consultations, discussions, meetings, training and other forum involving the different ethnic groups.

3.2.3 Gender

84. Women’s voice and participation has steadily advanced in Lao PDR. Women’s rights are recognized in the legal system, and women’s political representation in the National Assembly has grown nearly 20% since 1990. It is now the highest in the region. However, this has not filtered down to the provincial and local levels where significant gender gaps in representation persist, despite the efforts of the Lao Women’s Union (LWU) in reaching out to women at the national to village levels 7.

85. The SIA results8 for the Subproject in October 2013 show that the Leadership of the Village Administration, the Lao National Front for Construction (LNFC), the Lao Youth Union (LYU) and Village Security and Army Units are dominated by men except that of the Lao Women Union being an organization for women. Women are represented by the Head of the Lao Women Union in Village Administration meetings.

7 Country Gender Assessment for Lao PDR – Reducing Vulnerability and Increasing Opportunity, World Bank, 2012 8 Annex 7 of the Subproject Feasibility Study Report.

A10 - 15 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province

86. For all ethnic groups, household works are dominantly performed by females. Men are responsible of house repair/construction. Women/females usually perform the responsibilities of keeping the household money, marketing, child rearing, cooking, washing clothes and dishwashing, cleaning the house and fetching water. The responsibility of earning money and fire wood gathering for the household is seen to be shared responsibility of males and females, although some households consider it as more of male’s responsibility.

87. Most agriculture production responsibilities are shared by men and women. Men are seen to be performing more responsibilities than women. Dominated by men are those that are considered “muscle” work such as land preparation, irrigation, pulling seedlings, fertilizer/herbicide/pesticide application. Women are seen to dominate planting/transplanting and drying.

88. Decision-making responsibilities based on the results of sample household interviews are generally considered shared responsibilities between males and females.

89. Survey responses indicate that 32% of the women are directly responsible for trade in the household whilst another 62% are jointly responsible with their husbands. By focusing on improving the women’s knowledge of contract farming standards and issues, the communities can benefit through better implementation and adherence to farming contracts.

90. Small livestock are generally the responsibility of women. By including this activity, women will be the key beneficiary in providing additional income to households through better techniques in poultry raising.

3.2.4 Health and Hygiene

91. The villages are supplied with electricity and have domestic water supplies. The villages have primary and elementary schools and a secondary school located at a village near Don Ngeng. All the villages have mobile phone signal coverage. All houses have their own sanitary latrines.

92. There are small pharmacies and dispensary at the villages. The villages are 22 kilometers from the Nhout Ou District Center where health facilities are located. The District Center can be reached through less than kilometre village road from T13 North (main road). Available transportation is by cars and motorbikes.

93. The following are potential impacts that will pose as health hazards to the people/ethnic groups during subproject construction. These are temporary in nature, and in most cases be mitigated. Mitigation measures are included in the Environmental Management Plan (EMP) developed for the subproject included in Annex 8 – Initial Environmental Examination of the Feasibility Study Report for the subproject.

(i) Potential dust and noise pollution; (ii) Use of private land for construction material storage and as works depots; and (iii) Construction and workers waste management.

94. Included in the proposed mitigation measures for hazards during construction in the EMP are as follows:

(i) Proper construction camp site selection, observing criteria which primarily protect the general public. Observe a minimum distance (buffer zone) between camp site and nearest residential area. Employ mediators to curb social conflicts. (ii) Preparation of construction camp site management and decommissioning plan by the Contractor: allocating responsibilities for safety; health and welfare to senior staff; first

A10 - 16 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province aid and emergency procedures; satisfactory accommodation of workers; information and instruction dissemination to workers regarding risks of communicable diseases. (iii) Wetting of excavation/construction sites and stockpiled material during dry and windy weather, when within 50m of an occupied dwelling. (iv) The Contractor shall observe all precautionary measures to provide adequate health and safety provisions for all employed labor. (v) Disposal of excess earth fill and waste construction materials at designated disposal sites.

95. During the Operation and Maintenance (O&M) stage of the subproject, potential health hazard may result from the effects of intensified use of chemical fertilizers and pesticides. However, these can be minimized if not eliminated through the timely and correct implementation of the proposed measures contained in the EMP mentioned above.

96. The proposed recommended measures in the EMP during the O&M stage are the following:

(i) Training and instructions in the purchase and use of pesticides; (ii) Written and oral information dissemination on banned pesticides and chemicals; (iii) Promotion of the concept of integrated pest management, and emphatic discouragement of the use of persistent pesticides; (iv) IEC for WUGs to discourage or prevent any disposal of liquid and solid wastes in the canals; and (v) Enforcement and monitoring of proper use of fertilizers and pesticides.

3.2.5 Social Impact and Inequality

97. There are 167 of the 374 HHs within the subproject coverage who have existing irrigated farms and will directly benefit from the subproject. More HHs will directly benefit if the irrigation rehabilitation result to expansion of irrigated area to some of the rainfed farms. Of the 167 existing irrigation beneficiaries, ethnic groups who are direct beneficiaries are: 1) 1 Phunoi in Ban Xiengkhone; 2) 160 Lue HHs; 3) 3 Hor HHs; and 3 Hani/Hayi HHs.

98. Tai Lue ethnic group which belongs to the dominant Lao-Tai ethno-linguistic group composes the major group within the Nam Xang Subproject coverage at 96% of all HHs. This ethnic group also composes 95% of existing irrigation beneficiaries.

99. There is a lone Phunoi HH (with only 1 male member). The lone Phunoi HH member is literate and is a beneficiary of irrigation. Hor ethnic group composes 2% of existing irrigation beneficiaries. The Hani/Hayi composes 3% of existing irrigation beneficiaries.

100. Since the Phunoi, Hor and Hayi ethnic groups which belong to the Chinese-Tibetan ethno- linguistic group compose the minority among the 4 ethnic groups residing within Nam Xang and of irrigated farmers, these ethnic groups are recommended to have representation within the WUG/WUA Executive Committee (policy and decision-making body). Such representation must also apply for other village organizations that will be established under the subproject such as Farmers’ Production Group and Marketing Committee.

101. Non-irrigation beneficiaries in Nam Xang are cultivating rainfed farms and upland farms. Some HHs have fruit trees. Potentially portion of the rainfed farms will be irrigated after the completion of the subproject.

102. Within the Nam Xang Subproject non-irrigated farmers are not directly aligned with the subproject planned assistance. They are growing cash crops such as corn, sugarcane, onion and cabbage, some amount of which are sold to Chinese traders individually. Markets and prices are controlled and dominated by traders (local as well as Chinese). Due to insufficient knowledge of marketing mechanism/strategies, the farmers (including irrigated farmers) are always facing

A10 - 17 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province difficulty with low selling prices of their products. In order to improve such marketing situation, the Project is promoting contract farming through enhancing farmer production groups by providing i) technical training on cash crop growing, ii) training on marketing, and iii) study tour. The target farmer production group members are basically composed of irrigated farmers, however, those trainings can include the non-irrigated farmers irrespective of ethnic grouping. These initiatives will have positive impact on improving crop production technology, crop planning and marketing of produce.

103. All the minority ethnic group (Phunoi, Hor and Hayi) HHs have agricultural lands. All HHs are rice sufficient and within the medium income level.

104. For the ethnic groups without irrigated lands, there will be opportunities for labor during the construction phase of the subproject. Increased agricultural production will also require increased labor inputs and therefore also provide employment opportunities. Such will result to increased village incomes which in turn will provide opportunities in commerce and non-agriculture employment. In addition, the delivery of associated initiatives will also benefit non-irrigated HHs.

105. During the Focus Group Discussions done for the RSA in July 2014, the participants which included representatives of women and ethnic groups from the 4 villages, expressed expectations that the potential negative impact of the subproject is on assets (land and crops). However, they had informed that they are willing to contribute affected lands, even, after being presented of three options as: i) land for land; ii) cash compensation; and iii) donation. However, initial assessment on resettlement issues, found no direct negative impacts on land, crops and structures, as the proposed subproject is rehabilitation and improvement of an existing irrigation scheme. This will be confirmed during the detailed design stage as well as during the subproject implementation stage. Any impact on assets and crops that will be identified shall be subject for consultation, negotiation and compensation according to agreements with the affected people/households.

106. As mentioned earlier, the subproject could not directly benefit all of the HHs in the four villages. The direct beneficiaries are only the HHs with irrigated lands and portion of the rainfed farms, as expansion area for irrigation. This had been discussed during village consultations in July 2012, involving village authorities, men and women focus groups, youth representatives, LWU, LFNC and clan/ethnic group leaders and representatives. They are all in agreement that some HHs will gain more from the scheme than others.

107. Each of the ethnic groups is allowed to maintain their own dialect, customs and traditions. This is protected under the Lao PDR Constitution. The traditions and culture of the ethnic groups within Nam Xang will not be affected by the subproject implementation.

3.2.6 Social Benefits

108. The proposed subproject has the following potential impacts to ethnic groups within the subproject coverage: (i) Increase household income and hence, reduce poverty; (ii) Improvement of the economic conditions of beneficiary households due to: a) improved irrigation water availability in irrigated areas; b) increase in irrigated area in both season; c) increase rice yield and production; d) promote production of high value crops during the dry season; and e) increase in income; (iii) Generate additional demand for hired labor due to increase in agricultural activities in the area for two seasons; (iv) Promote a more active economy for the villages due to increased production of rice and other crops, increased household income, potential commercialization of rice surplus and high value crops, and demand for production inputs; (v) Savings in labor, time and local materials for the beneficiary households from the

A10 - 18 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province frequent repair of the indigenous weirs particularly during the wet season; and (vi) Increased empowerment of ethnic groups and women through their representation in the WUG/WUA, FPGs and other village committees, and involvement in subproject activities; and (vii) Improved cooperation and social cohesion among ethnic groups due to equal opportunities in representation and participation in the WUG/WUA, FPGs and other committees that will be established through the subproject, as well as in subproject activities.

109. In addition to the benefits from irrigation, the different ethnic groups will also benefit from the following productivity and impact enhancement initiatives that will be delivered by the project:

(i) The establishment and capability development of a Water Users’ Association (WUA) that will be responsible for the MOM of the rehabilitated/improved irrigation system. (ii) Ensured representation of ethnic groups and women in the WUA. (iii) Introduction of the collection of Irrigation Service Fees (ISF) as source of funds for the MOM of the Irrigation System for sustainability. (iv) Improved planning of cropping within irrigated as well as in rainfed and upland areas. (v) Improved capability of farmers 9 on crop production and marketing technology. (vi) Improved management of the water catchment areas. (vii) Improved awareness on the importance and recognition of the role of women at home, in agriculture and in decision-making responsibilities. (viii) Benefits from other optional initiatives that will be identified to be delivered through the subproject. (ix) An institutionalized and active grievance redress mechanism through the Lao Front for National Construction (LFNC) which is the focal group for ethnic affairs.

3.2.7 Expected Sustainable Outcomes

110. The rehabilitation/improvement of the irrigation system will bring about improved water control and availability, increased irrigated area and irrigation water for two crop seasons.

111. To ensure sustainable operation of the irrigation system after completion, a Water Users’ Association will be established and given capability development training on the management, operation and maintenance (MOM) of the irrigation system. To ensure proper representation of all beneficiaries and stakeholders, different ethnic groups and women will be required to be represented in the WUA management structure. The DAFO and PAFO should provide sustained monitoring and evaluation of the MOM of the irrigation system and provide technical assistance to the WUA. To provide advises and mediation, the LWU, the Village Chief and the LFNC Village Head are recommended to act as advisers to the WUG/WUA and other village organizations.

112. As source of funds for the MOM of the irrigation system, Irrigation Service Fees (ISF) at rates agreed with the beneficiaries through the assistance of the DAFO, PAFO, LWU, Village Chiefs and LFNC shall be collected.

113. For the protection of the water source, water catchment identification and crop zoning is planned as one of the impact enhancement initiatives under the subproject. In addition, technical assistance on crop production and marketing will be provided to Farmers Production Groups.

9 Refers to people or HHs who owns or are cultivating agricultural lands (irrigated and non-irrigated)

A10 - 19 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province 114. The above had been consulted with the villagers 10 and they expressed their support of the plans.

4. BENEFICIAL AND MITIGATING MEASURES

115. The subproject promotes the enhancement of agricultural production in a culturally appropriate context and aims to equally distribute benefits within the subproject’s coverage while ensuring the active participation of ethnic groups, including women. It is expected to bring about the following positive benefits to ethnic groups:

(i) Potential increase in incomes and food security due to higher agricultural yields (ii) Empowerment through representation in water user groups and farmer production groups (iii) Increase in technical know-how on agriculture and marketing from capacity-building programs (iv) Improved knowledge and skills on the use and handling of chemical fertilizer and pesticides and safer and healthier alternatives such as Integrated Pest Management (IPM)

116. The Lue ethnic group which composes 95% of the HHs in the area and own more lands have the distinct advantage from the benefits of the subproject over the other ethnic groups. They also generally can speak using the Lao National Language, hence, their group will dominate the participation and involvement in subproject implementation.

117. To ensure proper involvement and participation of all ethnic groups in subproject activities, the Subproject Intervention Strategies in Table A10-4 will be applied. The subproject will pay special attention to avoid discrimination and inequality. Measures will be adopted to ensure the involvement and representation of ethnic groups. Additionally, the subproject will closely monitor the construction of the irrigation system to ensure that there are equal employment opportunities for men, women and ethnic groups. Furthermore, special attention will be given to those who are non-irrigation beneficiaries and most in need of help to gain access to work. The project will also closely monitor the performance of the contractor and closely collaborate with the related local authorities in order to avoid future conflicts and ensure maximum benefits. Consultations to be conducted at any stage with each of the ethnic groups will be in the local ethnic group’s language using interpreters to translate from Lao to the ethnic group’s language.

118. The subproject will ensure equal participation of men and women, and where information is needed for specific purposes rather than providing general information. Separate discussions for women and men will be conducted as women are often reluctant to participate in mixed group settings. Furthermore, the subproject will ensure that training and other capacity building activities are conducted in the ethnic groups’ languages to avoid exclusion/inability to participate in the subproject activities.

Table A10-4. Subproject Intervention Strategies

Project IPPF Requirements for Irrigation Subproject Intervention Strategies Component Improvement and Development 1. Production and • Evidence of consultation with • The subproject has strong support productivity ethnic groups (women and men) from all the ethnic groups in the four enhancing demonstrating their support prior villages. Evidence was recorded rural infrastructure to subproject approval. during the feasibility study, the social constructed and/or assessment, village consultations and rehabilitated. groups’ discussions. • Ensure mutual decision making and

10 These included village authorities, men and women focus groups, youth representatives, LWU, LFNC and clan/ethnic group leaders and representatives.

A10 - 20 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province Project IPPF Requirements for Irrigation Subproject Intervention Strategies Component Improvement and Development that an agreement has been reached on the design details, including irrigation channels and alignments as well as the location of the water gate to each village by the following three parties: the project, the District Agriculture Departments and the clan representatives from the four villages. • Ensure evidence of a prior agreement regarding the equal distribution of the irrigation system’s water supply to each village by the four villages’ representatives to avoid future conflict between the villages. • Selection criteria for subprojects • The subproject will ensure that the should ensure the use of local selected subcontractor develops a labour and avoidance of labor management plan that consists construction camps. of: (i) criteria for labour selection and • Local contractors will preferentially impose zero tolerance for child labour; employ women and men from (ii) equal access to work and equal poor ethnic group households in pay for the same type of work for construction activities. ethnic men and women; and (iii) • Equal access to work and equal special attention to the poor ethnic pay for women and men for work families in the subproject areas that of equal type. need help. • Safe working conditions for both • Ensure the established WUA has men and women workers. received the following training: (i) • Local contractors will not employ understanding of the nature of the child labor. irrigation system, including the operational function of the irrigation system and its expected life span; (ii) management and maintenance to ensure long-term usage; and (iii) financial management in relation to the collection of water fees. 2. Productivity and • Representation of the ethnic • The subproject will ensure that each impact enhancing groups in water user groups. ethnic group will field a representative initiatives adopted. • Representation of the ethnic to the WUA using their own groups on all subproject processes for selection. The management committees subproject will ensure that ethnic (marketing initiatives, producer group representatives will have equal groups, etc.). status and voice the in decision making regarding the irrigation system. • WUA guidelines will be simplified and/or translated into the languages of the ethnic groups. • Capacity building for ethnic • Ensure the established WUA groups to enable participation in including the ethnic groups have subproject and community received the following training: (i) decision-making delivered in the understanding of the nature of the local language and using an irrigation system, including the appropriate methodology (i.e. operational function of the irrigation participation and negotiation system and its expected life span; (ii) training, marketing skills and management and maintenance to numeracy training). ensure long-term usage; and (iii) • Representation of ethnic groups financial management in relation to in project study tours. the collection of water fees. • Extension services designed for • The training in the enhancement of and delivered to ethnic groups. agricultural production, including

A10 - 21 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province Project IPPF Requirements for Irrigation Subproject Intervention Strategies Component Improvement and Development agricultural market extension services, soil improvement techniques, introduction of suitable crops and sustainable use of the irrigated water system will be provided for each village including ethnic groups. This training will include marketing skills, agricultural knowledge/information and observation techniques for better negotiation and numeracy skills. • Workshop on agricultural knowledge exchange will be conducted by the subproject to: (i) strengthen the interrelationship between villages and different ethnic groups; (ii) promote the exchange of agricultural production knowledge by the different ethnic groups; (iii) encourage ethnic groups from different ethnic backgrounds to engage in social functions and public meetings with other groups; (iv) promote ethnic women’s groups to expose them to other people outside of their own village; and (v) encourage the ethnic groups’ confidence, especially women, in communicating and negotiating with other people. 3. Capacities of • Safeguards (EGDP) training for • Safeguard (EGDP) training is provided national, provincial implementing agencies at for key responsible persons of the and district national, provincial and district project’s implementing agencies at the agencies levels (i.e. NPMO, PPOs, DCOs central, provincial and district levels strengthened to and other stakeholders). enable a sector • On-going training and mentoring • The project has recruited national and development by international and national international IP safeguards and approach. specialists will be provided to gender specialists to safeguard ethnic national and provincial staff to groups’ rights to development and enable effective preparation and access to equal opportunities in the monitoring of individual EGDP for subproject areas. each subproject. • Assistance (budgets) provided for • The project will closely collaborate capacity building of the Village with local authorities, including the Lao Mediation Committees where Front for National Construction (LFNC) these have not had the recent and Village Mediation Committees if round of training. and when ethnic groups’ villagers • Assistance (budgets) provided for express concerns, provide feedback capacity building of village and and suggestions to the project. It district level committees of the Lao should be done in a timely manner Front for National Construction and appropriately take into account (LFNC) where this relates to the ethnic groups traditional culture promoting and meeting the needs when dealing with any issues that of ethnic minority groups in arise. subproject areas. • The project will provide key staff to closely work and collaborate with the ethnic groups in the four villages and other stakeholders during the construction of the irrigation system. • Safeguards specialists in different fields are engaged during the

A10 - 22 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province Project IPPF Requirements for Irrigation Subproject Intervention Strategies Component Improvement and Development subproject’s implementation period. 4. Efficient and • Safeguard (gender/indigenous • International and national IP and effective delivery peoples) specialists included in gender safeguards specialists are of subprojects and national, provincial and district engaged by the project during the project levels (NPMO, PPO, DPO) subproject’s implementation period. management. • Focal persons for social safeguards are designated at the NPMO, PPO and DCO to assist in coordinating and ensuring the benefits of ethnic groups as well as overseeing other social safeguards. • Social Impact Analysis and an IPP • Social impact assessment, ethnic will be prepared for each group consultations, focus groups subproject. discussions are conducted and the subproject commits itself to continued consultations with different ethnic groups during the implementation period. • All monitoring and evaluation data • Subproject monitoring and reporting of disaggregated by ethnic EGDP implementation performance groupings. indicators including participation, • NPMO and PPOs responsible for training, and employment targets will monitoring and reporting of EGDP include data and information performance indicators, including disaggregated by ethnic groups and ethnic group participation, training gender. and employment targets. • EGDP implementation performance indicators included in mid-term reviews.

5. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

119. Several consultations and information disclosures have been conducted with the four villages since 2012 on: (i) the potential irrigation project; and (ii) the potential impacts, including land loss, as well as crop and timber production. For each consultation, minutes of meetings, participants’ lists, photos and official correspondence were recorded by the project. The villagers 11 from the four villages confirmed during the assessment that they have received relevant information about the subproject’s initial design and purpose. In each of the consultations, participants were asked to indicate/provide their views on the potential beneficial impacts and risks of the subproject.

120. Formally, the Lao government sets out a number of specific requirements in respect of consultation with, and participation of, communities and stakeholders, in the EIA/SIA process. Decree 112/PM on Environmental Impact Assessment sets out the rights and duties of project affected people and stakeholders, which include receiving information about a project along with the potential adverse impacts or benefits they may experience if the project goes ahead. Involvement in the EIA/SIA process is required through provision of appropriate and sufficient information to people and communities affected. The instructions state that consultation will take the form of: (i) interviews with village leaders, focus group discussions (FGDs) and household interviews/surveys; (ii) discussions about impacts and mitigation measures, and where impacts are identified, discussions about how a negative impact can be minimized during the project’s implementation; and, (iii) provision of the opportunity to review, respond to, or comment on the safeguards documents.

11 These included village authorities, men and women focus groups, youth representatives, LWU, LFNC, and clan/ethnic group leaders and representatives

A10 - 23 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province 121. Villagers4 present during the consultation meetings are aware that they may not be engaged as labourers because the district authorities have informed them that the excavation of the irrigation channels will be done by machinery instead of by manual labour. They proposed cooperative management and maintenance of the system and not of having each village manage their own section of the irrigation channel. The project strongly supports this view and will address mutual decision making during its implementation.

122. During the implementation period the project is committed in providing sufficient interpreters for non-Lao speaking ethnic groups so that they understand any changes related to the progress or timeframe from the project’s side. The interpreters will consist of both men and women to accurately deliver information and gather feedback, concerns and suggestions from the villagers.

123. Table A10-5 presents initial consultation forums conducted during the feasibility stage of the subproject and suggests consultation forums in the detailed engineering, implementation, and operation and maintenance (O&M) phases. To ensure involvement, participation and representation of the ethnic groups and women in these forums, the involvement/participation and/or representation of these groups will be required. The involvement of the end-users will be complemented with the participation and technical assistance of the DAFO, PAFO, LWU, Village Authorities and the LFNC (as the focal person for ethnic affairs). The LFNC will assume critical role in assuring proper representation of ethnic groups and in the grievance redress mechanism.

Table A10-5. Consultation, Participation and Disclosure

Focus and Description of Subproject Stage Disclosure Consultation and Participation (C&P) Feasibility Study Introductory visit to apprise the villagers Results of studies, surveys, of the project and proposed activities in assessments, etc. were discussed the subproject. Consultation with during subproject consultations and villagers on current issues and meetings. concerns (6 July 2012).

Introduction/briefing/discussion on Excerpts of the Feasibility Study, SIA, LACR aspects to village residents by LACR, and EGDP will be translated provincial, district and consultant staff into Lao for dissemination complementary to joint transect walks undertaken in the subproject’s implementation area (09 November 2012).

Socio-Economic Survey in October 2013 involving interview of village authorities, sample HHs and Focus Group Discussions with men, women and ethnic groups, intended for the SIA of the subproject.

Meetings with ethnic groups, men and For non-Lao speaking/ reading ethnic women held in their own language to groups, consultations and meetings gather additional information for the SIA were done with the help of staff who (July 2014) can speak the local dialects.

A10 - 24 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province Focus and Description of Subproject Stage Disclosure Consultation and Participation (C&P) Detailed Engineering Consultation meetings to discuss the The Subproject design and plan will be Design Subproject design and plan to villagers finalized and presented to the same with representation of men, women and audiences before implementation. ethnic groups. During these meetings, the PAFO, DAFO, village authorities, Before the start of construction, pre- LWU and LFNC are invited to construction meetings with the same participate. audience must be done where the PMU and Contractor will discuss construction works, methodology, schedule and labor requirements. Implementation During subproject implementation, Agreed actions should be copied to all regular (monthly or more frequent, if stakeholders as the basis for necessary) Project Coordination monitoring and evaluation Meetings will be conducted with the same audience above to be facilitated For non-Lao speaking/ reading ethnic by the PMU and the Contractor. During groups, the meetings must be these meetings, topics to be discussed arranged with the assistance of should include among others: a) interpreters. progress of construction; b) issues, problems and constraints; c) actions to resolve identified issues, problems and constraints.

The WUG/WUA should be allowed to conduct daily monitoring visits of on- going works jointly with project engineers of the PMU and Contractor.

Collect feedback, concerns and recommendations from WUGs, FPG and women. O&M Stage (Women and Ethnic Groups represented in the WUA Structure)

Pre-Cropping Season Meeting to: a) Copies of developed cropping plan are develop cropping plan for the season posted in public places within all (decide what to plant, where to plant, villages involved. when to plant and when to harvest); b) develop repair and maintenance plan for the irrigation system; c) develop The project will facilitate dissemination water allocation and distribution of information in native ethnic groups’ schedules for the system; and d) languages via interpreters. develop ISF Collection program and budget for the season.

In-Season Meetings to identify issues and concerns/problems and agree on solutions to such.

Post-Season Meetings to assess the past season and develop plans for the next season. (Same as the Pre- Cropping Season Meeting).

6. COMPLAINTS AND GRIEVANCE REDRESS MECHANISM

124. Ethnic Groups in the four villages were informed during the village meetings about their rights related to grievance and the procedures that are in place. In relation to the grievance redress mechanism (GRM), the four ethnic groups share the same view that if any issue arises,

A10 - 25 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province regardless of this subproject, they will firstly consider amongst them whether the issue can be resolved internally. This first stage of mediation is preferred by all of them so as not to bring up issues unnecessarily and avoid complications. If the issue cannot be dealt with internally, they will then bring it up verbally with the village authorities. The village authorities often seek the advice of the villager elders and call for a meeting which includes the complainants and the elders as mediators. If the issue cannot be resolved then the next formal step involves the village authority to either assist in drafting a written complaint or the complainant will be asked to draft by the complaint by themselves. It then will go through the village authorities for comments and a referral letter will then be sent to the district authorities. The district authorities will then take up the case, investigate and mediate with the complainants and village authorities. If the issue still cannot be solved then the same steps are taken at the provincial level. If the provincial authorities cannot solve the issue, then they will be referred to the provincial courts. All of the consulted villages share the same view on both informal and formal grievance procedures.

125. The Lao National Front for Construction (LFNC) represents ethnic groups and at village level also leads the Village Mediation Committee. In general, people in the villages respect the LFNC members (“Neo Hom”) and often turn first to them for assistance on both domestic and civil matters. Assistance will be provided for training of the Committees where this has not already occurred through the current program being implemented. An information campaign will be conducted to ensure that all community members understand the revised role and responsibilities of the Mediation Committees.

7. INSTITUTIONAL ARRANGEMENT

126. To ensure inter-agency cooperation at the national level, a National Steering Committee (NSC) was established. The NSC will meet annually or as required to review overall implementation progress, approve annual work-plans and budgets, and provide overall policy guidance. The National Project Management Office (NPMO) will provide secretariat services to the NSC. Provincial Steering Committees (PSCs) were established to ensure inter-agency coordination at the provincial level. The PSCs are chaired by provincial vice governors with equivalent representation to that for the NSC, including governors from the participating districts. The PSC will meet bi-annually or as required to review implementation progress and to ensure adequate levels of coordination between key agencies for project coordination. Subproject Investment Reports (SIRs) shall be approved by PSCs after obtaining the necessary concurrence of ADB for social and environmental safeguards. The PPO will provide secretariat services to PSCs.

127. The Ministry of Agriculture and Forestry (MAF) is the executing agency (EA) for the project, with the responsibility for overall project coordination and management transferred to its Department of Planning (DOP) who has established the National Project Management Office (NPMO) for the day-to-day coordination and management of the project. The implementing agencies at the provincial level are the Provincial Agriculture and Forestry Offices (PAFOs). Provincial Project Offices (PPOs) have been established in each PAFO to be responsible for financial management at the provincial level, as well as coordination and management of the implementation of subprojects. To assist implementation of the project at the district level, District Coordination Offices (DCOs) have been established within District Agriculture and Forestry Offices (DAFOs) to mainly coordinate and supervise subproject activities.

128. The executing agency for the subproject will be the provincial governor’s office which will delegate responsibility for subproject implementation to its Provincial Agriculture and Forestry Office (PAFO). The PAFO will, in turn, designate responsibility for day to day implementation and monitoring of the subproject to the provincial project office (PPO) established within its premises. If external consultants are required for survey and design of the scheme, recruitment of consultants to prepare the detailed subproject design and construction supervision will be managed by the National Project Management Office (NPMO). Works contracts will be procured by the NPMO based on provincially and NPMO certified and approved designs. PAFO, through its PPO, will be involved both in project management of the subproject but also in confirming the technical

A10 - 26 Northern Rural Infrastructure Development Sector Project Annex 10 Feasibility Study on Nam Xang Irrigation Subproject, Nhot Ou District, Phongsaly Province specifications of the rehabilitated weir and canals for the schemes. The associated investments will be delivered by established district agriculture and forestry offices under a performance based contract to the PPO under the supervision of the NPMO.

129. The DAFO in Nhout Ou District works closely with the following four departments at the district level: (i) the Lao Women’s Union (LWU) to ensure equal engagement of women and members of ethnic groups so that their concerns and feedback are taken into consideration; (ii) the Department of Natural Resources and the Environment (DoNRE) which mostly deals with the inspection and control of chemicals as well as contract farming licenses; (iii) the National Lao Front for Construction (NLFC) to specifically focus on ethnic groups and development issues; and (iv) the District Cabinet Office to ensure that all activities are coordinated and reported to the district governors and its administration. In order to develop this EGDP, the DAFO invited all of these aforementioned departments to partake in the assessment and therefore they participated in village meetings and the focus groups discussions. These key officials from the various departments are therefore responsible for overseeing the different aspects of the project’s implementation and progress. For instance, DoNRE oversees the social and environmental measures, NLFC looks after the benefits and interests of the ethnic groups, and the LWU ensures women’s engagement and supports their interests. Meanwhile DAFO, through DCO, oversees the project’s overall development, especially related to agricultural extension services.

8. BUDGET AND FINANCING PLAN

130. Estimated EGDP implementation costs are set out and financed from the Grant. Detailed budgets will be included in subproject costing during implementation stage.

9. MONITORING

9.1 Internal Monitoring

131. Internal monitoring and collection of information on the subproject’s progress, effectiveness and results will largely be the responsibility of PPO in cooperation with DCO. There will also be an emphasis on the identification of activities to enhance agricultural production whilst recognising constraints so as to provide appropriate remedial actions. Internally the provincial and district officers from the different departments will jointly prepare monitoring reports, which in turn the PPO will use to prepare monthly reports for the NPMO. The NPMO will validate these reports and include in the project’s progress reports progress reports.

9.2 External Monitoring

132. The project has engaged an external monitoring entity in charge of social and environmental safeguards, participation, and gender. The external monitoring entity submits quarterly monitoring reports on these aspects.

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