HAI PHONG DEPARTMENT OF TRANSPORT PROJECT MANAGEMENT UNIT OF REGIONAL TRANSPORT WORKS ------

HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT

Main Project Components

Resettlement Plan Report (Final Version)

VOLLUME 1: MAIN REPORT

PREPARED BY:

Infra-Thanglong

December 2010

HAI PHONG DEPARTMENT OF TRANSPORT PROJECT MANAGEMENT UNIT OF REGIONAL TRANSPORT WORKS ------

HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT

Main Project Components

VOLLUME 1: MAIN REPORT

RESETTLEMENT PLAN REPORT

(Final Version)

The Employer The Consultant PROJECT MANAGEMENT UNIT OF THANG LONG INFRASTRUCTURE REGIONAL TRANSPORT WORKS DEVELOPMENT JSC (Infra-Thanglong)

HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 2 RESETTLEMENT PLAN

HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Main Project Components VOLLUME 1 – MAIN REPORT RESETTLEMENT PLAN REPORT ------o0o------

TABLE OF CONTENTS Abbreviations Definition of Terms Executive Summary

1. OVERVIEW ...... 14 1.1 PROJECT OVERVIEW ...... 14 1.1.1 Introduction ...... 14 1.1.2 Component A: Strategic Urban Trunk Road ...... 17 1.1.3 Component B: Public Transport Improvement ...... 20 1.2 SURVEY MOTHODOLOGY ...... 21

2. SOCIO-ECONOMIC PROFILES ...... 22 2.1 PROJECT LOCATION ...... 22 2.2 OVERVIEW OF THE PROJECT AREA...... 24 2.2.1. General Information ...... 24 2.2.2. Master Construction Plan for Hai Phong City up to 2020 ...... 26 2.3 SOCIO-ECONOMIC PROFILE OF THE AFFECTED HOUSEHOLDS ...... 27 2.3.1 Household Size ...... 27 2.3.2 Household Income and Expenditure ...... 28 2.3.3 Ownership of Consumer Goods ...... 30 2.3.4 Public Services and Utilities ...... 31 2.3.5 House and Land Use Status ...... 31

3. MITIGATION MEASURES ...... 33 3.1 OBJECTIVES ...... 33 3.2 MEASURES TO MINIMIZE IMPACTS ...... 33

4. RESETTLEMENT IMPACTS ...... 35 4.1 IMPACT OF AGRICULTURAL LAND (PADDY) ...... 36 4.2 IMPACT ON PONDS AND LAKES (AQUACULTURE) ...... 39 4.3 IMPACT OF RESIDENTIAL LAND ACQUISITION ...... 40 4.4 LOSS OF STRUCTURE (HOUSES) ...... 42 4.5 LOSS OF SECONDARY STRUCTURE...... 43 4.6 IMPACTS ON TREES AND CROPS ...... 44

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4.7 LOSS OF INCOME AND BUSINESS ...... 45 4.8 IMPACT ON VULNERABLE GROUP ...... 47 4.9 IMPACT ON PUBLIC UTILITIES ...... 48 4.10 RELOCATION OF 40 HOUSEHOLDS AT CROSSROAD ...... 48

5. ELIGIBILITY AND ENTITLEMENT ...... 49 5.1 POLICY FRAMEWORK ...... 49 5.1.1 Legal Framework ...... 49 5.1.2 Compensation Policy ...... 50 5.2 ELIGIBILITY AND COMPENSATION ...... 51 5.2.1 Principles of the Project ...... 51 5.2.2 Eligibility Requirements for Compensation and Assistance ...... 52 5.2.3 Cut off date ...... 52 5.3 ENTITLEMENT POLICY ...... 53 5.3.1 Compensation Policy for Residential Land ...... 53 5.3.2 Compensation Policy for Agricultural Land ...... 56 5.3.3. Compensation Policy for Subsidiary Structure ...... 57 5.3.4 Compensation Policy for Trees and Farm Produce ...... 57 5.3.5 Compensation Policy for Business Losses ...... 58 5.3.6 Compensation for Secondary Impact ...... 58 5.3.7. Compensation for Affected Public Assets ...... 58 5.3.8. Compensation for Graves Relocation ...... 58 5.3.9. Compensation For Temporary Effects In Construction Stage ...... 58 5.3.10. Allowance and Assistance during the Transition Period ...... 59

6. RESETTLEMENT AREAS ...... 63 6.1 RESETTLEMENT POLICY ...... 63 6.1.1 Affected Residential Land ...... 63 6.1.2 Affected Agricultural Land ...... 64 6.1.3 DP Entitlements and Liabilities ...... 64 6.2 DEMAND FOR RESETTLEMENT ...... 64 6.3 PREFERENCE OF RELOCATING HOUSEHOLDS ...... 66 6.4 DEVELOPMENT OF RESETTLEMENT AREA ...... 68 6.4.1 Housing fund for resettlement ...... 68 6.4.2 Arrangement of Resettlement Area ...... 68

7. REHABILITATION PROGRAM ...... 72 7.1 OVERVIEW ...... 72 7.2 ANALYSIS OF DEMANDS ...... 72 7.3 PROPOSED LIVELIHOOD RESTORATION PROGRAM ...... 73 7.3.1 Budget Source ...... 73 7.3.2 Programme Description ...... 73 7.3.3 Institutional Arrangement ...... 75 7.3.4 Estimated Cost ...... 75

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8. CONSULATATION AND PARTICIPATION ...... 76 8.1 OBJECTIVES AND POLICIES ...... 76 8.2 PROCEDURES FOR CONSULTATION AND PARTICIPATION ...... 77 8.2.1 Consultation in the Preparation Phase ...... 80 8.2.2 Consultation in the Project Implementation ...... 80 8.2.3 Information Disclosure ...... 82 8.3 COMMUNITY CONSULTATION RESULTS ...... 82 8.3.1 Organising Community Consultations ...... 82 8.3.2 Community Consultation Results ...... 83

9. GRIEVANCES REDRESS MECHANISM ...... 87 9.1 RESPONSIBILITY ...... 87 9.2 COMPLAINT PROCEDURE ...... 87

10. INSTITUTIONAL ARRAGEMENT...... 89 10.1 INSTITUTIONAL FRAMEWORK ...... 89 10.2 RESPONSIBILITIES OF RELATED AGENCIES ...... 89 10.3 AGENCIES COORDINATION REGIME ...... 93

11. IMPLEMENTATION PLAN ...... 94 11.1 MAIN ACTIVITIES...... 94 11.2 IMPLEMENTING STEPS ...... 96 11.3 IMPLEMENTATION PLAN ...... 101

12. MONITORING AND EVALUATION ...... 103 12.1 INTERNAL MONITORING ...... 103 12.2. EXTERNAL MONITORING ...... 105

13. COST ESTIMATION ...... 108 13.1 LEGAL FRAMEWORK ...... 108 13.2 FUNDING SOURCES ...... 108 13.3 REPLACEMENT PRICE SURVEY ...... 109 13.3.1 Unit Prices For Land Compensation ...... 109 13.3.2 Compensation Unit Prices For Architectural Objects ...... 110 13.4 COST ESTIMATION ...... 111

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TABLE OF FIGURES

Table 1: Distribution of Sample Socio-Economic Survey In Project Area 21 Table 2. Hai Phong Population In The Inner City And Main Urban Areas 25 Table 3: Distribution of Population by Gender 28 Table 4: Distribution of Population by Occupation 29 Table 5: Distribution of Latrine Usage 31 Table 6: Household Residence Status 32 Table 7: Summary Impact of Land Acquisition and Resettlement 35 Table 8: Summary of Affected Agricultural Land 37 Table 9: Households of which agricultural land affected from 20-30% 38 Table 10: Summary of Affected Ponds and Lakes 39 Table 11: Summary of Affected Residential Land 40 Table 12: Summary of Affected Houses 42 Table 13: Summary of Affected Works/Architecture 43 Table 14: Summary of Affected Trees and Crops 44 Table 15: Loss of Income and Business 45 Table 16: Impact on Vulnerable Group 47 Table 17: Summary of Demand for Resettlement 65 Table 18: Survey Results of local DP's Expectations for Resettlement (by sample) 67 Table 19: Summary of Resettlement Arrangement 70 Table 20: Cost Estimation for Resettlement Construction 71 Table 21: Local People's Aspirations For Support 73 Table 22: Sequence of Community Consultation Meeting 83 Table 23: Summary of Comments in Community Consultations 84 Table 24: Schedule for Compensation and Resettlement 101 Table 25: Proposed Compensation Unit Price 109 Table 26: Summary of Compensation Costs 111

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DEFINITION OF TERMS

Displaced Person(s) Displaced Person(s) (DPs) are the persons who are affected by (DPs) involuntary taking of land, resulting in: (a) Relocation or loss of shelter; (b) Loss of assets or accessibility to assets; (c) Loss of income sources or means of livelihood, regardless of relocation or not; and (d) Restriction of accessibility to legally designated parks or protected areas causing adverse impacts on their livelihoods.

Resettlement Assistance Additional support provided to DPs who are losing assets (particularly productive assets), incomes, employment or sources of living, to supplement the compensation payment for acquired assets to achieve, at a minimum, the full restoration of living standards and quality of life.

Cut-off date The date that the project is approved and the project landmarks are made. Displaced Persons and local communities will be informed of the cut-off date for each Project component, and any persons moving into the project area after that date will not be entitled to compensation and assistance under the Project. Detailed Measurement The finalization and/or validation of the results of the inventory of asset Survey (DMS) losses (IOL), severity of impacts, and list of DPs done during the preparation of the final resettlement plan.

Entitlement The range of compensation, assistance measures and assessments comprising income restoration support, moving assistance, income assistance, relocation and resettlement assistance to the DPs to restore their economic and social facilities depending on the type and severity of their losses.

Host community A community living in ỏ in the immediate vicinity of the proposed resettlement sites.

Income The restoration and/or improvement of income sources and livelihoods of restoration/Livelihood all DPs. improvement Inventory of Losses The process of tally, location, measurement and identification of assets (IOL) that will be recovered or adversely affected by, or because of, the project. These include, (without limitation or being in an exhaustive list) lands used for residence, business, agriculture, ponds, dwelling, stalls and shops; other structures such as fences, tombs, and wells; trees with commercial value; and sources of income and livelihood. It also includes assessing the severity of the impacts on the DPs' affected land, property, assets livelihood and productive capacity.

Land Acquisition The process by which the State issued administrative decisions to acquire the land-use rights or land allocated to users as regulated.

Relocation/ Relocation means DPs’ movement away from their old residence and Resettlement resettlement means a new residence of DPs.

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Replacement Value The amount of money, which is needed to replace an affected asset and (Cost) cover the transferring costs for such asset without depreciation or deductions for salvageable materials, inclusive of taxes, and/or costs of transactions as follows: : (i) Productive land (agricultural, fishponds, gardens, forests) based on the market prices that reflect the local recent land sales of comparable land in the district and other nearby areas or, in the absence of such recent sales, based on the land’s productive value; (ii) Residential land is compensated based on the market prices in the normal condition that reflect recent sales of comparable houses and residential land in the district and other nearby areas or, in the absence of such recent land sales, based on sales in other locations with similar qualities; (iii) Houses and eligible structures which are usable and associated with the land based on current market prices of materials and labor without depreciation or deductions for salvaged building materials plus fees for obtaining the ownership papers; (iv) Standing crops based on the current market value of the crop at the time of compensation; (v) Perennial crops and fruit trees will be compensated by cash equivalent to the current market value given for the type, age and productive value of such trees (future production) at the compensation time.

Replacement Cost Study The process involved in the determination of the replacement cost of land, houses and other affected assets based on market surveys.

Vulnerable Groups Distinct individuals or groups of people who might suffer disproportionately from the risk of land and property acquisition or building resettlement sites specifically including: (i) households falling under the MOLISA’s poverty line, (ii) households with of martyrs, wounded and sick soldiers, heroes of the people’s armed forces and labour, and families who sacrificed to the Revolutions; and households suffering from Agent Orange.

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ABBREVIATIONS

DMS Detailed Measurements and Survey

DP(s) Project Displaced Persons

DRC District Compensation, Assistance and Resettlement Committee

EIA Environmental Impact Assessment

FS Feasibility Study HH Household IOL Inventory of Losses

GRC Grievance Redress Committee

PC People’s Committee

PMU Project Management Unit

RP Resettlement Plan

RPF Resettlement Policy Framework SES Socio-economic Survey

TOR Terms of Reference

WB World Bank

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EXECUTIVE SUMMARY

Introduction

The Hai Phong Urban Transport Development Project (the Project) funded by the World Bank (WB) consists of three components A, B & C, and this Resettlement Plan (RP) is developed for Component A and B, which required land acquisition. The RP include: results of the socio-economic survey (SES); inventory of losses; eligibility criteria; entitlements related to any additional impacts identified through surveys and monitoring; descriptions of resettlement areas and rehabilitation programs; implementation plans for resettlement activities; and detailed cost estimates. The RP also contains principles for entitlements, implementation organization, monitoring and evaluation; policy framework for community participation and consultation; and grievance redressing mechanisms, etc.

Land Acquisition Scope and Impact As designed, the requirement for land acaqusition is made in 02 Component, including (i) Component A that project scope covers urban road development works in three section with a length of approximately 20 km from Highway No.10 to the Hai An trunk road district in 13 wards of 5 urban and rural districts of the city, and (ii) Component B that construction of bus depot need some land taken. By which, totally 3,037 PAHs, (in which 2,982 PAHs affected by Component A and 55 PAHs affected by Component B). Of which there are 1,042 ones impact of residential land (with 909 relocated PAHs) and 1,958 ones impact of agriculture land; 37 ones with aquaculture land impact and 30 ones are with business loss. The overview of the project scope is shown as follows: Summary of the Project Impacts Main impacts Unit Section 1 Section 2 Total

A. COMPONENT A 1. Affected households: HHs 1,453 1,529 2,982 Family members Pers 5,959 6,452 12,411 + Residential land HHs 724 318 1,042 + Agricultural land HHs 710 1,193 1,903 + Farming land/ponds/lakes HHs 19 18 37 + Houses HHs 480 250 730

2. Affected areas 461,703 438,647 900,350 + Residential land m2 78,122 53,333 131,455 + Agricultural land m2 309,106 303,273 612,379 + Ponds, lakes m2 60,301 11,908 72,209 + Other land (public land) m2 14,1175 70,133 211,308 + Total area of houses m2 42,572 12,327 54,899

3. Relocated Households HHs 634 275 909

4. Households with HHs 470 296 766 Agriculture Affected>30%

5. Business Affected HHs HHs 17 13 30

6. Tree (in all kinds) Tree 6,629 99,639 106,268

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Summary of the Project Impacts Main impacts Unit Section 1 Section 2 Total B. COMPONENT B 1. Affected households: HHs 61 Family members Pers 194

+ Residential land HHs Nil + Agricultural land (paddy) HHs 55 + Farming land/ponds/lakes HHs Nil + Houses HHs Nil

2. Affected areas + Agricultural land m2 18,320

3. Relocated Households HHs Nil

4. Households with Agriculture Land HHs 35 Affected>30%

5. Business Affected HHs HHs Nil

6. Crop (with paddy only) m2 18,320

Mitigation Measures In the process of preparing the Project, there was close cooperation between the technical consultant (TEDI) and social consultant (Infra-Thanglong) to achieve the Project's two objectives of promoting the efficiency of the investment in the Project and minimizing land acquisition. Through socio-economic surveys and consulting affected communities, the social consultant team has worked out alternatives to minimize Project impacts such as propaganda, public meetings to introduce information about the Project, and clarifying the people's role in preparing and implementing the Project. Mitigation measures include developing appropriate compensation and resettlement and based on the consensus of the people’s opinions of the Project. Plans to reduce temporary impacts of the construction phase have been studied and proposed to avoid or minimize disruptions in the Project's future stages.

Policy Framework and Entitlements The basic principle applied in this RP is that all DPs must be "supported in their efforts to improve their living standards, income-generating capacity and production to at least the same as or better than their standards of living before the project implementation." The lack of a legal basis for land use does not bar affected households from the entitlements of economic recovery compensation and/or support. Affected assets must be compensated on the basis of their replacement cost. So far, the project has not yet approved and announced by the relevant authorities of the local government, so the cut off date will be the date that the project is approved by the HPPC and landmark is made and announced to the local people. After this date all household land/assets in Project affected areas will not be legally eligible to receive any compensation and/or support from the Project.

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Rehabilitation Programme In addition to implementation of land acquisition and compensation, many income restoration programmes such as vocational training, job introduction, loan provision, agriculture extension… have been proposed in the project. This is one of the important activities during the implementation of compensation and resettlement. As survey results, most households are expected to be supported for new vocational training and job changing which have been studied and applied to the Project, to ensure the project objective that the DP’s income or living condition will be restored after the project implementation. During implementation phase, PMU and IMA will be monitoring to determine if they have achieved livelihood restoration through these means; and if not, further special assistance package (financial inclusive) will be mobilized, that ensure the DP’s livelihood restoration has done.

Organization Arrangement The project compensation, assistance and resettlement will be under the management and supervision of the Project Management Unit (PMURTW) and the district Committees of Compensation, Assistance and Resettlement (DRCs). The implementation process requires close coordination among officials of the implementing organization, DRCs, PMU, ward staff, residential groups in the project area, and project resettlement experts.

Implementation Plan The Resettlement Plan will be updated following DMS process following completion of detail design and prior to the compensation made which is in association with the construction of the project works. Affected households are expected to be compensated and the site clearance completed by Oct 2011.

Consultation and Participation The project entitlement policy has been established through the close cooperation of local authorities, community based organizations and affected persons in order to maximize their participation in the formulation and implementation of compensation. Local authorities, mass organizations and 787 affected households were surveyed with a questionnaire. All households to be relocated in the affected areas attended the public consultations to receive information, consider the levels of the Project impact, and present their recommendations for the plan for their new lives. Information obtained during the consultations was used to establish project resettlement policies and assist in creating the compensation plans for the Project's deployment.

Monitoring and Evaluation The detailed RP will be implemented under the internal supervision and inspection of PMU staff. In addition, an independent monitoring organization will be employed to check the implementation and evaluate the living conditions of affected persons after their resettlement.

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Redressing Grievances During the process of implementing the RP, complaints will be resolved in accordance with the approved procedure based on the Project RPF. All complaints from DPs will be resolved fairly and quickly by GRC established at the commune/district and city level. Addtionally, informal conflict resolution mechanism at community level will be established to resolve complains where possible. There will be no administrative charge for the settlement of complaints or for redressing grievances.

Cost Estimate Total cost for implementation of the Resettlement Plan (excluding construction cost of the project resettlement sites) is estimated at about VND 1,239 billions, equivalent to USD 63.5 million USD. This includes the costs of land compensation, architectural works; rehabilitation programs; transitional assistance; monitoring and evaluation; administrative management; and contigency costs.

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1

OVERVIEW

1.1 PROJECT OVERVIEW

1.1.1 Introduction

Haiphong, the third largest city in Vietnam, is an important gateway for international trade, which connects the north of Vietnam with international markets. Keeping pace with national economic development, the volume of import and export cargoes is increasing rapidly. Cargoes are mainly transported in or out of Haiphong port via the trunk road leading to the city centre, Nguyen Van Linh – Nguyen Binh Khiem. This is the arterial road for cargo in and out of the port and was one of the most heavily used urban trunk roads over the past decade. However, because of no integration between road design and city planning, the road is not divided into traffic lanes, forcing the internal traffic to travel together with heavy-duty trucks going in and out of the port. This is the main cause of traffic jams and hazardous emissions in the Haiphong urban transportation network. To improve the situation, the Central Government and the City launched two major development programmes as follows: • Upgrading and developing Haiphong port in two stages: Stage 2005-2015 is to reorganize the existing operations of Hai Phong port, expand and build specialised ports and sea ports for the Chua Ve - Doan Xa region, and develop in the direction of Dinh Vu to ensure serving a capacity of about 50 million tons per year; Stage 2010- 2020 will develop the Lach Huyen deep water port system to serve a capacity over 100 million tons per year. • The Hanoi - Hai Phong Highway: This project commenced in May 2008 creating high-speed access to the new ports of Dinh Vu and Hai Phong international gateway in Lach Huyen south of Hai Phong city. The Government's implementation of the Hanoi - Hai Phong highway project helps connect Hanoi to the Hai Phong international gateway port in Lach Huyen. However, it should be stated that inter-provincial transportation between Hai Phong and the northern region includes inter-provincial traffic to and from the port and inter-provincial traffic to and from the urban areas of Hai Phong city. From the perspective of Haiphong urban development, from now to 2020, the focus of city urbanization will from the South Ring Road No.1 to the three-centripetal trunk road direction:

o The east and south-east direction has strong growth in line with the expansion of Dinh Vu port and a series of infrastructure, urban and industrial development projects in Hai An towards the Lach Tray - Le Hong Phong road and along the road from Chua Ve Port to Dinh Vu.

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o The south keeps growing strongly in the direction of the Kien An backbone, provincial road No.353 and Ho Sen - Cau Rao 2 to Duong Kinh; Do Son and Kien Thuy will thrive, playing the role of satellite cities in the central area.

o The west and southwest is rapidly developing in the direction of the axes of Highway No.5, Highway No.10, and provincial roads No.188 and No.208. However, the structure of the urban traffic network in this developing area remains very unreasonable. In the entire southern area from Nguyen Van Linh to Provincial Road No.355, there is no east - west trunk road which connects with the centripetal trunk road and the north - south axes (Highway No.10 and Provincial Road No.351). As a result, east-west traffic must use the centripetal traffic axes before reverting to the Nguyen Van Linh - Nguyen Binh Khiem trunk road and Road No.355. This leads to serious conflicts between the inter-regional transportation and urban land use areas. This fact has forced Haiphong to build a route to replace the Nguyen Van Linh - Nguyen Binh Khiem road as soon as possible to ensure the smooth flow of traffic between Hai Phong and the neighboring provinces as well as connect areas of Hai Phong with the existing ports (Hai Phong, Chua Ve, Doan Xa etc) to serve inter- regional traffic to and from the ports. Despite of the differences in specific traffic flow, there is the same situation of overloading like the Nguyen Van Linh - Nguyen Binh Khiem road. The route from the city center to Kien An is also considered one of the busiest centripetal routes of Hai Phong due to the strong growth of urbanization along the road corridors. This route includes the Niem bridge, one of the two main bridges connecting the downtown to the south bank of the Lach Tray river. Over the past 10 years the bridge load has been reduced from H30 tons to 18 tons due to a serious accident. Now, the area of Hai Phong area along the Lach Tray river will almost be isolated if for any reason the bridge must be deactivated. Because of its important role and urgent need, Niem Bridge must be improved and this road should be upgraded. The process of urbanization based on the unreasonable transportation network has led to the formation of small urbanized areas along the main roads and spontaneous urbanized areas in the narrow city alleys. Alternative with the centripetal axes, vast areas of land about 10km away from the city centre are not developed because of limited access. This has led to a vicious cycle of urbanization over two periods. The city first developed from the central area and along the centripetal roads to form the primary urbanised areas reachable by four- wheeled vehicles. Then a second urban area developed in rural areas along the village and hamlet roads with low construction density and high population density because of the high maneuverability of motorbike traffic. If this situation continues, Hai Phong will become a large municipality of urban classes devoted to two-wheeled vehicles; it will more become densely developed along the main roads, and hinder the development of standard urban residential areas appropriate to sustainable urban development in these areas. The direct connection between the main urban roads and streets and lanes will turn the mixed traffic flow of both motorbikes and heavy vehicles into a serious long-term characteristic of Hai Phong urban traffic resulting in accidents and traffic congestion. Although Hai Phong has a high density population, the bus service is new and weak and it serves less than 1% of the city's travel needs. The lack of infrastructure to operate buses effectively is the main cause of this situation. The city centre has a two-lane transportation network and alleys less than five meters wide and the buses cannot compete with motorbikes to meet people’s transportation needs. However, the situation is better on the Tam Bac - Kien An corridor, especially in Truong Chinh road, which is wide enough (six lanes) to make the idea of bus service more appealing. Thousands of people living in the city's alleys connected to this corridor are a potential market for bus services. In fact, many people do use the buses,

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even though their quality and safety do not meet their requirements, because travelling by bus gives them a better sense of security than travelling by motorbike. The bus service between Tam Bac and Kien An will be more effective if it is upgraded to meet the road capacity and operate safely. If Hai Phong succeeds in creating a transportation corridor and promoting traffic safety it will have an efficient model to solve issues with other urban corridors within the city. The unbalanced condition of road networks and urban areas heavily dependent on motorbikes reflects the city's limitations in managing and planning its urban traffic. Looking back on the approved urban development projects, many of the development objectives were not achieved as set out. One of the main reasons for this is that the theory was not appropriate and no specific goals were set; this resulted in a gap between the plan and practice. Many important projects have been included in the planning but they did not finalise the necessary resources for their implementation. Moreover, the planning models were based on separate functions, such as economy, construction, transportation, land use etc which resulted in a lack of coordination in the planning system. The rapidly developing economy, urbanisation and mechanisation are seriously challenging the city's functional bodies, particularly those involved with urban transportation management and planning. In this context, Hai Phong needs a strategic east-west road to promote the efficiency of urban development in the south trunk road from Nguyen Van Linh to Nguyen Binh Khiem. In the mid-term period, the road will act as a main freight line between the existing Hai Phong ports and connect the highways with the northern provinces of Vietnam. The centripetal urban trunk road is no less important; it connects the downtown with Kien An district (Tam Bac - Kien An bus station), and it should be upgraded, especially the Niem bridge, to maintain the traffic capacity in the most densely populated areas of Hai Phong city. Upgrading the Tam Bac – Kien An trunk road will provide a good opportunity for developing a safe transportation corridor and will be a pilot model for resolving the dependence on motorbikes in the Hai Phong urban traffic system. Strategic changes in the urban road network and public transportation will promote and demand innovation from the city's urban traffic management agencies. A comprehensive program of capacity building and institutional development of human resources is necessary to help the city effectively manage and implement the sources of investment for urban traffic development. Project Objective:

o Overcome traffic congestion and reduce traffic accidents and environmental pollution in the city centre caused by heavy vehicles travelling to and from the ports.

o Promote the development of the city economy focusing on satisfying the transportation demands going in and out of the ports in the northern key economic area and Hai Phong city.

o Connect efficiently with the existing urban traffic infrastructure systems and prepare for construction to promote concentrated urbanization in Hai Phong's urban centre.

o Provide a model pilot to improve the public transport services in urban areas especially the central area and the developed high density corridor.

o Build the operational capacity and efficiency of state agencies and develop human resources for transportation and urbanization.

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The Haiphong Urban Transport Development Project consists of three major components as follows: Component A: Haiphong Strategy Urban Trunk Road approximately 20km long and 50.5m wide. Component B: The pilot for upgrading public transport services and traffic safety. This component includes upgrading the bus service to improve the public transportation services. This will be a model which can possibly be expanded. Component C: Building institutional capacity. This component consists of the programmes for institutional capacity building and developing human resources to manage traffic and urbanisation. The Strategy Urban Trunk Road Development (Component A) covering the urban trunk road through Hai Phong city includes the following:

o Building an urban traffic trunk road to link the east and the west from Truong Chinh Road (Quan Tru ward) to Hai An trunk road (Nam Hai ward) including the construction of Niem Bridge 2. This connection will facilitate the development of the southeastern cities and serve cargo transportation from Dinh Vu port in the mid -term period.

o Upgrading Truong Chinh road, including upgrading and repairing Niem Bridge 1. o Building a road section to connect the urban area and transport cargo from Quan Tru to Le Loi. This section will serve cargo transportation and connect Highway No.10 with the ports through the Nam Hai-Quan Tru corridors. The pilot for upgrading public transport services and traffic safety (Component B) includes a number of major items: (i) upgrading the Bac - Kien An corridor; (ii) improving bus stations and bus stops; (iii) improving traffic safety; (iv) building the capacity of state management for public transportation. Building institutional capacity and developing human resources for urban traffic management in Hai Phong city (Component C) includes: (i) capacity building for transportation and urban management, inclusive of monitoring capacity and sufficiency, transportation and urban master plan management system; assignment for TA and master plan; detailed design for training course and implementation plan for each components. In general, in the three components, requirement for clearance of land/assets is on the Component A and Component B, which is described thoroughly as following.

1.1.2 Component A: Strategic Urban Trunk Road

Objectives The main objective of this urban trunk road is to create a second east-west trunk road in he city, share the major flow of transport over the Nguyen Van Linh-Nguyen Binh Khiem route, and ensure the connection between the city's north–south centripetal roads. The trunk road is expected to increase the traffic capacity to the city's road network as follows: • The east-west road connection from Truong Chinh to Hai An (including Niem Bridge 2) will facilitate municipal development towards the southeast and serve the transportation of goods from Dinh Vu port.

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• The restoration of Truong Chinh road (including the extension of Niem Bridge 1) will significantly improve the circulation of the most important north–south centripetal road of Hai Phong city. Research on the Road Direction Basically, the urban trunk-road will be divided into two main sections: Section 1: Quan Tru–Nam Hai: This section begins at the intersection perpendicular to the Truong Chinh road, through a rice field outside Lam Khe residential area, and parallel to the area leveled for the construction of the Marine College (an average distance of 100m). It goes east- west and crosses the Lach Tray river for the second time and carries on through territory in Kien An district. From here to the west of Rao bridge, it follows the planning direction of the urban area, Ho Sen-Cau Rao 2. This section mainly passes through small fields and ponds in Le Chan district. The remaining section begins east of Lach Tray Street and runs to the end of the Project's section in Hai An district. The detail of road section from Rao Bridge to Cat Bi Airport are presented in feasibility report. The road basically runs parallel to Lach Tray river with some sections overlapping the Lach Tray river dike. Passing Cat Bi Lake, it turns left into the land area managed by the Ministry of Defense (military divisions No.363 and No.371). This section is parallel to Road 7-3. After passing through the gate of Cat Bi airport (the military barracks gate), it turns through the land area managed by Navy division X56 and intersects with Le Hong Phong road at the Le Hong Phong-Ngo Gia Tu intersection. At this intersection, it turns right and coincides Ngo Gia Tu Planning Road 2, runs straight from west to east and passes through some scattered residential areas of Dang Hai and Nam Hai wards. It ends at the trunk road under construction and is approximately 10.4 km long. Section Rao Bridge - Cat Bi Airport: This section passes the Rao Bridge intersection which is the most complex control point of the Project's route. Currently this is a roundabout intersection of five access roads. When the Project's urban trunk road connects to this intersection it will become a roundabout intersection of six access roads. This is where the transport design and organization encounters the most difficulties because the roads are close to Rao Bridge road which has a high slope and high vehicle capacity. The solution for this situation is to construct an under bridge below Rao Bridge road. This option has been approved at the meeting at the office of the city People's Committee on April 9, 2009. This option allows the route to be diverted close to Lach Tray River. The section of the dike will be replaced by new construction within the scope of this route. Section 2: Bac Son - Quan Tru: This section begins at Km27+637 on Highway No.10, 300km from Re Bridge to the north, the connection point with Highway No.10 in accordance with the plan of An Duong Industrial Zone. From this point, it runs west-east and goes around the area of the Cuu Long Steel Plant. Passing the steel plant, it turns right in a northwest–southeast direction parallel to the An Kim Hai channel and detours through the residential area of Luong Quy village. Towards the near east, it intersects An Kim Hai channel at Urban Road No.351 and Dang Cuong bridge of about 250m towards Kien An. Continuing in the old direction, it goes through a rice field between the residential areas of Mai Chu and Xich Tho villages. It runs parallel with the Lach Tray river and Truong Chinh road and ends 25m from the intersection leading to the residential area of Quan Tru ward. The total length of the Le Loi - Quan Tru section is approximately 9.46 km lying entirely within An Duong district.

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Design of Cross-Section The Project has designed a 50.5m wide road to enable speeds of 70km/hour for the entire route. This ensures four 3.5m lanes for vehicles, which is in accordance with the minimum requirement for secondary urban streets. Vehicle lane (6 lanes for motorised vehicles) = 2 x (3 x 3.5) = 21.0m Median strip = 1 x 3 = 3m Safety strip for motorised vehicles = 2 x 0.5 = 1.0m Road shoulder = 2 x 0.25 = 0.5m Side separation strip = 2 x 1.5 = 3.0m Area lane = 2 x 6.0 = 12.0m Sidewalk = 2 x 5.0 = 10.0m Total: = 50.5m

Figure 1. Cross Section, 50.5m Width

The section passing though the Cau Rao intersection is designed as follows: On the right of the route is the Lach Tray river dike (upgraded) or land reserved for planting trees between the dike and Lach Tray river. There are no civil works in this area. Because of this, it is proposed there will not be a traffic lane on the right (Lach Tray river direction) to match the current state of the passing route and reduce construction costs. A sidewalk of at least 1.0m and a maximum of 7.5m wide will be constructed in the area close to Rao bridge, which is similar to the sidewalk in the area.

Figure 2. Cross Section of the Rao Bridge Intersection

Design of Intersections There are two types of intersections: grade-separated and simple intersections. The Project's route has the following intersections:

o Intersection with Highway No.10

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o Intersection with Urban Road 351 o Intersection with Truong Chinh Road o Intersection with Rao Bridge o Intersection with Le Hong Phong Road Bridge Design According to the preliminary design, the Project will include the construction of four (04) bridges as follows: o Re bridge o An Kim Hai bridge o Under bridge below Rao bridge 1 o Dong Khe bridge and Niem bridge 2 Of the previously mentioned works, the main road will cause the biggest impact. In addition, the intersections and bridges will also have considerable impacts on land acquisition.

1.1.3 Component B: Public Transport Improvement

The component is designed around three subcomponents: B.1 - Technical Assistance to develop a Public Transport Authority. This technical assistance package is to finance a two-year consultancy that would define the institutional mandate, regulatory model, and operational procedures towards the eventual establishment of a Public Transport Authority, responsible for route management and public transport service provision. B.2 - Transformation of Bus Line 2 Services. Line 2 Bus Services between Tam Bac and Kien An (with a distance of approximately 9 km of road) have been identified as a pilot corridor. Investments have been proposed that include goods acquisition (buses, GPS, ITC), which are aimed at transforming the quality of bus services in the corridor. It is expected that the frequency of Line 2 bus services would be improved to 5-minute intervals during peak hours, and 10-minute intervals during the off-peak, that require land acquisition for some proposed works such as bus stop, depot. B.3 - Kien An Corridor Improvement. The subcomponent finances traffic engineering measures, including traffic signals with bus-priority capability; infrastructure upgrades that will support creating a better physical environment through improved pedestrian sidewalks along the corridor and convenient paved pedestrian ways into side streets; and related facilities improvements. Ultimately, the requirement of land acquisition, compensation and resettlement is identified in two component A&B, that report will present negative impacts, mitigation measures, and plans for compensation, assistance, resettlement. Details of these impacts, mitigation measures and total cost for compensation and assistance will be shown in the following parts of the report.

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1.2 SURVEY METHODOLOGY

From February 2009 to August 2009, the Project Resettlement Consultant Team conducted socio-economic and project affected land/property surveys. About 25% of affected persons (787 households) participated in the socio-economic survey, 100% affected persons (3,037 households) participated in the inventory of loss. There are about 909 relocated households and 801 households whose agricultural lands will be affected by the Project, attended the consultation meetings on the Project's safeguard policy, which is shown as in the bellowed table. Table 1: Distribution of Sample Socio-Economic Survey In Project Area No. of Interviewed No. District Ward Households A Section 1: Quan Tru - Nam Hai 1 Le Chan Vinh Niem 92 Nam Hai 35 Dang Hai 47 2 Hai An Cat Bi 22 Thanh To 7 Dong Hoa 49 3 Kien An Quan Tru 8 4 Ngo Quyen Dang Giang 0 Total A 260 B Section 2: Quan Tru – Bac Son Dang Cuong 192 Hong Thai 112 5 An Duong district Le Loi 90 Bac Son 31 Dong Thai 102 Total B 527 GRAND TOTAL 787

According to the preliminary design, the Project will be implemented in 13 wards/communes of five urban/rural districts. The Infra-Thanglong Social Team conducted the economic survey in all ward/communes. The Team organized meetings and consultations with representatives of these enterprises and the minutes of these meetings are included in Appendixes in this report. The results of the socio-economic survey, and inventories and measurements of affected assets are shown in Session 2 of this report. In the sample survey, fundanmental information on geography (as land use status, features, inhabitants…); democraphy (as household size, living status, occupation, income and expenditures, ownership of Consumer Goods…) and other basis services (as power, watersupply, health care, environmental hygiene…) which the English Version of the Questionnaire is attached in Annex 1. The census process is implemented base on FS report that preparation of IOL data is carried out basically according to the alignment given in the FS report , a copy of the IOL form is enclosed in the report’s separarted attachment (toghether with Minutes of Community Consultation Meeting).

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2

SOCIO-ECONOMIC PROFILES

2.1 PROJECT LOCATION

According to the scale determined in the preliminary design, Component A of the Hai Phong Urban Transport Project will be designed and implemented in two main sections. Section 1 covers eight (08) wards in four (04) districts; Section 2 covers five (05) communes in An Duong district (out of 15 rural/urban districts in Hai Phong city). Component A: According to the preliminary design, the Project will be implemented in two (02) Section: Section 1 was deployed in four urban districts (Ngo Quyen, Le Chan, Kien An and Hai Anh) and eight wards:

o Ngo Quyen district: Dang Giang ward o Le Chan district: Vinh Niem ward o Hai An district: Cat Bi , Thanh To, Dang Hai, An Hai wards o Kien An district: Dong Hoa and Quan Tru wards Section 2 is deployed in An Duong district and within the boundary of five communes: Bac Son, Le Loi, Dang Cuong, Hong Thai and Dong Thai. Component B: requirement for clearance of agriculture land (of mostly paddy) is made for Bus Depot construction located in Quoc Tuan Commune, An Lao district

Specific geographical area and the scope of land acquisition are shown in the following map.

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Figure 1: The Proposed Urban Trunk Road

Section 1

Section 2

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2.2 OVERVIEW OF THE PROJECT AREA

According to the survey, Component A of the Project traverses through five (05) rural/urban districts: Ngo Quyen, Le Chan, Kien An, Hai An and An Duong. Some basic information about these districts is given below.

2.2.1. General Information Hai Phong city is located about 100km from Hanoi in the southern area of the Northern Red River Delta. It borders the Gulf of Tonkin to the southeast, Quang Ninh province to the north, Hai Duong province to the west; and Thai Binh province to the southwest. Hai Phong city was formed from the estuary with the deepest plain, and is an important transportation hub in northern Vietnam. Hai Phong's topography features common plain terrain, low, flat, and sloping gradually (1/10,000) down towards the sea. The elevation changes from +3.8m to +4.7m above sea level. The most important topographical characteristic of Hai Phong is that the natural river density in the Red River Delta is the largest (4km/1km2). The inner city is surrounded by and suffers from the tidal affects of three rivers: the Cam, the Lach Tray, and the Tam Bac. Because of its low topography, the inner city is surrounded by dikes with average elevation 4.5 ÷ 5.0m which prevent tidal invasion and floods. The drainage from the city centre to the rivers is regulated by systems of detention reservoirs, channels and tidal drains. Hai Phong is the third largest city in Vietnam (total area approximately 1519 km2) and includes two main areas: the inner city and agricultural land.. The inner city is about 165.4 km2 with five districts: Hong Bang, Ngo Quyen, Le Chan, in the urban centre; Kien An district, 8 km to the southwest of the city centre (wich officially became an urban district in late 1994); and An Hai district, which was established in 2003 and includes six wards: Dong Hai, Dang Hai, Dang Lam, Nam Hai, Trang Cat and Cat Bi (transferred from Ngo Quyen district). Do Son district is about 15 km southeast … . and Duong Kinh district (created in 2007 from land separated from Kien Thuy district). Hai Phong also has eight rural districts: Thuy Nguyen, An Duong, An Lao, Kien Thuy, Tien Lang, Vinh Bao, Cat Hai and Bach Long Vy Island. According to statistics the total population of Hai Phong is 1,832,400 as of December 31, 2007, 37% of which is in the urban area. Industry Hai Phong has very diverse industries from large-scale steering industries managed by the central government to medium and small-scale industries managed by local agencies and private enterprises. Currently, the city has 139 state-owned enterprises; 4156 non-state enterprises; and 165 foreign investment enterprises1. Commerce In 2007, the value of goods and services of the domestic economic sector in Haiphong increased steadily and the number of shops and other commercial activities increased rapidly. Total retail

1 Source: Statistical Yearbook 2007 - Hai Phong Statistical Office

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of goods in 2007 amounted to VND 16,988.2 billion, an 4.31 time increase in comparison with in 2000. Table 2. Hai Phong Population In The Inner City And Main Urban Areas Area Population District Admin. Units 2 density 2004 2005 2006 2007 (km ) 2 (ng/km ) Inner City Hong Bang 11 14.4 7,727 108.4 109.7 110.3 111.3 Ngo Quyen 13 11.1 14,493 159.6 159.9 160.4 160.9 Le Chan 15 12.7 15,739 191.8 193.6 197.1 199.9 Hai An 8 104,8 783 77.1 79.1 80.6 82.0 Kien An 10 29.5 3,161 85.3 87.6 90.9 93.3 Do Son 7 36.9 1,171 35.4 36.2 36.7 36.9 Duong Kinh 6 No updated data for this area

Suburban Thuy 37 242.8 306.6 297.1 304.0 306.3 306.6 Nguyen An Duong 16 97.5 148.9 141.0 143.0 146.3 148.9 An Lao 17 114.9 129.7 125.4 126.6 127.8 129.7 Kien Thuy 18 164.3 187.6 180.7 182.9 184.8 187.6 Tien Lang 23 189 156.8 153.2 154.0 154.8 156.8 Vinh Bao 30 180.5 189.3 187.3 187.7 187.8 189.3 Cat Hai 12 323.1 28.9 28.2 28.2 28.7 28.9 Bach Long - 3.2 0.36 0.33 0.33 0.36 0.36 Vi Population 223 1,519.2 1,206 1,770.8 1,792.7 1,812.7 1,832.4 (Source: Statistical Yearbook 2007 - Hai Phong Statistical Office) Tourism This is an important economic factor in Hai Phong city and the main tourist attractions are Do Son beach and Cat Ba island. Hai Phong city has 100 hotels with a total of 6340 rooms and 3900 beds. The number of tourists varies greatly by season, the busiest time being from May to September. In the last 5 years, tourism has been developing rapidly: 3,571,874 visitors came in 2007, including 709,123 international and 2,862,751 domestic tourists, and the industry (hotels, restaurants and travel services) had a turnover of VND 1,681,450 billion. However, international issues such as epidemics, political instability, tsunamis, etc. did affect the number of international tourists. On the contrary, the number of domestic tourists increased strongly and offered a significant source of revenue, which proves that the potential of the domestic market remains largely untapped. Today, thanks to the renewed stability of the world economic and political situations, international travelers are once again promising a highly profitable source of revenue. Agriculture, Forestry And Fisheries Like its other industries (ports and trade), agriculture is one of the key aspects of Hai Phong's economy. In 2007 the production value of agriculture and forestry reached VND 4,414.2 billion and fisheries earned VND 1,332.4 billion. According to statistics for 2007, there were over 1,155

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workers in state, collective and private agriculture, forestry and fisheries but the general assessment shows that the number of workers involved in agricultural production is decreasing. There is also a trend of restructuring agricultural production from cultivation to animal husbandry. Education - Culture – Health Care - Sport In 2007, Hai Phong had 1,736 kindergartens with 2,806 teachers and 55,729 children. On average, there are 32.1 children per class and 19.9 children per teacher. The ratio of children to teachers is lower than in 2000 (21.2 children per teacher), reflecting the positive changes in the quality of kindergarten education. There were 480 schools in 2007 - 2008, of which there were 420 secondary schools and 60 high schools with a total of 8,445 classes. Generally speaking, the number of schools and teachers remained stable in the three years after 2002. There are also eight universities and colleges and five vocational and training schools in Hai Phong along with 16 libraries, 190 cultural and sports centers, six cinemas, and six art groups that have given 1,144 performances. In 2007, Hai Phong had 22 hospitals with approximately 4,050 sick-beds, and there were about 1,100 sick-beds in other health care centers throughout the area. Sports activities are being strongly developed and the number of stadiums, gymnasiums, swimming pools, and trained sports managers has increased over five years. As a result, Hai Phong has gained great achievements in sports and its number of high-class athletes, and international sport medals has increased significantly.

2.2.2. Master Construction Plan for Hai Phong City up to 2020 The modification of Hai Phong city's Master Construction Plan up to 2020 was approved by the Prime Minister in Decision No. 04/2001/QD-TTg on January 10, 2001. Accordingly, Hai Phong City has been defined as a national urban centre and one of the centres for industry, trade, services, and tourism for the northern coast and the country. Hai Phong is a port city, the main gateway to the sea for the northern provinces, and an important transport junction in the north and the country. In addition, Hai Phong is an administrative, political, economic, cultural, scientific and technical centre, and plays an important role in national security and defense (according to the Prime Minister's Decision No. 04/2002/QD -TTg of January 10, 2001). Population - Labor Scale and Population Distribution Population: In the central urban area (inner and suburban districts) the present population is approximately 800,000 which should increase to 1,100,000 by 2020. Land Area: Total urban land is 5,636.7ha, reaching the target of 90m2/person. Of which, land for public use is 3,013ha, reaching the target of 42.5 m2/person. By 2005, the urban construction land was 6,682.5 hectares reaching the target of 94 m2/person, of which land for public use land was 3,195 ha with the target of 45 m2/person. By 2020, the urban construction land is planned to be 10,518 hectares with a target of 118.5 m2/person, of which land for public use land will be 6,800 ha with the target of 62 m2/person.

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Orientation On Spatial Development And Urban Landscape Architecture The City’s direction of development: To be determined based on the development and restoration of the inner city to exploit and make use of unused or ineffectively used land, in combination with the expansion and development of the city and the suburban areas, particularly the northern area of the Cam river, the northwest, the southeast, the area of Road No.353, and the east of the city. Transportation: Up to 2020 the land for traffic infrastructure must reach 23% - 25% of land used for urban construction. The objective is to gradually improve, construct and modernise the transport infrastructure and develop a complete network of roads, railways, waterways, airways to link the city with other urban areas in the region, the county and the world. Water supply: the target for domestic water supply in 2005 was 150 litres/person/day, and for 90% of the urban population to be supplied with safe water. For 2020 the target is 180 litres/person/day-night, with 95% - 100% of the urban population supplied with safe water. Power supply: Use the power source from the national electricity grid at Pha Lai and Tam Hung thermal power plants; construct power stations at Vat Cach and Dinh Vu; and renovate and construct of 110 KV stations. Information, post and telecommunications: Modernise the communications network according to the post office projects; complete the network of postal stations and public telephone networks; and develop advanced postal and telecommunications services. By 2020 there should be about 22-24 telephones per 100 people. Drainage and environmental sanitation: Ensure industrial and domestic wastewater is treated in each plant and/or industrial zone, and that the work meets the hygiene regulations before being discharged into rivers, lakes and canals; build solid waste treatment plants and hygienic cemeteries; and strengthen the greenbelt to make Hai Phong city a green, clean and beautiful city.

2.3 SOCIO-ECONOMIC PROFILE OF THE AFFECTED HOUSEHOLDS From April 19, 2009 to May 30, 2009, the Social Safeguard Consultant/ Resettlement Team conducted sample survey of 787 households (equivalent to 25% of total project DPs) in 13 wards of 05 rural/urban districts directly affected by the Project. The provision of the survey results is as follows:

2.3.1 Household Size Household Size: 787 households in the Project affected area were surveyed including 3.321 persons, of which there were 1,589 males and 1,732 females. Average household size in the project area is 4.22. Families in the project area are mostly nuclear families with two generations (parents and children) living in a household. The traditional family with three generations (grandparents, parents and children) is not very common in the Project affected wards.

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Table 3: Distribution of Population by Gender Ward/ Distribution of Gender Household No. District Household Commune Total Male Female Size A Section 1: Quan Tru - Nam Hai 1 Le Chan Vinh Niem 92 380 180 200 4.13 Nam Hai 35 155 79 76 4.43 Dang Hai 47 219 95 124 4.66 Hai An Cat Bi 22 130 64 66 5.91 2 Thanh To 7 29 14 15 4.14 Dong Hoa 49 219 97 122 4.47 Kien An 3 Quan Tru 8 33 19 14 4.13 4 Ngo Quyen Dang Giang 0 - - - Total A 260 1,165 548 617 B Section 2: Quan Tru – Bac Son Dang Cuong 192 843 403 440 4.39 Hong Thai 112 484 240 244 4.32 An Duong Le Loi 90 321 160 161 3.57 district Bac Son 31 109 55 54 3.52 5 Dong Thai 102 399 183 216 3.91 Total B 527 2,156 1,041 1,115 4.30 GRAND TOTAL 787 3,321 1,589 1,732 4.22

2.3.2 Household Income and Expenditure Household Income: Based on the data provided in the socio-economic survey, households can be identified as belonging to one of three income groups as follows: Poor This group includes those people who earn incomes that fall below the new poverty line, applied in Hai Phong based on MOLISA stipulations (i.e. 500,000 VND/person/month or 2,000,000 VND/HH/month). Some of these people have availed of credit and have managed to purchase livestock, but in general operate with very small cash incomes over and above subsistence activities, and many are subject to seasonal cash incomes due to the nature of the agriculture sector. Transitional (or called Non-Poor Group)This group includes those who have moved above the official poverty line (and earn between 500,000 and 750,000 VND/person/month or between 2,000,000 and 3,000,000 VND/HH/month) but still remain vulnerable to shocks and are less able to withstand either natural disaster or economic trauma than the better off. These people have relatively low disposable income and particularly those between ten and fifteen per cent above the poverty line still have trouble meeting minimum basic needs. Medium This group includes those who have moved above the official poverty line (and earn between 750,000 and 1,250,000 VND/person/month or between 3,000,000 and 5,000,000 VND/HH/month). This income category captures those that are non-poor and who have relatively high levels of disposable income, some households have savings. Better off Households in this category include those with members earning more than 1,250,000/pers month (or 5,000,000/HH per month) and are considered to be

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more than non-poor i.e. they are comparatively wealthy and have very high levels of disposable income and have savings. According to the above mention category definition, the majority of households (93.6%) classified themselves and assessed their economic conditions as "medium", 3.9% classified themselves as “transitional”, only 0.5% (two households in Dang Cuong commune, one household in Le Loi and one in Nam Hai) considered themselves “poor”, and about 2% who claim of better off level. Table 4: Distribution of Population by Occupation Distribution of Occupation Ward/ House- No, District Agricul- Civil Unemploy- Commune holds Retired ture Servant ment A Section 1: Quan Tru - Le Loi 1 Cat Bi 92 15 52 23 2 Thanh To 35 3 27 4 1 Hai An Dang Hai 47 17 25 5 Nam Hai 22 15 5 2 2 Kien An Quan Tru 7 6 1 Dong Hoa 49 7 25 16 1 3 Le Chan Vinh Niem 8 3 4 1 4 Ngo Quyen Dang Giang 0 Total A 260 60 144 51 5 B Section 2: Quan Tru – Bac Son 5 Dang Cuong 192 127 52 8 5 Hong Thai 112 76 32 4 An Duong Le Loi 90 78 9 2 1 district Bac Son 31 25 4 2 Dong Thai 102 67 34 1 Total B 527 373 131 17 6 Total 787 433 275 68 11 Percentage 55.1% 34.9% 8.6% 1.4% Occupation and Employment: the occupation that most of the surveyed households work for are agriculture production, of about 55.1% (about 433 households); then about 34.9% (about 275 households) of civil servants, 8.6% (about 68 households) of retirement and 1.4% (about 11 households) of unemployment. Income: According to the survey, the main household earnings come from such sources as business, providing services, small industries, freelance work (altogether accounting for 66.1%), agriculture (8.2%)2, and state employees and civil servants (25.7%). As above mentioned in their living standard, in Nam Hai, Dang Hai, Dong Hoa and Le Loi the income of most households ranges from 2-3 million VND per month and most incomes below 2 million per month are mainly in Dong Thai, Bac Son and Dang Cuong. The small number (about 2% better off) of incomes over 5 million VND per month are distributed throughout the Project affected wards/communes.

2 Although, number of agriculture household is about 50% of total surveyed poplation, but in fact their income are not actually based agriculture production because they also have secondary jobs.

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The surveys also show heads of households (husbands/wives) who earn the main income in the family account for 40%; spouses and grown-up children earning the main income together account for 24.5%; and the remaining households have incomes earned only by grown-up children. Expenditures: According to the survey, the majority of households spend 1-3 million VND per month (52.5%); 24.7% spend under 1 million VND per month; 6.5% spend 3-5 million per month and 6.4% spend over 5 million per month. 56.6% of respondents said that the wives decide the spending in their families; 21.0% said the decision is made by both husbands and wives; 10.9% said grown-up children make the decisions; and 10.4% said the husband decides. Saving: Of the total surveyed households, 91 (11.8%) said that they have monthly savings. 75 (82.4%) households save less than one million VND per month; 10 (11.0%) households save 1-2 million per month; and six (6.6%) households save over 2 million VND per month.

2.3.3 Ownership of Consumer Goods The survey shows that, in general, the ownership of consumer Goods in the Project area are relatively sufficient and comfortable. 92.8% of households have televisions; 71.3% have motorbikes; 62.4% have fixed telephones; 63% have DVD players, and, on average, there are three electric fans per household.

2.3.4 Public Services and Utilities

Infrastructure: Overall, social and technical infrastructures for living are relatively stable and guaranteed in the wards/communes in the Project area. Households using the public water supply system for cooking, bathing and washing is high (64.3%); 29.0% use drilled-well water for living activities; and 6.7% get their water from dug wells. Power usage: 97.1% of households use the national electric grid for living activities and there is a low number using other sources of energy (gas, batteries, generators etc.). Latrines: double vault latrines are the most popular in the Project area and 68.2% of households use this type of toilet; 28.5% have septic tanks in their houses; 1.7% use public toilets and only 1.7% of households have no toilet. Wastewater Collection: most households (39.7%) in the Project area drain wastewater through gardens - treeless lands near their homes; 35.5% drain wastewater through drainage system; 14.1% drain wastewater into rivers and canals; and 10.7%. drain it into ponds and lakes. Burning/burying Solid Waste: 67.2% of households said they burned or buried their solid domestic waste; 27.9% use the daily collection services provided by the City Urban Environment Company; and 4.9% were not aware of environmental hygiene and they throw their waste into the ponds, lakes and rivers. Health Care: Overall, individuals and their families in the Project affected wards/communes do not have their health checked properly; an annual health exam for family members seems unfamiliar and unpopular. Most households said they only go to the hospital when they get sick, and 16.5% said they never go to doctors for regular health check-ups. Environmental Hygiene: The socio-economic survey data for the Project area shows that there are not many problems related to environmental sanitation. Only 22.7% of households said that

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their living areas have environmental problems. The most urgent environment problem that 33.1% of the people mentioned was the "rotten and offensive smell" of domestic waste, followed by the overflow of domestic wastewater (25.6%) and noise (15.6%). Table 5: Distribution of Latrine Usage Distribution of Latrine Usage House- No. District Ward Double Septic Public hold Without -vaul Tank Toilet A Section 1: Quan Tru - Nam Hai 1 Le Chan Vinh Niem 92 50 42 0 0 Nam Hai 35 14 19 1 1 Dang Hai 47 22 24 1 0 2 Hai An Cat Bi 22 10 12 0 0 Thanh To 7 2 5 - - Dong Hoa 49 21 25 0 3 3 Kien An Quan Tru 8 3 5 4 Ngo Quyen Dang Giang 0 Total A 260 122 132 2 4 B Section 2: Quan Tru – Bac Son - - Dang Cuong 192 148 29 8 7 Hong Thai 112 91 21 0 0 5 An Duong Le Loi 90 74 13 3 0 Bac Son 31 18 13 0 0 Dong Thai 102 84 16 0 2 Total B 527 415 92 11 9 GRAND TOTAL 787 537 224 13 13 Percentage 68.2% 28.5% 1.7% 1.7% The environmental pollution and unsanitary conditions in residential areas are mainly caused by the blockage and flooding of culverts. The existing sewage systems have severely deteriorated and they have not been upgraded. In some areas, the people themselves have contributed to upgrading the old temporary sewage systems, however, at present, these systems are overloaded and are often blocked, which is the main cause of environmental pollution in residential areas.

2.3.5 House and Land Ownership Status The Project traverse through many different localities in Hai Phong city where there is difference land use pattern. However, most affected households are on agricultural land. Residential land: Households that will be affected by the Project are relatively stable and have used their land for a long time. The percentage of those using their land before December 18, 1980 is the highest (94.3%); only 5.4% used the land from December 18, 1980 to October 15, 1993; and 0.3% used the land after October 15, 1993. Legal status of affected lands: The surveys show that most households with Project affected land (75.8%) have or can obtain land-use certificates; 22.8% leased land; and only 1.4% use the land without legal permission

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Table 6: Household Residence Status RESIDENCE TIME3 From No. District Ward Before After 18/12/1980 to Total 18/12/1980 15/10/1993 15/10/1993 A Section 1: Quan Tru - Nam Hai 1 Le Chan Vinh Niem 92 0 0 92 Nam Hai 35 0 0 35 Dang Hai 38 9 0 45 2 Hai An Cat Bi 20 2 0 22 Thanh To 6 1 0 7 Dong Hoa 48 1 0 49 3 Kien An Quan Tru 8 0 0 8 4 Ngo Quyen Dang Giang Total A 247 11 0 260 B Section 2: Quan Tru - Bac Son Dang Cuong 188 4 0 192 Hong Thai 108 4 0 112 5 An Duong Le Loi 74 15 1 90 Bac Son 26 5 0 31 Dong Thai 99 2 1 102 Total B 499 30 2 527 GRAND TOTAL 742 43 2 787 Percentage (%) 94.3% 5.4% 0.3% 100%

If households are classified by residence status: 772 households (98.1%)) have registered permanent resident status and live in the localities; 08 households (1.02%) have temporary resident status but are registered in the registration books in Hai Phong city; and 07 households (0.89%) are long-term residents without resident registration books .

3 The residence time categories are base on the time that Vietnamese Land Law were stipulated (first time in 1980 and second time in 1993), and that mean (i) all households who have resided or owned the land before 15/10/93, when their land acquired, regardless of their land use right certificate status will be entitle for compensation/assistance and resettlement and (ii) all household who have resided or owned the land after 15/10/1993, when their land acquired, they will be ascertained for their land use right certificate status which are the basis for their entitlements to compensation/ assistance and/or resettlement.

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3

MITIGATION MEASURES

3.1 OBJECTIVES

The first principle of the Policy Framework, as agreed by the WB, is to avoid or minimize the impacts of resettlement and land acquisition. If this is not feasible, it is necessary to apply mitigation measures including compesation at replacement cost and other assistance to households affected by the Project. In accordance with the agreed principles of the Project's implementation and policy framework, land acquisition and resettlement should be minimized. The design consultant (TEDI), the PMU and other concerned departments and agencies have made efforts to reduce and/or limit the impacts of land acquisition in the design stage and in the finalisation of the Project investment reports. Land acquisition is unavoidable to improve the trunk road in five rural/urban districts, including Kien An, Hai An, Le Chan, Ngo Quyen and An Duong (mainly in the wards/communes of Hai An and An Duong districts). The extensive consultations between the resettlement consultant team and local authorities, mass organisations and especially, the households who will be affected by the Project, were arranged in order to minimise the impacts of resettlement. Principles and guidelines were agreed to identify the best solutions to avoid relocating of households from their current living areas.

3.2 MEASURES TO MINIMIZE IMPACTS

Along with positive impacts on socio-economic development and social lives, the Project will also cause negative impacts to households involved in land acquisition and site clearance, and in the area through which the Project passes. Identifying the negative impacts of land acquisition and site clearance, and proposing mitigation measures, is essential to eliminate or reduce negative impacts and the following measures are applied: 1. In the finalisation stage of the route and preliminary design, appropriate technical designs and construction plans have been made to detour around residential areas. Avoiding impacts is the Project's most effective mitigation measure and avoids any original negative impacts before they happen (for example, the road size under land clearance is firstly about 68m width for section 2, then finally changed to 50.5m in width due to large- scale of land to be cleared). If negative impacts on properties are unavoidable, adequate compensation plans will be made to at least cover or restore any damages. 2. In the early stages of the Project's design, activities for disseminating information about the Project, land acquisition, site clearance, compensation and resettlement have been

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widely propagated to gain people's participation and support. Generally speaking, people support the Project because of the opportunity for development in rural residential areas. 3. The Project is conducting the survey and design on-site resettlement areas. Relocated people will be able to live near their former residences, so their customary practices and relationships with relatives and neighbours will be maintained resulting in limited disruptions of social structures. 4. The area in Hai An district (such as Dang Hai ward) is used for growing flowers. The Project’s land acquisition affects not only their production but also the cultural characteristics of the region, so the plans for this area have been carefully considered to minimize land acquisition in such area that have been allow people to continue their cultivation and preserve their culture. 5. The Project impacts in An Duong district are on households who are growing decorative plants (peach blossoms and begonias) which its economic value is higher than other crops. Therefore, the land acquisition implmentation schedule and the construction time should be prior informed for their preparation and arrangement in advance. In case, the impact is not avoidable, compensation for agriculture land, crop and other assistance for such specific business loss will be paid to the DPs. 6. In the next stage, there will be further comprehensive studies and recommendations for resolving negative social and cultural impacts, including avoiding the infiltration of social evils, decreasing traffic accidents after the Project in operation, etc. Specific action programmes and implementation mechanisms will be established to increase awareness, maintain accessibility to the existing systems, and enhance the benefits of the Project for the local people.

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4

RESETTLEMENT IMPACTS

As designed, the requirement for land acaqusition is made in 02 Component, including (i) Component A that project scope covers urban road development works in two section with a length of approximately 20 km from Highway No.10 to the Hai An trunk road district in 14 wards of 5 urban and rural districts of the city, and (ii) Component B that construction of bus depot need some land taken. By which, totally 3,037 PAHs, in which 1,042 ones impact of 131,455m2 residential land (with 909 relocated PAHs) and 1,958 ones impact of 630,681m2 agriculture land; 37 ones with 72,209m2 aquaculture land impact and 30 of the said PAHs is with business loss. The overview of the project scope is shown as follows: Table 7: Summary Impact of Land Acquisition and Resettlement

Agriculture Land Aqual- Busi- Project Residential Land Impact No. District Impacts cuture ness Wards Partly Wholly Total <30% >30% Total Land Impact I Component A: Strategic Urban Road Component A Section 1: Quan Tru - Nam Hai 1 Hai An Cat Bi 14 46 60 - Thanh To 8 62 70 0 8 8 8 - Dang Hai 23 186 209 39 89 128 1 2 Nam Hai 19 161 180 24 37 61 3 2 Kien An Quan Tru 9 57 66 - 10 Dong Hoa 10 80 90 86 94 180 4 - 3 Le Chan Vinh Niem 7 39 46 91 242 333 6 2 4 Ngo Dang Giang 0 3 3 - Quyen Total A 90 634 724 240 470 710 19 17 B Section 2: Quan Tru - Bac Son Dang Cuong 23 76 99 439 74 513 1 6 Hong Thai 5 10 15 202 78 280 12 An Duong Le Loi 10 33 43 100 44 144 3 5 Bac Son 5 156 161 18 29 47 1 2 Dong Thai 0 0 0 138 71 209 1 Total B 43 275 318 897 296 1,193 18 13 II Component B: Public Transport Improvement Component An Lao Quoc Tuan - - - 24 37 61 - - GRAND TOTAL 133 909 1,042 1,157 801 1,958 37 30

The following session will provide with detail impacts classified by types of land, assets, tree and standing crop, included DPs and its land/assets affected quantity with some analytical commnents.

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4.1 IMPACT OF AGRICULTURAL LAND (PADDY)

The Project affects mainly this type of land including a total of 1,958 households and 630,681 m2 (approximately 63 ha) of land. The average holding size on agriculture land is about 400m2 per person in Hai Phong city (the agriculture land holding size per person in Hai Phong city is different depending on each locality’s avaiability of agriculture land, but around 360 to 480m2 per person) or about 1,690m2 per household. As indicated in the table above, average affected agriculture land impact are about 320 m2 per household, equivalence to about 20% of their total land holding, According to the below table, the Project impact on agricultural land is focused in Dang Cuong, Hong Thai, Dong Thai, Vinh Niem, Le Loi and Dong Hoa wards/communes. These are suburban communes in Kien An, Le Chan, and An Duong districts are mainly involved in cultivation but their main source of livelihood is not from agricultural production. In other words, almost population in surburbant area often work in agriculture prodution, but in fact its benefit (income) is not enough for their living, so they have secondary income sources (such as vendor, mason or other waged earners during leisued time) which are their main source provedly. For the afffected households losing agricultural land, irrespective of the degree of impacts (or the remaining land is still economically viable or not), in addition to compensation payment at replacement price, they will be assisted with other rehabiliation assistances, for their living recovery. As mentioned in the below table, there are 801 DPs whose agriculture land impact presented 30% or more of their total land holding, of which about 65 DPs with agriculture land lost over 70% that is not economically viable and to be acquired entirely by the project at the informed request of the DPs. Or in other hand, the said affected land might be smaller than land to be acquired. Further, as in the survey, there are about 8.2% household who do agricultural production only (single source income), which estimates to 161 DPs. They are almost the poor household (with living condition under poverty line) and consent to the project implementation and land acquisition that might be better for their living4. They are all entitled to get allowance for poor household. During updating or implementation of the resettlement plan, the said uneconomically viable remaining land will be calculated and filled in a new table.

4 For agriculture land based income household, their income equal to limitation of land allocation per person multiplied with productivity for 01 m2 agricultural land, means 400m2 x 7,000 VND/m2 = 2,800,000 VND per person per year. But, when the land acquired, they will get compensation (per person): 400m2 x 60,000 VND/m2 x 3 time = 72,000,000 VND and when saving in a commercial bank, they will get interest at 8,400,000 VND per year (at bank interest rate 11.67%).

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Table 8: Summary of Affected Agricultural Land Affected Affected households area (households) No. District Project ward (m2) <30% >30% Total I Component A: Strategic Urban Road Component A Section 1: Quan Tru - Nam Hai 1 Hai An district Cat Bi ward Thanh To ward 0 8 8 56,450 Dang Hai ward 39 89 128 35,442 Nam Hai ward 24 37 61 26,844 2 Kien An district Quan Tru ward - Dong Hoa ward 86 94 180 90,951 3 Le Chan district Vinh Niem ward 91 242 333 99,419 4 Ngo Quyen district Dang Giang ward Total A 240 470 710 309,106 B Section 2: Quan Tru - Bac Son Dang Cuong 439 74 513 120,516 Hong Thai 202 78 280 41,492 5 An Duong district Le Loi 100 44 144 59,315 Bac Son 18 29 47 13,657 Dong Thai 138 71 209 68,293 Total B 897 296 1,193 303,273 II Component B: Public Transport Improvement Component An Lao district Quoc Tuan 20 35 55 18,320

GRAND TOTAL 1,157 801 1,958 630,681

Socio-economic survey shows that income sources of those affected households are mainly from services and small business instead of agriculture. Therefore, those households’ income sources will not be affected seriously from agricultural land being acquisited. Among 1,958 households with affected agricultural land, households with agricultural land affected from 10%-30% account for 659 households, which is provided in the Table 9.

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Table 9: Households of which agricultural land affected from 10-30%

Number of Number of household with household with No. Urban District/District Ward/Commune affected affected agricultural land agricultural land from 10-20 % from 20-30 % I An Duong District 301 119 1 Bac Son 3 5 2 Le Loi 41 18 3 Dang Cuong 130 58 4 Dong Thai 49 18 5 Hong Thai 78 20 II Kien An Urban District 49 29 6 Dong Hoa 49 29 III Le Chan Urban District 58 42 7 Vinh Niem 58 42 IV Hai An Urban District 31 20 8 Dang Hai 18 10 9 Nam Hai 13 10 Total 439 220 659 Households

Because, most of the project locations are at surburb areas that is under process of industrialization, modernization and urbanization, that their occupation now changing from purely agicultural production to diversified economy, with many arising careers. Accordingly, the main household earnings come from such sources as business, providing services, small industries, freelance work (altogether accounting for 66.1%), state employees and civil servants (25.7%) and agriculture production (8.2%); Or in other hand, the said impacts will not much affect to the local people’s living condition and livelihood.

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4.2 IMPACT ON PONDS AND LAKES (AQUACULTURE)

According to the survey and measurements, total of 37 households have ponds (aquaculture areas, etc) with a total area of 72.209m2 that will be affected. Specific levels of impact are shown below: Table 10: Summary of Affected Ponds and Lakes Affected Assets No. District Ward/Commune Households Area (m2) A Section 1: Quan Tru - Le Loi 1 Hai An district Cat Bi ward Thanh To ward 8 19,139 Dang Hai ward 1 937 Nam Hai ward 0 2 Kien An district Quan Tru ward Dong Hoa ward 4 7,746 3 Le Chan district Vinh Niem ward 6 32,479 4 Ngo Quyen district Dang Giang ward Total A 19 60,301 B Section 2: Quan Tru - Bac Son 5 An Duong district Dang Cuong 1 2,199 Hong Thai 12 1,999 Le Loi 3 990 Bac Son 1 1,602 Dong Thai 1 5,119 Total B 18 11,908 GRAND TOTAL 37 72,209 As metioned in the above table, only 37 out of 3,037 project DPs with impact on agriculture land, which income from this occupation is not much, accounting about 10-15% of total their income. Because most of the household have main job as small business, agriculture production.. and it is their secondary work only. Besides that, there is not much impact on ponds and rich soil so households will not be affected very much. The affected soil and ponds are mostly leased from the communes' People's Committees and wards, or they are organized for aquaculture to encourage fisheries with minimal investment. In Thanh To ward, the ponds are under the management of Army Unit 363 and are lent to households to improve aquaculture. These families renovated the system of banks to divide the ponds into smaller ponds more suitable for production. The improvements to these premises and associated investment costs wil be compensated.

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4.3 IMPACT OF RESIDENTIAL LAND ACQUISITION

The Urban Transport Development Project - Component A involves many households whose residential lands will be affected. These households are along the road and the impact on residential land is shown as follows: Table 11: Summary of Affected Residential Land

Number of affected Affected No. District Project ward households area 2 Partly Wholly Total (m ) A Section 1: Quan Tru - Nam Hai 1 District Hai An Cat Bi ward 14 46 60 2,112 Thanh To ward 8 62 70 6,639 Dang Hai ward 23 1865 209 19,845 Nam Hai ward 19 161 180 28,378 2 Kien An district Quan Tru ward 9 57 66 6,827 Dong Hoa ward 10 80 90 11,135 3 Le Chan district Vinh Niem ward 7 39 46 7,988 4 Ngo Quyen district Dang Giang ward 0 3 3 825 Total A 90 634 724 83,749 B Section 2: Quan Tru – Bac Son Dang Cuong 23 76 99 25,040 Hong Thai 5 10 15 5,752 An Duong district Le Loi 10 33 43 9,404 Bac Son 5 156 161 13,137 Dong Thai 0 0 0 0 Total B 43 275 318 53,333 GRAND TOTAL 133 909 1,042 137,082

According to the above table, a total of 1,042 households have land affected by the Project, in which (i) 133 households are partially impacted and their remaining land sufficient for reorganizing and that there is no need for relocation and (ii) 909 households are entiredly affected (or partially affected, but remaining is less than the minimum 40m2 or not suficinent to re-build their house) that need to be relocated; of which 711 DPs severely affected with house

5 Included 40 DPs affected in Le Hong Phong intersection, who have just resettled due to land clearance by Cat Bi AirportCrossroad Project

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built thereon and remaining 198 DPs without house built thereon). The DPs have stayed in the project area before year 1993 and have title to the land they are holding Among the 1,042 DPs whose residential land impacted, there are 1,020 DPs with structure built thereon, in which after the project clearance of land, there are (i) 111 DPs with remaning land sufficient to rebuilt on (reorganized DPs) and (ii) 909 DPs with remaning land insufficient to rebuilt on (relocated DPs). Furthermore, some DPs whose residential land affected and remaining land is not economically viable (that they can’t reorganize their house or other secondary structure beyond the land) will be entirely acquired by the project that the said affected land might be smaller than land to be acquired. During updating or implementation of the resettlement plan, the said uneconomically viable remaining residential land will be calculated and filled in a new table. The households whose residential land is affected and must be resettled are concentrated in Dang Cuong, Dong Hoa, Nam Hai, Dang Hai, Bac Son and Le Loi wards/communes. Therefore, the resettlement and restoration arrangements will be focused on these areas.

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4.4 LOSS OF STRUCTURE (HOUSES)

The optimal plan to minimise and avoid adverse impacts of land acquisition on households has been included in the Project's design, but loss of structures/ houses is unavoidable in some areas. There are 730 households with 54,899m2 (of housing with all floors) severely affected and need to be relocated. The specific level of impact is shown as follows (for information on affected house disaggregated by the number of floors, housing condition use of material and categories, pls refer List of DPs): Table 12: Summary of Affected Houses Affected House No, District Ward/Commune Households Area (m2) A Section 1: Quan Tru - Le Loi 1 Hai An district Cat Bi ward 50 2,541 Thanh To ward 20 1,759 Dang Hai ward 68 8,977 Nam Hai ward 98 8,308 2 Kien An district Quan Tru ward 61 8,306 Dong Hoa ward 53 3,111 3 Le Chan district Vinh Niem ward 128 6,751 4 Ngo Quyen district Dang Giang ward 7 2,820 Total A 480 42,572 B Section 2: Quan Tru - Bac Son 5 An Duong district Dang Cuong 56 7,103 Hong Thai 17 969 Le Loi 19 2,290 Bac Son 158 1,965 Dong Thai 0 Total B 250 12,327 GRAND TOTAL 730 54,899

As mentioned in above table, all said 730 DPs6 are severely affected and the remaining land is not economically viable, or in other hand they are all relocated DPs (none of them are re- organized DPs).

6 Including (i) 711 DPs with house built on legal residential land (as mentioned in Session 4.3) and (ii) 19 DPs with house built on illegal land along the river (pls refer to the text in next page)

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Relocation of the poor living illegally along rivers: Nineteen households have been living on the riverside in area E2 of Cat Bi ward prior to October 15, 1993 and have no land disputes. They are in complete agreement with the land acquisition and relocation, and they hope the Project will arrange new locations for them to build houses. These are the cases who have violated the dike protection corridor and are not eligible for land compensation according to the Project's regulations. They are mostly small traders and hired labourers with unstable incomes. Compensation, assistance and resettlement for them will be reviewed and considered carefully in order to maintain and/or support them in stabilizing their living conditions as soon as possible after the resettlement.

4.5 LOSS OF SECONDARY STRUCTURE According to the inventory, there are many facilities and secondary structure that will be affected such as auxiliary works, toilets, kitchens, yards, walls, gates, wells, tombs, etc. The summary of data on such works and secondary structure is shown in the following table: Table 13: Summary of Affected Works/Architecture Works/Architectures (see descriptions below table) No. District Project Ward 1 2 3 4 5 6 7 3 m2 each m2 each m2 each m A Section 1: Quan Tru - Nam Hai 1 Hai An district Cat Bi 46 - 2,002 12 3623 - - Thanh To 0 Dang Hai 311 0 - 0 Nam Hai 1,996 11 2,416 11 1921 18 865 2 Kien An district Quan Tru 0 - 0 - 0 - - Dong Hoa 107 - 141 - 90 - 25 3 Le Chan district Vinh Niem 2,303 23 1,776 29 937 24 624 4 Ngo Quyen district Dang Giang 0 - 426 1 1620 2 - Total A 4,762 34 6,761 53 8,191 44 1,514 B Section 2: Quan Tru - Bac Son Dang Cuong 4,488 0 5,711 36 5,174 0 676 Hong Thai 550 19 1,185 5 1,126 19 107 An Duong district Le Loi 1,438 0 2,423 15 1,010 0 190 Bac Son 743 0 134 0 506 0 187 Dong Thai 0 0 0 0 0 0 0 Total B 7,219 19 9,453 56 7,816 19 1,160 GRAND TOTAL 11,981 53 16,214 109 16,007 63 2,674

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Notes: 1 = Auxiliary works 3 = Wall 5 = Yard, lane 7= Water tank (kitchens, cages, toilets) 2 = Tomb 4 = Gate 6 = Well

4.6 IMPACTS ON TREES AND CROPS

According to the inventory, there are many cases of trees and crops that will be affected. The summary of data on affected trees and crops is shown in the following table: Table 14: Summary of Affected Trees and Crops Affected Quantity of Trees Project No. District HHs Ward Group Group Group Group Group Group 1 2 3 4 5 6 A Section 1: Quan Tru - Nam Hai 1 Hai An district Cat Bi 11 23 6 305 12 240 139 Thanh To - 0 0 0 0 0 0 Dang Hai 10 10 8 1 36 52 5 Nam Hai 35 556 391 198 2608 0 223 2 Kien An district Quan Tru - 0 0 0 0 0 0 Dong Hoa 12 36,5 70 141 90 293 221 3 Le Chan district Vinh Niem 24 19 14 0 726 0 15 4 Ngo Quyen district Dang Giang 7 43 0 100 0 0 47 Total A 99 688 489 745 3,472 585 650 B Section 2: Quan Tru - Bac Son Dang Cuong 52 4,046 3,002 57,253 5,093 4,626 3,106 Hong Thai 15 1,331 1,701 1,452 1,751 1,863 375 An Duong district Le Loi 16 960 617 5,968 1,188 1,635 2,613 Bac Son 29 235 184 228 229 0 183 Dong Thai - 0 0 0 0 0 0 Total B 112 6,572 5,504 64,901 8,261 8,124 6,277 GRAND TOTAL 211 7,260 5,993 65,646 11,733 8,709 6,927 Notes: Group 1: Longan, jackfruit, mango, coconut Group 2: Grapefruit, orange, guava, apple, custard apple Group 3: Decorative plants: peach-blossom, begonia Group 4: Bananas, papaya Group 5: Industrial trees Group 6: Timber trees, bamboo

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4.7 LOSS OF INCOME AND BUSINESS In the Project Component A, there is 30 case of Business/ Income Loss due to cessation of their business and production. Table 15: Loss of Income and Business Loss of Small Business No, District Ward/Commune Households Remarks A Section 1: Quan Tru - Le Loi 1 Hai An district Cat Bi ward -

Thanh To ward - The distribution Dang Hai ward 2 of small business in the Nam Hai ward 3 project area is 2 Kien An district Quan Tru ward 10 grocery store, café shop, Dong Hoa ward - construction 3 Le Chan district Vinh Niem ward 2 material store… 4 Ngo Quyen district Dang Giang ward - Total A 17 B Section 2: Quan Tru – Bac Son 5 An Duong district Dang Cuong 6 The distribution of small Hong Thai business in the Le Loi 5 project area is grocery store, Bac Son 2 café shop, construction Dong Thai material store… Total B 13 GRAND TOTAL 30

The project road traverse through not only agriculture area, but also some residential quarter that impact to some households who are engaged in business, which are mainly grocery store, café shop, construction material store…In case of being impacted, the compensation for persons affected by loss of income due to the reduction of their business and production will be implemented.

Additionally, The Project will also affect a number of business organisations (state and private works) including: Dang Giang ward: 1. Quang Minh private workshop 2. Company 27/7

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3. Private workshop 19/8 (material yard in Dang Giang ward) 4. Microbiology beer company Vinh Hai Cooperative 5. Ket Hop Ltd. Co. 6. Duc Duong paper workshop 7. Complex 19/8, 8. Cau Rao bus station and gasoline station (Dang Giang ward) Cat Bi ward

1. Dien Ngoc Company 8. Thanh Dung Company 2. Dieu Company 9. Ha Hien Company 3. Thu Ha Company 10. Vu Duc Loi Company 4. Ba Hien Company 11. Salt Company 5. Hong Yen Company 12. Sao Ha Company 6. Nguyen Son Ha Company 13. Car workshop 7. Nhu Thanh Company 14. Trading and Building Material Company

The above mentioned works will be moved as they are located inside the Project area and the dike protection corridor, too. In addition, the Project will affect a number of other works and business organisations but the land acquisition impact is quite small and not affect their production. While discussed, the above mentioned organisations have agreed to the relocation plan that they will relocate themselves to another places, but still request that if possible Hai Phong City People's Committee could arrange convenient locations equivalent to or better than their former locations to ensure their production activities.

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4.8 IMPACT ON VULNERABLE GROUP

Vulnerable Group including distinct individuals or groups of people who might suffer disproportionately from the risk of land and property acquisition, specifically including: (i) households falling under the MOLISA’s poverty line, (ii) households with of martyrs, wounded and sick soldiers, heroes of the people’s armed forces and labour, and families who sacrificed to the Revolutions; and households suffering from Agent Orange. In the project area there are about over 220 households, who will be entitled to receive supports from the project, for their living recovery. According to the sample survey, about 11.9% interviewed households are families receiving social policy benefits (war invalids, martyrs, those who devoted their lives to the revolutionary cause, and Vietnamese heroic mothers). These are the households that need the most attention from the Project and local authorities in the preparation and implementation of the RP. Also by the survey, there is not any other vulnerable group that need special attention. Table 16: Impact on Vulnerable Group Vulnerable Households No, District Ward/Commune Policy Poors Households A Section 1: Quan Tru - Le Loi 1 Hai An district Cat Bi ward - Thanh To ward - Dang Hai ward 10 11 Nam Hai ward 7 3 2 Kien An district Quan Tru ward 10 4 Dong Hoa ward 5 2 3 Le Chan district Vinh Niem ward 7 9 4 Ngo Quyen district Dang Giang ward - Total A 39 29 B Section 2: Quan Tru – Bac Son 5 An Duong district Dang Cuong 13 10 Hong Thai 32 5 Le Loi 30 12 Bac Son 8 7 Dong Thai 21 14 Total B 104 48 GRAND TOTAL 143 77

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7 4.9 IMPACT ON PUBLIC UTILITIES The Project will affect a number of public works and technical social welfare infrastructures such as: 1. Nam Hai Ward Primary School; 2. Quan Tru Ward Medical Center; 3. Dong Hoa ward pre-school; 4. Graveyards in communes of Vinh Niem and Cat Bi; 5. Irrigation and Ditches (manually excavated ditches in villages and hamlets).

4.10 RELOCATION OF 40 HOUSEHOLDS AT CROSSROAD Based on the technical design, there will be a crossroad in Le Hong Phong crossroad/ intersection. Therefore, 40 households in Dang Hai ward, Hai An urban district must be relocated and resettled. It should be noticed that those 40 households will have to relocate on the second time that they had to relocate and resettle in the implementation stage of Le Hong Phong road and Cat Bi airport cross-road project previously. Now, they are constructing and building their new house in the area. The safeguard consultants had carried out community consultations for all households in Dang Hai ward including above-mentioned households. Basically, households did not agree to be relocated on the second time. The Hai Phong PPC, PMU and these relocated DPs have discussed on the issue and decided that the land plots under most favourable condition in following resettlement area whichever they prefer, will be provided to these 40 households including: 1. Alternative 1: The exisiting Cat Bi Airport Crossroad; 2. Alternative 2: The existing Lach Tray - Ho Dong; 3. Alternative 3: The new 12 project resettlement sites. If this measures is not feasible or the DP’s livelihood is not rehabilitated, community consultation will be carried out again for thouse 40 households to know their aspirations, demands and find acceptable resolutions. Note: A Specific Short Resettlement Plan for those households will be made following community consultation, that those households shoud have special policy package to ensure the restoration of their livings.

7 Note: The list of public works (electric and lighting poles) and underground works (such as pipes for water supply/sewer, cables, phones, etc) which must be relocated to carry out the Project are not included in the scope of this resettlement plan.

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5

ELIGIBILITY AND ENTITLEMENT

5.1 POLICY FRAMEWORK

5.1.1 Legal Framework

Following the Hai Phong People's Committee guidelines for implementing the next steps and and completing the RP according to the current regulations, making basis for the implementating the project compensation and site clearance. The framework for preparing the RP is based on the following legal documents: Policies of the Government of Vietnam applied in the RP:

o The Constitution of Vietnam promulgated in 1992 which confirms the citizen's right to own and protect their own house.

o Land Law 2003 promulgated on November 26, 2003. o Decree No.181/2004/ND-CP, dated October 29, 2004, guiding the implementation of the amended Land Law 2003.

o Decree No.197/2004/ND-CP, dated December 3, 2004 on compensation, assistance and resettlement when the State recovers land.

o Government Circular No.116/2004/TT-BTC, dated December 17, 2004, guiding the implementation of Decree No.197/2004/ND-CP, dated December 3, 2004, on compensation, assistance and resettlement when the State recovers land.

o Decree No.188/2004/ND-CP, dated November 16, 2004, on methods of determining land prices and land price framework.

o Circular No.114/2004/TT-BTC, dated November 16, 2004 guiding the implementation of Decree No.188/2004/ND-CP.

o Government Decree No.17/2006/ND-CP, dated January 27, 2006, on amending and supplementing some articles of the Decree guiding the implementation of the Land Law and Decree No.187/2004/ND on transferring state-owned companies into joint stock companies.

o Decree No.84/2007/ND-CP, dated May 25, 2007, additional regulations on granting land- use rights certificates; land acquisition; implementing land-use rights; settling land claims; and orders and procedures for compensation and resettlement when the State recovers land.

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o Decree No.123/2007/ND-CP, dated July 27, 2007, amending and supplementing some articles of Decree No.188/2004/ND-CP, November 16, 2004, on methods of determining land prices and land price frames.

o Government Decree 69/2009/ND-CP, dated August 13, 2009, regulating additional planning of land-use, land prices, land acquisition, compensation and resettlement assistance.

o Haiphong City PC Decision No.130/2010/QD-UBND dated Jannuary 22th 2010 issuing regulations on compensation, assistance and resettlement upon the State’s recovery of land in the area of Haiphong city.

o Decision No.1263/2010/QD-UBND by Haiphong People’s Committee dated 30/7/2010 issuing amendation, adding some items of regulations on compensation, assistance and resettlement upon the State’s recovery of land in the area of Haiphong city (prompgating attaching with Decision No.130/2010/QD-UBND by Haiphong People’s Committee dated 22/01/2010)

o Decision 1690/2010/QD-UBND dated 30/9/2010 by Hai Phong PPC regulation of procedure on land acquisition, land renting, land compensation, assistance and ressettlement when acquired by State; issuing BOLURC and other administrative procedure on land managment in Hai Phong city

o Haiphong City PC Decision No.1240/QD-UBND dated 29 July 2008 issuing set of unit prices of structures for compensation and assistance upon the State’s recovery of land in the area of Haiphong city.

o Haiphong City PC Decision No.2640/QD-UBND dated 31 December 2009 issuing land prices in 2010 in the area of Haiphong city and the regulations in force. In addition to the Government of Vietnam's policies, this RP also complies with the following documents:

o WB guidelines and policies on involuntary resettlement safeguard. o The Project's RPF consistent with the Bank’s OP 4.12 5.1.2 Compensation Policy

The first objective of the WB policy is to study all options to minimise or avoid involuntary resettlement. Where resettlement is inevitable, there must be a plan for compensation and support to restore living conditions of DPs to the same or better level as before the Project implementation. This policy is applied when land acquisition causes loss of residence and all or part of productive assets; or the loss of access to production and income-generating sources. Necessary measures to achieve the best resettlement results include:

o Consultation with DPs on feasible measures for compensation and preparation of RP o Proposal of options for DPs for resettlement and the restoration of their livelihood o Participation of DPs in planning and selecting the options o Full compensation of replacement costs for damages caused by the Project

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o Resettlement locations should have the same necessary infrastructure and services as DPs’ former residences

o Providing allowances, support, vocational training and income support to facilitate the relocation and restoration of their livelihood.

o Identification of and special assistance for vulnerable groups o Setting up an institutional and organisational structure to help the process of compensation and resettlement.

5.2 ELIGIBILITY AND COMPENSATION

5.2.1 Principles of the Project

Principles set out in WB policy 4.12 (OP/BP 4.12) and RPF have been applied in the resettlement plan including the following: (a) Minimize the impact of land acquisition on other assets and the resettlement of people. (b) All DPs who live, work, do business or farm in bridge and road right of ways at the time of the survey will be provided with full economic recovery measures to improve, or at least maintain, their living standard and ability to generate income at the same level as before the Project implementation. The lack of legal rights to affected properties will not preclude DPs from entitlement to economic recovery measures. (c) Rehabilitation measures including: (i) compensation at the replacement cost without considering depreciation or materials that may possibly be re-used to construct new houses and other structures; (ii) agricultural land will be compensated by cash at the replacement cost; (iii) residential land will be compensated by cash at the replacement cost; households and individuals whose land is acquired totally or the remaining area after being acquired is not enough to live, if there are demands, will be allocated for resettlement; iv) transportation costs, allowances, and support; and (v) any other necessary measures to assist the DPs in maintaining or raising their living standard and income at the same level as prior to the Project implementation. (d) The replacement land for residential and agricultural land should be acceptable to the DPs and as close to the Project acquired land as possible. (e) Moving time for resettlement should be minimised and allowances and support for DPs must be made one month before the scheduled commencement date for the Project's work in each area. (f) Land acquisition, compensation and support should be planned with the participation of DPs to minimise disturbance. Benefits must be provided to DPs before the scheduled commencement of the work in each Project area. (g) The available public services must be maintained or improved. (h) Financial and material resources for resettlement should be prepared to meet any necessary demands.

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(i) Ensure the design, planning, consultation and implementation of the RP is effective and on schedule. (j) Conduct timely and effective monitoring and evaluation of the RP .

5.2.2 Eligibility Requirements for Compensation and Assistance

Those, who must change their residence or are affected by the Project are eligible for compensation as follows: a. Those who have legal rights to land or other assets; b. those who currently have no legal rights to land or other assets but who have submitted declarations for legal land-use rights certificates according to the State regulations based on archives and documents such as invoices for land-tax payment, certificates of residence status, or permission for residence and use of the land affected by the Project from the local government; c. Those who have no legal rights or declarations for legal land-use certificates for the land on which they are living. Persons covered under (a) and (b) are compensated for their land and other affected assets at replacement cost and provided other assistance. Persons covered under (c) are given Resettlement Assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project area prior to a cut-off date determined in each RP. Persons who encroach on the area after the cut-off date determined in each RP are not entitled to compensation or any other form of resettlement assistance (though they may be entitled to some support stipulated in current policies) Valuation and compensation for losses: Methods used for the valuation of losses in Bank funded projects are based on replacement costs. For this project, the losses consist of damages to land, structures and other assets. The replacement cost of land includes the land value as defined in accordance with the prevalent market price plus the fee for obtaining a certificate of land use rights. For affected houses and other structures, the valuation is based on the market price of construction materials to build a replacement house of equal or better quality and area to that affected. For works partly or wholly affected by the project, the compensation usually includes the market price of building materials plus costs for transportation, labour and contractor fees, registration fees and transfer taxes. Asset depreciation and the value of materials that can be salvaged by DPs, are not deducted from the compensation.

5.2.3 Cut off date

According to the policy framework, compensation and support for each RP must be provided on the date that the Project and its components are officially approved and announced by the relevant authorities of the local government, and the landmarks are made. Affected persons who move to the Project area after this time will not be entitled to receive compensation. They must relocate and/or dismantle their properties on requisitioned areas before the commencement of the Project, and the Project will create the necessary conditions for them to relocate.

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5.3 ENTITLEMENT POLICY

According to policies stated in the Project Resettlement Framework, DPs are entitled to compensation, assistance and resettlement as follows:

5.3.1 Compensation Policy for Residential Land

Legal Residential Land

(a) If the land boundary is clearly defined in the document:

i. Residential land used before 15/10/1993 will be compensated 100% of the price for the entire area which is recorded on paper; ii. Residential land used prior to 15/10/1993, which are identified area of land, garden and pond in the same parcel of land on paper (regardless of building houses and structures for the activities) will be compensated 100% of the price for the entire residential area which is recorded on paper; The area of gardens and ponds (if any) will be compensated by land price of gardens and ponds in addition to the support of 50% the price of residential land in the same parcel of land which has houses of such family/individual. The supported area is based on the actually used area but does not exceed 02 times of the new allocation of resident land area. (b) If the boundary of residential land and adjacent gardens and ponds is not clearly defined i. Residential land is used before 18/12/1980, whose boundaries is clearly acknowledged in the cadastral records or papers of land use rights, regulated in Items 1, 2 and 5, Article 50 of Law on land (including land and pond in the same parcel of land), its whole area is defined as residential land and compensated equally to 100% of the price (included land transferred, land offered having certification of local authority at commune level) ii. Land used before 18/12/1980, whose boundaries is not clearly acknowledged in the cadastral records or papers of land use rights, , regulated in Items 1, 2 and 5, Article 50 of Law on land will be compensated 100% of the price of such land but the compensated area does not exceed 05 times of the new allocation of resident land area (included land transferred, land offered having certification of local authority at commune level). The remain will be compensated based on the land price of gardens and ponds in addition to the support of 50% the price of residential land in the same parcel of land, which has houses of such family/individual. The supported area is based on the actually used area but does not exceed 02 times of the new allocation of residential land area. iii. Residential land used from 18/12/1980 prior to 01/7/2004 will be compensated equally to the limit area recognized as residential land (as stipulated in Decision No.1518/2006/QD-UBND dated 12/7/2006 of the People's Committee of Hai Phong city). The remaining area will be compensated based on the land price of gardens and ponds in addition to the support of 50% the price of residential land in the same parcel of land, which has houses of such family/individual. The

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supported area is based on the actually used area but does not exceed 02 times of the new allocation of residential land area. iv. DPs who having difference between actually measured square and one noted in BOLUR, the compensation and assistance level will be compensated to actually measured area8, in case of (i) the former is smaller than the latter, (ii) the former is larger than the later but the difference is confirmed by local authority that it is legalizable

Legalizable Residential Land Residential land without but eligible for a land use rights certification: (a) Residential land used before 15/10/1993: Legalizable residential land9 with house/structure beyond will be compensated at 100% of the price of such residential land for the actually used area but does not exceed 01 time of the new allocation of residential land area. The remaining area will be compensated based on the land price of gardens and ponds in addition to the support of 50% the price of residential land in the same parcel of land but does not exceed 01 time of the new allocation of residential land area. And the rest (if any) will be supported in accordance with regulations of Hai Phong People’s Committee to obtain the project’s objectives. During implementation phase, monitoring will be used to determine if they have achieved livelihood restoration through these means; and if not, further special assistance package(s) will be proposed by PMU, acceptable to Hai Phong PC, to assist these DPs and to ensure the DP’s livelihood restoration has done. (b) Residential land used from 15/10/1993 to prior 01/7/2004: Land being used but does not exceed 01 time of the new allocation of residential land area will be compensated at 100% of land price for the using land area in the new allocation of residential land with the deduction of land use fee10. The area that exceeds the allocation of residential land and the area of gardens and ponds on the same parcel of land which is not recognized as residential land shall be compensated accordingly to the price of perennial crops in position 1: (c) Land is allocated without proper authority before 01/7/2004: i. Households who paid for land use right but they have not been issued certificate of land use right will be compensated and supported as, follows: − Residential land used before 15/10/1993: Households will be compensated by 100% residential land price for the acquired area within the limited allocation of residential land. − Residential land used from 15/10/1993 to prior 01/7/2004, households will be compensated by 100% residential land price for the used area within the limited

8 According to Article 47 of Decree, 84/2007/ND-CP dated May 25, 2007.. 9 The case is not mentioned/ regulated in Item 4, Article 14, Decree 84/2007/ND-CP, dated 25/5/2007. 10 It is based on stipulation in Item a, Article 8, Decree 198/2004/ND-CP and Article 4, Circular No 14/2009/TT- BTNMT dated 01/10/2009 promulgated by MONRE. HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 54 RESETTLEMENT PLAN

allocation of residential land. The area outside the limited allocation of residential land will be compensated by 100% residential land price but deducted the due land use fees11. ii. If households do not pay or do not pay enough land-use fee, they will be compensated by 100% residential land price for the used area within the limited allocation of residential land price but deducted the due land use fees12. The remaining area (if any) will be supported accordingly to the price of perennial crops in position 1. (d) Land managed by organizations for business/ production, working-office ( acquired land is not residential land) handed over for staff/workers using for house building or land transferring (including land having house, shop, as sale will be priced) will be compensated, supported based on Item (c) of this regulation.

Illegal Residential Land Illegal Land used as actual residential land with houses and other structures13 will be supported as follows. (a) Land used before 15/10/1993 will be supported 50% residential land price for the used area equally to the one time new limited allocation of residential land. The remaining area (if any) will be supported in accordance with regulations of Hai Phong People’s Committee to obtain the project’s objectives. (b) Land used after 15/10/1993 will not be compensated but supported 30% residential land price regulated in annual table of City PC for using square but does not exceed 01 time of the new allocation of residential land area. The remaining area (if any) will be supported at 50% accordingly to the price of perennial crops in position 1. During implementation phase, monitoring will be used to determine if they have achieved livelihood restoration through these means; and if not, further special assistance package(s) will be proposed by PMU, acceptable to Hai Phong PC, to assist these DPs and to ensure the DP’s livelihood restoration has done. House rented from the State: Households will be compensated by cash equivalent to 60% of the value of residential land and 60% of the value of the house being rented . For encroached land, there will be no compensation but assistance for investment on the land. Land adjacent to compensated land, but not acquired, and its value is affected or otherwise impacted will be compensated for actual damages. Residential land obstructed by the structures of the Bridge Construction will be compensated by 10% of its value to cover the reduction of its value.

11 It is prescribed rate in Items 2,3, Article 8, Decree 198/2004/NĐ-CP and applied basing on regulations in Article 4, Circular No 14/2009/TT-BTNMT dated 01/10/2009 promulgated by MONRE. 12 It is prescribed rate. in Items 2,3, Article 8, Decree 198/2004/NĐ-CP and applied basing on regulations in Article 4, Circular No 14/2009/TT-BTNMT dated 01/10/2009 promulgated by MONRE. 13 This is illegal land that mentioned in Item 4, Article 14, Decree No 84/2007/NĐ - CP HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 55 RESETTLEMENT PLAN

5.3.2 Compensation Policy for Agricultural Land As survey result, entire agricultural land in local project area have been assigned to local people (including permanent and temporary assignment) that “land-for-land basis” compensation is not feasible. In case, DP who wish to purchase additional agriculture land could implement with other land owners who is no longer want to cultivate. Actually, the project urban road traverse surburbant area that local people have many income sources, out of agriculture production, so some household no longer cultivate, they anticipate to transfer or to rent out their land. Therefore, it is said that the general policy is cash payment basis

Households who are eligible for compensation or can legalise long-term land use rights: (a) The DP whose agricultural land is acquired will be compensated by cash equivalent to 100% of the replacement cost. If the remaining land is not economically viable, as requested by DP, the entire area will be acquired. In addition to a cash compensation, there will be other supporting policies (refer to Article 5.3.10. Assistance to DPs whose agriculture land is acquired. (b) Gardens and ponds in the same parcel of land with houses of families/individuals in residential areas, which is not recognized as residential land; gardens and ponds in the same parcel of land with separate houses; gardens and ponds in the same parcel of land with houses along the canals and along the roads; are eligible for compensation as prescribed, when the State recovers land, the whole acquired area is compensated by the price of garden land pond. Also a support of 50% the price of land in the same parcel of land will be provided accordingly with the acquired area but is not exceeding 02 times of the limit of new land allocation. (c) Households/individuals eligible for the compensation and living in urban/rural residential areas, who are acquired with agricultural land which is defined by the boundary of a parcel of land which has houses at the most outside in a village, hamlet, similar residential area or in an administrative boundary of a ward; or who are acquired with agricultural land which is defined by the boundary of a parcel of agricultural land adjacent to the administrative boundary of a ward or adjacent to the boundary of a population area, in addition to the compensation of perennial prices at the position 1, will be supported equally with 20% of the average residential land price in such region. The support area is not exceeding 5 times of the local land allocation limit.

Households using land not eligible for compensation of agricultural land: (a) Support 30-100% agricultural land price14 for land users who are not eligible for land compensation.

14 Note: (i) Assist 30% of land price for DPs who temporarily loss land (ii) Assist 50% of land price for DPs who (1) use reclaimed land that is not in conformity with the Master Plan; (2) use land of state owned farms allocated (temporarily) for their staff and workers. (iii) For the reclaimed land used stably before 15/10/1993, with no dispute: If the allocated agricultural land for the DP is less than the allocated land norm, the area equal to this balance will be compensated at 100% of land price and the remaining area will be assisted at 50% of the land price..

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(b) If the land is rented based on a civil contract between households or individuals, compensation for farm produce and trees will be paid to the land user cultivating the land. (c) Affected persons using public land (in a structure's space or safety corridor) that must be returned when the state needs will not be compensated for that land, but will be compensated for the replacement cost of affected farm produce and trees.

(d) The DPs who are using the 5% public land will be compensated for their investment in such land equally with 50% agricultural land price, other 50% agricultural land price will be provided to communal budget.

(e) If the agricultural land of affected persons is 10 meters far from the project boundary, they will be supported for the land value reduction. The support level equals with 10% land price of such land plot. Land users who use bidding land or rent public land: Such land users will be compensated by cash for their investment costs or the remaining value of rental contracts for that land (if any), or the equivalent of 30% of the price of agricultural land.

5.3.3. Compensation Policy for Subsidiary Structure

For affected houses and subsidiary structure and fixed asset of households or individuals: (a) Affected structures on land eligible for compensation will be compensated by cash equivalent to 100% of their replacement cost. (b) Houses and structures which are partly dismantled: (i) the remaining parts are unsuitable for use will be compensated at 100% for the entire structure quantity (to be certified by the Compensation and Resettlement Committee); (ii) the remaining parts are reusable will be compensated at least twice of the dismantlement area percentage15.

5.3.4 Compensation Policy for Trees and Farm Produce

Compensation for affected annual and perennial trees is paid to cultivators according to the average market price for the average annual output of farm produce and aquatic products and/or the replacement cost of perennial trees. Trees that can be relocated will be compensated based on actual losses and damages, plus transportation fees. The method for determining replacement prices of farm produce, trees, and aquatic products is based on Item 24 of Decree No.197/2004/ND-CP.

15 If less than 10% of the area is dismantled it will be compensated for 20% of the whole structure's value; if 10% to less than 40% of the area is dismantled it will be compensated for 20% - 80% of the whole structure's value; and if more than 40% of the area is dismantled it will be compensated for 100% of the whole structure's value. Auxiliary structures behind houses which are outside the land acquisition landmark will be compensated. If they are moved because of the plan for the area, they will be compensated or assisted by 100% of the removal price.

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5.3.5 Compensation Policy for Business Losses

The compensation for persons affected by loss of income due to the reduction of their business and production will be as follows: (a) Licensed business and production households whose income is affected will be compensated or supported for losses in business equivalent to 50% of their actual annual income. The amount of compensation will be based on their average yearly income declared with the taxation agency over the previous three years (equivalent to 100% of the average income of 6 months). (b) Affected persons who operate small business or services at home but do not declare income to the taxation agency will be provided with an allowance equivalent to the average income or business tax for 6 months, which provided as bellowed No Payment of Business Tax (VND) Supports (VND) 1 1,000,000 7,000,000 2 750,000 6,000,000 3 500,000 5,000,000 4 300,000 4,000,000 5 100,000 3,000,000 6 50,000 1,500,000

5.3.6 Compensation for Secondary Impact

Secondary affected persons are those whose land is acquired for dispersed or concentrated resettlement. People who are indirectly affected suffer the same effects as those who are directly affected and the same compensation and assistance policies will be applied to them.

5.3.7. Compensation for Affected Public Assets

If public facilities such as schools, bridges, factories, water sources, roads, electricity, water supplies, sewerage, etc, are affected by the Project, the PMU shall certify that these structures will be restored or repaired to their initial status depending on each specific case, and the community will not have to pay for such costs.

5.3.8. Compensation for Graves Relocation

Compensation costs of digging, making and removing graves to new locations; rebuilding graves to their original states; and other necessary related costs will be calculated based on the price table regulated by the City PC.

5.3.9. Compensation for Temporary Impacts during Construction Time

For temporarily affected land and properties on land, DPs are entitled to:

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For housing areas to be temporally lost: (i) Compensation for all assets on affected land by replacement costs in accordance with impact levels; (ii) Compensation for income loss in temporarily affected duration, if any (iii) Restoring to the original condition or improving better quality of land before returning to affected household. For cultivation to be temporally affected: (i) In the affected duration, compensation for one harvest of crops/plants fully by market price. (ii) Indemnification for losses of income for the next crops during the time that land is occupied by the Project. (iii) Restoring land as the previous status or improving soil quality equal to or better than its original status before the project. For temporary impacts on business and production: (i) Compensation and assistance for the losses of income for production households, cooperatives of households, private enterprises in the project construction period. (ii) Compensation for all assets on affected land by replacement costs. Compensation for damages to household’s works or public works caused by contractors during the construction (i) The Contractors will diligently restore damaged structures as their original condition or better after the construction is finished. (ii) According to the terms and conditions of the construction contracts, Contractors are required to be diligent enough to avoid damaging people’s properties during their construction. When damages occur, the contractors must compensate immediately for the right families, community groups, or state agencies under the applicable compensations to other properties damaged by the Project. Moreover, recovering damaged properties as their previous quality must be done right after completion of construction.

5.3.10. Allowance and Assistance during the Transition Period

For households with affected residential land: For residential land users who are entitled to the compensation and households who use rented houses or house of the self-governing institutions. a. Households with houses that are entirely relocated will be paid the following allowances: i. Support for relocation of houses and structures: Households that move to other residential areas in the city will receive a maximum allowance of 3,000,000 VND per household. Households that move to other provinces, will receive a maximum allowance of 5,000,000VND per household. ii. Allowance for stabilizing a household’s living: Relocated households whose family members are named in the family record book and actually live with the families at the time of the Decision of the land acquisition will be subsidized with an allowance of 2,000,000 VND per person to stabilize their living.

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iii. Allowance for house renting: when a household have not yet built a new house: Those who have houses in acquired lands and are eligible for the allocation of resettlement land will be supported with VND 5,000,000. Households whose land is acquired is not eligible for resettlement land allocation but have not any other place to live will be supported 50% lof the temporary resident allowance. If the Project delays the arrangement of a resettlement area, the cost of an extension of the household’s temporary residence will be added. This will be calculated at 1,000,000VND at urban district level and 800,000 VND at suburban district per month. iv. Support for Vulnerable Group: (i) Families of martyrs, wounded and sick soldiers, heroes of the people’s armed forces and labour, and families who sacrificed to the Revolutions will receive an allowance of 6,000,000VND per household; (ii) Poor households (under the Hunger Elimination and Poverty Reduction policy) will receive VND 5,000,000 per household; and (iii) families whose family members are infected with Agent Orange are supported: 3,000,000 VND/person. Households that have only part of the main house acquired (i.e. they have not to move entirely) will receive support equal to 50% of that said stipulated supports. Self Relocation: Affected households who arrange their own relocation (including the record of their commitment to arrange their own relocation) will be supported as follows: (i) receive the ammount equivalent to the value of the infrastructure investments calculated averagely for each household in a resettlement site or (ii) support an additional amount equal to 20% cash compensation of such households when their land is acquired. The support amount is not less than 120,000,000 VND/household and not more than 300,000,000 VND/households for the urban districts. The support amount is not less than 80,000,000 VND/household and not more than 200,000,000 VND/household for the rural districts. For households who are not eligible for land compensation will be entitled to 50% of all the supports mentioned above Resettlement assistance: DPs who is entitled to receive land plot in RS are assisted with 5,000,000/household to stabilize their lifes. Bonus: Land users who abide by their inventory, deliver land on time, and meet the requirements of the employer during the project implementation period will be rewarded 5,000,000 VND per household. Support for households using long-term allocated agricultural land: (a) Support For Job Training And Vocational Guidance: a) The support amount is 2 times land price for the whole acquired agriculture area of the project but is not exceeding the local land allocation limit at the moment of handing over land. And, in case families are in need of training, apprentices, they shall be admitted to vocational training establishments in the province and are exempt from tuition fees for the training courses for those in the working age. At the project implementation, in case households whose income are seriously affected due to agricultural land acquisition, meet difficulties in changing jobs, then independent supervision consultant will inform Hai Phong People’s Committee and Client for consideration so that solutions to support these households should be proposed to ensure their affected income restored.

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(b) Support for stabilizing living for households with more than 30% of their agricultural lands affected by the project will be compensated with money one time equivalent to 30 kg of rice/person/month at local market price, including: (a): Affected households with from 30% to 70% of their agricultural lands acquired will be assisted for living stabilization for 6 months if they do not have to relocate and in 12 months in case of relocation. (b) Affected households with more than 70% of their agricultural lands acquired will be assisted for living stabilization for 12 months if they do not have to relocate and in 24 months in case of relocation. (c) Support for Vulnerable Group: (i) Families of martyrs, wounded and sick soldiers, heroes of the people’s armed forces and labour, and families who sacrificed to dedicate to the Revolutions, who have 10% or more of their land acquired, which are allocated based on the limit of long-term allocation of land, will be further supported with 6,000,000VND per household. (ii)Households under the Hunger Elimination and Poverty Reduction policy, who have 10% or more of their land acquired, which are allocated based on the limit of long-term allocation of land, will be further supported with 6,000,000VND per household to overcome their poverty, Support families with Agent Orange: 3,000,000 VND/person. Based on definition method for persons, percent of acquired square to calculate allowance levels i. Number of persons that will be supported includes: all persons of households, who are living from income source of agriculture production at moment of having decision on land acquisition. In case, some members in household with registration (in the family book) and received agriculture land but at moment of decision on land acquisition, he are working at other place but his main income is from local agriculture production and certificated by commune PC will be supported based on number of persons of household registration. This covers all vulnerable groups: farm dependant poor households should be surveyed for inclusion in the list of the poor households under the City’s Hunger Elimination and Poverty Reduction policy. ii. Percentage of acquired land will be defined based on acquired are of each project in comparison with assigned agriculture land based on limit of local agriculture land allocation. For households whose land affected by 02 projects or more than, if acquired land of one project is lower than 30% (does not receive support) and another project has land acquisition, they will be supported by plus affected land of 02 projects to calculate percent of acquired land (d) Bonus: land users, who abide by their inventory, deliver land on time, and meet the requirements of the project schedule set by the Employer will be rewarded from 2,000,000VND per household. Support for Relocated Organisations (a) Actual cost for moving, dismantling, installation and loss of properties and equipment reported by organizations whose land is acquired (or they hire independent consultants to make report) will be paid for them. The agencies on duty of compensation will inspect, certify; and the competent agencies will inspect in accordance with the regulation before submitting to the superior authorities for approval.

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(b) Organizations will be supported by 30% of their income after tax for one year. This will be determined by an average of income tax paid over the past three continuous years (with eligible documents and receipts) and certified by the taxation agency. (c) Workers for economic establishments, or licensed businesses households (that pay business rates of tax), that have labor contracts and are working on acquired land at the time of acquisition will receive 70% of their salary in accordance with the State Salary Scale applied for all sectors for up to 6 months . Workers who pay insurance will have 19% of their insurance fee paid. (d) The maximum cash payment based on approved investment projects shall not exceed the compensation rates on the types of land operated by the organization (specific rates of allowance or support will be determined by the PPC). Other assistance: After being compensated and assisted, if DPs still have difficulties in living restoration, Resettlement Committees will propose other assistance options to Hai Phong People’s Committee to stabilize lives for DPs whose land are acquired. The Entitlement Matrix for different types of losses and categories of DPs is shown in Annex 2 with number of DPs in each category indicated.

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6

RESETTLEMENT AREAS

6.1 RESETTLEMENT POLICY

6.1.1 Affected Residential Land

DPs who have all their houses and land acquired, or whose remaining land after acquisition is below the limits of local land allocation or below acceptable condition, will be entitled to resettlement and support for displacement and living restoration. The cases eligible for resettlement include: (i) DPs whose residential land and houses are totally acquired and they have no land to live in the same commune/ward/ township where the land is acquired, (ii) DPs whose residential land and houses are acquired; their remaining area of land after being acquired is not large enough for living according to the regulations of the City People's Committee; and they have no land to live in the same commune/ward/ township where the land is acquired, and (iii) households where many generations are living together (many couples; eligible to separate into nuclear households; and have the same ownership to a parcel of land, will be facilitated to live in a resettlement site and (iv) Households, who are not entitled to compensation for residential land but have no other land/house will be provided with land plot in resettlement sites, if they get certification of their homelessness from local authorities. In case, relocated DPs cannot afford, they will be indebted. Land allocation limit for resettlement includes: (i) in rural areas (communes): non-agricultural households: 60-100m2; agricultural households: 80-180m2, (ii) in urban areas (wards/towns): non-agricultural households: 40-90m2; agricultural households: 60-100m2. Households/individuals, whose land is acquired but they are not eligible for resettlement land allocation and the have no land in the commune/ward/township, the new land allocation limit for them is at minimum level. Land prices in the resettlement sites are calculated according to the land use fees for residential or trading, and service land (equivalent to the price of agricultural land plus infrastructure investment costs) If the compensation is not enough for households to pay the land use fee for residential land or trading and service land as regulated, they will be allowed to owe the land use fees.

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6.1.2 Affected Agricultural Land

As in the latest regulation in Hai Phong city, Individual agricultural households directly farming the land that are impacted will be assisted in cash for their living recovering, instead of non- agriculture or residential land allocation provision.

6.1.3 DP Entitlements and Liabilities

Entitlements and liabilities of households that have land acquired and must move to a resettlement area or another place are as follows: i. Relocation of schools for children and prioritization for family having their children in school-age; ii. Households who are compensated less than VND 50 million can keep all this money for building a house if they request it and owe the land use fee as stipulated. iii. Households who are compensated more than VND 50 million can keep 50 million for a building house. The remaining shall be used for paying the land use fee. If their remaining money is not enough to pay the land use fee, they will be owed as stipulated. When paying the debt, land users must pay based on the land price at the issuance time of land-use right certificates and house and assets ownerships attached to land; the debt time does not exceed 10 years. iv. Those who are allocated land in resettlement area will be exempted from fees for land surveys, land use right certificates, transfers of house ownership, and other registration fees. (These fees are supported by the PMU and the Government). v. DPs are entitled to refuse any resettlement area if it does not meet the conditions as announced to the public. vi. DPs must move to the resettlement area as scheduled, build a house and other structures in accordance with the plan, and take responsibility for other liabilities as stipulated by law.

6.2 DEMAND FOR RESETTLEMENT

According to survey results, there is total of 909 severely residential impacted households (estimated 3,667 persons), but due to current status of sub-household division, the number of household who need to be relocated in resettlement site is 1,757 for Main project Component A&B, (it does not include 07 relocated households who are affected by secondary impacts).

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Table 17: Summary of Demand for Resettlement Relocated Households Severely Total of No. District/rural district Ward/commune Sub- Impacts Relocated Households Households Households A Section 1: Quan Tru – Nam Hai 1 Le Chan Vinh Niem 39 45 84 Nam Hai 161 164 325 Dang Hai 186 81 267 2 Hai An Cat Bi 46 7 53 Thanh To 62 21 83 Dong Hoa 80 29 109 3 Kien An Trang Cat - Quan Tru 57 23 80 4 Ngo Quyen Dang Giang 3 10 13 Total A 634 379 1,013

B Section 2: Quan Tru – Bac Son 5 An Duong ditrict Dang Cuong 76 118 194 Hong Thai 10 28 38 Le Loi 33 16 49 Bac Son 156 14 170 Dong Thai 0 - - Total B 275 177 452

Sub-Total (A+B) 909 555 1,464 Contingency (20%) 293 Grand Total 1,757

According to the results mentioned above, a total of 909 households are eligible for resettlement, who are with severely impact of residential land, and with sub-household inclusive, of 555 subhousehold. Household and sub-household separation is currently quite popular in the Project communes (before and during the Project's investigation and inventory period), so the demand for resettlement at the time of compensation may be higher than the actual demand, that contingency for this is estimated about 20%, equivalent to 293, that total demand for relocation is 1,757 land plots. Therefore, the table above shows the Project's ability to provide resettlement lots based on the estimated needs. The above households will be classified and grouped based on the impact on residential land that needs to be reallocated, sub-household division etc, and the classification will support the arrangements in the Project's proposed resettlement area.

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6.3 PREFERENCE OF RELOCATING HOUSEHOLDS

The implementation of resettlement for displaced households is carried out through the following process: 1. Relocated and displaced households are consulted on resettlement areas; 2. Detailed design of the resettlement area is publicised; 3. Land lots and/or apartments in resettlement areas are allocated based on consultations with DPs; 4. Temporary residence is arranged/supported in case the resettlement arrangement is not on time; 5. Households are relocated to resettlement areas, and measurements are taken to restore living conditions. According to survey results and community consultation, some ideas and viewpoints of local people are as follows: Compensation and Resettlement: According to local people’s opinion, land acquisition and site clearance is quite common and compensation and resettlement for other projects are being executed in the area. Therefore, local officials and people understand quite clearly the role, significance and procedures of this work. Compensation and assistance levels are the issues that local people first pay attention to when a project is implemented; people expect the State to have a reasonable compensation policy so that they will not suffer too much. This is shown clearly in surveys of project wards/communes: 50.7% of households expected the Project to provide satisfactory levels of compensation. However, most people do not believe the situation will be satisfactory because of too many “pending” projects. People desire projects to be implemented soon to avoid risks when investing in land, 17.1% of households expected to be provided with convenient resettlement to limit disruption of their lives. Apart from compensation in accordance with stipulated rates, the people also expect more support for stabilising their lives after the Project implementation. Consultation Results for Resettlement Options: This is the core issue; most households are very interested in rates of compensation. Regarding resettlement location, people expect the Project to construct local resettlement areas, so it will not cause undue impacts and/or disturbance to people's lives, especially their social relationships and lifestyles. According to survey results (sample survey of 20% DPs, equivalent to 787 households), people generally tend to get land plots with basic infrastructure in resettlement sites (82.3%). Not many households choose apartments (1.8%) because they are not in the habit of living in apartments, and apartments are usually more expensive compared to the ability and income of local people. When allocated land lots, people will be more active in coordinating, processing and finding other business opportunities to maintain their living. A number of people (15.1%) indicated they would want to receive compensation and arrange their accommodation and resettlement themselves.

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Table 18: Survey Results of local DP's Expectations for Resettlement (by sample) Resettlement Alternatives Project Receiving Allocated affected compensation land lots with No. Area 16 persons and self- infrs in Apartments Others arranging Resettlement resettlement Site 1 Dang Cuong 192 10 180 2 0 2 Hong Thai 111 23 88 0 0 3 Le Loi 90 29 61 0 0 4 Dong Hoa 49 10 36 2 1 5 Vinh Niem 92 16 76 0 0 6 Cat Bi 22 8 12 0 2 7 Nam Hai 35 8 24 2 1 8 Thanh To 7 1 4 1 1 9 Quan Tru 9 1 5 2 1 10 Dang Hai 47 7 38 2 0 11 Bac Son 31 2 29 0 0 12 Dong Thai 102 4 95 3 0 13 Dang Giang 0 0 0 0 0 Total 787 119 648 14 5 Percentage (%) 100% 15.1% 82.3% 1.8% 0.6%

Additional consultation comments on the RP are as follows: 1. People generally understand the value and benefits of the Project, so they are in favor of its construction and activities related to site clearance and resettlement. 2. Local people want the new resettlement location near their old accommodation or within local wards/communes so their customs, habits, and participation in community (village/hamlet/commune) activities will not be disturbed, and their culture, community relations, etc will not change significantly. 3. People expect the resettlement area to be completed and handed over before the land acquisition. Technical and social infrastructure in the resettlement area must be completed before handing over to the relocated households. Households expressed their objections to temporary residence because it affects their living conditions and environment. 4. Most households in the Project area are transitional or middle-class so they expect the Project to pay for levelling fees and, if possible, the construction costs for technical and social infrastructure in the resettlement area. They hope that the compensation and assistance provided will cover the restoration of their lives in the new location. 5. Households also raised many questions about the compensation unit price, assistance policy for the urban poor, the Project criteria for the resettlement of households with affected agricultural land, etc. 6. The cost of the land plot at RS would be specified in the declaration for each relocated DPs.

16 Out of land plot, apartment, there may be some other options for relocated DPs to select such as land plot with house, or others that may raised by relocated DPs.

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6.4 DEVELOPMENT OF RESETTLEMENT AREA

6.4.1 Housing fund for resettlement

Statistical and survey results show that 3,037 households with nearly 12,500 DPs are affected by the Project and 1,757 households have to relocate to new accommodation. To prepare resettlement arrangements for households relocated by the Project, the PMU of Hai Phong Transport works, in coordination with Hai Phong city authorities, has chosen 12 resettlement sites and plans to select three more areas with a total estimated area of 372,050.42m2 as follows: - Bac Son commune, An Duong district with estimated area of 44,406.21m2. - Le Loi Commune, An Duong district with an estimated area of 20,056.47 m2. - Dang Cuong Commune, An Duong district with estimated area of 83,773.25m2. - Hong Thai Commune, An Duong district with estimated area of 13,693.81m2. - Resettlement No. 1 in Dong Hoa ward, Kien An district with estimated area of 25,720m2. - Resettlement No. 2 in Dong Hoa ward, Kien An district with estimated area of 19,545m2. - Vinh Niem ward, Le Chan district with estimated area of 19,074m2. - Resettlement No.1 in Dang Hai ward, Hai An district with estimated area of 30,161m2. - Resettlement No.1 in Nam Hai ward, Hai An district with estimated area of 17,633m2. - Resettlement No.2 in Nam Hai ward, Hai An district with estimated area of 22,172m2. - Resettlement No.3 in Nam Hai ward, Hai An district with estimated area of 23,112m2. - Trang Cat ward, Hai An district with estimated area of 55,966m2. Persons indirectly affected by the Project acquiring land for resettlement development will be entitled to the same compensation and assistance as households affected by main items of the Project.

6.4.2 Arrangement of Resettlement Area Resettlement Criteria And Procedure: As stated above, an estimated 909 households must be displaced to implement the Project and, according to the plan, the Project will be started in June 2012. Site clearance and resettlement for these households must be completed in December 2011 (6 months before the Project implementation) and continue in next stages. To catch up on the above mentioned progress, the PMU and related agencies will immediately begin the necessary activities for site clearance and resettlement. DPs eligible for resettlement include: . Households (890 cases) with a legal house on residential land that is wholly acquired and their remaining land area is not enough for stabilising their life. Of which, for relocated DPs in Le Hong Phong intersection, the Hai Phong PPC, PMU have discussed on the issue and decided that the land plots under most favourable condition in resettlement sites of the project; or of Cat Bi Airport Crossroad or of Lach Tray - Ho Dong, whichever they prefer, will be provided to these 40 households. . Ineligible households (19 cases) that do not have any other accommodation may apply for resettlement land allocation with the certification of the local authority and they must pay the land use tax.

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When asked, most DPs said they would like to receive a plot of resettlement land, and that resettlement areas should be near their current living places to maintain their current living conditions. The PMU or relevant agencies will consult with households and further discuss the detailed designs, plans and arrangement of resettlement areas before site clearance. Comments will be collected about the RPs (lots, apartments etc.) through application forms for allocating resettlement land to DPs certified by ward PCs. The following table summarises DPs, relocation, and resettlement. The PMU will arrange resettlement plots/apartments based on the expectations of DPs’ as stated in their application forms, then determine specific resettlement plots/apartments. Social Welfare Works: Affected local social welfare works will be rebuilt and reinstated in the estimated resettlement areas in Project communes. Other social infrastructure will also be supplemented (if necessary) to ensure the technical and social infrastructure in resettlement areas as per local people’s requests to maintain and stabilise their lives in resettlement areas. Production and Business Bases: Affected production and business bases with business registration certificates will be compensated or supported to restore losses equivalent to 50% of their annual revenue after tax based on the average income of the last 3 years as verified by the tax agency (equivalent to 100% of the average income of 6 months), and they will be supported to find new locations in Trang Due industrial zone (on the other side of Rao bridge). Resettlement Allocation: According to the survey on the demand for resettlement and the estimated arrangement of resettlement areas mentioned above, the arrangement of resettlement areas is shown as follows:

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Table 19: Summary of Resettlement Arrangement

Total Residential Public Types of Land Plots and Quantity Relocated Resettlement No Location Area Land Plot Facility HHs Sites 180 100 90 80 70 60 40 (m2) (m2) (m2) Total m2 m2 m2 m2 m2 m2 m2 I An Dương Dist 1 Bắc Sơn 168 Bắc Sơn 44,406,21 15,723.40 28,683 12 36 115 5 168 2 Lê Lợi 59 Lê Lợi 20,056,47 7,311.00 12,745 20 26 8 5 59

3 Đặng Cương 269 Đặng Cương 83,773.25 33,337.10 50,436 87 89 70 23 269

4 Hồng Thái 46 Hồng Thái 13,693.81 6,203.20 7,491 18 16 12 6 52 II Kiến An Dist 6 Đồng Hoà 131 Đồng Hoà 1 25,720.00 9,212.00 16,508 10 16 70 70 166

7 Quán Trữ 96 Đồng Hoà 2 19,545.00 9,327.70 10,217 40 73 18 131 III Lê Chân Dist 8 Vĩnh Niệm 101 Vĩnh Niệm 19,074 6,918.00 12,156 41 51 24 116 IV Ngô Quyền Dist 9 Đằng Giang 15 Vĩnh Niệm 19,074 6,918.00 12,156 V Hải An Dist 10 Cát Bi 63 Đằng Hải 30,161 12,045.00 18,116 30 166 196

11 Thành Tô 99 Nam Hải 1 17,633 7,236.00 10,397 44 72 116

12 Đằng Hải 320 Nam Hải 2 22,172 9,427.60 12,744 72 73 145

13 Nam Hải 390 Nam Hải 3 23,112 9,265.10 13,847 20 97 117

14 Tràng Cát Tràng Cát 55,966 15,142.00 40,824 67 22 211 300

Total 1.757 375,313 141,148 234,165 137 167 50 205 363 520 323 1.835

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The total planned resettlement area in the table above will be about 37.5 ha, of which the area for resettlement of DPs and secondary DPs within the resettlement area is estimated at approximately 14 ha, the remaining area will be a retention area for the construction of technical and social infrastructure. Criteria for priority resettlement: The priority in resettlement arrangements will be as follows: 1. Priority 1: Households with affected residential land and whose remaining area is not enough to rebuild houses, especially pay attention to relocation DPs in Le Hong Phong intersection. 2. Priority 2: Households with sub-households in the family. 3. Priority 3: Ineligible households with no other accommodation certified by local authority that expect for land plot in resettlement site. Cost Estimation For Construction Of Resettlement Area: According to the number of displaced households (as per survey data) and the construction scale of the resettlement area (37.2ha), estimated construction costs for resettlement areas in the 12 locations mentioned above is shown as follows: Table 20: Cost Estimation for Resettlement Construction 2 Unit price Amount No. Estimated costs Area (m ) (VND) (VND) 1 Construction Cost 375,313 ,945.763 403,000,000,000 2 Compensation Cost 375,313 198,305 150,000,000,000

TOTAL 553,000,000,000

Description of Land Acquisition in the Resettlement Sites: A Specific Resettlement Plan for 12 resettlement areas will be made separately, including social-economically survey, the map of resettlement areas, institutional, implementation plan and other related datas.

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7

REHABILITATION PROGRAM

7.1 OVERVIEW

The livelihood restoration programme plays an important role in implementing the RP when DPs lose business bases, jobs and other income sources, regardless of whether or not they lose their houses; those who lose both houses and income sources are the Project's highest risks. When a project creates negative impacts on local residents, they may become poorer or lose sources of power; they may lose land, jobs, houses, and/or be separated from their community; they may suffer from diseases and lack of food, lose rights to use public assets and be at risk for becoming involved in social evils such as social disorder, theft, and other criminal activities. Measures to restore the quality of life are the core of the RP implementation and should receive due attention and be designed in consultation with a large proportion of DPs. The objective of this programme is to restore the livelihoods of DPs to the same level or higher than before the Project implementation, and to ensure that DPs will adapt to their new living conditions as soon as possible. Income restoration plays an important part in the accessibility to improved livelihoods and economic welfare of DPs and the Project aims to enhance skills and/or create job opportunities for poor and vulnerable households. To implement the next steps of the RP, the PMU will coordinate with local authorities at all levels and social organisations such as the Women's Union to support job training and other activities to promote the restoration of the DP's' income.

7.2 ANALYSIS OF DEMANDS

Criteria For Rehabilitation Programme: Survey results show that a total of 1,042 households will suffer impacts on resident land, houses, and other fixed asset and works, and 909 households will need to be relocated and 1,958 households whose agricultural land will be affected; DPs mainly live or cultivate along the proposed road alignment. So, all relocated households and agricultural affected households will be entitled to the livelihood restoration assistance.

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Background Information On The Households: the households are currently primarily agricultural, though recently their main income has shifted to other sources such as businesses, services and freelance jobs; a few of them are members of staff/civil servants or employed by other companies, enterprises, etc. In general, most DPs are urban residents and residents in transitional areas during this time of urbanisation. DPs have been investigated and consulted through surveys and community meetings; their views and opinions for livelihood restoration after resettlement are as follows: Aspirations For Livelihood Restoration: This is a major problem because most households have livelihoods directly related to their current living places (communes such as Dong Thai, Dang Cuong, Hong Thai and Le Loi). and, accordingly, livelihood restoration issues is importance. When asked about the Project's level of impact, 74.7% of interviewed households said the Project will have significant impact on their lives, specifically: 42.9% of households said they will have not enough land for production; 36.6% said the Project would disorder their family life; and 12.9% said their economic issue will be more or less affected and influenced. People in the project area expect the project to provide several sources of work or vocational training. 43.5% of households are in need of job introduction by the project; 41.2% want to apply for credit loans, and 12% want to attend vocational training courses.

Table 21: Local People's Aspirations For Support

No. Forms of support Percent (%) Ranking 1 Job training 12 3 2 Credit loans 41.2 2 3 Job Creation 43.5 1 4 Other 3.3 Total 100%

7.3 PROPOSED LIVELIHOOD RESTORATION PROGRAM

7.3.1 Budget Source

The budget for the livelihood restoration programme shall be covered by the city's counterpart fund and incorporated in the Project's total resettlement costs.

7.3.2 Programme Description

The PMURTW, with help from Project Implementation Social Safeguard Consultants, and in coordination with the Vocational School to make consultation with local DP, then prepare a list of trainee, who demands for training, by category of subjects. Then, the PMURTW will propose a comprehensive income restoration programme, then send to Vocational Center, at the same time arrange and transfer buget accordingly.

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Vocational Training and Guidance There are currently vocational training and guidance centres in all city districts and they are utilised mainly by students, and people affected by land acquisition projects, and people referred by the Project. The vocational schools are recruiting children from households affected by agricultural land acquisition ; actual training course selection is up to local people themselves. The subjects are domestic and industrial garment trade; leather shoe manufacturing; sewing equipment repair; domestic and industrial electricity; electric and welding design; cooking; construction; cutting processing; cooling, milling; motorcycle repair, and office informatics. The trainee participate in the vocational training for duration of 03-12 month training cource, depend on each type of subjects. After completion, the trainee will be awarded certificate Projects are required to coordinate with the school to organise vocational training for affected households and/or recruit their children for work in factories. For example, In An Duong district, the majority of factories are for garments, leather shoes, and metal processing, and children in affected households are recruited to work in these factories. Training fees: From 450,000 VND to 1,050,000 VND per trainee for each course. Credit Loan Provision Besides that, during implementation phase, the DPs will be again surveyed about their demand for credit loan. If do, they will be assist to access some sourses of credit loan such as Revolving Fund organized by Woman Union (WU), Credit with low interest organized by Bank for Social Policy or Agriculture and Rural Development… The specific program will be developed by PMU, supported by social safeguard consultants during implementation phase. Job Arrangement. According to the list of trainees and demands of each trainee, The PMU will coordinate with vocational training centres under the direction of City People's Committee to work with industrial zones to introduce jobs to trainees. Agriculture Extension. Based on demands from local DPs, the PMURTW will contact to Center for Agriculture Extension by district levels to arrange training courses on agriculture extension.

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7.3.3 Institutional Arrangement

Project Management Unit: The PMU and Project Office No. 1 (under the PMU) will conduct a detailed survey of each household's vocational training demands, then contact the vocational training centre to organise training courses. Vocational Training Centre: Organises training courses for recruits and coordinates with the PMU to arrange/introduce jobs for trainees. Households: Participate in surveys, training courses and follow the instructions of the PMU and vocational training centre. Other related Agency: such as WU, Bank for Social Policy…

7.3.4 Estimated Cost

The cost of the livelihood restoration programme will be extracted from the Project's total cost of compensation, assistance and resettlement, which is about VND 2,055,900,000 (pls See Cost Estimation for details)

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8

CONSULATATION AND PARTICIPATION

8.1 OBJECTIVES AND POLICIES

The main objectives of consultation and participation are to: a) Ensure that all DPs and related agencies participate together in issuing decisions on involuntary resettlement matters; b) Minimise negative impacts caused by involuntary resettlement; and c) Avoid possible conflicts during Project implementation. As regulated in WB policy, DPs shall be fully informed and carefully consulted on resettlement and compensation plans. Consulting DPs is the starting point for all activities related to resettlement. DPs may be afraid that they will lose their livelihood and community, or that they are not well prepared for complicated negotiations on their rights. Participation in creating the RP and its management will help DPs relieve their worries and give them the opportunity to participate in what will affect their lives; implementing resettlement without consulting DPs is and improper and ineffective strategy. DPs may object to the Project if they are not consulted, and create difficulties that could delay or even halt the Project and increase its costs. If DPs are consulted any objections to the Project can be dealt with at the beginning and changed with constructive participation. . Important steps towards increasing democracy at the grass roots level in Vietnam is Instruction No. 30-CT/TW by the Central Committee of the Vietnamese Communist Party on the “Construction and implementation of a basic democratic regime,” and Decree No. 79/2003/ND-CP on the same topic. The key basis of this legal document is the well-known slogan: “people know, people discuss, people do, people check.” . Ordinance No. 34/2007/PL-UBTVQH11 points out matters that need the comments from local authorities and communities before the relevant authority issues a decision including the preparation of compensation, assistance and RPs related to projects and works in the wards/communes. Article 39, clause 2 of the 2003 Land law requires matters related to resettlement, such as reasons and plans for land acquisition, relocation, general compensation and site clearance plans to be published for DPs. Even so, consultation and participation is a new innovation in project implementation in Vietnam, and both local residents and officers in charge of project implementation lack

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experience in this field. The following points need to be focused on to encourage relevant agencies to participate in the Project's consultation process: a. Determining and encouraging all related agencies, and especially DPs, to join in consultation and participation; b. Establishing strategies for them to participate in project planning, implementation, monitoring and evaluation; c. Explaining strategies and details for disseminating necessary information and propaganda, and establishing procedures to enable DPs to negotiate their entitlements; d. Attracting related agencies to participate in making decisions at the different steps of Project implementation (e.g. modes of compensation, consulting DPs on compensation and implementation schedules, etc); e. Setting up a schedule for activities such as providing information; compensation levels and modes; and establishing interests, locations and the relocation plan; f. Establishing procedures for redressing grievances.

8.2 PROCEDURES FOR CONSULTATION AND PARTICIPATION

Publicising and disseminating information is an obligatory and essential phase in preparing and implementing the Project. Disseminating information to households affected by the Project and to concerned agencies, and gathering comments from relevant people and social and political organisations at every stage, will create the foundation for planning the Project and reveal contradictions and difficulties to be dealt with to avoid delays. This will facilitate the design of resettlement and restoration work in a comprehensive programme and meet the expectation of the Project and affected people. Dissemination information to DPs includes: Project Items: These include information about where people can acquire further information on the Project. Project Impacts: These are impacts on those living and working in the area affected by the Project, including explanations of why land needs to be acquired for each part of the Project. Interests and entitlements to compensation for DPs: This involves regulations for the DPs including land acquisition due dates. Interests and entitlements to compensation for all types of impacts DPs should be clearly explained, including compensation for those who lose their businesses, occupations and incomes; policies on land-for-land and cash compensation; related plans for individual re-organisation and resettlement, and the terms, conditions and benefits of each plan; and entitlement to support for recovery and occupational opportunities related to the Project. Complaints mechanisms and procedures: DPs will be informed that the Project’s policies and procedures are designed to ensure their living standard will be recovered to the same level as before the Project implementation. They will be informed to go to their commune/ward or the City Resettlement Committee for explanations and answers to their questions about any aspects of the Project. Should they have any questions about land acquisition, compensation, HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 77 RESETTLEMENT PLAN

resettlement, and/or the process of recovery, including their level of compensation, they have the right to complain and all their complaints will be handled by competent agencies. DPs will also be guided on the procedures for filing complaints. Entitlement to Participation and Consultation: DPs will be informed of their entitlement to participate in the planning and resettlement process. DPs will send their representatives to participate in CRCs in their rural/urban districts and wards/communes, and these representatives will be present at CARC meetings to ensure their participation in all aspects of the Project. Resettlement Activities: All affected persons will have full explanations of compensation calculation, payment, and monitoring processes, including interviews, relocation to independent resettlement /self-resettlement areas, and preliminary information on construction processes. Responsible Organisations: DPs will be informed about the responsibilities of all organisations and local governments concerned with resettlement, and the names and functions of relevant government officers along with their telephone numbers, office addresses and working hours (if any). Implementation Schedule: DPs will be informed of the estimated schedule for major resettlement activities, and that construction can only begin when resettlement activities are completed and DPs have moved out of the Project area. It is necessary to emphasise that DPs must move once they receive all compensations for their affected assets. Compensation Councils/Committees at all levels will be provided with maps and implementation schedules. Information Publication: The Compensation, Assistance and Resettlement Policy Framework will be posted for DPs and their community in public places such as the PMU, City PC, and urban/ rural district and commune/ward PCs once they are approved by the Government. After RPs are approved by the City PC, they will be posted in public spaces such as the PMU, urban/rural district and commune/ward PCs, and on websites of WB information centers in Hanoi and Washington, D.C. The RP and the Compensation, Assistance and Resettlement Policy Framework will also be broadcast widely through media such as local radio and TV, and in newspapers, posters, leaflets, etc. Furthermore, the PIB will be needed for distribution in this phase. Community Consultation and Participation: Disseminating information is essential during the Project implementation to gather feedback to assess resettlement impacts, and propose recommendations/options to reduce or eliminate potential Project related adverse effects on the community, and to cope with any issues that may arise. The methods of information dissemination and community consultation may include Participatory Rural Assessment (PRA) through family visits, site visits, community meetings, group meetings, focus group discussions, and socio-economic surveys. At the beginning of the preparation stage, local authorities and other government leaders at various levels will be informed about the Project, its objectives and activities. They will be consulted and actively participate in discussions about the demand for development and the priorities in their hometowns. They can also contribute comments and ideas about possible adverse effects of the Project and how to mitigate them and increase their community's interest in the Project. Local authorities will also be consulted about their consensus and commitment to the resettlement policy in the Project Framework that reflects the policies of both the WB and HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 78 RESETTLEMENT PLAN

the Vietnamese Government. The mass media, including central and local television and the press, will broadcast the Project's objectives, components and activities in public areas once they have been approved. During the Project implementation, the PMU and the Project consultants will consult with the community about the Project. They will be responsible for: - Providing information about the councils for compensation and land acquisition at all levels through training workshops which will detail Project policies and implementation procedures. - Providing information and consultations for DPs during the Project. - Updating unit prices issued by the City PC, and re-affirming of land acquisition and impacts on assets based on the DMS created with the participation with DPs. - Assigning the rural and urban district CRCs to fix the prices, define compensation entitlements, and complete a plan for asset compensation and assistance for each affected household. The district PMU or the rural/urban district CRCs will then announce this information in community consultations to those who are directly affected by the Project. - Having DPs sign the plan for asset compensation, stating the number of affected assets and compensation entitlements for each household, to certify their consensus and agreement with the assessment. Any questions from the DPs on the contents of the plan must be acknowledged at this time. - Sending letters and/or questions relevant to resettlement options to all DPs to (a) inform them of resettlement options (with clear explanations of each option), (b) request that they choose an option for resettlement and affirm the location of a resettlement site, and (c) request that they clearly state the services they are currently using, such as education, health care, and markets, and the distance they travel to access such services. - Consulting with DPs about their expectations for recovery support and applying this to affected and vulnerable persons. The rural/urban district CRCs will inform the DPs about the plans and entitlements to technical assistance before asking them to state their expectations for recovery support. Community Meetings: Prior to the detailed design, community meetings should be organised in each affected commune or ward to provide more information to DPs and create an opportunity for them to participate in open discussions on resettlement policies and procedures. Notification or invitations to the DPs must be sent at least two weeks prior to the meetings. The purpose of these meetings is to clarify information up to the date of the meeting, create an opportunity for discussion, and clarify information. In addition to letters to individual households, information should be disseminated through posters in public areas of communes and wards, and rural/urban districts where DPs are living, and/or via radio, newspapers, etc, to inform DPs and the community. Men and women in affected households and other people in the community are encouraged to participate in meetings where the Project will be explained, the interests and entitlements of households will be clarified, there will be the opportunity for people to speak their concerns. Such meetings will be held periodically during the process of the Project. Textual and visual information will be provided for the DPs in the meetings and copies of such

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information will be available in the City and concerned communes/wards in the Project area. The meetings should include: - Textual and visual explanations, including printed information and tentative drawings of The Project's for its different items. - Facilitating DPs in expressing their opinions, answering their questions, and encouraging them to contribute their ideas to the recovery plans. - Rural and urban district CRCs preparing a complete list of affected households that participate in the meetings. - Rural and urban district CRCs preparing a comprehensive list of questions, comments, ideas and decisions that arise during the meetings and consultations and reporting all the meetings to relevant PMUs.

8.2.1 Consultation in the Preparation Phase

At the beginning of sub-Project preparation, local authorities and administrative leaders at all levels was informed about the proposed Project and the objectives and works its various components. They was thoroughly consulted and actively participated in discussions about their demands for development and their priorities, as well as their awareness of the Project's objectives. DPs was consulted about impacts and applicable measures to minimise negative impacts and improve the benefits for local residents. Local authorities will also be consulted about their agreement with and commitment to implementing the resettlement policies in the approved RPF. In early April 2009, a large scale socio-economic survey and asset inventory was conducted in five rural and urban districts and 13 projected wards. The survey team surveyed 25% of households partly affected by the Project and conducted an inventory of all households either wholly or partly affected by the Project. The resettlement advisory group also conducted community consultations (group discussions with Project affected communities) to collect quantitative information about demographic status, sources of income, expectations for compensation prices, etc. After the Project is officially approved, this Component A, including Project objectives and components and preparation for on-going projects, will be published via national and local press and television

8.2.2 Consultation in the Project Implementation

During the Project's implementation, PMUs shall undertake the following with the support of the Project consultants: a) Providing information for district CRCs at all levels through training seminars and providing detailed information about the Project's policies and implementation procedures. b) Organising information dissemination and consultation with DPs during Project implementation.

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c) Comparing annual unit prices and the Project's tentative compensation unit prices; and reaffirming the scale of land acquisition and impacts on assets based on the results of the DMS and consultations with DPs d) District PCs will publish Project land acquisition policies and invite households to participate in popularising the Project and its legal basis. e) Each household will in turn participate in the measuring and inventory of assets, and sign the drawings of the acquired housing/land and inventory of lost assets. f) Households will be involved in reviewing the draft plan for compensation, the calculation tables, and the amount of compensation for each household. g) Each household has the right to reflect, raise their questions about the calculation of compensation and have their questions answered satisfactorily according to their specific situation, including issues related to resettlement such as prices, installment payments and procedures for documenting ownership in the new place. h) After that, district CRCs will calculate compensation based on the agreed prices and complete the compensation plan for affected assets. The PMU will present information on entitlements for DPs in the next consultation with households. i) The plan for compensating assets shall clearly state affected assets and the compensation to which DPs are entitled, and this shall be signed by the DPs to show their agreement with the evaluation results. Any questions DPs have on the contents of the plan shall be noted at this time. j) Sending DPs letters and/or questions related to the RPs to inform them about the plans and clearly explain the consequences of each plan, if any. k) Requesting DPs confirm their choice of RPs and get their preliminary confirmation of the location of the resettlement area. Displaced households will visit the proposed resettlement areas to make their selection. l) Requesting DPs to clearly state services they are currently using such as education, health care, and markets, and the distance they travel for these services. Affected and vulnerable DPs will be consulted about their desires regarding restoration assistance in the RP. Project compensation boards will inform DPs about the plan and their entitlement to technical assistance before requesting them to clearly present their desires for restoration assistance. Community Meetings Before starting detailed designs, the resettlement advisory group will conduct community meetings in affected wards/communes to provide additional information for DPs and create opportunities for them to participate in open discussions about resettlement policies and procedures. ward PCs or residential groups will hold meetings to consider and resolve issues related to details of the Project, compensation policies, household land use status, and land use origins.

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8.2.3 Information Disclosure

In addition to public announcements for DPs and their communities, the PRF and RPs must be readily available in departments and branches of the City PC, Project affected district/ward PCs, the Info Shop in Washington, D.C., USA, and the WB's Vietnam Development Information Center (VDIC) in Hanoi.

8.3 COMMUNITY CONSULTATION RESULTS

8.3.1 Organising Community Consultations

Before, during and after the socio-economic surveys and preliminary statistics of affected assets, the consulting group worked and consulted with stakeholders in compensation and resettlement, including ward officials, heads of residential groups and the community. Before the survey, the consulting group worked with local authorities to inform the about the implementation of projects in general, and socio-economic surveys and investigating affected property in particular. The survey process requires smooth and thorough coordination among authorities at all levels. After the survey, the consulting group worked with the local officials to report the survey results; collect information related to compensation and resettlement in the areas; report the advantages, disadvantages and lessons learned; propose the preparation of RPs; and set up a temporary organisational system to monitor and continue the implementation of this work in the next phases. Officials nominated to participate in the compensation activities of each project will be the chairmen of wards, cadastral and urban officials, and heads of residential areas. A list of these officials is included in the appendix to this report. First round consultation was held from February 17th, 2009 to February 19th, 2009, and second round from June 02nd to June 07th 2009, that aim to inform and consult with citizens and communities on Project policies and the benefits to which local people are entitled in the Project. Specific programme are shown as follows:

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Table 22: Sequence of Community Consultation Meeting

No. Working place Working Time 1 Bac Son Commnue June 02nd 2010 9am 2 Le Loi Commnue June 02nd 2010 2:30pm 3 Dang Cuong Commnue June 03rd 2010 9am 4 Dong Thai Commnue June 03rd 2010 2:30pm 5 Hong Thai Commnue June 04th 2010 9am 6 Dong Hoa and Quan Tru wards June 04th 2010 2:30pm 7 Vinh Niem ward June 05th 2010 9am 8 Dang Giang and Cat Bi ward June 05th 2010 2:30pm 9 Thanh To ward June 06th 2010 9am 10 Dang Hai ward June 06th 2010 2:30pm 11 Nam Hai ward June 07th 2010 9am Note: - Dong Hoa and Quan Tru wards held a joint community consultation meeting at the Dong Hoa ward PC office, and Dang Giang and Cat Bi wards held a joint community consultation meeting at the office of Cat Bi ward PC.

8.3.2 Community Consultation Results

The main/key issues regarding local people in community consultations focused on the following: - Their consensus on the Project's implementation and agreement with the land acquisition plan in Project affected areas. - Information about compensation plans and prices given in advance for their agreement prior to Project implementation. - Notification of and consultation on land acquisition and site clearance plans. - Tentative resettlement locations and plans. - Their aspirations for livelihood restoration programmes after resettlement. - Other exchanges and discussions on various issues raised. Details of discussion issues are summarised in the following Table:

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Table 23: Summary of Comments in Community Consultations

Commune/ Comment’s No. Desctiption of the Community Comments ward Redressals 1 Bac Son 1. The Project roads affect local existing roads, so people expect Based on the

the Project to retain local roads for people to travel community conveniently. comment on 2. People expect reasonable compensation prices and assistance the safeguard to avoid negative impacts on affected persons. and other 3. Paying attention to drainage ditches and drains the Project issues of the roads pass by. project 4. People expect the resettlement area located near the cultural preparation and houses of hamlet No.5. construction, it is addressed 2 Dang 5. People expect reasonable and suitable compensation prices for that: Cuong each affected household 6. Retain hamlet and inter-hamlet roads. If this is impossible, 1. The project there must be appropriate measures to avoid negative impacts road will be on the lives of local people. designed and 7. Resettlement arrangements must be appropriate, and the constructed resettlement area must be within the scope of the commune; that the the construction of the resettlement area must be completed intersection before the Project acquires the land. will be convenient for 8. Because many households whose agricultural land is seriously local affected need to change their careers, people in Dang Cuong transportation. commune expect the Project to develop vocational training programmes for the youth to ensure households adapt quickly 2. The after this change. compensation 3 Dong Thai 9. People want to know the timeframe of the Project rate will be on implementation and request that construction begins the construction soon so they can make plans to improve their replacement houses and arrange their production activities. cost basis. 10. If public works such as internal drainage ditches are affected, it 3. New is necessary to minimise impacts or issue appropriate policies resettlement to remedy the situation. sites will be 11. Local roads linking hamlets, especially road No. 208 linking to located in the the trunk road, need to construct underpasses or flyovers to same area facilitate travelling for people. where land 12. Reasonable compensation prices should be established. acquisition taken, which 4 Hong Thai 13. People expect the Project to construct the ditch from the might be along pumping station to Kien Phong lagoon. with the 14. The Project should build a large culvert to drain water for the proposed road. whole commune during the rainy season and supply irrigation water to Hy Tai hamlet. 4.Rehabilitatio n program will 15. Set up reasonable compensation and resettlement policies in be prepared accordance with each household and paid to 16. Individual cases: when the project roads pass by, two DPs by cash, households, namely Mr. Thu and Mr. Trong have to move HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 84 RESETTLEMENT PLAN

back, right beneath the high voltage, which is dangerous and plus to some they will be separated from Hy Tai hamlet, therefore, the vocational Project should have appropriate measures to resolve this. training and 5 Quan Tru 17. For reasonable compensation and resettlement for each occupation household, it is recommended that the Project arrange road- creation, if facing resettlement areas for business households in Truong demand from Chinh Street to continue their business and ensure their DPs is defined. livelihoods. 5. Base on 6 Dong Hoa 18. Resettlement area must be suitable and located within the ward approval of the area and near their old houses, to facilitate households’ living FS report, the and production. project 19. Most of the horizontal trunk road covering Chien Thang, Doan construction Tien, Hoa Nhat, and Tu Lap separates the residential areas timeline will be from their fields, so it is necessary to construct road crossings provide to facilitate travelling and production for local people. publicly to all 20. The majority of the houses remaining after road construction DPs and non- are grade 4 houses with weak foundations at risk of being DPs, for their affected by the construction phase later operation when heavy- information. duty vehicles will cause vibrations. Measures must be taken to 6. Any impact reduce vibrations or set up reasonable compensation and on public support policies. works such as 7 Vinh Niem 21. The resettlement area must be near the new residential area and irrigation, it should be situated within the ward. The ward is currently sewers, deploying dozens of projects and this could make it difficult drainages or for site clearance and compensation. It is best to arrange a any resettlement area near the Project road and close to Cau Rao underground bridge No.2 - this area has space for a resettlement area. work will be 22. Compensation plan: land-for-land is suitable for local re-strcutured conditions. However, where the locality’s land fund is not by enough, plans for appropriate compensation and support should contractor(s). be arranged. 7. Any case, 8 Dang Giang 23. The Project affects mostly trading and manufacturing units, so that might be they expect the Project to be implemented soon with partly impacted appropriate compensation and due attention to losses caused by by the project business interruptions but also partly 24. Suitable resettlement areas should be arranged for affected affected by enterprises; the City gives priority to allocating similar another project, business places to current business enterprises. that totally severely impact 9 Thanh To 25. Clear the site quickly so local people can avoid the massive will be construction. considered, 26. Request that consulting technicians take local officials to study case by case if the route. to be 27. Request the development of a resettlement area within the compensated locality (Dam Da area). fully or not? 10 Dang Hai 28. Resettlement area must be built locally and handed over before 8. “Land for the site clearance and relocation. land” 29. Compensation and support policy must be reasonable. mechanism

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30. There must be plans for ensuring the lives of those who lost will be applied land and having no other working capacity, and they must be in the project, able to attend vocational school. that many 11 Nam Hai 31. Pay attention to surrounding environment during construction. resettlement places close to 32. Set up a reasonable compensation policy; if possible, local or nearby people prefer land-for-land compensation. project area 33. Pay attention to irrigation systems for households to continue where land production, the primary cultivation in this area is flowers, acquisition therefore, water for irrigation is very important. taken will be 34. Resettlement area must have all necessary infrastructure and be selected. handed over to households before compensation for clearance. 9. Business 12 Le Loi 35. People expect to know the location of irrigation ditches and Loss will be drainage systems if the Project affects the agricultural compensated or irrigation system assisted 36. People expect a flyover or underpass to be constructed at Cong reasonably. Phat junction (or between Luong Quy and Trang Due hamlet) for convenient travel.

Overall, local people focused on issues related to relocation and resettlement in these consultations; they were concerned with the progress of the Project, the location of tentative resettlement areas, resettlement methods, etc. The details of these consultations related to relocation and resettlement are stated in Part 6: Resettlement Area.

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9

GRIEVANCES REDRESS MECHANISM

9.1 RESPONSIBILITY

Agencies in charge of implementing the procedure for handling complaints during compensation and land acquisition include the City PC; relevant Departments; compensation and land acquisition councils at all levels; and local PCs in Project affected areas. Depending on the functions and tasks at each level, the mechanism for handling complaints by DPs will be regulated in accordance with legal documents promulgated by the State. Detailed procedures on handling complaints will be established for the Project to ensure that DPs have the opportunity to present their complaints about compensation and resettlement; the objective is to quickly settle their complaints according to the established procedures. This mechanism will be designed to be simple, understandable, quick and fair. Handling complaints at each Project level will facilitate the smooth implantation of the Project. DPs who do not agree with the decision on compensation, assistance and resettlement are entitled to raise complaints based on the legal regulations. Handling complaints against compensation, assistance, land acquisition and resettlement decisions, and with the responsibility for resolving complaints, and validation and settlement procedures shall be implemented in accordance with Article 138 in Land Law 2003, and Article 63, 64 of Government Decree No. 84/2007/ND-CP, dated May 25, 2007, and regulations on handling complaints in Decree No. 136/2006/ND-CP. While awaiting complaint settlement, people whose land is acquired must follow the decision on land acquisition and hand over land on schedule in accordance with the plan decided by competent state agencies. Grievances against administrative decisions on land management shall comply with regulations and laws on settling complaints as regulated in Article 162, Decree No. 181/2004/ND – CP.

9.2 COMPLAINT PROCEDURE

The DPs are entitled to file complaints regarding their interests and responsibilities in the Project implementation, entitlement to compensation, compensation policy, unit prices, land acquisition, resettlement and other issues related to the support program. DP complaints should

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be presented as written documents, and they can report their complaints to the PMU and commune, ward, rural and urban districe GRCs free of charge. The Grievance Redress Committee (called GRC) at 03 levels (commune/district and provincial level) will be established at the time of the project announcement publicly. At each level, the committee members will include 5-7 representatives from PMU, CRC (1-2 persons at each 03 level), mass organization/civil society/CBOs/NGOs (1-2 persons), Lawyer Union/associations … and DP representatives , which is a positive way to resolve issues that concern DPs. If it is impossible to solve their complaints at the commune or ward level, DPs can take the following steps: Procedures and Steps to Resolve Complaints: Resolving complaints related to the RP, including determining the area and value of affected assets will be conducted as follows: Step 1. Persons who are unsatisfied with any issues in the program of economic recovery and resettlement can report verbally or in writing to their Ward/Communal GRC that will be responsible for resolving their complaint in writing within 15 days. Step 2. In case, no response is made from the GRC at ward/commune level or DPs who are unsatisfied with the decisions of the ward/communal level in Step 1 can appeal to the District GRC within 15 days of the date of the decision in Step 1. The District GRC will be responsible for resolving the complaint within 15 days. Step 3. If no response is made from the GRC at district level or DPs who are unsatisfied with the decisions at the district level, DPs may appeal to the Hai Phong City GRC within 15 days of the decision in step 2. The City GRC will give their decision on the complaint within 15 days. Step 4. If no response is made from the GRC at city/provincial level or DPs who are unsatisfied with the decision at the city level, they may present their petition to their district court for a decision within 15 days of the decision by the GRC at the city level. Persons filing a complaint will not be charged administration or complaint fees.

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10

INSTITUTIONAL ARRAGEMENT

10.1 INSTITUTIONAL FRAMEWORK

Agencies related to land acquisition and resettlement include:

o People's Committee of Hai Phong City o Project Management Unit of Regional Transport Works o District People's Committees o District Compensation Boards o Project ward People's Committees o Representatives of the DP community o Independent Monitoring Agency

10.2 RESPONSIBILITIES OF RELATED AGENCIES

Implementing compensation, assistance and resettlement requires the participation of local organisations and agencies at city, district and ward/commune levels. The City PC shall take general responsibility for the Project's compliance with provisions in the approved Resettlement Policy Framework and Resettlement Plan. Compensation, assistance and resettlement councils will be established at the district level in accordance with the provisions of Decree 197/2004/ND-CP and Decree 17/2006/ND-CP and the hierarchy of City PC. Provisions and the PRF policies will be the legal basis to implement the Project's compensation, assistance and resettlement in Hai Phong city. Hai Phong City PC: This is the most powerful agency that issues regulations; resolves issues related to guidelines and policies; directs the Project implementation; and provides the link between the Project's functional units during implementation. Decision No. 1609/2010/QD- UBND dated, September 30th, 2010, specifies that district PCs will be authorised to implement compensation, support and resettlement when the State acquires land within the city area. The City PC shall be responsible for: a. Promulgating regulations specifying the legal mechanism for compensation, support and resettlement policies in accordance with the city's actual situation. b. Directing district departments, branches and People's Committees in: HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 89 RESETTLEMENT PLAN

- Preparing construction investment projects for resettlement areas that satisfy the requirements of compensation for land clearance and land acquisition. - Preparing compensation, assistance and RPs within their jurisdiction. - Approving compensation, assistance and RPs. c. Deciding or authorising the Chairmen of district PCs to force unwilling cases to comply with the land acquisition decision, within the power of the city. d. Inspecting and handling violations in compensation, assistance and resettlement. District/Rural District PCs are responsible for: a. Directing, organising, disseminating propaganda and motivating all concerned organisations, households and individuals to comply with the compensation, assistance, resettlement policies, and implementing site clearance in accordance with the decision of competent State agencies; b. Leading compensation councils of the same level to establish, appraise and approve compensation, assistance and RPs as assigned by the City People's Committee; and implementing the compensation, support, and resettlement for projects promoted by the Land Fund Development Centre under the Department of Natural Resources and the Environment. c. Appraising and verifying copies of land origin documents issued by commune People's Committees. d. Coordinating with departments, branches, organisations and investors to set up and implement construction investment projects for resettlement areas as assigned by City People's Committees. e. Settling citizens' claims and complaints regarding compensation, assistance and resettlement within their competence; making decisions to organise and force site clearance and land acquisition involving unwilling cases within their power or as authorised by the City People's Committee. District/Rural District Compensation, Assistance and Resettlement Councils (District CARCs): The body assisting district/rural district PCs in organising the implementation of compensation, assistance and resettlement. The Council is established by district PCs and its members consist of: a. Leaders of district PCs - Chairpersons of the Council b. Leaders of the Natural Resources and Environment Division – Standing Vice Chairpersons of the Council c. Leaders of the Compensation and Site clearance Committee (where there is such a committee) - Standing Vice Chairpersons d. Leaders of the Finance and Planning Division - Standing Vice Chairpersons of the Council e. The employer - Standing member f. Commune PC Leaders of communes where there is acquired land - Members HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 90 RESETTLEMENT PLAN

g. Head of residential areas where there is acquired land h. Representatives of households whose land is acquired (one or two people who understand the law and are able to mobilise the public) as selected by the commune PCs i. Other members nominated by district PC chairpersons based on local conditions. In cases considering land allocation and resettlement housing, the District CRCs will add representatives from relevant departments and divisions e.g. Labor, War Invalids, Social, Tax, Police, Fatherland Front, and the Veterans’ Association. j. Chairpersons of District CRCs can establish mission teams to help the Council implement each project. District CARCs are responsible for: a. Preparing compensation, assistance and RP to submit to the competent authority for approval, and then organising its implementation. b. Together with members of mission teams established for each project in every specific project area, being responsible for the accuracy and legality of compensation, assistance and resettlement; the source of the land; inventory data; and the legality of assets associated with affected land that may or may not be eligible for compensation or support. c. Solving beneficiaries' petitions related to compensation, assistance and the RP; and reporting cases beyond their power to the district PCs for settlement. d. Giving instructions to the employer and local government on implementing payment for compensation, assistance and resettlement. e. Coordinating with the Centre of Land Fund Development, (Department of Natural Resources and the Environment) for compensation, assistance and resettlement of investment projects in the area. Commune PCs are responsible for: a. Organising propaganda about the objectives of land acquisition, and the policy of compensation, assistance and resettlement for affected people. b. Coordinating with agencies in charge of implementing compensation, assistance and resettlement to guide affected households in enumerating and certifying their inventory of land and assets associated with the land. c. Preparing and taking responsibility for the accuracy of documents concerning land sources, family members, registered members, social policy beneficiaries, and proposals for DP resettlement. d. Together with the Employer, implementing payment of compensation, assistance and resettlement for affected households and creating favorable conditions for Project site clearances. Project Management Unit Of Regional Transport Works: The PMU is the agency that assists the Employer (Haiphong Department of Transport) and directly manages the project implementation. The PMU shall be responsible for the implementation of the Project Resettlement Plan and its main tasks are: HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 91 RESETTLEMENT PLAN

a. Coordinating to organise and monitor Project resettlement activities; making detailed plans for site clearance; and signing contracts with concerned agencies for implementing compensation, assistance and resettlement. b. Preparing an RP or updating the approved RP (if necessary) to conform to this policy framework and submitting it to the City PC and WB for approval before implementation. c. Preparing a land fund and resettlement areas for displaced households in advance, or requesting that the city PC prepare resettlement areas; and paying the costs of infrastructure construction and housing projects in resettlement areas, as stipulated by law. d. Participating in rural and urban district compensation and resettlement committees; providing necessary information relating to the Project and the compensation plan; and supporting assessments and appraisals of the rural and urban district compensation and resettlement councils. e. Offering guidelines for implementing the policies of the Project Policy Framework and RP. f. Preparing an efficient and timely budget to meet the costs of preparation and payment of compensation, assistance and resettlement to affected persons and related administrative costs, and costs for forced site clearance (if any). Organising the direct payment of compensation, assistance and resettlement to affected households in coordination with the rural and urban district land acquisition committees and commune and ward PCs. g. Appointment of professional appraiser to conduct Replacement Cost Surveys (RCS). This survey must be carried out at the initial stages of DMS preparation. The TOR for the RCS is included in the Annex. h. Appointment of External Monitoring Agency. The TOR is included in the Annex. External monitoring reports should be prepared every quarterly and submitted to the PMU, with a copy to the WB directly. i. The PMU will be responsible for standardized data management system in the project. In this respect, it needs to prepare standardized formats for DMS and tabulation of data on impacts and socioeconomic characteristics and for entitlements. These standard formats should be provided to all the districts / communes to follow. The PMU will begin work to prepare these formats as soon as possible and if ready, these should be provided in the annex. j. Planning for internal monitoring of resettlement activities and ensuring their compliance with Project policies. k. Creating a database of affected persons for each component and the entire Project that will be accessible to all concerned agencies. l. Receiving the handing over of land and delivering land to the construction companies. m. Periodically reporting to the WB on resettlement activities. Independent Monitoring Organisation: An independent agency/organisation, or research institute specialising in social sciences is required to determine and employ to carry out socio- economic surveys, and monitor and evaluate the implementation of Project RP, and the PMU will sign a contract with the selected Independent Monitoring Agency. Costs for the independent monitoring of the Project's resettlement activities will be deducted from the Project's ODA

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loans. The independent monitoring agency will report periodically on the progress of implementation and make recommendations for solutions to any problems they discover. Social Safeguard Implementation Consultants: the Consultant will be responsible for (i) in cooperation with PMURTW to internally monitor all project implementation of land acquisition, compensation; (ii) provide all necessary assistances aimed to resolving all shortcoming and other remaining issues during compensation and resettlement implementation and (iii) in coordination with IMA hired by PMURTW to monitor all DP’s income restoration, if not the consultant will be responsible to propose and prepare a further special package, submitted to PMURTW and HPPC for approval, then implement in the project area, for their living condition to be restored.

10.3 AGENCIES COORDINATION REGIME

Hai Phong City PC

DCRCs

1. District Chairman/Vice Chairman PMU (Chairman of the Council) 2. District Departments 3. Representatives of PMU 4. Representatives of ward PC 5. Representatives of households Sub-CRCs

Measurement, price application, compensation

DPs

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11

IMPLEMENTATION PLAN

11.1 MAIN ACTIVITIES

Pursuant to the land acquisition, compensation, assistance and resettlement by the Government of Vietnam and the requirements of the policy framework, the main activities in land acquisition and site clearance are as follows: 1. Land Allocation Procedures: After reaching an agreement regarding the principles of the Vietnamese Government and the WB on the loan agreement, the PMU will prepare the documents and submit them to the City PC for approval. Since, the Hai Phong‘s PC will issued official document that assign area of land inside the project land acquisition boundary as required to the Project owner (s). 2. Establishing Compensation, Assistance and Resettlement Committees (CRCs): Within 15 days of receiving the land allocation documents from the Employer, district PCs will establish CRCs for the Project and assign tasks and functions to concerned agencies and units. The PMU will assign a representative to be a permanent member to these councils on behalf of the Employer. The district Compensation and Land Acquisition Committee is a permanent agency of the district PC responsible for implementing works and reviewing documents to submit the urban and/or rural district PC for approval. 3. Land marking for Project Site Clearance: After the land acquisition decision is approved by the City and urban/rural district PCs, land will be handed over to the PMU for Project implementation. The PMU will coordinate with the Department of Natural Resources and the Environment (DONRE) and a professional cadastral agency contracted by the PMU to identify Project site clearance landmarks, plant landmarks at the site, deliver the site for clearance, and implement procedures for the compensation, assistance and resettlement of DPs to clear the site for the Project. The Natural Resources and Environment Division and the concerned ward/commune PCs will assign specialists to participate in these works. 4. Training resettlement staff: After the establishment of rural/urban district CRCs, all staff in charge of resettlement under the PMU, rural/urban district CRCs, and ward/commune officers will be trained by resettlement specialists. The PMU will take the main responsibility for organising resettlement training on topics including: i. RP objectives; ii. The main principles, policies and compensation entitlements stipulated in the RP; iii. Methods of consultation and information dissemination; HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 94 RESETTLEMENT PLAN

iv. Steps of implementation, procedures and schedules; v. Mechanisms to redress grievances; and vi. The liabilities and entitlements of individuals and organisations participating in the implementing the RP. vii. The use of these formats and setting up of computerized data management system should also be one of the areas 5. Information campaign before detailed inventory and measurement: Competent State agencies (in this case the PMU and the urban/rural district PCs involved with the Project) shall notify DPs in writing explaining the reasons to acquire land, the time and schedule of relocation, and the master plan for compensation, site clearance and resettlement as stipulated in Decision No.130/2010/ QD-UBND. The DPs shall be notified at least 90 days before the commencement of land acquisition if it concerns agricultural land, and 180 days before land acquisition for non-agricultural land. The PMU, together with the rural/urban district and ward/commune authorities, will provide people in the Project area with information about the Project prior to the detailed inventory and measurement phase. Information will be disseminated through community meetings and local loudspeakers as well as mass media (radio, newspapers, TV, leaflets, letters to households, etc). Meetings to disseminate information will be organised in Project affected wards to inform the affected community about: • The scope and scale of the Project; • Impacts of the Project; • Policies and entitlements for compensation for damages and losses; • The implementation schedule; • Organisational responsibilities; and • Complaint redress mechanisms. Informational documents (pictures, photographs, brochures, etc) about Project implementation will be prepared and distributed to all affected wards/communes at the meetings. Besides that, Public Information Booklet (PIB) will be prepared prior to the start up of resettlement implementation activities to facilitate information dissemination in the project. 6. Survey of replacement prices: a professional consultant (appraiser) would be appointed by the PMU to conduct Replacement Cost Survey (RCS) to validate or otherwise the rates established by the City authorities and to ensure that the compensation rates reflect prevalent market prices. The RCS should be carried out prior to the preparation of the General Plan for Compensation, Assistance and Resettlement 7. Detailed survey, measurement and compensation plan preparation: District compensation and site clearance committees will collect detailed measurements and inventory data for each type of asset or business lossed affected by the Project when the detailed design is available. The results will be the basis for the Project's compensation,

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assistance, and update of the RP. The updated resettlement plan will be submitted to the PPC and the Worldbank. 8. Preparing a general plan for compensation, assistance and resettlement: the Project Owner, with help from Social Consultant will be responsible for preparing a general compensation plan for each affected ward or commune. 9. Compensation and assistance: The payment of compensation and allowances will be supervised by representatives from the rural and urban district CRCs, commune governments, and DPs. 10. Awarding the construction contract: When all DPs in each segment of each Project item have been compensated and assisted in accordance with the RP policies, construction units will receive the site and begin construction as per approved designs. A Grievance Redress Committees at city/province, district and commune levels with participation by civil society/NGOs, and representatives of the DPs will be established prior to the project noticement of the land acquisition. 11. Internal and independent monitoring: Monitoring should begin as early as possible as after the updated RP is approved and continue throughout the construction of the Project. An independent monitoring organisation (IMO) will conduct a survey of conversion prices before or during the detailed measurements and survey (DMS) to update information on replacement prices and recommend that the Department of Finance consult the City PC about adjusting the compensation prices if there are significant differences between the compensation and market prices. The IMO will also conduct a survey and assessment within 6-12 months of the completion of compensation and resettlement activities.

11.2 IMPLEMENTING STEPS

Compensation and resettlement orders and procedures are based on the Vietnamese Government’s Decree 197/2004/ND-CP dated 03/12/2004, 84/2007ND-CP dated May 25, 2007, and Hai Phong city's Decision 130/QD-UBND dated January 22, 2009, promulgating regulations on compensation, allowance and resettlement when land in the area of Hai Phong city is acquired by the State, Decision 1690/2010/QD-UBND dated 30/9/2010 by Hai Phong PPC regulation of procedure on land acquisition, land renting, land compensation, assistance and resettlement when acquired by State; issuing BOLURC and other administrative procedure on land managment in Hai Phong city. Basic compensation and resettlement activities will be implemented based on the abovementioned legal decrees, and organisation and coordination among concerned agencies, as follows: Step 1: Determine And Announce Land Acquisition Policy The determination and announcement of land acquisition policies are based on the appraisal of land use demand from the Department of Natural Resources and the Environment submitted to Hai Phong city for approval. The City PC then issued documents on the land acquisition policy. or a document accepting the investment location. HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 96 RESETTLEMENT PLAN

District PC is responsible for steering and spreading land acquisition policies and regulations on land acquisition, compensation, allowance and resettlement, when land is acquired by the State for national defense, national interests, public utilities and economic development. Ward PCs are responsible for openly posting the land acquisition policy at ward PC headquarters and in residential zones where land will be acquired land, and announcing it publicly on ward radio stations (if any). Step 2: Prepare Cadastral Documents For Acquired Land According to the land acquisition policy of the City PC, the Department of Natural Resources and the Environment shall instruct land use rights registration offices at the same level to prepare cadastral documents. Adjust and abstract official cadastral maps to suit the current status for places with official cadastral maps, or create an official cadastral map for places without one. Correct and make copies of cadastral documents (cadastral books) to submit to the DRC. Make a list of land lots to be acquired with following contents: map and lot identification marks, name of land users, area of the lot used for the same purpose, and other land use purposes. Step 3: Prepare, Appraise And Approve The General Plan For Compensation, Assistance And Resettlement. The project Owner, with help form social consultant prepare a general plan for compensation, assistance and resettlement (hereinafter called the General Plan) based on current data and documents supplied by the Department of National Resources and the Environment and submit one set to the Financial agency for appraisal. The General Plan shall contain the following: a. The basis for preparing the plan; b. Synthesised statistics on all land types in the area, agricultural land levels, number of map pages, number of plots; and estimated value of assets on the land; c. Synthesised statistics on the number of households, population, and laborers in the acquired land area, which clearly specify the number of DPs and labourers changing jobs; d. Estimation of compensation and assistance rates; estimated location and area of resettlement sites or houses and modes of resettlement; e. Estimation of supporting measures to resolve employment and training plans for job changers; f. List of works, scope of governmental works, religious organisations, displaced communities, and the expected place of relocation; g. Number of displaced graves and the expected place of relocation; h. Estimated costs for realising the plan; i. Financial sources to realise the plan; j. Progress of plan implementation.

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Step 4: Construct Resettlement Sites. Based on the local socio-economic development plan, the land use plan and planning approved by competent authorities, the local real land budget and the Project’s specific requirements, District People’s Committees (PCs) together with the Client direct the preparation of the construction plan of resettlement sites in order to meet the resettlement demand. This construction plan will be submitted to Department of Construction, Department of Natural Resources and Environment, Department of Planning and Investment and relevant organizations for appraisal and to the City People’s Committee for decision as stipulated. Step 5: Lay Site Clearance Landmarks. After the investment project has been approved by competent authorities, the Client will implement the laying of site clearance landmarks based on the basic design and hand over to the Organization in charge of compensation, management and implementation of next steps in site clearance. During the preparation and examination stage of the technical design (or the shop drawing design), if the scope of site clearance is adjusted, the Client has to co-operate with the Organization in charge of compensation to provide timely correction and inform the locality immediately about the adjusted contents. Step 6: Replacement Cost Survey (RCS) The implementation of replacement cost survey is as following: 1. The PMURTW will mobilize an Authorized Independent Consultant to implement RCS 2. The sellected consultant will conduct RCS. The methods for RCS is based on GoV regulation, (including direct comparsion method, income method, depreciation method, surplus method and others) 3. The RCS result will be submitted to PMURTW, then the PMU will be responsible for making comsultation with district level and DPs, for proposing project unit rate for compensation, and finally submit to HPPC for approval. Step 7: Prepare The Compensation, Assistance And Resettlement Plan. 1. Field inspection and enumeration. Based on the land acquisition policy and the site clearance landmarks of the project, the Organization in charge of compensation prepares the detailed enumeration report for each land acquisition case (called the compensation quantity enumerating report, for short). The report has to present specific contents, including names, places of permanent address registration, places of temporary address registration, current addresses of acquired land owners, the number of household members, the number of labourers and social policy beneficiaries (if any); the area and the location of the acquired land lot; the quantity of crop plants and domestic animals; the shape, the dimension, the quantity, the structure and basic features of assets currently on that land; emerging and underground works associated to the acquired land. 2. Identification of the origin of each acquired land lot. The organization in charge of compensation co-operates with the Land Use Rights Registration Office and Ward People’s Committees to identify the origin of each acquired land lot and the legal owner of the land lot based on documents related to the land use, cadastral documents,

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cadastral maps, inventory documents, cadastral books, statistics registration books, monitoring books of land use right certificates granting and tax registers of the acquired land. 3. Preparation of the compensation and assistance plan. Pursuant to the compensation quantity enumerating report, the origin of each acquired land lot, unit prices and compensation policies as stipulated, the Organization in charge of compensation implements the preparation of the compensation and assistance plan with following contents: - Name and address of the owner of the acquired land; - Area, type, location and origin of the acquired land; - Calculation bases for the money amount of compensation and assistance such as the compensated land price, the house price, the compensated works, the number of household members, the number of labourers in the working age, and the number of social benefits beneficiaries; - Amount of compensation and assistance money; - Resettlement arrangement; - Relocation of governmental works, religious organizations and communities; - Graves displacement. 4. Collection of comments on the compensation, assistance and resettlement plan: - The compensation, assistance and resettlement plan is openly posted at ward PC headquarters and at residential activities places where land is acquired so that the land users and relevant people can give comments; - The posting must be made in written form confirmed by representatives of ward PCs, Ward Committees of Fatherland Front and acquired land owners; - The period of posting and receiving comments lasts at least twenty (20) days as from the date of posting. 5. Finalization of the compensation, assistance and resettlement plan: - At the end of the plan posting and comments receiving period, the Organization in charge of compensation and site clearance will be responsible for written synthesis of comments, including a clear statement of agreement, disagreement and other opinions towards the compensation, assistance and resettlement plan. This Organization is also responsible for finalizing the plan and sending the finalized plan and the collection of contributed comments to the Natural Resources and Environment agency for appraisal. - In case there are a lot of disagreement opinions towards the compensation, assistance and resettlement plan, the Organization in charge of compensation and site clearance will need to clarify or review and adjust the plan before it is sent to the Natural Resources and Environment agency for appraisal. Step 8: Appraise And Submit The Compensation And Assistance Plan For Approval The Department of Natural Resources and Environment is responsible for giving directions and co-operating with relevant district agencies to appraise the compensation and assistance plan as

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stipulated. This Department is then responsible for submitting the plan to the District PC for approval as stipulated. Step 9: Land Acquisition Decision And Settlement Of Complaints Based on the notice of land acquisition, the compensation, assistance and resettlement plan prepared and appraised by competent authorities, the cadastral abstract or measurement quotation of the land lot, the City PC gives land acquisition decision for religious organizations, Vietnamese people having overseas permanent residence as well as foreign individuals and organizations. The District PC gives land acquisition decision for households, individuals, communities and Vietnamese people having overseas permanent residence and allowed to buy houses with land use rights in Vietnam. During the implementation of land acquisition, if there are any complaints from residents, ward PCs will collect their opinions and letters of complaint and send them to relevant higher agencies for consideration. Land acquisition will proceed even if there is no decision on claims settlement. If the competent agencies settling complaints conclude that the land acquisition is illegal, the land acquisition will be obliged to stop and the governmental agencies that issued the land acquisition decision shall cancel the decision and compensate for losses (if any) caused by it. If the competent agencies conclude that the land acquisition is legal, the owners of the acquired land must comply with the land acquisition decision. Step 10: Approve and Publish The Compensation, Assistance And Resettlement Plan. The District PC approves the compensation, assistance and resettlement plan as stipulated. Within no more three (03) days as from the receipt date of the approved compensation, assistance and resettlement plan, the Organization in charge of compensation and site clearance is responsible for co-operating with ward PCs to publish and openly post the Decision on approving the compensation, assistance and resettlement plan at ward PC headquarters and residental activities places where land is acquired and send to the owners of the acquired land the decision on compensation, assistance and resettlement with a clear statement of compensation and assistance rates, resettlement land arrangement (if any), time and place of compensation and assistance payment as well as time of handing over the acquired land to the Organization in charge of compensation and site clearance. Step 11: Implement Compensation, Assistance And Resettlement Payments The compensation, assistance and resettlement committee implements the payments after there is the decision on approving the compensation, assistance and resettlement plan. Step 12: Resettlement Arrangement. 1. The Organization in charge of compensation co-operates with ward PCs to execute following tasks: - Receiving letters of asking for resettlement land granting submitted by the owners of the acquired land. Ward PCs are responsible for confirming the number of inhabitants and the current situation of houses and land of those who own the acquired land and the letters of asking for resettlement land granting;

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- Preparing documents and lists of objects with sufficient conditions for resettlement land granting; Preparing the resettlement land arranging plan; - Openly posting the resettlement plan at ward PC headquarters and residential activities places where land is acquired; - Receiving comments contributed by the owners of the acquired land and relevant parties, finalizing the resettlement plan as stipulated and submitting it to the Department of Natural Resources and Environment for appraisal; 2. The Department of Natural Resources and Environment co-operates with relevant district agencies, the Organization in charge of compensation and ward PCs to: - Investigate and verify object standards and conditions for each case of asking for resettlement land granting as stipulated. - Appraise the resettlement plan as stipulated. - Submit the resettlement plan to the District PC for approval and decide to grant resettlement land to each approved object. 3. The Organization in charge of compensation publishes and openly posts the approved resettlement plan and decision on resettlement land granting as stipulated. 4. The Department of Natural Resources and Environment directs and co-operates with the Organization in charge of compensation and ward PCs to grant the resettlement land as stipulated. 5. The District Tax Department instructs land use payments and other financial duties of the resettlement land granted people. The District State Treasury is responsible for collecting money as stipulated. Step 13: Forced Land Clearance Within twenty (20) days as from the date when the Organization in charge of compensation and site clearance has completed compensation and assistance payments for the owners of the acquired land based on the approved plan, the owners of the acquired land have to hand over the land to the Organization in charge of compensation and site clearance. In case the owners of the acquired land do not follow the land acquisition decision, PCs at competent levels issuing the land acquisition decision will issue the decision on forced land acquisition. The forced land acquisition will be implemented based on regulations in Article 32, Decree No. 69/2009,ND-CP dated 13 August 2009 by the Government.

11.3 IMPLEMENTATION PLAN

Table 24: Schedule for Compensation and Resettlement (See next page)

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12

MONITORING AND EVALUATION

Monitoring is the continuous process for assessing the Project implementation, including the approved implementation schedule, the use of inputs, Project infrastructure and services. The monitoring agency provides all stakeholders with regular information about the implementation and identifies the reality, potential for success and difficulties that may arise so that may be adjusted as soon as possible in the Project's operation phase. Monitoring has the following purposes: a. To verify whether the project activities comply with the plan and are completed effectively in regards to quantity, quality and time. b. To detect arising problems in the process of implementation, propose settlement methods to ensure conformity with the policy framework, and ensure the rights of DPs. c. To assess whether resettlement activities achieve the Project goals and objectives, and at what level.

12.1 INTERNAL MONITORING

Internal monitoring of the RP implementation is the responsibility of the implementing agencies, with the assistance from the Project consultants. The Consultant will be responsible for (i) in cooperation with PMURTW to internally monitor all project implementation of land acquisition, compensation; (ii) provide all necessary assistances aimed to resolving all shortcoming and other remaining issues during compensation and resettlement implementation and (iii) in coordination with IMA hired by PMURTW to monitor all DP’s income restoration, if not the PUMRTW, with help from the consultants will be responsible to propose and prepare a further special package, submitted to HPPC for approval, then implement in the project area, for their living condition to be restored. The implementing organisations will be regularly monitored and checked by the PMU together with district/commune PCs through progress reports on the RP preparation and implementation. Findings will be recorded in quarterly reports and submitted to the Provincial PC and WB. The objectives of internal inspection and monitoring are: a. To check whether the basic information from DPs is implemented and evaluate damaged assets; and review compensation, land acquisition and resettlement based on regulations in the RPF and RP.

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b. To check whether the implementation of the RP complies with the approved design and planning; that technical assistance, transportation, payment of benefits and relocation support is guaranteed; and that revenue recovery and entitlement to restoration assistance is properly implemented. c. To monitor capital sources for Project implementation provided for the PMU at the local level (provincial/district level) to ensure they are on time and enough for the set purposes, and that the capital is implemented by the PMU in accordance with the RP. d. To record, closely follow and settle complaints, and ensure that all complaints are handled in a timely manner. e. To coordinate and complete all resettlement activities and award construction contracts. The Internal monitoring and supervision will have the following objectives and monitoring indicators as following: (a) Make sure that compensation costs issued by the PPC are at the replacement cost or at market values and will be updated at least every year. (b) Make sure that the DMS records all affected properties as well as all relevant information of the affected persons in order to determine for their entitlement as defined in Chapter III. (c) Compensation and other entitlements are computed at rates of replacement and procedures as provided in the approved RP, with no discrimination according to gender, vulnerability, or any other factor; (d) Affected households are paid their compensation and other entitlements at the time as per approved RP (required as in the entitlement matrix), ensuring that all entitlements are delivered as planned and agreed, including compensation in cash or in kind, allowances, replacement land, resettlement sites developed and people moved onto them; (e) Income restoration programs designed and delivered including modifications in the programs and provision of additional cash and in-kind assistance to the participating affected households as and when necessary; (f) Public information, public consultation and grievance redress procedures are followed as described in the approved RP; (g) Affected public facilities and infrastructure are restored promptly; and (h) The transition between resettlement and commencement of civil works is smooth and that sites are not handed over for civil works until affected households have been satisfactorily compensated and resettled. (i) In case, the DP’s income restoration is not achieved, the IMA and the Safeguard Consultant, PMURTW will be responsible to propose and prepare a further special package, submitted to HPPC for approval, then implemented in the project area by PMURTW in coordination with local authorities. Budget for further assistance is covered by project contingency fund.

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(j) After subplement special package is carried out, the IMA will check if the DP’s income restoration is achieved. The PMU shall submit an internal monitoring report on the implementation of the Resettlement Plan to the WB as part of their quarterly reports. Internal monitoring reports must contain the following information: • Number and type of DPs affected by Project components and the situation of compensation, relocation and income recovery payment for each item. • Allocated fund for activities or compensation, and disbursement costs for each activity. • The final result of complaints and any outstanding issues that require settlement from management agencies at all levels. • Issues arising during the implementation. • Updated actual progress of RP implementation.

12.2. EXTERNAL MONITORING

The PMU will hire one independent monitoring and assessment organisation (IMO) for the implementation of the RP. The independent organisation may be a research institute/agency, non-governmental organisation, an independent consulting company, etc, but it must specialise in social sciences and have experience in independently monitoring resettlement programmes. The IMO will begin work immediately after the Project commences. The overall objective of independent monitoring is to provide periodical evaluations and independent reviews of the implementation of resettlement; changes in living standards and employment; the recovery of DPs' incomes and social bases; efficiency, impact and sustainability of local people’s entitlements; the need for additional mitigation measures for damages (if any); and to draw strategic lessons for planning and policy making in the future. Apart from verifying information provided in evaluation reports - the PMU’s internal independent monitoring agency will conduct sample testing once every six months. The survey sample may be 100% of relocated DPs and at least 10% of the remaining households under each RP in order to: a. Determine if the procedures for DPs’ participation, compensation and recovery are implemented in accordance with the RPF and RAP; b. Project implementation processes and procedures for consultation and information dissemination, compensation policy publication; c. Evaluate if DPs' living standards and income are at least the same as before the Project in accordance with the Project framework's objective; d. Collect quantitative indicators of the Project's socio-economic impacts on DPs; e. Propose modifications to the implementation of the RP, if necessary, to achieve the principles and objectives of the RPF.

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f. Assess and record the level of satisfaction of affected persons with different aspects of the RP. The handling of complaints and speed of resolution will also be monitored. g. Observe and investigate living standards throughout the process of implementation. Any potential problems in living recovery must be reported. The IMO must submit periodic reports every six months and describe their findings. The monitoring report will be submitted to the PMU, and the PMU will submit the report to the WB in the form of an Appendix on progress reports. Indicators: The following indicators will be monitored and evaluated by the External Monitoring Consultants: (a) Payment of compensation will be as follows: (a) full payment to be made to all affected persons sufficiently before land acquisition; (b) adequacy of compensation payment to replace affected assets. (b) Provision of technical assistance for house construction to DPs who are rebuilding their structures on their remaining land, or building their own structures in new places as arranged by the project, or on newly assigned land plots (c) Provision of income restoration assistance. (d) Public consultation and awareness of compensation policy: (a) DPs should be fully informed and consulted about land acquisition, leasing and relocation activities; (b) the monitoring team should attend at least one public consultation meeting to monitor public consultation procedures, problems and issues that arise during the meetings, and solutions that are proposed; (c) public awareness of the compensation policy and entitlements will be assessed among the DPs; and (d) assessment of awareness of various options available to DPs as provided for in the RAP. (e) Monitoring for relocation process: (a) To check with the affected people who are entitled to be relocated to a resettlement site if they are being or have been consulted on the location of the site, site design and plot allocation on the site; (b) To check if the affected persons are receiving or have received all their entitlements and in a timely manner; (c) To check if the affected people who are relocated to a resettlement site have been consulted at least three months before implementating resettlement and if other adequate information has been provided. (f) Affected persons should be monitored regarding restoration of productive activities. (g) The level of satisfaction of DPs with various aspects of the RAP will be monitored and recorded. The operation of the mechanisms for grievance redress, and the speed of grievance redress will be monitored. (h) Throughout the implementation process, the trends of living standards will be observed and surveyed. Any potential problems in the restoration of living standards will be reported.

Methodology and Approach

Sample Survey

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A socio-economic survey will be required before, during and after resettlement implementation to provide a clear comparison of success/failure of the resettlement plan implementation. Monitoring will be on a sample basis. The sample size should be 100% of relocating households and at least 10% of all other households. The sample survey should be conducted twice a year. The survey should include women, elderly persons, and other vulnerable target groups. It should have equal representation of male and female respondents. A Post-Resettlement Evaluation will be carried out 6 to 12 months after completion of all resettlement activities. The IRMC will take activities including but not limited to: (i) compensation documents checking and (ii) working with compensation board and local authorities to collect all the necessary data and information; Database Storage The MO will maintain a database of resettlement monitoring information. It will contain files on results of independent monitoring, DPs data will be updated based on information collected in successive rounds of data collection. All databases compiled will be fully accessible by the PMU, implementing agencies, and the Bank. Monitoring Report Follow-Up The monitoring reports will be discussed in a meeting between the IRMC and PMU held immediately after submission of the report. Necessary follow-up action will be taken based on the problems and issues identified in the reports and follow-up discussions. For detail on External Monitoring Agency, refer to Annex 3 attached to the RP.

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13

COST ESTIMATION

13.1 LEGAL FRAMEWORK

According to the Vietnamese Government's Policy Framework and the regulations of Hai Phong city, compensation for land and assets affected by the Project will be calculated based on following legal documents: a) Government Decree No. 197/2004/ND-CP, dated December 3, 2004, on compensation, allowances and resettlement when land is acquired by the State. b) Government Decree No. 188/2004/ND-CP, dated November 16, 2004, on methods for determining land prices and price frames of different categories of land. c) Government Decree No.123/2007/ND-CP, dated July 27, 2007, on amendments and supplements to some articles of Decree No. 188/2004/ND-CP on methods of determining land prices and price frames of different categories of land. d) Government Decree 69/2009/ND-CP, dated August 13, 2009, regulating additional planning of land-use, land prices, land acquisition, compensation and resettlement assistance. e) Haiphong City PC Decision No.1240/QD-UBND dated 29 July 2008 issuing set of unit prices of structures for compensation and assistance upon the State’s recovery of land in the area of Haiphong city. f) Haiphong City PC Decision No.2640/QD-UBND dated 31 December 2009 issuing land prices in 2010 in the area of Haiphong city and the regulations in force. Compensation is determined according to the Project's compensation, assistance and resettlement policy framework and the WB's involuntary resettlement policy. These are the foundation for determining the replacement price for land and affected properties, and their validity for compensation, assistance and resettlement for households affected by the Project.

13.2 FUNDING SOURCES

The RP implementation budget will be one part of the Government's counter-part fund Hai Phong PC will provide the counter-part fund for compensation and resettlement and it will be included in the total investment amount for the Project.

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13.3 REPLACEMENT PRICE SURVEY

13.3.1 Unit Prices For Land Compensation

For reference, the Consultant collected unit prices of road facing land in the real estate market from different sources: a. Haiphong City PC Decision No.2640/QD-UBND dated 31 December 2009 issuing land prices in 2010 in the area of Haiphong city; b. Newspaper; information from real estate transaction platforms in local area; c. The unit price of some projects in the surrounding area; and d. Consultations with local authorities and DPs. Some unit prices of land in the Project area are determined based on information collected from replacement cost surveys, working sessions with local authorities and information in Newspapers. Replacement price identification is determined by the coefficient, the compensation rates will be calculated using the coefficient with the rate regulated by the People's Committee of Hai Phong city/ or the prices determined by the appointed consultant should be compared with the prices established by the Hai Phong City PC and updated where necessary.. Residential Land Prices for specific areas are identified as follows: Table 25: Proposed Compensation Unit Price for Residential Land Unit Price Replacement No District Communes Project Location issued by Ratio Price PPC

Cat Bi 2.700.000 1,70 4.590.000,0 Thanh To 1.800.000 3,10 5.580.000,0 Dang Hai Road 4.000.000 3,50 14.000.000,0 Ngo Gia Tu area (near by Thien Duong 8.000.000 2,00 16.000.000,0 Dang Hai Hotel)

1 Hai An Residential Area 2.100.000 2,00 4.200.000,0 Land Plot 13 16.000.000 1,50 24.000.000,0 Nam Phong Road 2.100.000 2,50 5.250.000,0 Sam Bo Church 1.800.000 2,50 4.500.000,0 Nam Hai Residnetial Area 1.500.000 2,50 3.750.000,0

Residnetial Area 4.000.000 1,45 5.800.000,0 2 Kien An Quan Tru Truong Chinh Road 8.000.000 2,00 16.000.000,0

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Unit Price Replacement No District Communes Project Location issued by Ratio Price PPC

Lam Khe Church 4.000.000 2,00 8.000.000,0 Dong Hoa Residnetial Area 2.700.000 2,00 5.400.000,0

Planed Roads 6.000.000 1,50 9.022.200,0 3 Le Chan Vinh Niem Residnetial Area 2.700.000 2,50 6.750.000,0 4 Ngo Quyen Dang Giang 4.000.000 2,00 8.000.000,0 Phạm Thị Ngan 2.500.000 2,80 7.000.000,0 Bac Son Inter-communal Road 600.000 3,00 1.800.000,0 Vu Quang Mạnh 350.000 4,00 1.400.000,0 Đoan Thị Hương 1.500.000 3,00 4.500.000,0 Le Loi Inter-communal Road 450.000 3,50 1.575.000,0 Nguyen Thị Vịnh 400.000 4,00 1.600.000,0 An Duong Nguyen Hong Quynh 500.000 4,00 2.000.000,0 Le Van Cong 2.000.000 2,50 5.000.000,0 Dang Cuong Truong Van Trọng 3.000.000 2,50 7.500.000,0 Nguyen Thị Nga 400.000 3,50 1.400.000,0 Hong Thai Residnetial Area 500.000 3,00 1.500.000,0 Dong Thau

13.3.2 Compensation Unit Prices For Architectural Objects

Houses in the Project affected area are mainly grade 3 or 4 houses and temporary houses (there are not many grade 2 houses). Values of houses and construction works in the Project shall be determined according to the market price of construction materials at the time the compensation price is determined to enable DPs to build a replacement house of at least the same area and quality as their old one, or to repair affected structures, plus costs for transporting materials, manpower, tendering, registration and transfer taxes. Depreciation of salvageable assets and the value of materials are not included. The Consultant proposes to apply the latest policies issued by the City to the compensation unit prices of affected architectural objects and assets in the Project area, according to Hai Phong PC Decision No. No. 1240/QD-UBND dated July 29, 2008, promulgating the price table for compensation and assistance regarding architectural objects when the State acquires land in Hai Phong (included secondary assets).

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13.4 COST ESTIMATION

Costs for resettlement compensation, including costs for preparing and implementing the RP, and costs for administration and management are estimated to be as follows: a. Compensation for affected land and other assets in the Project area; b. Costs for programmes for income recovery and special allowances for vulnerable groups (households under preferential treatment, households with persons who sacrificed for Revolution, households led by women, handicapped persons, poor households, etc.); c. Support, subsidies, bonuses and assistance to DPs in affected areas to be paid according to the tentative schedule; d. Costs for district compensation committees and local officials implementing the RP; e. Costs for employment of local resettlement propagandists and independent monitoring consultants; f. Contingency fees: According to the new Land Law, provincial PCs will issue the unit price of land every January and, based on past experience, the land price usually increases gradually every year. In summary, the total cost for compensation, assistance and resettlement for Component A is VND 1.238.850,000.000, equivalent to 63.5 million USD. This amount is expected to be disbursed over three years from 2011 to 2013. Detailed statistical analysis of the impacts and cost estimation for operating regions will be divided into categories as follows: Table 26: Summary of Compensation Costs No. Description Quantity Remarks

A Component A 1 Cost for compensation, assistance 931,087,000,000 (See next page) and resettlement (Section 1) 2 Cost for compensation, assistance 302,701,000,000 (See next page) and resettlement (Section 2) SUB-TOTAL 1 B Component B 3 Bus Depot 5,062,000,000 SUB-TOTAL 2 5,062,000,000 TOTAL 1,238,850,000,000 In addition, the estimated costs for constructing resettlement areas for relocated households whose residential and/or agricultural land is affected by the Project is VND 553,000,000,000. Detailed total of compensation, assistance and resettlement costs for DPs (except for cost for resettlement area development) are presented below: (pls see next page)

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14

ANNEXES

ANNEX 1: QUESTIONNAIRE SAMPLE

ANNEX 2: ENTITLEMENT MATRIX

ANNEX 3: TERM OF REFERENCE FOR EMA

ANNEX 4: TERM OF REFERENCE FOR RCS

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Annex 1: Questionnaire Sample

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Annex 2: Entitlement Matrix TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS 1 Agricultural Households People who are (a) The DP whose agricultural land is acquired will be land is whose eligible for the compensated by cash equivalent to 100% of the permanently agricultural land compensation of replacement cost. If the remaining land is not acquired is permanently agricultural land economically viable, as requested by DP, the entire area acquired. will be acquired. In addition to a cash compensation, there will be other supporting policies (refer to Article 5.3.10. Assistance to DPs whose agriculture land is acquired. #DP: 1,958 #DP: 1,958 (b) Gardens and ponds in the same parcel of land with houses of families/individuals in residential areas, which is not recognized as residential land; gardens and ponds in the same parcel of land with separate houses; gardens and ponds in the same parcel of land with houses along the canals and along the roads; are eligible for compensation as prescribed, when the State recovers land, the whole acquired area is compensated by the price of garden land pond. Also a support of 50% the price of land in the same parcel of land will be provided accordingly with the acquired area but is not exceeding 02 times of the limit of new land allocation. (c) For agricultural land which is defined by the boundary of a parcel of land which has houses at the most outside in a village, hamlet, similar residential area or in an administrative boundary of a ward; or who are acquired with agricultural land which is defined by the boundary of a parcel of agricultural land adjacent to the administrative boundary of a ward or adjacent to the boundary of a population area, in addition to the compensation of perennial prices at the position 1, will be supported equally with 20% of the average residential land price in such region. The support area is not exceeding 5 times of the local land allocation limit. People who use Cash compensation for acquired land equal to the amount For households that rent land bidding land or rent invested on that land, or the remaining value of a rental from other households or

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TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS public land: contract (or 30% of land price). individuals, this will be paid to #DP: 0 the land owners. Land users who are Support of 30-100% of the agricultural land price If households accidentally not eligible for occupy public land for compensation. cultivation, they will be #DP: 0 compensated for affected farm products and trees according to replacement prices but they will not be compensated for the land. 2 Residential Residential land a. All households A/ Land Compensation: Support for land will be based land is is acquired which with land to be Legal: Compensation for residential land by cash at 100% on the limit of the land use right permanently is legal and acquired of the replacement cost. certificate as stated in Haiphong acquired legalizable for Legalizable: PC Decision 2430/QD-UB land - Residential land, which is allocated incompetently is dated 13/12/2000. compensation. supported 100% of such residential land price for the acquired area which is equal with the allocated area; its remaining area or its area, that land use fees are not paid, #DPs: 1,042 #DP: 1,042 will be supported 100% of such residential land price but deducted the land use fees to be paid. - Land, which is used stably without disputes before the planning time but has not any legal papers of land-use (i) before 15/10/1993 is compensated 100% of such residential land price for the actual used area equally with one time limit of land allocation. The remain, in addition to the compensation based on garden and pond prices, will be supported by 50% of such residential land price for the actual used area but must not exceed 01 time of the limit of land allocation. And the rest (if any) will be supported in accordance with regulations of Hai Phong People’s Committee. (ii)Residential land used from 15/10/1993: Land is being used but does not exceed 01 time of the new allocation of residential land area will be compensated at 100% of land price for the using land area in the new

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TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS allocation of residential land with the deduction of land use fee17. The area that exceeds the allocation of residential land and the area of gardens and ponds on the same parcel of land which is not recognized as residential land shall be compensated accordingly to the price of perennial crops in position 1. b. Households who B/ Resettlement: If households must relocate: must relocated b.1 In addition to compensation by cash based on replacement cost, resettlement for households will be arranged as follows: #DP: 909 + Resettlement land for one household will be allocated based on the new limit of land allocation in Haiphong PC Decision No.130/QD-UBND dated 22/01/2010, which is a minimum of 40 m2 per household. + Those who are allocated resettlement houses will be exempted from fees for land surveys, land registration and certificates of land use rights and home ownership (these fees will be paid by the State). b.2. If the DPs provide the necessary commitment and choose to voluntarily arrange their resettlement they will be (i) compensated by cash for the replacement cost of all residential land, and (ii) supported with an allowance for relocation equivalent to 20% of the value of the compensated land, allowance level includes: for urban district do not exceed VND 300,000,000, minimize not lower than VND 120,000,000; for rural district do not exceed VND 200,000,000, minimize not lower than VND 80,000,000. For households who are not eligible for land compensation will be entitled to 50% of all the supports mentioned above.

17 It is based on stipulation in Item a, Article 8, Decree 198/2004/ND-CP and Article 4, Circular No 14/2009/TT-BTNMT dated 01/10/2009 promulgated by MONRE.

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TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS Residential Residential land All households on A. Land Compensation land is is acquired and lands to be acquired Land to be used as actual residential land with houses and permanently the DP is illegal other structures which violates Item 4, Article 14, Decree acquired for land #DP: 19 No 84/2007/NĐ - CP will be supported as follows. compensation. -Land used before 15/10/1993 will be supported 50% residential land price for the used area equally to the on time new limited allocation of residential land. The remaining area (if any) will be supported in accordance with regulations of Hai Phong People’s Committee. -Land used after 15/10/1993 will not be compensated but supported 30% residential land price regulated in annual table of City PC for using square but does not exceed 01 time of the new allocation of residential land area. The remaining area (if any) will be supported at 50% accordingly to the price of perennial crops in position 1. DPs who must B. Resettlement relocate Households, who are not entitled to compensation for residential land but have no other land/house will be #DP: 19 provided with land plot in resettlement sites, if they get certification of their homelessness from local authorities. In case, relocated DPs cannot afford, they will be indebted.

Residential Acquired DPs using State- Households will be compensated by cash equivalent to land is residential lands owed houses with 60% of the value of residential land and 60% of the value permanently is State owned, separate of the house being rented. For encroached land, there wil acquired being rented and surroundings or be no compensation but assistance for investment on the must be relocated houses managed by land. an organization and must be relocated. #DP: 0 3 Housing, Affected The affected 100% Support based on the price for new construction structures Housing and structures are and the relevant administrative costs. and graves structures owned by DPs #DP 730

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TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS Affected graves Households whose Principle: Compensation is based on the cost of excavating, have affected covering, and moving graves, and reconstructing them the graves same as before. #DP: 0 Compensation unit price: Pursuant to the stipulations of the city PC. 4 Affected Affected farm Owners of Affected Households will be compensated for affected farm and Households will be informed farm products farm products aquatic products based on market prices at the time of land several months before the land products and acquisition. acquisition. Farm produce trees #DP: 1,958 growing after the announcement of land acquisition will not be compensated. Affected trees Owners of affected Households will be paid for affected trees based on the The method to calculate trees replacement costs for the type, age and profitability of the replacement prices of farm trees. Trees that can be relocated will be compensated products and trees is based on #DP: 211 based on actual loss and damages plus transportation fees. the regulations in 24 Decree No.197/2004/ND-CP. 5 Affected Lost income The DPs whose (i) Households running licensed business will be Households will have priority to income and sources and income/business supported by cash for their losses equivalent to 50% their do business along national and production production or lost. annual income after tax as determined by an average of inter-commune roadsides and or business business their income for the three previous continuous years and canals and near bridges to facilities properties #DP: 30 certified by the tax agency (equivalent to 100% of the enable them to continue running average income of 06 months). their business. (ii) Affected persons who operate small business or Allowances will be adjusted services at home but do not declare income to the taxation based on escalation at the time agency will be provided with an allowance equivalent of 6 of compensation. months average incomes. (iii) If business locations must be moved, households may be provided with a replacement business location or compensated by cash plus the costs of relocating their production and/or business facilities. 6 Indirectly Land and Land users People who are indirectly affected are impacted the same affected properties to be as those who are directly affected and they are entitled to (secondary acquired for the #DP: 1,149 the same compensation and assistance policies as directly affected) development of affected people. resettlement

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TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS areas. 7 Affected Structures, Villages, urban a. Public utilities will be restored as before, or All damages and losses to public housing, public zones, b. Built in other locations after consulting the community production and income due to utilities architecture, administration and concerned agencies, or the loss of public irrigation and/or forests, grazing agencies. c. Compensated based on replacement costs of affected systems, forests, grazing land, structures land,and other houses and deducting reused materials but not calculating etc, will be compensated and the land, temporarily #DP: 5 depreciation. compensation will be used to or permanently create new sources of income or affected by an rebuild the old ones. irrigation system. 8 Support for Support for DPs finding new Households whose lands are acquired, and are eligible for recovering recovering of resettlement areas land and house compensation and meet the resettlement resettlement area by themselves. criteria but choose to arrange their relocation by themselves will be supported by 20% of the value of their #DP: 0 land compensation at a minimum of 80,000,000VND per households and a maximum of 300,000,000VND per household or similar to investment cost for a plot in resettlement site (Decree 69/2009 and 130/2010/QĐ- UBND). DPs allocated land Households moving to resettlement site will be supported in resettlement for stabilizing their life and production and with the areas. allowance of 5,000,000VND per household. #DP: 1,757 Relocated DPs In case, compensation/ assistance amount is less than minimum price of resettlement land plot, the DPs will be #DP: 1,757 supported with the price variance; if land plot arrangement in project resettlement site is not their option, assistances in cash will be provided to DPs, equivalent to that price variance. Transportation Households to be Affected households who must relocate will be supported Allowances will be adjusted assistance relocated by 3,000,000 VND per household in the city, and based on escalation at the time #DP: 1,757 5,000,000 VND per household in other provinces. of compensation. Allocation for Households to be Relocated households whose family members are named living relocated in the family record book and actually live with the stabilization. #DP: 1,757 families at the time of the Decision of the land acquisition

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TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS will be subsidized with an allowance of 2,000,000 VND per person to stabilize their living Support for Households who 1. Relocated households will be supported for five months renting houses must relocate of temporary residence from the time they receive #DP: 1,757 compensation, assistance and resettlement land by 5,000,000VND per household. 2. If the Project delays the arrangement of a resettlement area, the costs to extend a household’s temporary residence will be added. The extension amount is determined from the delivery date of household’s land to the delivery date of the resettlement area. It must reflect the actual prices of house rental in the acquired area: 800,000VND per month for rural districts and towns, and 1,000,000VND per month for urban districts. 3. Households who are not eligible for resettlement criteria but have no houses to live in will be supported by 50% of the above levels for temporary residence. Support for Households whose Support with vocational training and job change: For Households should be consulted recovering existing agricultural agricultural land acquired, the allowance is 2 times of about the specific type of income sources land is affected entirely acquired agricultural land price, And in the case support needed to meet their #DP: 1,958 the household has the demand for training, a training actual demands and help them course or vocational guidance which are free of charge recover their most efficient will be provided for people who are in working ages. production and income. Support for stabilizing household living standards: affected households with over 30% of their agricultural lands acquired will be compensated with money equivalent to 30 kg of rice/person/month at local market price, including: (a) : Affected households with from 30% to 70% of their agricultural lands acquired will be assisted for living stabilization for 6 months if they do not need to resettle and in 12 months in case of resettlement. (b) Affected households with more than 70% of their agricultural lands acquired will be assisted for living stabilization for 12 months if they do not need to resettle and in 24 months in case of resettlement.

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TYPE OF TYPE OF NO. APPLICATION AFFECTED COMPENSATION POLICY ISSUES LOSS PERSONS Social support Households who 1. Households who affected with residential land loss are benefitted by and are benefitted by social policy and must relocate will social policy receive the following social support: #DP: 220 (i)Families of martyrs, wounded and sick soldiers, heroes of the people’s armed forces and labor, and families who sacrificed to the Revolutions: 6,000,000VND per household. Support families with the Agent orange: 3,000,000 VND/person (ii) Poor households :5,000,000VND per household

2. Households who affected with agricultural land loss, and are benefitted by social policy and affect 10% or more of their agricultural land will receive the following social support: (i) The wounded and sick soldiers, heroes of the people’s armed forces and labour, and families who sacrificed to dedicate to the Revolutions will be supported with an additional 6,000,000VND per household. Support families with the Agent orange: 3,000,000 VND/person (ii) Poor Households and farm dependent poor households will be supported with an additional 6,000,000VND per household. Bonus Households that Land users abide by the inventory and hand over land on hand over the site schedule, meeting the employer’s requirements of the on time or before project schedule are awarded: VND 2,000,000 per schedule household for agriculture land impact and VND #DP: 3,037 5,000,000VND per household for residential land impact.

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Annex 3: Term Of Reference For EMA

TERM OF REFERENCE FOR Resettlement Monitoring Consultant for Hai Phong Urban Transport Development Project

I. BACKGROUND The Socialist Republic of Vietnam has received a Credit from the International Development Association (IDA) toward the costs of Hai Phong Urban Transport Development Project. The Project consists of three major components as follows: Component A: Haiphong Strategy Urban Trunk Road approximately 20km long and 50.5m wide. Component B: The Pilot For Upgrading Public Transport Services And Traffic Safety. This component includes upgrading the bus service to improve the public transportation services. This will be a model which can possibly be expanded. Component C: Building Institutional Capacity. This component consists of the programmes for institutional capacity building and developing human resources to manage traffic and urbanisation. The Strategy Urban Trunk Road Development (Component A) covering the urban trunk road through Hai Phong city includes the following:

o Building an urban traffic trunk road to link the east and the west from Truong Chinh Road (Quan Tru ward) to Hai An trunk road (Nam Hai ward) including the construction of Niem Bridge 2. This connection will facilitate the development of the southeastern cities and serve cargo transportation from Dinh Vu port in the mid -term period.

o Upgrading Truong Chinh road, including upgrading and repairing Niem Bridge 1. o Building a road section to connect the urban area and transport cargo from Quan Tru to Le Loi. This section will serve cargo transportation and connect Highway No.10 with the ports through the Nam Hai-Quan Tru corridors. The pilot for upgrading public transport services and traffic safety (Component B) includes a number of major items: (i) upgrading the Bac - Kien An corridor; (ii) improving bus stations and bus stops; (iii) improving traffic safety; (iv) building the capacity of state management for public transportation; and (v) compensation and site clearance. Building institutional capacity and developing human resources for urban traffic management in Hai Phong city (Component C) includes: (i) capacity building for transportation and urban management, inclusive of monitoring capacity and sufficiency, transportation and urban master plan management system; assignment for TA and master plan; detailed design for training course and implementation plan for each components. The project principle is minimizing resettlement. Where it is unavoidable, the appropriate measures should be taken to mitigate the impact. A Resettlement Plan (RP) has been prepared HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 125 RESETTLEMENT PLAN

for the project based on the Resettlement Policy Framework (RPF) approvedl by Prime Minister on May 2010. The cost for hiring the Independent Resettlement Monitoring Consultants is funded by the Grant. Important features and impacts of the main components, with regard to people affected, are: - Land to be acquired for permanent usage; - Full or partial impact to housing and other auxiliary structures; - Temporary and permanent impact to shops and small business activities; - Temporary and permanent impact on agricultural activities - Temporary impact during the construction stage; - Environmental impact by noise and air pollution during construction; - Temporary impact of construction to traffic even to pedestrian and motor vehicles during construction; - Impact of resettlement, movement of households and employment problems for those having to be resettled and/or losing income sources; . Project affected families (PAFs) will be compensated or supported in accordance with the Resettlement Policy Framework (RPF) agreed between the Government of Viet Nam and World Bank (WB) and as detailed in the Resettlement Plan (RP) for the project which will be updated (by others) as design works are completed. This TOR is concerned with the external monitoring of resettlement for the Hai Phong Urban Transport Development Project. The external monitoring is to be conducted by an “Independent Monitoring Consultant”, independent from the PMU. The external monitoring, along with the internal monitoring arrangements, will provide an independent assessment and evaluation of the RP implementation. It will also serve as a warning system for the PMU of existing problems during the RP implementation as well as a channel for the affected people to make known their needs and their reactions to resettlement execution.

II. OBJECTIVES OF THE ASSIGNMENT The general objective of the external monitor is to provide an independent periodic review and assessment of achievement of resettlement objectives, the changes in living standards and livelihoods, restoration of the economic and social base of the displaced persons, the organizational effectiveness, impact and sustainability of entitlements, the need for further mitigation measures if any, and to learn strategic lessons for future policy formulation and planning. To achieve these objectives, there are two main component activities: (i) Resettlement and rehabilitation monitoring during RP implementation (R&R Monitoring); and (ii) Follow-up socio-economic/living standards survey after completion of RP implementation.

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III. SCOPE OF WORKS Monitoring Targets and Tasks: The Independent Monitoring Consultants will: a) Review the existing baseline data and gather additional socio-economic baseline data (if necessary) on sample families which are entitled to receive compensation for all of their lost assets or for resettlement; b) Monitor implementation of the compensation resettlement and rehabilitation policies and public information campaign as designed in the RP; c) Identify and clarify any discrepancy between the RP and actual practice, problems in RP implementation as well as any local level grievances; d) Propose measures to resolve potential problems and complaint (if necessary) or outstanding issues to PMU and the World Bank; e) Summarize compensation result, resettlement of the DPs and outstanding issues. f) Provide recommendations for improving future implementation and solving outstanding issues of PMU g) Provide evaluation on whether the resettlement policy objectives of restoration or improvement of living standards of the DPs are achieved and if necessary, propose additional measures to help DPs to overcome the difficulties in livelihood restoration after the project is finished. Monitoring and Evaluation Indicators: The following indicators will be monitored and evaluated by the Independent Resettlement Monitoring Consultants: (i) Payment of compensation will be as follows: (a) full payment to be made to all affected persons sufficiently before land acquisition; (b) adequacy of compensation payment to replace affected assets. (ii) Provision of technical assistance for house construction to DPs who are rebuilding their structures on their remaining land, or building their own structures in new places as arranged by the project, or on newly assigned land plots (iii) Provision of income restoration assistance. (iv) Public consultation and awareness of compensation policy: (a) DPs should be fully informed and consulted about land acquisition, leasing and relocation activities; (b) the monitoring team should attend at least one public consultation meeting to monitor public consultation procedures, problems and issues that arise during the meetings, and solutions that are proposed; (c) public awareness of the compensation policy and entitlements will be assessed among the DPs; and (d) assessment of awareness of various options available to DPs as provided for in the RP. (v) Monitoring for relocation process: (a) To check with the affected people who are entitled to be relocated to a resettlement site if they are being or have been consulted on the location of the site, site design and plot allocation on the site; (b) To check if the affected persons are receiving or have received all their HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 127 RESETTLEMENT PLAN

entitlements and in a timely manner; (c) To check if the affected people who are relocated to a resettlement site have been consulted at least three months before implementating resettlement and if other adequate information has been provided. (vi) Affected persons should be monitored regarding restoration of productive activities. (vii) The level of satisfaction of DPs with various aspects of the RAP will be monitored and recorded. The operation of the mechanisms for grievance redress, and the speed of grievance redress will be monitored. (viii) Throughout the implementation process, the trends of living standards will be observed and surveyed. Any potential problems in the restoration of living standards will be reported. Methodology for Independent Monitoring a. Sample Survey A socio-economic survey will be required before, during and after resettlement implementation to provide a clear comparison of success/failure of the resettlement plan implementation. Monitoring will be on a sample basis. The sample size should be 100% of relocating households and at least 10% of all other households. The sample survey should be conducted twice a year. The survey should include women, elderly persons, and other vulnerable target groups. It should have equal representation of male and female respondents. A Post-Resettlement Evaluation will be carried out 6 to 12 months after completion of all resettlement activities. The EMA will take activities including but not limited to: (i) compensation documents checking; and (ii) working with compensation board and local authorities to collect all the necessary data and information; b. Database Storage The EMA will maintain a database of resettlement monitoring information. It will contain files on results of independent monitoring, DPs data will be updated based on information collected in successive rounds of data collection. All databases compiled will be fully accessible by the PMU, implementing agencies, and the Bank. c. Monitoring Report Follow-Up The monitoring reports will be discussed in a meeting between the EMA and PMU held immediately after submission of the report. Necessary follow-up action will be taken based on the problems and issues identified in the reports and follow-up discussions. 4. Evaluation Evaluation is an assessment at a given point of time of the impact of resettlement and whether stated objectives have been achieved. The external monitor will conduct an evaluation of the resettlement process and impact 6 to 12 months after completion of all resettlement activities using the same survey questionnaire and sample as used during the monitoring activities.

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IV. FORMAL OUTPUTS The following outputs are expected to submit PMU from the assignments: - A brief inception report submitted to PMU within one month of beginning of the assignment, PMU will submit to World Bank to comment. This report will outline the approach to the monitoring tasks, and include draft questionnaires, and other data collection instruments, methods of analysis and tables, and an outline of the monitoring report. It will further stipulate the timing and staff responsible for carrying out the various tasks. - The EMA will be required to submit the findings of the periodical monitoring every 3 months. These monitoring reports shall be submitted to the PMU, which in turn will submit the reports to the World Bank as an annex of its progress report. The periodic report should contain: (i) A report on the progress of RP implementation; (ii) Deviations, if any, from the provisions and principles of the RP; (iii) Identification of problem issues and recommended solutions so that implementing agencies are informed about the ongoing situation and can resolve problems in a timely manner; and (iv) A report on progress of the follow-up of problems and issues identified in the previous report. The outputs of the evaluation study would be in the form of a report. The draft report should be submitted to PMU and WB. The final report should be finalized following PMU/World Bank’s comment. The final reports will be submitted to PMU, accompany with a copied reports to World Bank; The reports will be written in two languages (Vietnamese and English) and six (6) copies of each per time. Electronic files of each report and data collected by consultants will be attached.

V. WORKING SCHEDULE This assignment of the Indepedent Resettlement Monitoring Consultants will be started from June 2011 and ended in 2013 with the following inputs submission schedule: No. Output Hard copies Date Vietnamese English 1 Inception report 1 month after beginning of the 6 6 assignment 2 Periodic Main Report 6 6 01 month after commencement of each periodic monitoring 3 Post-Resettlement 6 6 1 year after Resettlement activities evaluation report are finished Submit all electronic files of all the above tasks

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VI. QUALIFICATION AND EXPERIENCE REQUIREMENTS The external monitoring consultant will have the following minimum qualifications and experience: (a) The consultant must hold university degree with a minimum of Bachelor preferably with a major in social sciences; … (b) The consultant must have at least 5 years working in similar field and that have experience in RP monitoring for projects funded by WB or other international sponsors such as ADB; ... (c) Preferably monitoring consultants should have experience in the management of projects; (d) Consultant must be fluent in written and spoken English. The selected agency should prepare their 01 technical and 01 financial proposal for above tasks and submit these proposals to PMU. The financial proposal should cover all reasonable costs to be incurred by the agency/consultants in carrying out the assignment. Indicative Inputs Table Personnel Efforts ( month works ) Team leader 12 Monitors. * Socio science/community specialists 12 *Technical specialist 6 * Economic/Financial specialist 6 Translation/ administration assistant 12 Total 48

Note: These are indicative inputs only and the agencies/consultants will make their own estimates of inputs required.

VII. CLIENT’S INPUTS The consultant shall report to Hai Phong Urban Transport Development Project under Hai Phong Department of Transport, which will provide, free of charge, the RP, RPF and available related documents of the project. Assiting in access to and coordinations with relevant departments, local authorities and organizations.

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Annex 4: Term Of Reference For RCS

TERM OF REFERENCE FOR Independance Consultant for Replacement Cost Survey Implementation for Hai Phong Urban Transport Development Project

I. BACKGROUND The Socialist Republic of Vietnam has received a Credit from the International Development Association (IDA) toward the costs of Hai Phong Urban Transport Development Project. The Project consists of three major components as follows: Component A: Haiphong Strategy Urban Trunk Road approximately 20km long and 50.5m wide. Component B: The pilot for upgrading public transport services and traffic safety. This component includes upgrading the bus service to improve the public transportation services. This will be a model which can possibly be expanded. Component C: Building institutional capacity. This component consists of the programmes for institutional capacity building and developing human resources to manage traffic and urbanisation. The Strategy Urban Trunk Road Development (Component A) covering the urban trunk road through Hai Phong city includes the following:

o Building an urban traffic trunk road to link the east and the west from Truong Chinh Road (Quan Tru ward) to Hai An trunk road (Nam Hai ward) including the construction of Niem Bridge 2. This connection will facilitate the development of the southeastern cities and serve cargo transportation from Dinh Vu port in the mid -term period.

o Upgrading Truong Chinh road, including upgrading and repairing Niem Bridge 1. o Building a road section to connect the urban area and transport cargo from Quan Tru to Le Loi. This section will serve cargo transportation and connect Highway No.10 with the ports through the Nam Hai-Quan Tru corridors. The pilot for upgrading public transport services and traffic safety (Component B) includes a number of major items: (i) upgrading the Bac - Kien An corridor; (ii) improving bus stations and bus stops; (iii) improving traffic safety; (iv) building the capacity of state management for public transportation Building institutional capacity and developing human resources for urban traffic management in Hai Phong city (Component C) includes: (i) capacity building for transportation and urban management, inclusive of monitoring capacity and sufficiency, transportation and urban master plan management system; assignment for TA and master plan; detailed design for training course and implementation plan for each components. HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 131 RESETTLEMENT PLAN

II. OBJECTIVES OF THE ASSIGNMENT The team shall verify and establish compensation rates for land, crops, trees, structures, and other non-land based income (e.g. fishponds) to ensure that Displaced Persons (DPs) are compensated at replacement costs.

III. SCOPE OF WORKS Approach. The establishment of replacement costs will be carried out based on information collected from both Desk research and Direct interviews with people in affected area, both those persons who are affected and those not affected. Desk research will focus on relevant publications, materials of Government authorities, both at central and local levels. However, these materials will play the supporting role only. As the work is aimed at obtaining reasonable replacement costs for different types of affected assets, market evidences are the factors which most strongly base the formulation of these costs. Direct interviews with people in the affected area, both those, whose assets are affected by the Project and those, whose assets are not, will produce reliable data for establishment. Basis for Valuation. The basis for valuation assessment of both land and real estate should be (i) research and market investigations carried out by the Valuer, (ii) accumulated market evidence already held by the valuation organization, (iii) the results of any valuation surveys carried out by any other organization that is available and (iv) survey maps of the land to be valued and surrounding land. Data collection. The interviews will be conducted based on a pre-developed interview guide. Sample size will be determined by the valuer for land, structures and other fixed assets. Structures: (a) Interviews with owners of structures (main materials they used for their current structures; type of shops where they bought construction materials; distance of transport; origin of the materials (local or overseas); costs of various materials; labor cost); and (b) interviews with construction contractors (main materials which are most used by the local people to build their structures; costs of those main materials; cost of labor; average construction cost (cost per sq.m floor) for different types of houses according to different categories; and (c) validation of provincial construction prices (cost per sq.m floor for each category). Land. Price of land will be differentiated based on the use of land, including: Residential land; Garden land; Agricultural land; Land with water surface for fishery cultivation; and Forest lan. The objective of this establishment is to determine whether the provincial prices are sufficient or not to purchase the same quality and quantity of land. The establishment of compensation for the loss of land is based on its market value. The best way to obtain this market value is to gather data of some sales of land, which have just taken place. However, the transfer of land use right does not always go along with such sales, which makes details of such sales not recorded. The team will make their best effort to collect those sales evidence to support the verification of city prices. In addition, information to base the establishment will be collected from direct interviews with owners of land in Project affected area, including those, whose land is affected and those whose land is not. The interviews will cover the following issues: (i) recent land use rights transfer in HAI PHONG URBAN TRANSPORT DEVELOPMENT PROJECT Infra-Thanglong 132 RESETTLEMENT PLAN

the area and (ii) price, at which owners (affected and not affected persons) are willing to sell their land. Apart from determining the rates for various types of land. The valuer also need to determine the transaction costs involved such as administrative charges, taxes, registration and titling costs. The valuer should bear in mind that when establishing replacement cost for each type of assets, transaction costs should be clearly specified and should be shouldered by the Project. Crops and Trees. The objective of this establishment is to determine whether the provincial prices paid to DPs are equivalent, lower or higher than the average market price. The basis of the establishment is to determine the average market price for each type of crops and trees. The information to base the establishment will be collected from:

- Secondary sources: (a) publications of respective ministries (environment, agriculture, forestry and (b) publications of Price Committee (if available)

- Primary source: (a) interviews with people who own the same crops and trees in the locality. The interviews will cover price, at which owners are willing to sell each type of their crops and trees. The prices for perennial trees will be differentiated by the age of the trees and (b) market, team will investigate the sales price of outputs of different types of crops and trees in the market. Replacement Cost = Current Market Value + Transaction Cost. Apart from determining the rates for land and non-land assets indicated above. The valuer also need to determine the transaction costs involved such as administrative charges, taxes, registration and building permit costs. The valuer should bear in mind that when establishing replacement cost for each type of assets, transaction costs should be clearly specified to ensure that these expenses or costs are shouldered by the Project and should not be deducted from the compensation payment that each AP will receive. A separate section in the report should present how transaction costs are calculated.

IV. FORMAL OUTPUTS Based on the activities carried out, the consultant team should (i) present the methodology used and (ii) prepare a table and discuss among the team the unit rates to be applied for the project.

V. WORKING SCHEDULE This assignment of the Indepedent Resettlement Monitoring Consultants will be started from June 2011 and ended in 2013 with the following inputs submission schedule: No. Output Hard copies Date Vietnamese English 1 Inception report 1 month after beginning of the 6 6 assignment 2 Replacement cost 6 6 06 month after signing of contract survey

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VI. QUALIFICATION AND EXPERIENCE REQUIREMENTS The team will be composed of one senior social development consultant, at least 2 resettlement consultants and a team of enumerators, statistician and encoders. The property appraiser must be a licensed valuer to prepare valuations that are (i) prepared using internationally accepted methodologies, (ii) reflect market values and clear transaction costs and (iii) are independent. The external monitoring consultant will have the following minimum qualifications and experience: (e) The consultant must hold university degree with a minimum of Bachelor preferably with a major in social sciences; … (f) The consultant must have at least 2 years working in similar field and that have experience in RCS for projects funded by WB or other international sponsors such as ADB; ... (g) Preferably monitoring consultants should have experience in the management of projects; (h) Consultant must be fluent in written and spoken English.

VII. CLIENT’S INPUTS The consultant shall report to Hai Phong Urban Transport Development Project under Hai Phong Department of Transport, which will provide, free of charge, the RP, RPF and available related documents of the project. Assiting in access to and coordinations with relevant departments, local authorities and organization.

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