Ethnic Minority Development Plan

Project Number: 41456-033 September 2011

MFF 0054-VIE: Water Sector Investment Program – Tranche 2

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

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

DAK LAK PROVINCIAL PEOPLE’S COMMITTEE

DAK LAK WATER SUPPLY AND CONSTRUCTION INVESTMENT COMPANY

FEASIBILITY STUDY REPORT

FOR BUON MA THUOT CITY & THREE ADJACENT DISTRICTS OF EA KAR, BUON DON AND KRONG NANG WATER SUPPLY PROJECT DAK LAK PROVINCE

Ethnic Minority Development Plan

VHD Consultant

September 2011

Buon Ma Thuot and Three Adjacent Districts Water Supply Project VHD Ethnic Minority Development Plan

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EXECUTIVE SUMMARY

On 15 February 2011, the Asian Development Bank (ADB) agreed a list of twelve provinces to be evaluated for inclusion in the second tranche of its Multitranche Financing Facility (MFF) for the Viet Nam Water Sector Investment Program (2011). The authorities of Dak Lak Province alone submitted two sub-projects meant to commence in 2012, namely: (1) Buon Ma Thuot City and Three Adjacent District Towns Water Supply Project (or the Dak Lak Public Sector Water Supply Project) for an estimated $30.8 million; and (2) Cu Kuin Communal Water Supply and Buon Ma Thuot City Water Source Supplementation Project (or the Dak Lak Private Sector Water Supply Project) for a consideration of $25.4 million. Of these, this Ethnic Minority Development Plan (EMDP) relates to the Dak Lak Public Sector Water Supply Project only. The Buon Ma Thuot City and Three Adjacent District Towns Water Supply Project will meet the economic, technical, financial, institutional, social safeguards and fiduciary criteria of the Government of Viet Nam (GoV) and the ADB. The Project will include two components: (1) water supply infrastructure investments; and (2) institutional strengthening program (ISP) for the improvement of DAKWACO‘s (Dak Lak Water Supply and Construction Investment Company‘s) operational effectiveness and sustainable development. DAKWACO will be the Executing Agency (EA) of this sub-project. A Provincial Project Management Unit (PPMU) will be established to help DAKWACO implement the Project, including this EMDP.

Currently, ethnic minority people account for about 11% (or approximately 50,000) of the total population of Buon Ma Thuot City and about 25-30% of the total population of the three district towns of Ea Kar, Buon Don and Krong Nang. They classify as ethnic minority people according to both GoV and ADB guidelines and are therefore entitled to receive benefits from the Project while simultaneously being protected from any potential negative impacts of the Project. This EMDP has been developed by DAKWACO based on meaningful public consultations held with stakeholders and representatives of ethnic minority groups. The EMDP specifies potential positive and negative impacts on ethnic minorities within the project area and measures to ensure benefits and mitigate any adverse impacts. This document is tool meant to guide the EA and stakeholders during project implementation. The EMDP will be updated by the EA after the approval of the Project. The potential positive impacts of the Project on ethnic minorities include better access to safe water; better job opportunities and a better qualify of life. Measure including IEC and behavior change campaigns and job security to support the ethnic minority households will be developed. However, some unavoidable negative impacts on ethnic minorities include land acquisition for infrastructure construction, labor safety and adverse impacts relating to cultural features have been found during the sub-project preparation. Necessary measures to mitigate such negative impacts have been developed both in the Resettlement Plan (RP) and the EMDP. The total cost allocated for EMDP implementation is 83,000 USD, including an amount of 62,100 USD, which constitutes the total compensation to be paid to three Ede (ethnic minority) households who will lose agricultural land. The latter amount will be financed from the counterpart‘s budget and be part of the total RP budget. (Also see footnote 18 below.)

The tentative schedule for the EMDP implementation will be from December 2012 to January 2015.

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TABLE OF CONTENTS

1 Background ...... 1 1.1 Project Background ...... 1 1.2 Objectives of the Ethnic Minority Development Plan (EMDP) ...... 1 2 Description of the Project ...... 2 2.1 Component 1: Construction of Water Supply System ...... 3 2.2 Component 2: Institutional Strengthening Program (ISP) ...... 7 3 Ethnic Minorities in Viet Nam and in Dak Lak Province ...... 8 3.1 Ethnic Minorities in Viet Nam ...... 8 3.2 Ethnic Minorities in Dak Lak Province ...... 8 4 Social Impact Assessment...... 10 4.1 Legal and Policy Framework ...... 10 4.2 Ethnic Minorities in the Project Area ...... 12 4.3 Key Project Stakeholders ...... 21 4.4 Consultation with EM People at Each Stage of Project Preparation and Implementation ...... 22 4.5 Potential Adverse and Positive Effects of the Project ...... 24 4.6 Gender Issues ...... 25 5 Information Disclosure, Consultation and Participation ...... 26 5.1 Information disclosure, consultation and participation process with the affected EM communities carried out during project preparation ...... 26 5.2 Public Consultation and Participation during Project Implementation ...... 31 5.3 Disclosure ...... 32 6 Beneficial Impacts ...... 32 6.1 Improvement in EM‘s Access to Safe Water ...... 32 6.2 Improvement in EM People‘s Quality of Life ...... 33 6.3 Increase in Job Opportunities ...... 33 7 Impacts to be Mitigated ...... 33 7.1 Land Acquisition ...... 33 7.2 Affordability of Water Tariff for Poor and Extremely Poor EM HHs ...... 34 7.3 Others Adverse Impacts ...... 34 8 Capacity Building ...... 35 9 Grievance Redress Mechanism ...... 35 10 Monitoring and Reporting Arrangements ...... 36 11 Institutional Arrangements ...... 37 12 Budget of the EMDP ...... 37 13 Implementation Plan ...... 38

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LIST OF TABLES Table 1: Ethnic Composition (%) per District/Town, 2009 ...... 9 Table 2: Information about Ethnic Minorities ...... 14 Table 3: Socio-Economic Features of EM Households by Income Category, Buon Ma Thuot City ...... 16 Table 4: Socio-Economic Characteristics of Ethnic Minority HHs ...... 16 Table 5: National Assistance Programs/Projects for Ethnic Minorities ...... 17 Table 6: Population Distribution in Ea Kar District Town (January 2011) ...... 19 Table 7: Population per Ethnic Composition – Buon Don District Town (June 2008) ...... 20 Table 8: Summary of results of public consultations at Buon Ma Thuot city and the three district towns of Ea Kar, Buon Don and Krong Nang ...... 28 Table 9: Tentative Estimated Cost for EMDP (USD) ...... 38 Table 10: Tentative Schedule of EMDP Implementation ...... 39

FIGURES Figure 1: Buon Ma Thuot and Three Adjacent District Towns Water Supply Project ...... 3 Figure 2: General Layout - Buon Ma Thuot City Water Supply System ...... 4 Figure 3: General Layout - Ea Kar Water Supply System ...... 5 Figure 4: General Layout - Buon Don Water Supply System ...... 6 Figure 5: General Layout - Krong Nang Water Supply System ...... 7 Figure 6: Location of wards and communes in Buon Ma Thuot City ...... 13

ANNEXES -

2012 2013 2014 2015 No Activities 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2

I Update EMDP

1 Public consultation (surveys, meetings)

2 Update and finalize EMDP

3 Review and approve updated EMDP

II EMDP Implementation

4 Mobilization of EM & Resettlement Consultant

5 Design & develop IEC & BCC campaigns

6 Select and train training leader & motivators

7 Capacity building (workshop, meeting, training)

8 Implementation of IEC, BCC campaigns

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- Annex 1: Term of Reference (TOR) - Annex 2: Minutes of Public Consultations at Buon Ma Thuot City - Annex 3: Photos - Annex 4: List of Participants

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ABBREVIATIONS

ADB Asian Development Bank BCC Behavior Change Communication CEMA Committee for Ethnic Minority Affairs CERWASS Center for Rural Water Supply and Environmental Sanitation CPC Commune People‘s Committee DAKWACO Dak Lak Water Supply and Construction Investment Company DARD Department of Agriculture and Rural Development DEMA Department of Ethnic Minority Affairs DOC Department of Construction DOF Department of Finance DONRE Department of Natural Resources and the Environment DPC District People‘s Committee DPI Department of Planning and Investment EA Executing Agency EM Ethnic Minority EMDF Ethnic Minority Development Framework EMDP Ethnic Minority Development Plan GoV Government of Viet Nam HH Household IEC Information, Education and Communication ISP Institutional Strengthening Program KAP Knowledge, Attitudes and Practices MFF Multitranche Financing Facility NGO Non Governmental Organization PC People‘s Committee PFR Periodic Financing Request PM Person Month PPC Provincial People‘s Committee PPMU Provincial Project Management Unit PPTA Project Preparatory Technical Assistance RP Resettlement Plan SCADA Supervisory Control and Data Acquisition VLHSS Viet Nam Household Living Standards Survey WPC Ward People‘s Committee WTP Water Treatment Plant WU Women‘s Union

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1 Background

1.1 Project Background Viet Nam‘s rapid urbanization has placed enormous pressure on already constrained water supply, drainage and wastewater services in the country‘s cities and towns. Government of Viet Nam (GoV) policies focus on achieving high economic growth as the key to: (i) narrowing the development gap between Viet Nam and other countries in the region, and; (ii) generating sufficient resources to raise living standards, reduce poverty and achieve social equity. Development of water supply, drainage and wastewater services in the country‘s urban areas is seen as an important contributor to Comprehensive Poverty Reduction and Growth Strategy. Over the past decade, GoV has given high priority to developing and improving the urban water supply, drainage and wastewater services. Large investment has been made in the sector with support from various development partners including the Asian Development Bank (ADB). Urban water supply service levels improved markedly and household piped water supply coverage increased from about 65% to 75% in the period 2007 - 2010. Most sector investment has been focused on the large - medium cities and towns, but not much on district towns. Despite substantial investment in the sector, water supply and drainage coverage and service level is much lower than GOV‘s sector targets. About 25% of urban residents still lack access to safe piped water supply and instead (a) rely on less safe sources such as wells or surface sources, which are of variable quality and reliability, or; (b) buy water from private vendors at much higher prices than those charged by the provincial water supply companies. Only 50% urban areas have adequate drainage systems, 35% households connect to public drainage systems and 2% of urban wastewater is treated in concentrated wastewater treatment plants. In Buon Ma Thuot City, the existing water supply coverage is about 70% including 85% in urban areas and 15% in suburban areas. Inadequate groundwater supply during the dry season poses a major constraint to the continuing socio-economic development of the city. In other three district towns of Ea Kar, Buon Don and Krong Nang, there have been no centralized treated water supply systems except for some small water treatment plants (WTPs) serving small segments of their populations. Their residents currently use water from wells but the quantity as well as quality is not sufficient. Forecasted water demand for the Project area is 72,000m3 per day and 77,000m3 per day by 2015 and 2020, respectively. Substantial investment is required urgently in construction of a new water supply system and expansion of the existing system to address water demand for socio-economic development and domestic demand of households. On 15 February 2011, the Asian Development Bank (ADB) agreed a list of twelve provinces to be evaluated for inclusion in the second tranche of its Multitranche Financing Facility (MFF) for the Viet Nam Water Sector Investment Program (2011). The authorities of Dak Lak Province alone submitted two sub-projects meant to commence in 2012, namely, (1) Buon Ma Thuot City and Three Adjacent District Towns Water Supply Project (or the Dak Lak Public Sector Water Supply Project) for an estimated $30.8 million; and (2) Cu Kuin Communal Water Supply and Buon Ma Thuot City Water Source Supplementation Project (or the Dak Lak Private Sector Water Supply Project) for a consideration of $25.4 million. Of these, this Ethnic Minority Development Plan (EMDP) relates to the Dak Lak Public Sector Water Supply Project only.

1.2 Objectives of the Ethnic Minority Development Plan (EMDP) The EMDP focuses on the socioeconomic development of ethnic minority (EM) communities in Buon Ma Thuot City and the district towns of Ea Kar, Buon Don and Krong Nang.1 This EMDP was prepared

1 For the development of the WTP of the Dak Lak Public Sector Water Supply Project, it is expected that three ethnic Ede households in Ea Na commune, Buon Trap town, Krong Ana District, will permanently lose their agricultural land. The Resettlement Plan (RP), which includes these three households, has been prepared as a separate safeguard document. An EMDP

September 2011 Page 1 Buon Ma Thuot and Three Adjacent Districts Water Supply Project VHD Ethnic Minority Development Plan following the ADB Safeguard Policy Statement (June 2009) and the Indigenous People Planning Framework prepared for the Viet Nam Water Sector Investment Program-Multitranche Financing Facility (MFF). It will address the: (i) aspirations, needs, and preferred options of the affected indigenous peoples; (ii) local social organization, cultural beliefs, ancestral territory, and resource use patterns among the affected indigenous peoples; (iii) potential positive and negative impacts on indigenous peoples; (iv) measures to avoid, mitigate, or compensate for the adverse project effects; (v) measures to ensure project benefits will accrue to indigenous peoples; (vi) measures to strengthen social, legal, and technical capabilities of government institutions to address indigenous peoples issues; (vii) the possibility of involving local organizations and NGOs with expertise in indigenous peoples issues; (viii) budget allocation; and (ix) monitoring. The document will help to: i. Ensure that the benefits from the subproject for ethnic minority people are proper and culturally appropriate; ii. Avoid potentially adverse impacts on ethnic minority people; and iii. Minimize, mitigate or compensate for such effects when they cannot be avoided.

The EMDP will be connected to the Project‘s: (i) investments by DAKWACO in its efforts to expand a piped water supply system to as many households as possible; (ii) resettlement and compensation plan; and, (iii) gender strategy similar to that of the core subproject to ensure EM women‘s involvement and the benefit of the Project to EM women.

2 Description of the Project The Project aims to create favorable conditions for the improvement of socio-economic, health care and industrial and tourism development of Buon Ma Thuot city and the three adjacent district towns of Ea Kar, Buon Don and Krong Nang through the enhancement of access to safe and reliable piped water supply for

for Ea Na commune has not been prepared since the commune itself is not affected. Moreover, EM residents at Ea Na commune are already supplied with treated water from a system built in 2007 with a designed capacity of 838 m3 per day and a potential service population of 11,800 persons. The existing water system is in good condition and has been serving 9,500 people since it was commissioned (81% of the designed service population or 74% of the commune population).

September 2011 Page 2 Buon Ma Thuot and Three Adjacent Districts Water Supply Project VHD Ethnic Minority Development Plan residents by year 2020. Project area is shown in

Figure 1 below:

Buon Don Town - 1,000m3/d (1st phase) - 2,000m3/d (2nd phase)

Figure 1: Buon Ma Thuot and Three Adjacent District Towns Water Supply Project

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The investments in the Project will meet the economic, technical, financial, institutional, social safeguards and fiduciary criteria of GoV and the ADB. The Project will include two components: (1) water supply infrastructure investments; and (2) institutional strengthening program (ISP) for improving DAKWACO‘s operational effectiveness and sustainable development. 2.1 Component 1: Construction of Water Supply System 2.1.1 Buon Ma Thuot City Sub-Project: The Buon Ma Thuot sub-project will provide sufficient treated and reliable water to residents in Buon Ma Thuot City. Raw water intake facilities including a pumping station with capacity of 35,000m3 per day will be placed at Quynh Ngoc Village, Ea Na Commune, Krong Ana District. Raw water will be pumped through the raw water transmission pipeline which will be installed along the Provincial Highway Road No. 2 to the WTP at Tan Lap Hill, Ea Na Commune, Krong Ana District. Treated water from the WTP will be delivered to Buon Ma Thuot City through transmission pipeline (12.5 km) and to the booster pumping station and a 5,000m3 storage reservoir at Hamlet 11, Ea Tam Ward, Buon Ma Thuot City before running through the transmission and distribution pipelines to households. Sub-project facilities are shown in Figure 2:

Figure 2: General Layout - Buon Ma Thuot City Water Supply System The implementation of the Buon Ma Thuot sub-project will bring positive impact to the indigenous people in the City as it will improve living condition and environmental sanitation to the City‘s residents and indigenous persons as well. However, negative impacts may result from the construction of: (i) raw water facilities at Quynh Ngoc village; (ii) raw water transmission pipeline from the raw water intake to the WTP at Ea Na commune; (iii) and the treated water pipeline from the WTP to the booster pumping station at Hamlet 11, Ea Tam Ward. Such negative impacts would be noise, dust, inconvenient traffic, accident, business performance reduction, etc., to indigenous people who are now living in these areas. In addition, the construction of the WTP at Ea Na Commune and the booster pumping station and reservoir at Hamlet 11, Ea Tam Ward will lead to the acquisition of agricultural land and loss of crops (e.g. coffee, avocado, pepper) of three Ede households.

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Currently, residents at Ea Na Commune are being supplied treated water from a water supply system that was built in 2007. The system has the designed capacity of 838 m 3 per day, serving 11,800 persons. By now, around 9,500 persons—equivalent to 81% of the designed service population or 74% of the population of the commune—have been served. The existing water system is now in good condition and is operating properly.

2.1.2 Ea Kar District Town Sub-Project: The sub-project will comprise: (i) construction of a WTP with a capacity of 2,500m3 per day on the base of small Chu Cuc hill; (ii) construction of raw water intake for taking water from Ea Kar dam; (iii) installation of transmission, distribution pipelines and service connection with total length of 44 km; and (iv) supply and installation of 3,300 connections. Details are shown in Figure 3:

Figure 3: General Layout - Ea Kar Water Supply System Obviously, the Ea Kar District Town Sub-Project will meet with the District Town targets and objectives from 2010-2020 as it will bring help to improve socio-economic conditions of the residents. Some temporary impacts to indigenous people as noise, dust, etc., may be unavoidable due to the construction of the sub-project facilities.

2.1.3 Buon Don District Town Sub-Project:

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It will comprise: (i) construction of a WTP with a capacity of 1,000m3 per day in Ea Wer Commune; (ii) construction of raw water pumping station at Serepok hydro-electric dam; (iii) installation of transmission and distribution pipelines, and service connections with a total length of 22 km; (iv) supply and installation of 1,400 connections. Sub-project facility is shown in Figure 4 below:

Figure 4 : General Layout - Buon Don Water Supply System The Buon Don District Town Sub-Project will help to improve residents‘ assess to safe and reliable water. However, temporary impacts to indigenous people like noise, dust, etc., may be unavoidable due to the construction of the sub-project facilities.

2.1.4 Krong Nang District Town Sub-Project: This sub-project will comprise the construction of a 1,600m3 per day water supply station in Ho Sen area. Raw water will be taken from Dong Ho lake. Transmission, distribution pipelines and service connection with total length of 34 km will be installed. The sub-project will supply and install 2,300 connections. The sub-project project area is shown in Figure 5.

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Figure 5 : General Layout - Krong Nang Water Supply System The public consultation with indigenous people in the Krong Nang District Town (11 September 2011) shows that the Sub-Project is actively supported by the local authority and the Ede people in the District Town despite some negative impacts like noise, dust, minor disturbance of living condition during the construction period.

2.2 Component 2: Institutional Strengthening Program (ISP) This component provides funds for institutional strengthening technical assistance to improve the efficiency and sustainability of DAKWACO‘s operation. The following key areas are expected for institutional strengthening and capacity building: (a) developing customer relationship; (b) developing water billing system; (c) improving non-revenue water, network management (pressure and flow management); (d) developing asset management system installing SCADA for WTP and network operation and control; (e) providing laboratory to test and control water quality, and; (f) operation and maintenance of mechanical and electrical equipment. The implementation of this component can bring mainly positive impacts to the indigenous people as the capacity of the DAKWACO and its staff will receive sufficient and effective know how during the performance support in fields of customer relationship management; billing system; network management, etc.

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3 Ethnic Minorities in Viet Nam and in Dak Lak Province

3.1 Ethnic Minorities in Viet Nam The population of Viet Nam comprises people drawn from 54 officially recognized ethnic groups, of which the Kinh (also known as the Việt, or mainstream Vietnamese) account for 87 percent. The 53 ethnic minority groups vary in size from 500,000 to a few hundred members each. Ethnic minorities account for 13% of the total population, but nearly a third (29%) of Viet Nam‘s people classified as in poverty are ethnic minority people2. With the exception of the Hoa (ethnic Chinese) and the Khmer and Cham, the remaining 50 ethnic groups mostly reside in remote, mountainous rural areas and are economically and socially disadvantaged across a range of dimensions. The members of ethnic minority groups are estimated to be four-and-a-half times more likely to be poor than the Kinh-Hoa, and are also more likely to be malnourished, illiterate, and suffering from poor health3. Although Viet Nam has made impressive progress on poverty reduction over the last 15 years, in every region of the country, the improvements have been much more rapid for the Kinh and Chinese populations than for the ethnic minorities. Trends show that poverty is increasingly becoming an issue of ethnicity.

3.2 Ethnic Minorities in Dak Lak Province 4 The Viet Nam Household Living Standards Survey (VLHSS) shows that the proportion of poor households of some ethnic groups in the region such as Ede, Gia Rai and Ba Na5 is quite high. They show that it is difficult to generalize or provide a common image of ethnic groups in the province and a better understanding of the socioeconomic condition of ethnic minority people requires a specific analysis of these groups. Some ethnic groups have higher living standards than others due to their benefiting from policies of ethnic minority livelihood improvement. In 2009 there were 47 ethnic groups including 46 minorities in the whole province. About 33% of the provincial population are from ethnic minority groups, which is higher than the corresponding national figure. In Buon Ma Thuot City, above 80% population is Kinh while ethnic minorities in other districts and towns account for 30-60% of their respective populations. Ede people account for the largest group among ethnic minorities in the province. More than 90% of the Ede people in the whole country live in Dak Lak Province. Many ethnic minority groups generally live in some districts whereas Ede people live in all districts of the province. Ethnic composition in Dak Lak province in 2009 is presented in Table 1:

2 Asian Development Bank (2002), Indigenous Peoples/Ethnic Minorities and Poverty Reduction Viet Nam, ADB Manila. 3 Swinkels R. and Turk C. (2006), Explaining Ethnic Minority Poverty in Viet Nam: A Summary of Recent Trends and Current Challenges. Draft Background paper for CEM/ MPI meeting 28 September 2006 on Ethnic Minority Poverty, World Bank, Ha Noi. 4 Strategy Study for Development of Dak Lak Province and Buon Ma Thuot City (DaBuDeSS) - Draft Final Report (August 2011) 5 Baulch, B., H. Pham, and B. Reilly 2008: Ethnicity and Household Welfare in Viet Nam: Empirical Evidence from 1993 to 2004. Sussex, UK: Institute of Development Studies.

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Table 1: Ethnic Composition (%) per District/Town, 2009

Central area Northern area North-eastern area Ethnic Buon Buon Cu Krong Kron Lak Cu Ea Hleo Ea Sup Krong Krong Ea Kar M Krong Tota Ma Dôn Mgar Pắk Ana Kuin Năng Búk Drak Bong l Thuot Kinh 24.4 2.6 7.7 10.4 5.3 1.9 5.7 6.2 3.2 7 9.1 8.2 3.4 4.9 100 Tay 3.6 9.7 6.5 11.9 1.3 2.8 5.5 12.4 6.8 20.0 4.7 11.6 2.8 0.4 100 Thai 14.3 2.3 4.7 4.9 0.5 3.2 0.2 3.6 31.2 15.5 1.7 13.5 3.1 1.2 100 Chinese 73.6 1.3 2.1 14 1.7 - 0 1.5 0.1 0.8 2.9 1.1 - 1 100 Khmer 48.5 7.5 2.4 18.4 5.8 0.3 - 2 5.1 0.7 3.8 0.7 2.4 2.4 100 Muong 31.7 6 3.2 2.5 5 2.1 0.8 8.3 6.1 9.2 1.1 15.7 1.9 6.4 100 Nung 1.8 10.7 2.7 19.6 0.4 0.6 2.3 16 9.1 7.8 11.8 13.3 3.5 0.2 100 H‘mong 1 0 2.3 0.1 0 0.4 0 0.2 8.1 2.9 - 1 35.6 48.2 100 Dao 0.1 4.6 47.6 4.1 0 0.1 0 9.7 7.8 0.7 1.2 13.1 10.1 0.7 100 Gia rai 1.8 0.9 3.8 0.6 0.6 - 0.1 73.7 17 0.3 0.9 0.1 0 0 100 Ngai 0 - 0 99.8 - - - - 0.1 - 0 - - 0 100 Ede 14 4.1 22.7 0 5.9 1.6 10.1 5.1 0 5.4 14 6.3 5.5 5.2 100 Bana 0.5 0.1 0.3 94.2 - - - 0.6 3.5 0 0.3 0.3 0.1 - 100 Se Dang 0.2 - 39.5 46.3 0.1 - 0.1 0.1 - - 5.8 7.8 - 0.1 100 San Chay 1 6.3 0.1 0.4 12.6 - 22.4 1.8 0.5 1 0.2 52.9 0.6 0.1 100 K‘Ho 14.1 - 1.4 24.6 12 0.7 25.4 - 3.5 2.1 3.5 12.7 - - 100 Cham 3.5 0.2 0.3 91.7 0.1 - - 1.3 0.8 0.3 0.7 0.2 0.7 0.2 100 San Diu 0.6 1.3 57.5 2.9 - - 2.6 5.3 17.2 5.2 0.5 - 6.6 0.2 100 Hrê 24.7 3.1 28.8 11.3 - - 5.1 10.6 8.6 0.7 5.1 1.7 - 0.3 100 M‘nong 0.3 7.6 0.1 - 2.6 75.1 0 0.1 0.1 0 0 0.1 - 14 100 Ra-glai 35.6 - 5.1 - - - 3.4 42.4 - - 3.4 6.8 - 3.4 100 Stieng 50 - - - 50 ------100 Bru-Van Kieu 0.1 0.2 2 87.4 - - - 0.4 - - 0.3 6 - 3.5 100 Tho 11.5 - 10.4 19.9 0.3 - 2.4 46.8 3 0.4 0.5 0.9 3.8 - 100 Giay 6.5 ------93.5 ------100 Gie Trieng ------51.4 - - - 43.2 - 5.4 100 Ma 13.3 ------66.7 - - - 13.3 - 6.7 100 Kh-mu 8.6 - 5.7 14.3 - - - 58.6 - - 12.9 - - - 100 Co 16.7 - - - 41.7 ------41.7 100 Ta Oi ------100 ------100 Cho-ro - - - - 8.3 - 91.7 ------100 Ha Nhi 100 ------100 Chu-ru - - - - 66.7 ------33.3 100 Laos 3 83.3 - - 0.4 - 0.7 10.7 1.9 - - - - - 100 Phu-la ------6.3 - - - 93.8 - - - 100 La-hu ------100 - - - 100 Chut ------6.4 32 61.6 - - - - 100 Mang 1.4 - 85.2 - - - - - 13.4 - - - - - 100 Foreigner 66.7 ------16.7 16.7 - - - - - 100 Total 19.2 3.4 9.6 11.4 4.7 3.4 5.7 6.9 3.4 6.8 8.9 7.8 3.8 5 100 Source: Dak Lak Provincial Department of Ethnic Minority Affairs Note: Table 1 lists the spread of each ethnic group—in percentage terms—across different towns and districts in the province. It does not allow the comparison of different groups with one another in any specific location, details of which are in Table 2 below.

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4 Social Impact Assessment

4.1 Legal and Policy Framework 4.1.1 Viet Nam’s Legal and Policy Framework on Ethnic Minorities The definition of ethnic minority in Viet Nam is based on the following four criteria: i. a language different from the national language; ii. long term traditional residence on, or relationship with, land; and long standing traditional social institutional system; iii. common economic activities; and iv. a distinct cultural identity and self-identification as a distinct cultural group that is accepted by neighbouring ethnic groups. (1) Legal Status of Ethnic Minority Groups All ethnic groups in Viet Nam enjoy full citizenship and are protected in terms of equality under the law and national constitution. The Constitution of Viet Nam (1992, amended 2001) acknowledges equality among ethnic groups and includes general principles as follows: i. Viet Nam is a united nation of all ethnic groups living within the country (Article 5). ii. The State applies a policy of equality, solidarity and mutual support among the various ethnic communities and prohibits all acts of ethnic discrimination and division (Article 5) iii. All ethnic groups have the right to use their own languages and writing systems and to preserve their traditional customs and culture. (Article 5) iv. The State implements policies of all-round development aimed at gradually improving and raising the material and spiritual conditions of life of ethnic minorities. (Article 5) v. The State will take charge of and will ensure the promotion of the cultural values of all the nationalities in Viet Nam (Article 30) vi. The State gives priority for development of education and health care to mountain inhabitants and ethnic minorities. (Article 36 and 39). (2) Policies Related to Ethnic Minorities The Government of Viet Nam has passed a series of policy resolutions related to ethnic minority development, particularly in remote mountainous areas. One of the most relevant of these. referred to as ―Program 134‖. is the Prime Minister‘s Decision No.134/2004/QD-TTg of 20 July 2004 which includes a number of policies to provide support in terms of land for agricultural production, residential land, houses and water for daily life to poor ethnic minority households meeting with difficulties. Decree No.60/2008/ND-CP of 9 May 2008 prescribes the functions, tasks, powers and organizational structure of the Committee for Ethnic Minority Affairs (CEMA). This ministerial-level agency under the Government performs its functions of state management related to ethnic minority affairs nationwide, and on public services and provincial departments within its authority. Provinces with a significant ethnic minority population have a Department of Ethnic Minority Affairs under the Provincial People‘s Committee. The functions of CEMA range from development of laws to program implementation, their monitoring and acting as liaising agency of different ministries of Viet Nam and liaising with international agencies. In 1995, CEMA developed a framework for External Assistance for the Development of Ethnic Minorities. This framework resulted in a strategy for the development of ethnic minority people within the Government's goal of stability, sustainable growth and reduction of poverty. The key points of this framework are to: a) fight against poverty; b) encourage active participation of the populations of ethnic minorities in their own development; c) reinforce the institutions involving ethnic minorities; d) develop natural and human resources in a sustainable manner; and e) ensure mutual respect between, and increase responsibility of the parties involved.

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(3) Participation/Grassroots Democracy Documents from the Government relating to grassroots democracy and public participation are also relevant to this EMDP. Ordinance No.34/2007/PL-UBTVQH11 dated 20 April 2007 (superseding Decree No.79/2003/ND-CP of 7 July 2003) on the implementation of democracy in communes, ward and township levels provides the basis in Viet Nam for community participation in the preparation of development plans and their supervision. Prime Minister‘s Decision No.80/2005/QD-TTg of 18 April 2005 promulgates regulations on investment supervision by the community.

4.1.2 ADB Policies on Ethnic Minorities (1) Safeguard Policy The ADB Safeguard Policy Statement (2009)6 and Operations Manual (OM F1/BP and F1/OP 20 January 2010) affirm that environmental and social sustainability is a cornerstone of economic growth and development. ADB commits to ensuring environmental and social sustainability in the projects it supports. The Safeguard Policy Statement sets out the policy objectives, scope and triggers, and principles for three inter-related key safeguard areas: environmental safeguards; involuntary resettlement safeguards; and Indigenous People‘s safeguards. The objectives of ADB‘s safeguards are to: (i) avoid adverse impacts of projects on the environment and affected people, where possible; (ii) minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and (iii) help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks. (2) Indigenous Peoples Policy The term Indigenous Peoples is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following in varying degrees: (i) self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (ii) collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or region. In the case of Viet Nam, there is a high degree of consistency between the Vietnamese definition of ethnic minorities and ADB‘s definition of Indigenous People. The main point of divergence is that, in the case of ADB‘s policy, a group that has lost collective attachment to geographically distinct habitats or ancestral territories in the project area because of forced severance remains eligible for coverage. National legislation, customary law, and any international conventions to which Viet Nam is a party are taken into account for application of the ADB policy. The Indigenous Peoples safeguards are triggered if a project directly or indirectly affects the dignity, human rights, livelihood systems, or culture of EM people or affects the territories or natural or cultural resources that EM people own, use, occupy, or claim as an ancestral domain or asset. The objective of the Indigenous People‘s Policy is to design and implement projects in a way that fosters full respect for EM identity, dignity, human rights, livelihood systems, and cultural uniqueness as defined by the EM people themselves so that they: i. Receive culturally appropriate social and economic benefits ii. Do not suffer adverse impacts as a result of the projects iii. Can participate actively in projects that affect them. Borrowers/clients are required to meet the specific safeguard requirements, including Safeguard

6 The ADB Safeguard Policy Statement (2009) is available in Vietnamese at: http://www.adb.org/Documents/Translations/ Vietnamese/Safeguard-Policy- Statement-June 2009-vn.pdf

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Requirement 3: Indigenous Peoples. Importantly, (i) ADB will not finance projects that do not comply with the Safeguard Policy Statement; (ii) the Safeguard Policy Statement applies to all ADB projects and their components regardless of the source or type of finance; (iii) ADB will implement the Safeguard Policy Statement through safeguard review procedures. The Indigenous People‘s Safeguard Policy replaces ADB's Policy on Indigenous Peoples (1998) with the following key differences: - The consent of affected EM communities must be obtained for three types of activities: + Commercial development of the cultural resources and knowledge of EM + Physical displacement from traditional or customary lands + Commercial development of natural resources within customary land under use - Greater stress is placed on culturally appropriate measures, and gender and intergenerational considerations - Use of qualified and experienced experts - The conduct of consultation, social impact assessment, EMDP, monitoring and grievance redress will be commensurate with the nature of the project and the scale of impacts on EM people - When the borrower/client and the affected EM people have major disagreements, the borrower/client will adopt ―good faith‖ negotiations in resolving those disagreements. - If there is not broad community support for the project then it will not go ahead. An Ethnic Minority Development Plan (EMDP) is required for all projects with any impacts (positive or negative) on EM people. Its level of detail and comprehensiveness is commensurate with the significance of potential impacts on EM people

4.2 Ethnic Minorities in the Project Area

4.2.1 Information about the Ethnic Minority Groups As designed the Project area shall serve the population of Buon Ma Thuot city and the district towns of Ea Kar, Buon Don and Krong Nang. These have around 64,862 ethnic minority persons who are now living in the project area. (50,000 EM persons in Buon Ma Thuot city; 4,180 EM people in Ea Kar; 8,148 EM people in Buon Don and 2,534 in Krong Nang). The native EM in these four areas are the Ede who form the largest EM group, then the Gia Rai EM group followed by the immigrant EM groups of Nung, Thai, Tay who came here from the Northern and Central provinces of Viet Nam before and after the Viet Nam War. In Buon Ma Thuot, there are approximately 14.4% EM persons have been supplied with treated water (12% from DAKWACO and nearly 2.4% from small, decentralized water supply systems) while in the towns of Ea Kar, Buon Don and Krong Nang almost no EM persons have been supplied with treated water yet. Features relating to EM groups in the project area are as follows: (1) Buon Ma Thuot City Sub-Project7 Buon Ma Thuot City is the centre of Dak Lak province, Central Highlands region. Its population is about 340,000. The city is also the biggest city in the Central Highlands region. Buon Ma Thuot is well known for cultural traditions and indigenous properties such as coffee cultivation, stilt houses, gong culture – certified as tangible cultural heritage by UNESCO. Total area of Buon Ma Thuot city is 37,718 ha. There are 21 administrative units in the city including 13 urban wards and 8 communes (refer to Figure 6). As of 2009, the city accounted for 3% (37,718 ha) of total province area and 19% (330,106 persons) of total province population. In the old days, the area fell within Ede people‘s territory with around 50 ‗nha dai‘

7 Strategy Study for Development of Dak Lak Province and Buon Ma Thuot City (DaBuDeSS)-Draft Final Report (August 2011)

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(long houses) located along Ea Tam spring and managed by the head of tribe. The name of Buon Ma Thuot originates from Ede language meaning ―village of Father Thuot‖ with Thuot as the name of the head; then surrounding ‗buon‘/villages were formed and developed into present Buon Ma Thuot City. Initially, mainly Ede people lived in Buon Ma Thuot City. In the 19th century, they were joined by the Kpa people. However due to migration after the struggle against America and policy of active culture receiving and changing, the majority of residents in Buon Ma Thuot was Kinh. At present, majority of Buon Ma Thuot‘s population is Kinh, who account for 89% of total population, and only about 11% of total population is from ethnic minorities. The largest ethnic minority is Ede (7%), the rest includes many other ethnic minority groups such as M‘Nong, Gia Rai, Nung, Thai, etc. Some ethnic minority groups only live in some communes such as M‘Nông people living in Tan Loi and Hoa Khanh, Gia Rai in Ea Kao, Thai in Tan Thanh and Hoa Phu.

Figure 6: Location of wards and communes in Buon Ma Thuot City

Source: Strategy Study for Development of Dak Lak Province and Buon Ma Thuot City (DaBuDeSS) - Draft Final Report (August 2011) Note: Wards: (1) Tan Lap; (2) Tan Hoa; (3) Tan An; (4) Thong Nhat; (5) Thanh Nhat; (6) Thang Loi; (7) Tan Loi; (8) Thanh Cong; (9) Tan Thanh; (10) Tan Tien; (11) Tu An; (12) Ea Tam; (13) Khanh Xuan. Communes: (14) Hoa Thuan; (15) Cu Ebur; (16) Ea Tu; (17) Hoa Thang; (18) Ea Kao; (19) Hoa Phu; (20) Hoa Khanh; (21) Hoa Xuan. The M‘nong and Gia Rai have smaller households than other ethnic groups. The Ede, Nung and Thai has unbalanced population structure with more women then men. Despite some difficulties of access to service between men and women, most ethnic minority people have lower education levels than the Kinh. One of the most distinguishing features of M‘nong women is that their rates of university and college attendance are relatively high. Employment rates differ from group to group. Managerial positions in professional and technical sectors mainly belong to Kinh, Ede and M‘nong people but not to Gia Rai and Nung. Ethnic minority groups mainly earn livelihoods from agriculture or fishing. Nung and Thai people meet more difficulties during job application than other people.

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There are also many differences of labor status among ethnic groups. Around 25.2% of Kinh people participate in the agriculture-forestry sector (which accounts for 29.8% of employment in the city). This rate is particularly high for Ede and Gia Rai (100%). The retail and individual business sector is the main employment of Kinh people while the rate of ethnic minority people engaged in construction and finance is quite high that account for 13.6% and 20.1% respectively. M‘nong people participate much in public management, defense and Communist party activities accounting for 32.8% and 30.6% respectively. About 63.4% of M‘nong interviewed were governmental officers. This also matches the fact that the rate of professional and technical labor among M‘nong is quite high. Details are presented inTable 2. Table 2: Information about Ethnic Minorities Ethnic minority group Kinh Ede M' nong Gia Rai Nung Thai Other Total Population 291,913 22,557 191 205 1,288 1,483 10,838 328,475 Number of households 89,756 6,431 79 82 376 373 3,420 100,517 Demography Average household size 3,25 3,51 2,42 2,50 3,43 3,98 3,17 3,27 Gender Male 50 48 50 50 48 45 50 49 (%) Female 50 52 50 50 52 55 50 51 High school and lower 85.7 90.4 100.0 100.0 80.3 100.0 95.7 86.4 Male College and above 14.3 9.6 0.0 0.0 19.7 0.0 4.3 13.6 Education (%) High school and lower 86.5 93.5 35.9 100.0 92.6 84.3 86.1 87.0 Female College and above 13.5 6.5 64.1 0.0 7.4 15.7 13.9 13.0 Manager 2.4 2.0 0.0 0.0 0.0 0.0 1.6 2.4 Professional/engineering 7.5 4.0 30.6 0.0 0.0 4.9 4.4 7.1 Farmer/Fisherman 12.5 44.3 17.2 69.8 8.2 14.1 28.5 15.4 Army/police 1.4 0.8 32.8 0.0 2.5 0.0 1.5 1.4 Skilled labor 12.4 5.0 19.4 0.0 17.9 13.1 6.5 11.7 Unskilled labor 5.8 4.8 0.0 0.0 0.0 14.0 5.8 5.7 Small business 3.9 2.8 0.0 0.0 7.3 1.8 2.1 3.8 Job Enterprise owner 9.0 1.3 0.0 0.0 3.0 0.0 7.1 8.3 (%) Students (college. university) 3.0 2.0 0.0 0.0 6.9 5.1 3.9 3.0 Vocational students 1.9 1.4 0.0 0.0 9.2 3.1 1.9 1.9 Pupil 27.9 25.1 0.0 0.0 29.5 29.7 20.1 27.4 Housewife 4.2 1.9 0.0 0.0 0.0 3.4 9.0 4.2 Unemployed 1.9 0.8 0.0 0.0 7.0 5.1 1.1 1.8 Retired 3.7 1.6 0.0 30.2 5.7 2.8 2.8 3.5 Very young 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Others 2.2 2.2 0.0 0.0 2.8 2.8 3.9 2.3 Agriculture-forestry 25.2 69.4 17.2 100.0 18.0 36.5 49.0 29.8 Fishery 0.4 0.7 0.0 0.0 0.0 0.0 0.0 0.4 Mining 0.1 0.5 0.0 0.0 0.0 0.0 0.0 0.1 Production. manufacture 4.9 1.1 0.0 0.0 7.2 7.7 6.6 4.7 Power. Gas and water supply 1.3 0.6 0.0 0.0 0.0 0.0 0.0 1.2 Construction 5.5 5.5 19.4 0.0 13.6 0.0 6.9 5.6 Retail-individual business 25.5 6.7 0.0 0.0 16.0 15.1 13.9 23.4 Labor Restaurants. Hotels 1.6 0.3 0.0 0.0 0.0 0.0 0.0 1.4 (%) Transport. storage. 4.9 0.8 0.0 0.0 9.8 5.9 6.3 4.6 Communication Finance 1.8 0.5 0.0 0.0 20.1 0.0 2.0 1.7 Science-technology 0.9 0.0 0.0 0.0 0.0 0.0 1.8 0.8 Real estate 0.9 0.1 0.0 0.0 0.0 0.0 1.3 0.9 Public management. defense 4.2 2.1 32.8 0.0 0.0 0.0 2.1 4.0 Education and training 7.2 3.9 0.0 0.0 0.0 10.3 3.1 6.8 Health and society 2.4 1.5 0.0 0.0 0.0 0.0 1.0 2.2

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Recreation. culture 1.1 0.0 0.0 0.0 0.0 0.0 2.1 1.0 Communist party work 1.7 2.2 30.6 0.0 0.0 0.0 1.3 1.7 Community/Social work 0.8 0.0 0.0 0.0 0.0 0.0 0.0 0.7 Other sectors 5.6 2.5 0.0 0.0 6.6 17.5 1.6 5.3 Other service 2.9 1.5 0.0 0.0 0.0 7.0 0.0 2.7 1 Tan Lap 91.1 8.4 0.0 0.0 0.0 0.0 0.5 7.669 2 Tan Hoa 95.4 1.1 0.0 0.0 0.0 0.0 3.4 3.218 3 Tan An 100.0 0.0 0.0 0.0 0.0 0.0 0.0 5.867 4 Thong Nhat 95.6 2.2 0.0 0.0 0.0 0.0 2.2 1.607 5 Thanh Nhat 94.4 2.8 0.0 0.0 1.4 0.0 1.4 4.794 6 Thang Loi 98.4 0.0 0.0 0.0 0.0 0.0 1.6 2.433 7 Tan Loi 92.9 5.8 0.6 0.0 0.0 0.0 0.6 7.135 8 Thanh Cong 95.7 0.9 0.0 0.0 0.0 0.0 3.5 4.287 Population 9 Tan Thanh 92.7 0.0 0.0 0.0 0.8 1.6 4.8 5.465 distribution 10 Tan Tien 91.2 7.0 0.0 0.0 0.9 0.0 0.9 4.613 per 11 Tu An 96.3 0.7 0.0 0.0 0.7 0.0 2.2 5.915 ward/commu 12 Ea Tam 88.6 9.1 0.0 0.0 0.5 0.0 1.8 8.360 ne (% total) 13 Khanh Xuan 98.3 0.6 0.0 0.0 0.6 0.0 0.6 6.856 14 Hoa Thuan 100.0 0.0 0.0 0.0 0.0 0.0 0.0 3.647 15 Cu Ebur 74.4 25.6 0.0 0.0 0.0 0.0 0.0 4.560 16 Ea Tu 85.9 12.4 0.0 0.0 0.9 0.0 0.9 3.991 17 Hoa Thang 74.1 0.0 0.0 0.0 0.0 0.0 25.9 5.060 18 Ea Kao 40.1 39.3 0.0 1.6 0.0 0.0 18.9 5.065 19 Hoa Phu 91.6 0.8 0.0 0.0 0.8 6.7 0.0 4.238 20 Hoa Khanh 96.4 1.8 0.9 0.0 0.9 0.0 0.0 3.623 21 Hoa Xuan 90.2 9.8 0.0 0.0 0.0 0.0 0.0 2.114 Source: Strategy Study for Development of Dak Lak Province and Buon Ma Thuot City (DaBuDeSS), 2011 Table 3 shows that except for the M‘nong, who have above average incomes, all other ethnic minority groups have income levels below the average for the city. Among 10.7% ethnic minority, the proportion of ethnic minority HHs can be ranked across the following income quintiles: the lowest (23.8%), low (9.1%), medium (7.7%), high (8.4%) and the highest (4.3%). Gia Rai people have the lowest average income level. The ratio of ownership of means of transport of Gia Rai and Thai people is very low in comparison with the city‘s average rate of about 90%. Table 3: Socio-Economic Features of EM Households by Income Category, Buon Ma Thuot City

Income Quintile Total Lowest Low Median High Highest Population 57,938 63,975 67,522 69,410 70,189 329,034 Demography Number of HHs 20,117 20,118 20,096 20,119 20,111 100,622 Household size 2.88 3.18 3.36 3.45 3.49 3.27 Average employment (persons/HH) 1,76 1.93 2.10 2.12 2.39 2.06 Average household income (‘000 1,716 3,207 4,405 5,759 10,929 5,204 VND/month) Education level of High school and 96.9 92.4 87.4 82.3 75.3 87,1 household head below College and 3.0 7.6 12.6 17.7 24.7 13,0 above Proportion of ethnic minority (%) 23.8 9.1 7.7 8.4 4.3 10.7 Source: Strategy Study for Development of Dak Lak Province and Buon Ma Thuot City (DaBuDeSS), 2011

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Table 4 shows that while ethnic minority groups lack gas, wastewater and drainage system, or internet service; there are also differences in access to basic infrastructure such as electricity, piped water supply, telephone and solid waste collection among ethnic minority groups. In this respect, the worst off are the Gia Rai people. Ethnic minority groups have many disadvantages in education. Although general education is conducted in Vietnamese from Grade 1, many ethnic minority children do not attain fluency in Vietnamese. Another issue is that many ethnic minority pupils have to travel a long distance from home to school in the commune centre, and some pupils have to quit school after Grade 3 due to lack of resources, especially disadvantages of long distance from home to schools8. Table 4: Socio-Economic Characteristics of Ethnic Minority HHs

Ethnic minorities Kinh Total Ede M'nong Gia Rai Nung Thai Others

Population 291.913 22.557 191 205 1.288 1.483 10.838 328.475 Demography No. of HHs 89.756 6.431 79 82 376 373 3.420 100.517 Household size 3,25 3,51 2,42 2,50 3,43 3,98 3,17 3.27 HH employment (person/HH) 2.04 2,30 2,42 2,50 1,89 2,29 1,92 2,06 Average income (‘000 VND) 5.411 3.187 6.000 2.900 4.114 4.642 3.942 5.210 Education level of High school and below 86,1 92,0 100,0 100,0 100,0 100,0 96,3 86,9 household head (%) College and above 13,9 8,0 0,0 0,0 0,0 0,0 3,6 13,1 House ownership (%) 95.3 97,5 100,0 100,0 100,0 100,0 95,2 95,4 Means of transport Bicycle 41,4 47,7 58,2 0,0 28,7 59,2 61,6 42,5 ownership (% Motorcycle (>=50 cc) 90,0 88,7 100,0 50,0 79,0 33,8 83,1 89,4 household) Car (<=5 seats) 3,2 0,0 0,0 0,0 0,0 0,0 2,3 3,0 Household facilities Air conditioner 6,7 3,2 0,0 0,0 0,0 0,0 4,6 6,3 (% HH) Washing machine 56,3 25,6 58,2 0,0 22,3 30,8 28,3 53,1 Fridge 79,4 37,4 100,0 50,0 62,5 43,2 48,3 75,4 TV 97,5 96,1 100,0 100,0 70,2 81,2 98,9 97,3 Radio 13,8 13,9 0,0 0,0 10,6 9,4 19,3 13,9 Computer 39,9 20,6 58,2 0,0 39,1 40,8 11,5 37,7 Mobile phone 90,9 70,6 100,0 50,0 88,3 90,6 84,4 89,3 Access to service (% Electricity 99,3 96,2 100,0 50,0 100,0 100,0 98,8 99,1 household) Piped water 68,6 47,1 58,2 0,0 62,5 33,5 35,2 65,9 Gas 1,6 1,3 0,0 0,0 0,0 0,0 2,5 1,6 Telephone 60,1 25,8 58,2 0,0 50,8 33,8 40,9 57,0 Solid waste collection 75,5 32,3 58,2 0,0 72,6 43,2 36,3 71,2 Wastewater drainage 21,7 12,5 0,0 0,0 21,8 0,0 10,3 20,6 Internet 23,5 10,1 0,0 0,0 10,4 12,1 14,6 22,2 Source: Strategy Study for Development of Dak Lak Province and Buon Ma Thuot City (DaBuDeSS), 2011 Significant efforts have been made to address this issue. Some recent measures include Program 135, Stage 2 (2006 – 2010 using central and local budget) focusing on projects and sub-programs serving ethnic

8 Needs Assessment of Central Highlands Region – Viet Nam , USAID, 2008.

September 2011 Page 16 Buon Ma Thuot and Three Adjacent Districts Water Supply Project VHD Ethnic Minority Development Plan minority people in areas of: (i) production development (assistance in finance, equipment, production machinery); (ii) construction of infrastructure (road, bridge, water works, electricity grid, water well, schools, health clinic, market, community centre); (iii) training for officials and residents at grassroots level (training for commune and village officers and vocational training for ethnic minority youth); and (iv) improvement of living conditions/services (education, cultural activities, information, sanitation). Refer to Table 5 for further details. Table 5: National Assistance Programs/Projects for Ethnic Minorities Name of Program Beneficiaries Component Program 134 Ethnic minority people, low income HHs - Clean water - Land for resettlement - Houses with improved living conditions - Agricultural land includes even small scale irrigation facilities Program 135 Ethnic minority people - Infrastructure provision - Production development - Skills training and capacity building - Improvement in living standards Program 139 Low income households and Ethnic minority - Health insurance free groups under Program 135 Program 168 Ethnic minority people living in seriously - Providing pupils with schoolbooks and disadvantaged areas equipment - Tuition free Project 304 Ethnic minority households living in forestry - Issue red book for 30 ha forestry land and area to manage forest land allocate 50,000 VND/ha/year for land management

Although many national programs to assist ethnic minority people have been carried out, they do not always benefit from these programs. For example, beneficiaries of Program 139 are not fully aware of their benefits or do not fully understand their entitlement when using their health insurance cards. Those patients of health insurance usually do not use insurance card for health checks and treatment as needed9. This results mainly from a language barrier. In the city, at present there are about 40 villages or ‗buon‘ of ethnic minority people; however only 10 villages (25% of all peri-urban villages) in 05 wards and 2 central communes with about 5.800 persons (12% total ethnic minority people in Buon Ma Thuot) are connected to DAKWACO piped water system. In each village about 85-90% total households are connected to piped water. Average water consumption of ethnic minority households is from 10-20 m3/month/household. ‗Buon‘/villages connected to the piped water system are as follows10: - Ea Tam ward: ‗buon‘ M‘tuk Yune (32 households) and ‗buon‘ Ea Le (185 households); - Tan Loi ward: ‗buon‘ Kthon (55 households); - Thành Nhất ward: ‗buon‘ Ky (300 households); - Tan Lap ward: ‗buon‘ Pam Lam (133 households) and Ko Siar (188 households); - Khánh Xuân ward: ‗buon‘ Ea Rang (77 households);

9 Needs Assessment of Central Highlands Region – Viet Nam, USAID, 2008. 10 Source: DAKWACO, September 2011

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- Hoa Thang commune: ‗buon‘ Ea Chu Cap (45 households); - Cur Ebur commune: ‘buon‘ Dha Prong (393 households) and Cur Ebua (242 households); Besides, in Buon Ma Thuot city there are other water supply schemes serving Kinh and ethnic minority people in some wards and communes such as Khanh Xuan ward and the communes of Hoa Khanh, Hoa Xuan, Hoa Phu and Ea Tu. However, due to poor water quality and improper operation and maintenance (O&M) these facilities have been significantly degraded. Due to the limited management capacity and low awareness of ethnic minority people about clean water use, the number of ethnic minority people using piped water from these schemes is estimated at about 1,225 or merely 2.4% of the total ethnic minority population in these wards/communes11. In ‗buon‘/villages where there is no piped water supply system most of residents use drilled well or dug well or collect water from natural springs or streams called ―water stations‖. According to ethnic minority customs, particularly those of the Ede people, women are in charge of collecting water needed for their households. Although the population of Dak Lak Province comprises several ethnic minorities, it is the Ede—the most populous ethnic minority group in the province—who have noteworthy beliefs and practices related to water. Traditionally, Ede women—as the heads of matriarchal clans—were the owners of water stations (―pom ea‖ in Ede, ―ben nuoc‖ in Vietnamese; also referred to as water points) and even had the right to grant access to water at these places to new households settling in the area. The male head of the matriline, the brother or else the husband of the most senior woman, called the ―master of the water point‖ (―po pom ea‖ in Ede), was responsible for its day-to-day management as well as the conduct of special rituals to do with water supply. With the decline of matriarchy, the spread of Christianity and the rise of the modern Vietnamese nation state, some of these customs have fallen into disuse and the significance of water points has faded. Nevertheless, water points are still used in some places for multiple purposes, including rice paddy irrigation, water supply for drinking & cooking purposes, bathing, laundry, etc. Given the functional importance of such a site, an annual ceremony to worship water spirits (―tuh pin ea‖, in Ede) is held after the main harvest, at ritually designated places: at the water point itself, near the fence cordoning off the water point and in the front yard of the woman who owns the water point. According to contemporary notions of improved water sources, including source protection, these water points are adequate but not ideal for supplying water for domestic purposes. As recognized by the Ede themselves, conventional water treatment plants and reticulated distribution networks are arguably substantial improvements over such water points in terms of the convenience they afford households and the superior quality of treated water they provide. However, such water points continue to be a source of considerable pride and community identity for ethnic Ede.12 Since the project will source and treat water from major rivers in the area, there will be no direct, physical impact on water points. What is likely to happen, however, is that the functional benefit of water points will diminish as people come to rely more on project water supplied directly to their homes for all household uses, including drinking, cooking, bathing, laundry, cleaning, and flushing toilets13. The concern of some Ede women and men—as evinced in a few of the public consultations held to prepare this EMDP (see Table 8 below)—was that this would also lead to a loss of the cultural significance of water points. At present, there is no clear picture of how many households rely on water points in the four subproject areas. However, given the expressed desire to protect such water points where they exist, this issue will receive further consideration during the detailed design stage and will be addressed in an updated EMDP. The project‘s ethnic minority specialist will be tasked with consulting communities to determine how many water points will be affected by the project, the kind of arrangements—infrastructural, institutional or regulatory—needed to preserve and manage these for ceremonial purposes, as well as any associated costs. (2) Ea Kar District Town Sub-Project, Ea Kar District

11 Dak Lak CERWASS, September 2009 12 Source: The Ede in Vietnam, Truong Bi, Vu Quoc Khanh et al., VNA Publishing House, Ha Noi, 2010, pp. 16-17, 28-31, 128-131. 13 The rate of ethnic minority households using septic tank toilets is about 10%. Most of these use flush toilets, ECOSAN toilets (which separate urine & faeces for use as fertilizers) or ventilated pit toilets.

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Ea Kar district town is located in the southeast of Dak Lak province with a population of 13,249 people (2011), of which 9,160 are Kinh (69%), 3,898 Ede (29.4%) and the remainder Tay and other ethnic minorities. Ethnic minority groups are presented in Table 6. Table 6: Population Distribution in Ea Kar District Town (January 2011) Total Per ethnic (persons) No ‘Buon’/village (person) Kinh Ede Tay Nung Muong Khmer Chinese 1 Hamlet 1 760 751 0 9 2 Hamlet 2A 912 879 0 9 3 3 0 0 3 Hamlet 2B 1,077 1,055 1 9 2 7 3 0 4 Hamlet 3A 1,447 1,418 10 7 5 7 0 0 5 Hamlet 3B 987 959 8 10 0 4 0 6 6 Hamlet 4 1,596 1,513 11 52 4 7 0 9 7 Hamlet 5 797 793 0 0 0 0 0 4 8 Hamlet 7 409 397 0 7 5 0 0 0 9 Village 8 509 497 0 12 0 0 0 0 10 Village 9 536 536 0 0 0 0 0 0 11 ‗Buon‘ M‘Rông A 630 134 496 0 0 0 0 0 12 ‗Buon‘ M‘Rông B 619 46 566 7 0 0 0 0 13 ‗Buon‘ M‘Rông C 776 18 758 0 0 0 0 0 14 ‗Buon‘ Tlung 1,202 66 1,136 0 0 0 0 0 15 ‗Buon‘ EaKdrour 566 20 546 0 0 0 0 0 16 ‗Buon‘ EaKô 426 60 366 0 0 0 0 0 Total 13,294 9160 3,898 122 19 28 3 19 Source: Ea Kar District People‘s Committee (September 2011) About 69% of ethnic minority households living in Ea Kar district town work in the agricultural sector. Rate of poor households of the town in 2010 is 8.31%; of which poor ethnic minority households account for 27% of all poor households in town. Piped water system in Ea Kar was commissioned and put into operation in 2004 with designed capacity of 2,500 m3 per day and expected to serve about 2,000 people. However, this system has been significantly degraded and current operation capacity is only of 200 m3/day, which serves 200, mainly Kinh households (800 persons)14. Ethnic minority people in Ea Kar town mainly use borewells and dug wells. A few ethnic minority households (approximately 7%) use water from lakes or springs. Women are in charge of collecting water for household use. Public consultation in Ea Kar district town (September 2011) showed that most of ethnic minority households support the Project. Most of them are willing to pay for water use from 20-50,000 VND/households/month. However, for poor and very poor households, the maximum level affordable was stated as 10,000 VND/households/month. Flush toilets and ecosan toilets are popularly used in ethnic minority households in the town. (3) Buon Don District Town – Buon Don District15

14 Dak Lak CERWASS, September 2011 15 Source: Buon Don DPC, September 2011

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Buon Don Town comprises of Ea Wer and Tan Hoa communes whose combined population in 2008 was 18,482 (4,148 households); of which Kinh were in the majority with 54.5%. Ethnic minority people in the two are mainly Nung (15.7%), Tay (13%), and Ede (5.6%) while others are Muong, Thai, Dao, and Cao Lan. The Nung, Tay and Thai are mainly immigrants from north and central Viet Nam. See Table 7 for details. Table 7: Population per Ethnic Composition – Buon Don District Town (June 2008) total Total Per ethnic composition (persons) Commun popul house Kinh M' e Tày Ede Thai Muong Nung Other ation holds Nong Tan Hoa 11,098 2,444 6,017 1,923 7 22 164 2,491 496 Ea Wer 7,384 1,704 4,047 475 1,025 95 870 360 418 72 Total 18,482 4,148 10,064 2,398 1,032 117 870 524 2,909 568 Source: Buon Don DPC (September 2011) As of January 2011, the proportion of poor households according to 2011-2015 poverty criteria was 35.34% and 65.69% in Tan Hoa and Ea Wer communes, respectively. Of the total Kinh accounted for the majority (48%) along with the other ethnic minority people (39.6%), local ethnic minority people (12.1%) and policy households (1%). Ethnic minority people mainly work in the agricultural sector, cultivating coffee, pepper and hardwood trees. In 2005, Buon Don District Town invested in a water supply scheme in Ea Wer commune with designed capacity of 50 m3/day. However, due to poor water quality, improper O&M, lack of reticulation pipes and limited management capacity, this scheme has operation capacity of only 15m3/day and supplies only five households (or 19 persons)16. Most of the ethnic minority people in Buon Don Town use borewells or dug wells while a few collect water from rivers and streams. Women and children are in charge of collecting water for domestic use. Flush toilet, ecosan toilets and ventilated pit toilets are popular among ethnic minority people in the town. Public consultation in Buon Don District Town (September 2011) showed that most of ethnic minority households support the Project. They are willing to pay from 10-50,000 VND/household/month. For poor and very poor households, the maximum level affordable was expressed at about 8,000 VND/household/month; in many cases targeted subsidies for water may be required. (4) Krong Nang District Town - Krong Nang District Krong Nang District Town is formed by 11 villages/‗buon‘, including ‗buons‘ of Ur; Wiao A and Wiao B; Villages 1, 3, 4, 5, 7, 8, Binh Minh Village and Hamlet 2. Ethnic minority people (Ede people) mainly live in the ‗buons‘ of Ur, Wiao A and Wiao B. In 2009, Krong Nang Town‘s population was 12.27617, of which the majority were Kinh with 9,243 people (or 75.3% of the population), then Ede with 2,898 (23.6%) and other ethnic minority groups such as Muong and Tay. More than 80% of ethnic minority people in the town mainly work in agricultural sector growing coffee, pepper and hardwood trees. Average income of ethnic minority people in the town is 716,000 VND, which is lower than the average income of the whole town (933,000 VND) and that of Kinh people (1,150,000 VND). Rate of poor ethnic minority households is about 30% as against the proportion of all poor households in the town, which stands at 13.8%. More than 90% ethnic minority households in Krong Nang are connected to electricity grid. However, there is currently no central treated water supply system in the town. Local ethnic minority people are

16 Source: Dak Lak CERWASS, September 2011 17 Source: Daklak Province Statistic Yearbook, 2009

September 2011 Page 20 Buon Ma Thuot and Three Adjacent Districts Water Supply Project VHD Ethnic Minority Development Plan use water from bore or open wells. Water quality of the wells is not good but most households use it without any treatment. Water is short during the dry season. Flush toilet, ecosan toilets and ventilated pit toilets are popular with ethnic minority household in Krong Nang. Public consultation in Krong Nang District Town (September 2011) showed that most ethnic minority households support the Project. Their willingness to pay for water ranges from 30-70,000 VND/household/month. For poor and very poor households, the maximum level affordable was estimated at 50,000 VND/household/month, which may require targeted subsidies. 4.3 Key Project Stakeholders Public consultations organized in September 2011 identified key Project stakeholders as below:

4.3.1 Dak Lak PPC; PCs of Buon Ma Thuot City and the Three District Towns: Dak Lak PPC and PCs of Buon Ma Thuot City and the three district towns of Ea Kar, Buon Don and Krong Nang will review, recommend and approve the EMDP. They will, through functional divisions, monitor and evaluate the EMDP implementation.

4.3.2 Functional Divisions of Dak Lak PPC; Buon Ma Thuot City and the Three District Towns: Functional departments of Dak Lak PPC (including DONRE, DOC, DOF, DPI, DARD and Dak Lak DEMA) as well as functional divisions of Buon Ma Thuot City (including CEMA) and the three district towns will be responsible for coordinating with PPMU to effectively implement the EMDP, especially measures to ensure EM‘s rights and benefits and effective handling of EM people‘s complaints.

4.3.3 PCs of Project-Serviced Wards/Communes of Buon Ma Thuot City and the Three District Towns: PCs of wards/communes of Buon Ma Thuot City and the three district towns shall be responsible for coordinating with PPMU in the EMDP implementation and help to ensure that EM people‘s complaints are handled effectively.

4.3.4 Social Organizations, including Women’s Unions (WUs), Farmer Associations; Youth Unions and EM Committees in each EM village of Buon Ma Thuot City and the Three District Towns: Women Unions, Farmer Associations and Youth Unions and EM committees in each village will support EM people within their management areas and coordinate with PPMU and functional organization and local authorities in implementing and monitoring the EMDP.

4.4 Consultation with EM People at Each Stage of Project Preparation and Implementation

4.4.1 Consultation during the Project Preparation All Project activities that can potentially affect local EM people and stakeholders need to be properly communicated to local ethnic minority people. Six public consultations for the specific sub-projects of the Dak Lak Public Sector Water Supply Project were undertaken in September 2011 at the concerned District People Committee offices with the participation of key persons from: (i) different local authorities of Buon Ma Thuot City and district towns of Ea Kar, Buon Don, Krong Nang, and Krong Ana; (ii) Vice Director of Dak Lak CERWASS and head of CERWASS‘ Communications Division; (iii) Women‘s Unions and EM representatives (see list of participants is shown in Annex 4). Even though, EM women were encouraged to participate in the meetings those who did attend constituted less than 50% of the total number of participants. All EM representatives could speak and write in Vietnamese so Vietnamese was used in these meetings. During the consultations, technical and social issues like the exploitation of raw water sources; potential positive and negative impacts, local labor contribution (e.g., for digging and filling of trenches), water

September 2011 Page 21 Buon Ma Thuot and Three Adjacent Districts Water Supply Project VHD Ethnic Minority Development Plan tariff issues, possible design options, land acquisition, and safe water supply services were effectively consulted. Results of these consultations are given in Table 8. Further public consultation will be conducted during the update of the EMDP. At that stage, a number of meetings should be organized at village cultural centers or even at village leaders‘ houses, which may be more appropriate and more comfortable venues for EM people. Facilitators should be assisted by any interpreter who is familiar with the EM peoples. Gender balance must be strived for in these meetings.

4.4.2 Consultation during the EMDP Implementation During the EMDP implementation, community participation will be ensured. At the hamlet level, promoters will organize community meetings on a periodic basis as part of the community mobilization/social preparation processes. These community meetings will be held separately for women and men and used as a forum to discuss the planning and implementation of water supply facilities, community contribution to construction work, and monitoring of the sub-project activities. The hamlet promoters will coordinate with PPMU to organize community meetings and community mobilization measures. The PPMU will engage in regular dialogue and conduct meetings with local organizations, local authorities, mass organizations and DAKWACO to obtain feedback from the community. Issues raised and decisions made at these meetings will be recorded and copies of these minutes kept and made available for local people at commune centers, community centers, and in the houses of traditional hamlet leaders. The PPMU will prepare a chart of milestones throughout all phases of the Project. Apart from regular meetings with local organizations, local authorities, mass organizations and DAKWACO, the PPMU shall conduct participatory hamlet meetings through the hamlet promoters during detailed project planning and implementation to ensure that villagers have an awareness of and understanding about the Project‘s content and benefits and risks related to the Project. It is crucial to invite all villagers to these meetings and for separate meetings to be held for women and men in order to encourage the active participation of women. Separate meetings should also be organized for the very poor and vulnerable households to ensure their participation. The aim of the consultations is to ensure that all ethnic minority people who are expected to be affected by the Project will be informed properly and in a timely manner about the Project, its scope, implementation schedule and activities, as well as of expected impacts on the local community. The purpose of proper and timely consultation is that local stakeholders gain a proper understanding of all the Project issues that will affect them and that all their concerns can be expressed and assessed in a timely manner. Villagers‘ opinions will be recorded in an appropriate manner in the form of minutes from the village meetings. Any substantial concerns or claims raised in meetings between Dak Lak PPMU and local community representatives or in hamlet meetings or through other consultations are required to be recorded and incorporated into the Project planning and for making the necessary adjustments throughout Project phases whenever needed. Project information will also be posted in each of the hamlet meeting houses or similar. This information will be largely visual in nature in order to guarantee accessibility of such information for those ethnic minority people with poor literacy skills. The PPMU communication with local community representatives and villagers will be facilitated and supported by the DEMA staff from Buon Ma Thuot City and Ea Kar, Buon Don and Krong Nang in order to ensure that all information and communication with EM people will take place at a level, in a language and in a manner that is readily understandable by ethnic minority people. One of the aims of the consultation process and regular meetings is to minimize the incidence of dissatisfaction among the project affected people. Local stakeholders‘ opinions and concerns will be an integral part of the project planning and implementation processes. The participatory approach will encourage people to raise any concerns before conflicts may appear. However, if any beneficiaries of the project are not satisfied with deliveries or compensation received or any other issue, hamlet leaders will be entitled to lodge a grievance with the City PC/DPC. The complaint will be assessed and a settlement negotiated between the City PC/DPC and Dak Lak PPMU. If the conflict is still not resolved amicably, it will be taken to the Executing Agency (EA) under the Dak Lak PPC.

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4.4.3 Strategy for Women’s Involvement in and Derivation of Project Benefits The community-based approach of the Project will provide the opportunity for women to participate in planning for the Project in Buon Ma Thuot City and district towns of Ea Kar, Buon Don and Krong Nang, particularly where the transmission pipes are sited to ensure maximum coverage but also minimum loss of land or disruption to existing livelihood activities. Women‘s more active involvement in planning this specific water supply project should go some way towards increasing their voice in community affairs. In communications and consultations with local villagers about the Project, it will be necessary to arrange separate meetings for women and men. During community meetings women will be provided with specific information on proposed tariffs, capacity to supply clean water on a continuous basis, and how they will be able to pay for house connections (water meter, valve and pipe) on an incremental basis over 24 to 36 months when paying the monthly water bill. The WU will be provided with additional capacity building utilizing its existing strengths to work with women to ensure the demand for house connections is developed. Capacity building of the WU will have a positive impact on the sustainability of water supply services at the community level. The WSC will also include WU members and women who work for the Commune Health Center. The WU at the City and district town level will work in close association with DAKWACO to ensure all ethnic minority women are afforded the option of financing house connections through the monthly water bills and ensuring that no ethnic minority women who choose to have water supplied by DAKWACO would need to pay for the cost of house connections prior to the commencement of water being supplied at a quantity and quality the Project maintains it will be able to supply. For any affected households, if land for land compensation is to be made, the new Land Use Rights Certificate (LURC) will be registered in the names of both marital spouses. Any compensation for trees, crops and assets for land will be paid to both women and men but if trench digging for transmission pipes, especially in Buon Ma Thuot City and the three districts of Ea Kar, Buon Don and Krong Nang, impacts upon mobile vendors only the actual mobile vendor will be compensated for any temporary loss of income. The Executing Agency (EA) is responsible for preparation of EMDP. The ADB will review the EMDP before project appraisal. A PPMU established for each sub-project, will be responsible for the implementation of the EMDP and monitoring that all the activities throughout the sub-project take place in a culturally appropriate way for affected ethnic minority people. To ensure grassroots participation in EMDP implementation and monitoring, a community level group/association of residents will be formed to participate in the planning, implementation, monitoring, operation and maintenance of the EMDP. The PPMU will set up routines for regular dialogue and meetings with local authorities, Ethnic Minority Affairs agencies, representative community groups, and traditional leaders representing EM people. District and Commune People‘s Committees will cooperate and also monitor the EMDP. Mass organisations, particularly the Women‘s Union, will play an active role in implementing and monitoring of the EMDP. Public consultation with EM people during the Project preparation: - Gender balanced public consultations with stakeholders - Key informant interviews with ward/commune PC; Dak Lak CERWASS; Dak Lak DEMA; Buon Ma Thuot CEMA. 4.5 Potential Adverse and Positive Effects of the Project

4.5.1 Potential Positive Effects (1) Improvement in EM’s Access to Safe Water The Project will improve EM‘s ability to assess to safe water. Results from social assessment showed that less than 15% (7,500 EM persons) of total 50,000 EM residents of Buon Ma Thuot City have been supplied with safe water and nearly no EM residents in district towns of Ea Kar; Buon Don and Krong Nang get access to safe water. The completion and operation of the Project will provide safe water to nearly 51,500 EM resident of Buon Ma Thuot City (40,000) and district towns of Ea Kar (3,000), Buon Don (6,000) and Krong Nang (2,500). Ability to access safe water is very crucial for EM women since, as common practice, women and children are mainly responsible for collecting water for household use.

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(2) Improvement in EM’s Quality of Life The provision of clean water will facilitate and improve health and hygiene conditions of EM groups and additionally contribute to a physical and ultimately cultural improvement in their quality of life. Being able to use clean water year round will mean people get sick less often and are healthier as a result, enabling economically productive people to spend more time engaged in economically productive activities and school-aged children to attend class on a more regular basis. Local women not only themselves suffer from waterborne diseases but as primary caregivers also have to take care of other household members who become bedridden because of such diseases. This reduces the time women have for engaging in productive activities, take care of themselves or indeed interacting socially with others. The Project, therefore, will help improve the physical, economic and cultural quality of life for local ethnic minority women. (3) Increase in Job Opportunities During the construction and after the completion of the Project a large number of job opportunities will be created as described below: - The installation of raw water mains and treated water transmission pipelines; the laying of service pipeline and the construction of the water treatment plants will require unskilled jobs in short term for both men and women. Works may include pipe laying, trench digging, and delivering construction materials to the construction site. It is estimated that the implementation of the Project will provide around 1,500 unskilled job opportunities to the local residents in the affected areas, and around 15% of which will be reserved for EM peoples of both genders as well as the poor. - After the completion of the Project, DAKWACO‘s customer base will increase by more than 15,000 EM households and the service provision to those customers shall require 30 skilled EM people working for the Customer Management Department of DAKWACO. At least half these jobs can be made available first to EM women. - The implementation of IEC and BCC campaigns for EM residents in the Project affected areas shall require the participation of EM promoters, motivators, especially EM women. EM promoters and motivators can effectively persuade their fellow residents in the use of safe water. It is estimated that around 60 motivators and promoters will be needed for the implementation of such campaigns, and that at least 30% of these positions will be filled by EM women and men.

4.5.2 Potential Adverse Effects (1) Land acquisition and loss of trees, and facilities The Project will lead to the acquisition of cultivable land belonging to three EM households at Ea Na Commune, Krong Ana District, with a total area of 11,453 m2. This agricultural land is currently used for the cultivation of coffee and pepper, etc. The land acquisition will cause a negative impact to the livelihoods of these three ethnic minority households. (2) Ability of EM poor and extremely poor to pay water tariff In consultations, EM residents voiced the concern that EM poor and extremely poor will not be able to afford a high water tariff and cost of connection. This could lead to an increase in the gap between rich and poor in the region and may lead to a certain social conflicts. (3) Others Adverse Impacts Low salary paid to EM workers, especially EM women, compared to the Kinh workers: Despite the principle of same work, same pay, there is a risk that EM workers will be paid less than their Kinh counterparts since the former lack negotiation skills and have less experience in doing construction work. The living habits of the ethnic minorities are affected: At the construction stage, since technicians and workers of many ethnic groups will be involved, their living habits may differ from those of the local Ede and Gia Rai, Tay and Nung people, and make the indigenous ethnic minorities feel uncomfortable. This may give rise to social conflict.

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Personal safety: The construction of the subproject may pose potential hazards to the personal safety of the construction workers on site. In addition, since construction of WTP and laying of pipes will occur in rural areas, these physical works may pose threats to the safety of rural residents, especially local women and young children. Noise and pollution during construction: Noise pollution will be generated at the construction stage, because of the manufacture or processing of sand, stone and concrete; excavation and explosion operations; machinery loading; and the movement of construction vehicles.

4.6 Gender Issues Ethnic minority women in the Project area are generally supportive of this Project if it can guarantee they have access to water for their families and themselves, especially during the dry season. Women and children collect most of the water used for drinking and cooking and even to some extent washing. Therefore, unlike for men and boys, it is an issue of how far women and girls have to travel and how long it will take them each day. However, these same women also note that equitable access is another important issue and where households are located in relation to existing or proposed water supply systems is a major issue that concerns them. Where households upstream have access to water and households downstream do not have access to water or access is problematic, ethnic minority women argue this is not a gender issue but one of equitable access. Gender commonality in such instances is subsumed by the commonality of locality. The EMDP recognizes that while the gender dimension of access to water is very important inter-household inequities rather than intra-household inequities are more important. A piped water supply system that operates efficiently and is well maintained, as DAKWACO proposes, will go a long way to reducing one of the causative factors of inter-household inequity. Ethnic minority women also seek to ensure that water is available for non-household purposes during the dry season. Household water security is very important to the ethnic minority women in the province but so also is household food security. If there is only a choice between relatively clean water that can be utilized for multiple purposes, especially securing food security or generating alternative incomes (which is a prelude to food security in many instances anyway), and treated water in lesser quantities to be paid for and used only for household purposes, they will opt for the former. However, they hope this Project will enable them to turn on a tap in their own house from which clean water will flow.

The structures of participation in hamlet or commune public affairs are biased against ethnic minority women and some issues such as the distance women need to go to collect water do not receive adequate attention from community decision-making forums that are dominated by men. The EMDP is cognizant of this problem and via its Consultation and Participation strategy and also reflected in the Gender Action Plan (GAP) will ensure that women are adequately represented including in terms of leadership and overall responsibility for water supply interventions.

5 Information Disclosure, Consultation and Participation

5.1 Information disclosure, consultation and participation process with the affected EM communities carried out during project preparation Information disclosure, consultation and participation process with the affected EM communities carried out during project preparation was as below: - In 2009, initial social screening on indigenous people of the city was conducted by GHD Pty Ltd during the preparation of the Pre-Feasibility Study Report for the Buon Ma Thuot sub-project. The sub-project information was delivered to stakeholders; public meeting and interviews with key EM persons and residents were also conducted. - In 2009, information relating to the sub-project for the three towns of Ea Kar, Buon Don and Krong Nang was provided to stakeholders through public meetings and interviews with key EM persons and residents conducted by Pöyry Environment Oy during the preparation of the Feasibility Study Report.

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- In 2010, Buon Ma Thuot sub-project information was provided to stakeholders and public meeting and interviews with three affected Ede households in Krong Ana were conducted by VHD International Co., during the preparation of the socio-economic survey report and resettlement action plan. - In September 2011, six public consultations were held at Buon Ma Thuot city and the district towns of Ea Kar; Buon Don; Krong Nang and Krong Ana, by VHD International Co. and DAKWACO. These public meetings were joined by 145 persons (of which, 71 were Kinh and 74 EM persons; 60% men and 33% women). Minutes of meeting for Buon Ma Thuot as a sample are given in Annex 2. Objectives of these public consultations were: (i) to inform stakeholders and EM communities about the Project; (ii) to familiarize stakeholders and EM communities with the ADB Policy on social and environmental safeguards (June 2009), especially that for Indigenous People; and (iii) to consult EM groups and the Project stakeholders about the Project itself, including support from EM groups for the Project; possible positive and negative impacts; measures necessary for these impacts; and the grievance redress mechanism. For results of these public consultations, see Table 8. - Also in September 2011, VHD ethnic minority and resettlement specialist conducted interview with key persons from the local authorities of Buon Ma Thuot City and the three adjacent district towns; CERWASS, Dak Lak DEMA, Buon Ma Thuot CEMA and the affected Ede households from Ea Na Commune, Krong Ana District. Key results of these interviews are as below: + Almost all EM people are in need of safe water and will support the Project. + Current water tariff for treated water of small decentralized water treatment systems are from 2,800-3,000 VND per cubic meter. Connection fee is approximately 1 million VND per connection. + Some decentralized water treatment systems in the region have not been operating properly and economically due to institutional and organizational issues, the lack of O&M as well as the lack of ability of persons operating these systems. + IEC and the behavior change communication (BCC) campaigns are crucial for the success of the Project and the EMDP, and should be undertaken as early as possible. Knowledge, Attitudes and Practices (KAP) and customer satisfaction surveys should also be carried out for the development of a communication strategy and social marketing campaigns. + Dak Lak CERWASS is experienced in implementing IEC and BCC campaigns and working with EM people in rural areas in water supply and sanitation. Contributions of doctors and health care divisions of Buon Ma Thuot and the three adjacent district towns as well as those of the Women‘s Union are necessary. Programs supporting poor EM households with free connection charges and suitable water tariff mechanisms are necessary.

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Table 8: Summary of results of public consultations at Buon Ma Thuot city and the three district towns of Ea Kar, Buon Don and Krong Nang Discussion Buon Ma Thuot City (1+2) Krong Nang District Ea Kar District Buon Don District topic 1. Positive - Opportunity to access clean water, - Use clean water to ensure good - Available clean water for daily use, - Available clean water for use → impacts of the ensuring health and improved living health improve living quality physically and ensure EM life convenient, and more Project to EM conditions - Develop water supply spiritually. time for productive activities in the project - Women and children do not have to go infrastructure for ‗buons‘. - Change appearance of ‗buon‘ - Enhance awareness of water use area far to collect water → save time, - During drought season, not afraid - Raise community awareness of saving increase production capacity; increase of shortage of water environmental protection, water source income, contribute to social welfare. - Improve income and health. - Create employment for EM people. - Create employment for local labor - Contribute to economic development - Increase land value for EM households for EM people (business, service) - Create employment for EM people. 2. Measures to - Water tariff assistance, connection fee - Consider to decrease water tariff - Proper compensation policy and - Policy, guidelines, mechanism assist EM to for EM, especially poor households. for EM households. measures to create favorable - Organize many workshops and enhance their - Propaganda about Project benefits - Educate and communicate with conditions for affected households to meetings for village/buon for benefits from - Proper compensation policy for EM households enable better life than before the dissemination and propaganda to the Project Project. affected EM households mobilize all community to understand - Prepare plan to assist socio-cultural guidelines on water use and protection - Employment training and utilizing development for ‗buons‘ (traffic, of facilities resulting from the project . local EM labor during construction welfare facilities) - Community awareness, (30% EM) - Expand network to all households in communication and education - Creating favorable conditions for EM the area, even households remote from - Physical: capital, machinery, people to be the direct beneficiaries the centre. equipment, basic infrastructure

- Environmental protection at water - Check water quality, consider raw - Appropriate water tariff, assistance

source for the Project water source. program for disadvantaged households. - Study water use practice, affordability - Communicate and disseminate policies Grievance redress measures are - Need to prepare plan to ensure social and raise community awareness. suitable for public. Ensure pipelines safety and security, environmental - Prepare plan to supplement water are convenient for households to sanitation at construction areas and source during dry season when Ea Kar connect. traffic safety. river dries up (every 2-3 years in dry season).

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3. Negative - Loss of productive and residential land - If the water supply project is put - Environmental impacts during - EM households live far from the impacts of the - Social misdemeanors occurring due to into operation, it may affect construction (noise, exhaust fume and pipeline so they may not benefit from Project to EM workers coming from other areas tourism in Dong Ho lake dust) the Project. during construction - EMs are accustomed to using - Impacts resulting from temporary land - Residents will lose their faith if the - Affecting EM customs, practices (e.g., ―water station‖, where water acquisition for pipe laying. project is not implemented soon. communal activities at ‗water station‘ collection is tied in with cultural - Impacts to local culture (presence of such as spring, stream) exchange and community strangers coming to construct WTP, activities. Using piped water may - EM women have less opportunity to be WTP workers) affect such links. hired during construction; if hired, they - Groundwater level is lowered; - Exploiting water from Dong Ho shortage of water for irrigation due to may be paid less than EM men; lake may cause shortage of water source exploitation for domestic water - Limited self-protection ability of EMs for irrigation, especially in spring supply. (January to May) 4. Measures to - Communicate benefits of water use, - Limit land and house acquisition of - Proper compensation of land and - Provide preferential policy for first mitigate entitlement and obligation of piped EMs properties on land affected by system connections to EM households within negative water use - Design intake facilities properly construction; promptly repair any the distance allowable in the project impacts of the - Address social assistance policy, use - Prevent ‗water stations‘ from damage to private structures. for the farthest possible households. project budget to compensate loss of pollution, communicate and - Ensure right of way for residents - Organize public meetings, propaganda productive and residential land, educate EM people during construction and mobilization in a comprehensive houses, road construction. - Assist with water fee for the first - Publicize details of water supply manner during implementation. - Create employment opportunity for five months of system operation, project and WTP construction for local EMs. equipment for household authorities and people in Ea Kar - Assist EMs in developing their cultural connection, construction of - Plan area of reservoir and reservoir activities to maintain their identity household sanitation facilities itself in a proper manner (topography, - Prepare a plan to retain or restore - Community consultation meeting; culture) to avoid any negative impacts traditional ‗water station‘ for EM propaganda and mobilization of on residents in ‗buon‘ customs EM people to use piped water - Prioritize EM disadvantaged areas where there is a lack of domestic water supply 5. Stakeholders - DAKWACO, PCs, EM Affairs - DAKWACO, PCs, EM Affairs - EM people in Ea Na commune (Tan - DAKWACO; Commune PC, EM in EMDP Committee, self-management board of Committee, self-management Lap village, Krong Ana) Affairs Committee, self-management implementatio ‗buon‘, mass organizations board of ‗buon‘, mass - DAKWACO, PCs, EM Affairs board of ‗buon‘, mass organizations, n organizations Committee, self-management board of political organizations, functional ‗buon‘, mass organizations, ADB agencies

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6. Programs Program 132, 134, 167, 168; assisting - Program 132, 134, 167, 168; - Rural water supply scheme. Program - Clean water for 2 communes and projects residential and productive land; domestic assisting residential and productive 135, water 134, 168, electricity, 167, (commune centre) EaBar, Krong Na ongoing or water for poor households, Decision 168 land; domestic water for poor breeding funded by United Kingdom, (damaged). completed to assisting to connect electricity to houses, households, Decision 168 assisting 139 - Houses for poor households under assist the EM build houses for poor households to connect electricity to houses, Decision 134, 167 by Prime Minister; in the area build houses for poor households land grant for poor EM households under Decision 132, 134 7. EMs‘ willingess to pay for clean water (VND/month/household): (max.; average; min.) Better off 30,000; 20,000; 10,000 70,000; 60,000; 45,000 50,000; 40,000; 25,000 50,000; 30,000; 15,000 Medium 20,000; 10,000; 5,000 65,000 50,000 40,000 30,000; 20,000; 15,000 35,000; 20,000; 10,000 Poor and very 10,000; 5,000; 3,000 50,000; 40,000; 30,000 10,000; 6,000; 4,000 20,000; 10,000; 0 poor 8. Consensus - Support the project due to high costs of - Support the project as using piped - 70% EM households support the - Most people support the Project. of EM with polluted well water water will ensure health and save project regard to the - All stakeholders, including EMs, state on water collection time - Willing to contribute labor for a Project the need for clean water supply for successful project domestic purposes

9. Grievance (1) Commune PC; PPMU; (2) City/town Self-arrangement of two parties. If not (1) Commune PC; PPMU; (2) City/town (1) Commune PC; PPMU; (2) City/town redress PC, DAKWACO; (3) Civil courts at satisfied, appeal to commune PC→ PC, DAKWACO; (3) Civil courts at PC, DAKWACO; (3) Civil courts at mechanism for different levels. town PC, DAKWACO, civil courts at different levels. different levels. EM different levels.

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5.2 Public Consultation and Participation during Project Implementation EM people and representative organizations will be consulted on all sub-project activities that can potentially affect them throughout all sub-project phases. Every attempt will be made to obtain their participation (i) in planning, designing, implementing, and monitoring measures to avoid adverse impacts or, when avoidance is not possible, to minimize, mitigate, or compensate for such effects; and (ii) in tailoring project benefits for affected EM communities. The PPMU will be responsible for ensuring community participation through Ward and Commune People‘s Committees, community level groups/associations, local and ethnic minority leaders, Women's Union and Fatherland Front, and the local agency responsible for Ethnic Minority Affairs. It is crucial to invite all villagers to the meetings, and conduct separate meetings with vulnerable households to get their perspective on the project activities. The PPMU will set up regular meetings with the Commune Committee, Women's Union, Village Leaders, local community to ensure that all the involved people have full awareness and understanding about the project content. The aim of the consultations is that all the ethnic minority people who are expected to be affected by the project will be properly informed and informed early about the project, its scope, implementation schedule and activities, as well as of expected impacts on the local community. These meetings will be scheduled to follow set milestones throughout the sub-project phases. The PPMU will coordinate with Dak Lak DEMA or the district level officials dealing with local EM people‘s issues in order to ensure that all impacts are expressed and assessed in a timely manner. Consultation with EM people during the various project stages through meetings and discussions will include fulfilling the ADB requirement to obtain consent of EM people if any of the following activities is likely in the sub-project: (i) commercial development of the cultural resources and knowledge of EM people; (ii) physical displacement from traditional or customary lands; and (iii) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual uses that define the identity and community of EM people. In these cases, the consent of affected EM communities refers to a collective expression by the affected EM communities, through individuals and/or their recognized representatives, of broad community support for such project activities. Broad community support may exist even if some individuals or groups object to the project activities. Through the consultation process, the PPMU will inform EM people of their rights, the scope of the project and the potential effects on livelihoods, environment and resources. The PPMU will submit documentation of the engagement process to ADB for review and investigation. Where there are major differences or conflicts between the EM people and EA, the PPMU will adopt a process of ―good faith‖ negotiations to resolve these differences. This includes mutual respect for cultural differences, discussing issues with legitimate representatives of EM people, allowing time for decision making, being willing to compromise, and documenting outcomes. If there is not broad community support for a sub-project that has one of the above activities, then ADB will not fund it. Not all ethnic minority people in Viet Nam, particularly women, elderly people and those in rural ethnic communities are fluent in the Vietnamese language and their reading skills are limited. The education levels and literacy of affected ethnic minorities will however be confirmed by the social impact assessment. Culturally appropriate and gender inclusive methods and styles of communications will be used to address communication barriers. This may include translation of documents into local ethnic languages, using interpreters at community meetings; greater use of pictorial communications in sub-projects when illiteracy or low education levels exist in ethnic minority communities; and separate meetings for men and women where this is culturally necessary.

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5.3 Disclosure To ensure full disclosure with EM people, all communication concerning the Project will take place in an appropriate manner - in the language of the EM people and in a culturally proper way. Public meetings will be arranged in villages, using participatory methodology and the ethnic minority language(s). Information will be posted in a central public location such as the ward/commune level People‘s Committee office, and at the village or EM leader‘s house. Information will be mostly pictorial in order to guarantee accessibility of the information for ethnic minority people with poor literacy skills. Local people‘s opinions will be recorded in an appropriate way through minutes from the meetings. Notes also will be taken from all regular meetings between PPMU and EM leaders or village representatives chosen at village meetings. All the concerns from involved people will be recorded this way and brought into the project planning process and used during implementation to adjust project activities. Any concerns, claims or grievances brought up in meetings or other consultations will be recorded in the same way. The final EMDP will be disclosed at a commune-level public meeting including all relevant stakeholders. Women representing affected households must be present at the disclosure meetings. Copies of the EMDP, translated into Vietnamese, will be available at the ward/commune PC offices, village/hamlet leader‘s house and EM leader‘s house. Disclosure will also include posting on the ADB website the following:

Document Stage Water Sector MFF Indigenous Peoples Framework Before appraisal of MFF

Sub-project Final EMDP After ADB review, before commencement New or updated EMDP and a corrective action plan During implementation

Monitoring Reports During implementation

6 Beneficial Impacts

6.1 Improvement in EM’s Access to Safe Water The Project will be designed to benefit EM people in the Project service areas. Several challenges, outlined below, make it difficult for the EM people to get access to safe water: - The EM people have been familiar with using water from wells, springs or ―ben nuoc‖ (words used by Ede people specifying springs or places where water can be taken) for long periods of time and the ―ben nuoc‖ is an extraordinary cultural place of the Ede. - The lack of EM people‘s knowledge and awareness relating to water and sanitation, and the benefits of using safe water, may lead to poor management of the water supply system in the Project area. - EM people‘s houses or properties are often large and are located far from the main distribution pipeline resulting in high connection cost, especially for poor and very poor EM households. Measures to counter these challenges, which will be finalized during the EMDP update and implementation, are as follows: - KAP and customer satisfaction surveys on EM people, focusing on water use and sanitation, should be conducted to help the PPMU and stakeholders to better understand EM people‘s knowledge, awareness and practices on water and sanitation. From these the PPMU and stakeholders can develop and implement effective IEC and BCC strategies.

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- Currently, DAKWACO provides household connections including water meter and pipeline within 4 meters from distribution pipeline to the household‘s property free of charge. However, as results from the public consultation with EM residents revealed (September 2011), most of the EM households live far away from the distribution pipeline. Therefore, Dak Lak PPC and People Committees of Buon Ma Thuot City and the three adjacent district towns will establish special mechanisms for free connections to poor EM households whose property lies as far as 15-20 meters from the distribution pipeline, in an effort to achieve 100% coverage of all poor households. 6.2 Improvement in EM People’s Quality of Life - IEC and BCC campaigns focusing on use of water and sanitation to EM people will be conducted under the EMDP. Through meetings, training workshops; seminars; printed documents, etc., EM people will be equipped with knowledge about proper practices relating to safe water and sanitation and how to protect household members from water related diseases. 6.3 Increase in Job Opportunities To help increase job opportunities for EM people within the Project area, PPMU and contractors should establish and implement mechanisms and requirements to recruit local EM people, especially EM women. Details of such mechanisms and requirements will be finalized during the EMDP update and may include the following measures: - Job opportunities should be reserved for EM households who are affected by the Project (land acquisition; loss of trees, etc.). - Job opportunities should be publicized through the media, representatives of EM groups of wards and commune and to the villages. EM languages should be used in job recruitment, appropriate to the culture of the EM groups at the construction site. - Contractors should establish and implement measures to create working environments that are appropriate for EM workers, in terms of their culture and gender sensitivities. - As mentioned in section 4.5.1 above, the project is expected to employ about 225 unskilled local EM and poor residents (both men and women) in construction activities; at least 15 EM women in DAKWACO‘s expanded Customer Management Department; and at least 18 EM men and women as motivators in the Project‘s IEC and BCC campaigns.

7 Impacts to be Mitigated

7.1 Land Acquisition The Project will cause the acquisition of land of three EM households at Ea Na commune, Krong Ana District with the total area of 11,453 m2 of agricultural land currently used for coffee cultivation. The land acquisition will cause a negative impact to the livelihoods of these three ethnic minority households, whose only recorded income is from agriculture. These HHs will be entitled to additional support and rehabilitation measures as part of their compensation package. These can include any or all of the following, depending on AHH circumstances and preferences expressed by them: restitution in cash at market rates for crops lost; support for development of new or existing agricultural land in terms of packages including seed, credit and agricultural extension services; rice subsidies; income restoration programs; vocational training for occupation change, as appropriate; and temporary or permanent employment. Preferences of the affected EM HH will be elicited and their qualifications for any of these entitlements assessed by means of consultations during the DMS. All this is necessary to ensure that their new living standards will be the same as or better than what it was before the Project‘s implementation. In addition, during public consultation and RP investigation, the affected EMs at Ea Na, Krong Ana, expressed their desire that family members be considered for jobs in the project and/or the company. DAKWACO is aware of the situation and encouraged families to continue their

September 2011 Page 32 Buon Ma Thuot and Three Adjacent Districts Water Supply Project VHD Ethnic Minority Development Plan children‘s education in order to make them eligible for better employment when they graduate. The company will consider any recruitment suited to their qualifications, and provide additional on-the-job training as appropriate. As currently assessed, the severity of impact on these EM HHs is high; they stand to lose 13%, 28% and 38% of their agricultural land, respectively. This impact will be re-evaluated independently during the DMS but, in principle, the greater the severity of impact, the greater will be their entitlements. The preference expressed by a representative of affected EM households for cultivable land of the same extent and similar or better quality, in exchange for land lost, has been noted (see Appendix 3 of the RP). During the DMS, priority will be given to identifying whether either reserve or reclaimable land is available in the commune for this purpose. If it is not, land expropriated will be compensated at market rates by the EA. In either case, a suite of other remediation measures and livelihood enhancing options will be made available to affected EM HHs. These can include any or all of the following, depending on AHH circumstances and preferences expressed by them: restitution in cash at market rates for crops lost; support for development of new or existing agricultural land in terms of packages including seed, credit and agricultural extension services; rice subsidies; income restoration programs; vocational training for occupation change, as appropriate; and temporary or permanent employment. Preferences of the affected EM HH will be elicited and their qualifications for any of these entitlements assessed by means of consultations during the DMS. All this is necessary to ensure that their new living standards will be the same as or better than what it was before the Project‘s implementation. 7.2 Affordability of Water Tariff for Poor and Extremely Poor EM HHs Poor and extremely poor EM people shall be given job opportunities during the construction phase. In addition, job training during this period will equip them with skills necessary for finding and doing similar jobs in the Dak Lak Province or other provinces. As a result they can improve their income and their living standard, which will help them to pay for the water tariff among other things. Additionally, Dak Lak PPC should consider establishing and implementing appropriate policies on water tariff for EM poor and extremely poor people to support their access to water. In the detailed design phase of the project, the EMDP consultant will collect secondary data on EM poor households in the province, along with information on any targeted interventions already benefiting them, in order to determine the scope of such a policy. 7.3 Others Adverse Impacts Low salary paid to EM people, especially EM women, compared to the Kinh workers: Contractors will be advised about the requirements on hiring EM workers and policies on salary for EM workers. Bonus shall be given to contractors who comply with the said policies and requirements and penalty will be applied to those who violate the policies by not hiring enough EM workers or indeed paying them less than their Kinh counterparts for doing the same type of work. The living habits of the ethnic minorities are affected: All the contractors and workers should be informed and trained about the living habits and cultural aspects of the EM at the construction sites and workers need to sign on paper committing not to interfere with the local EM residents or make them feel uncomfortable. Personal safety: The construction of the subproject may pose potential hazards to the personal safety of the workers. Furthermore, construction of the WTP and pipe laying through villages may pose a risk to local people, especially local women and children. To mitigate such adverse impacts the PPMU will allocate proper construction supervisors and safety consultant to supervise and monitor the performance and behavior of the contractors and the workers. Additionally, signboards signaling specific risks or hazards in Vietnamese and EM languages should be posted in or near the construction site. Education campaigns and printed instruction should be made available on site to all those concerned, including workers, residents and visitors. Details of measures are specified in the Environment Management Plan.

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Noise and environment during construction: To mitigate noise and pollution impacts during the construction phase, a set of measures have been developed. These are described in the Environment Management Plan.

8 Capacity Building Capacity building for the Government institutions and EM organization in the Project area is considered crucial for the EMDP implementation, monitoring and evaluation. The PPMU, with the contribution of the EM and resettlement consultant, will be responsible for undertaking necessary measures to strengthen the capacity of concerned DAKWACO staff; PPMU staff and stakeholders, including Dak Lak DEMA, Buon Ma Thuot CEMA and CEMA of district towns of Ea Kar, Buon Don and Krong Nang; the ward and commune People‘s Committees of Buon Ma Thuot and the three adjacent district towns; Women Union; and EM residents. Capacity building for those concerned shall focus on the social, legal, and technical capabilities which are necessary for the EMDP implementation, monitoring and evaluation. Capacity building shall be undertaken as soon as the Project is approved by the ADB and GoV, during the EMDP update and throughout the EMDP implementation. A detailed capacity building plan will be tailored during the EMDP update but it should ensure that: (i) necessary documents, information relating to the EMDP, regulations and requirement of GoV relating to the EM people and the ADB‘s Safeguard Policy Statement (June 2009), highlighting Requirement No. 3: Indigenous Peoples, shall be made available to stakeholders and EM people concerned; (ii) workshops, meeting with participation of EM people and stakeholders aimed at the introduction of the EMDP and ADB Safeguard Policy aspects for indigenous peoples will be organised; (iii) the PPMU staff and those concerned with the EMDP implementation from the Women‘s Union and other agencies along with the EM representatives will be equipped with social, legal and technical capabilities sufficent for EMDP implementation.

9 Grievance Redress Mechanism One of the aims of the consultation process and regular meetings is to minimize the incidence of dissatisfaction among the project-affected people by integrating local stakeholders‘ opinions and concerns in project planning and implementation. The participatory approach will encourage EM people to raise any concerns before conflicts may appear and to indicate their consent. However, if any EM people are not satisfied with the process, compensation or mitigation measures, or any other issue, village leaders and EM organizations or EM representatives will address their grievance to the PPMU. The complaint will be assessed and a solution negotiated between the PPMU and local authorities, including the relevant PCs of wards/communes of Buon Ma Thuot City and the three district towns. Issues unresolved at the local level can be appealed to the EA under the Dak Lak PPC. All grievances will be responded to promptly, in a culturally appropriate, transparent and gender inclusive way. It should be noted that any EM person can make a complaint without any cost to them and without fear of retribution. A detailed grievance redress and resolution mechanism is described in the RP for the Dak Lak subproject (see Section F, including figure 5, of the RP). While it is proposed to specifically address grievances and complaints regarding land acquisition, compensation and resettlement in a timely and satisfactory manner for all Affected Persons (APs), including those from Ethnic Minorities, the same procedure may apply to other, non-resettlement grievances of EM persons as well. In summary, the four-stage process of EM grievance redress will be as follows: Stage 1: Complaints from EMs on any aspect of the project that they perceive negatively affects their welfare will be lodged, verbally or in writing, with the Ward/Commune People‘s Committee (WPC/CPC). The complaint will be discussed in an informal meeting between the EM person/s and the PC. It will be the responsibility of the WPC/CPC to resolve the issue within 15 days of receipt of a complaint, in consultation with the Dak Lak PPMU.

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Stage 2: If no understanding or amicable solution can be reached or if no response is received from the WPC/CPC within 15 days of registering the complaint, the EM person/s can appeal with the District People‘s Committee (DPC). The EM person/s must lodge the complaint within 30 days of registering the original complaint and must produce documents that support his/her claim. The DPC should provide a decision, negotiated with the PPMU, within 1 month of receiving the Appeal. Stage 3: If the EM person/s is/are not satisfied with the decision of the DPC or in the absence of any response, they can appeal to the Provincial People‘s Committee (PPC). The PPC will provide a decision on the Appeal within 30 days from the day it receives the appeal. Stage 4: If the EM person/s is/are still not satisfied with the decision of the PPC on Appeal, or in the absence of any response within the stipulated time, they may, as a last resort, submit their case to the District Court. Beyond this they may lodge their complaint to the Operations Department or the Office of the Special Project Facilitator (OSPF) as per ADB Policy. The procedure described in these four steps is consistent with the legal process for resolution of disputes in Viet Nam. However, the system is oriented primarily towards disputes between people, as opposed to between people and government. Therefore, as part of the Project‘s internal monitoring and evaluation, the WPC and DAKWACO will keep a written record of all grievances and complaints registered by EM Affected Persons, as well as their final resolutions. Grievance redress mechanism should not impede access to the country's judicial or administrative remedies. It is not the last resort but any time the EM Affected Person can access the judicial system. If need be, all communication among EMs, PCs and the PPMU will be facilitated by DEMA staff in order to ensure that EM people are engaged in a Grievance Redress process that accommodates their language preference and is conducted in a manner that they readily understand.

10 Monitoring and Reporting Arrangements DAKWACO will set up an internal monitoring system comprising an experienced and qualified expert, NGO/agency, ethnic minority people, community level groups, and Ethnic Affairs agency representatives to encourage participatory monitoring of the EMDP implementation. Monitoring will assess whether the EMDP‘s objective and desired outcome have been achieved, taking into account the baseline conditions, specific impact indicators established in the EMDP or during implementation, and the results of EMDP monitoring. The Monitoring Report should address the following indicator areas, specifically for ethnic minority people: - Institutional arrangement; - Capacity building; - Resettlement impacts and compensation; - Land use changes; - Access to water supply; - Access to sanitation; - Employment/livelihood impacts; - Consultation of women; - Participation at consultation meetings (gender disaggregated); - Participation at disclosure meetings (gender disaggregated); - Information and awareness activities; - Behavior change activities;

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- Environmental impacts; - Grievances – number and type (gender disaggregated); - Formation of village level groups for implementation and monitoring (gender disaggregation of membership); - Activities targeting poor ethnic minority households; - Activities targeting ethnic minority households headed by women; - Other poverty alleviation activities–capacity building and training; project-related employment; project-related business opportunities; If, during monitoring, it is found that the EMDP has not been carried out properly or unforeseen impacts have been identified or occurred, a Corrective Action Plan will be prepared and the EMDP will be updated as necessary. The DAKWACO is responsible for monitoring reporting as follows: i. Prepare periodic (biannual) monitoring reports; ii. Highlight compliance issues and corrective actions in reports; iii. Submit six-monthly monitoring reports to ADB; and iv. Publicly disclose monitoring reports on ADB website.

11 Institutional Arrangements DAKWACO is responsible for preparation and implementation of the EMDP. The PPMU, with oversight from Dak Lak DEMA/Buon Ma Thuot CEMA, will be responsible for the implementation of the EMDP and monitoring that all the activities throughout the sub-project take place in a culturally appropriate way for affected ethnic minority people. In this, the PPMU will coordinate with the Dak Lak PPC and other provincial or town-level government agencies, as required. To ensure grassroots participation in EMDP implementation and monitoring, the PPMU with support from the EM and resettlement consultant and Dak Lak DEMA/Buon Ma Thuot CEMA, will study stakeholders concerned with the welfare of EM people and identify key stakeholders to be involved in the EMDP implementation and monitoring and evaluation. It is necessary that a community level group/association of EM residents in each locality within the project area be formed right after Project appraisal so that they can effectively participate in the planning, implementation and monitoring of the EMDP. The PPMU will set up routines for regular dialogue and meetings with local authorities, Ethnic Minority Affairs agencies (DEMA & CEMA), representative community groups, and traditional leaders representing EM people. District and Commune People‘s Committees will cooperate and also monitor the EMDP. Mass organizations, particularly the Women‘s Union, will play an active role in implementing and monitoring the EMDP. The Project also includes a component of ‗Project impact quality survey at the beginning and at the end of the project‖. Such component design will also include impacts on all community including ethnic minorities in the project service areas.

12 Budget of the EMDP The total cost of the EMDP will be 83,000 USD, including 62,100 USD for Involuntary Resettlement compensation. The cost for the EMDP per se will be approximately 20,900 USD, as shown in Table 9. The cost of 20,900 USD for implementing the EMDP will be financed by the counterpart fund. Some EMDP activities will be combined and integrated with RP and project impact quality survey activities.

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Table 9: Tentative Estimated Cost for EMDP (USD)18

Unit Total No Descriptions Unit Qty’ Price Price 01 EM and Resettlement Consultant to update EMDP and RP, and design IEC, BCC campaigns, and help DAKWACO set up an 1 internal monitoring unit for the EMDP PM 6 2,000 12,000 Workshop, meetings, training for EM 2 motivators, coordinators, IEC sum 5,000 5,000

3 Other cost (printing, travel, etc.) sum 1 2,000 2,000

4 Contingency (10%) 1,900 1,900 Total 20,900

Detailed budget will be prepared during the detailed design implementation phase as further investigations and impacts are fully assessed.

13 Implementation Plan Table 10 below is the tentative EMDP implementation schedule. It is expected that the EMDP will be implemented from the development of the detailed design and during the construction phase in order to enable ethnic minority groups to better understand and actively participate in the Project. A detailed implementation plan will be prepared following the technical design and implementation schedule of the Project. The EMDP will be updated accordingly and submitted to the ADB for review. The satisfactory, updated EMDP will be posted on the ADB website.

18 Wider project-related activities that will also benefit EMs are excluded here (e.g., implementation of various campaigns, salaries to campaign facilitators/mobilizers, workshops or meetings held on resettlement issues, etc.). These will be included in project costs or else in the RP budget.

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Table 10: Tentative Schedule of EMDP Implementation

2012 2013 2014 2015 No Activities 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2

I Update EMDP

1 Public consultation (surveys, meetings)

2 Update and finalize EMDP

3 Review and approve updated EMDP

II EMDP Implementation

4 Mobilization of EM & Resettlement Consultant

5 Design & develop IEC & BCC campaigns

6 Select and train training leader & motivators

7 Capacity building (workshop, meeting, training)

8 Implementation of IEC, BCC campaigns

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Annex 1: Term of Reference (TOR) 1. TOR for Resettlement and Ethnic Minority Development Specialist Given the large proportion of ethnic groups amongst the target population as beneficiaries, measures will be needed to ensure that EM groups share the benefits from project interventions. The specialist will assist the PPMU in developing initiatives to ensure that benefits are shared by all disadvantaged groups, including the ethnic minority groups. The national specialist will have tertiary qualifications from a nationally recognized institution with at least 10 years experience in the related fields, preferably resettlement and ethnic minority development in internationally funded projects on urban and rural water supply. Fluency in both spoken and written English will be considered a requirement. Duties of the specialist will include the following: i. Collect secondary data on EM poor households in the province along with details of any subsidy interventions already availed by them, in order to determine the scope of any policy of targeted state support for enabling EMs‘ access to water. ii. Determine how many water points are likely to be affected by the project, if any; the kind of arrangements—infrastructural, institutional or regulatory—needed to preserve and manage these for ceremonial purposes; as well as any associated costs, and to present all this information in the updated EMDP. iii. Design IEC and BCC campaigns, with specific consideration of target group of Ethnic Minorities. iv. Review and update the EMDP and RP as required by ADB‘s Safeguard Policy Statement (June 2009), regulation of Government of Viet Nam, and the Indigenous Peoples Planning Framework and Resettlement Framework developed for the Viet Nam Water Sector Investment Program - Multitranche Financing Facility (MFF). v. Assist DAKWACO in setting up an internal monitoring system comprising other stakeholders concerned with EM welfare such as ethnic minority people, NGOs/CSOs, community level groups, and representatives from DEMA/CEMA, in order to build capacity for participatory monitoring of EMDP implementation. vi. Organize or provide necessary workshops and training on EMDP and RP to PPMU and stakeholders to implement the EMDP and RP as accepted by ADB and approved by Government of Viet Nam. vii. Assist PPMU in the initial phase of implementation of the EMDP, including drafting the first biannual internal monitoring report due after 6 months from the start of implementation.

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Annex 2: Minutes of Public Consultations at Buon Ma Thuot City (1)

1. Venue: DAKWACO meeting room 2. Time: 7 September 2011; 8.30 am – 12.00 pm. 3. Participants: 15 representatives from the agencies below (see attached list of participations) 4. Implementation: a. Project Introduction: by Mr Tran Van Thien, DAKWACO Director. b. VHD Consultant: briefly presented topics: (i) ADB‘s Safeguard Policy Statement (June 2009), focusing on ethnic minorities; (ii) objective and requirements of the public consultation and the preparation of EMDP; (iii) requirement on EM support for the Project; social assessment; social study on positive/negative impacts as well measures to enhance/mitigate positive/negative impacts; institutional arrangement; monitoring and evaluation; report requirements; (iii) introduce topics for group discussions. c. Group Discussion: Three groups were formed for discussion on topics, including: (i) Project positive impacts on ethnic minority (EM) people; (ii) measures to enhance Project benefits for EMs; (iii) Project negative impacts on EMs (including EM women); (iv) measures to mitigate negative impacts on EMs (including EM women); (v) consent of EM for the Project; (vi) EMs‘ estimated willingness to pay for clean water; (vi) programs and projects ongoing or completed to assist the EMs in the City; (vii) EMDP implementation; (viii) actions to be undertaken. 5. Results: a. Project positive impacts on ethnic minority (EM) people: (i) access to clean water for domestic use; (ii) better health and improved living conditions; (iii) savings in terms of time spent for water collection; (vi) employment creation; (vii) new products created (e.g., bottled water, etc.); (viii) real estate value is increased; (ix) contribution to implementation of Provincial Decision No. 5 on clean water use. b. Measures to enhance Project benefits for EMs: (i) propaganda about Project benefits; (ii) proper compensation policy for affected EM households; (iii) utilization of local EM labor during construction; (iv) creation of favorable conditions for EM people to be the direct beneficiaries; (v) environmental protection of water sources; (vi) targeted assistance in connection fee or water tariff c. Project negative impacts on EMs (including EM women): (i) loss of productive and residential land; (ii) decreased income affecting their daily life; (iii) higher incidence of social misdemeanors due to workers coming from other areas during construction; (iv) disrupted traffic during project implementation; (v) adverse impacts on EM customs, practices (e.g., reduced communal activities at water body such as springs, streams); (vi) for EM women, less opportunity to be hired during construction, or if hired, earnings less than those of men. d. Measure to mitigate negative impacts on EMs (including EM women): (i) compensation for loss of land; (ii) creation of employment opportunities for EMs; (iii) assistance to EMs in transformation of agricultural / farming activities; (iv) providing good social assistance; (v) priority of supplying clean water to EMs right after project facilities are put into operation; (vi) assisting EMs in development of their cultural activities and sports to maintain their identity. e. Consent of EM for the Project: (i) EM people definitely want to use clean water supplied by the Project as currently water is high in cost and of poor quality; (ii) they always support the Project implementation from which they can benefit.

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f. EMs’ estimated willingness to pay for clean water: Affordability of EM for clean water service (VND/month/HH) Maximum Average Minimum

Better off 30,000 20,000 10,000

Medium 20,000 10,000 5,000

Poor / very poor 10,000 5,000 3,000

g. Programs and projects ongoing or completed to assist the EMs in the City: (i) Water supply and environmental sanitation Program for poor and EM people in Thap Drong and Cu Pua ‗buon‘ – funded by DANIDA (2001-2002); total budget VND 11 billion (post DANIDA project); (ii) Socio-economic development plan for EM ‗buons‘ for 5 years; (iii) Infrastructure facilities development for EM community under the Decision 5 with budget of VND 1 billion/‘buon‘/year; (iv) Program 134, 135 (Government Decrees 134, 135) for EMs; (v) assisting program on providing health insurance certificate and tuition fee for EM children; and (vi) Assistance and price subsidy for EM. h. EMDP implementation: Relevant stakeholders include: PCs of city, wards, communes; Ethnic Affairs agency of the city; DONRE; Department of Health (DOH); WU; Farmers‘ Association; Youth Union; Fatherland Front Committee; Village/‘buon‘ development section (organized by EM people and acknowledged by Commune PC); DARD; DAKWACO (key actor); Resettlement Committees i. Actions to be undertaken: (i) Review and approve the EMDP; (ii) Propaganda and communication; (iii) Developing leaflets in Vietnamese and EM language; (iv) Organizing training for communicators; (v) Monitoring and evaluation. j. Others: (i) all representatives were informed about the Project. Representatives were interested in Project, stating that Buon Ma Thuot residents and EM persons will support for the Project; (ii) all representative were actively involved and participated in the group discussions. Crucial and valuable comments made and ideas raised were recorded, which will help DAKWACO, consultants and city stakeholders to better understand EM needs and expectations; (iii) approach, including presentation by power point with projectors and group discussion with close facilitation of consultants is suitable for this kind of public consultation; and (iv) due to bad weather, a number of invited persons did not come; only 15 persons participated in the meeting (including 4 women).

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Annex 3: Photos

1. Some pictures of EM persons at water intake site and location of facilities

Ede person – river water collection Ede person – river water bottling for use

Raw water site – Serepok river bank Proposed WTP site (right side) Ea Na Commune

Raw water site, Dong Ho lake, Krong Nang Dist., Raw water facilities site, Ea Kar District

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2. Some pictures of public consultation (1) -Buon Ma Thuot City (7 September 2011)

Introduction about the Project Introduction of ADB‘s policy on indigenous people

Group discussion Group discussion

Presentation of group work and discussion Presentation of group work and discussion

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Some pictures of public consultation (2) - Buon Ma Thuot City (10 September 2011)

Social expert presenting objectives of ADB Ede people considering negative impacts & policies with focus on EM policy measures to mitigate such impacts

Ede person raising idea during group discussion After discussion, Ede woman thinking over group‘s results

Ede man presenting group work Tay person presenting group work

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3. Pictures of public consultation - Ea Kar District (9 September 2011)

Group discussion Presentation of group work and discussion

Presentation of group work and discussion Presentation of group work and discussion

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4. Pictures of public consultation-Buon Trap Town; Krong Ana District (9 September 2011)

Public consultation opening Presentation of group work and discussion

Group discussion Presentation of group work and discussion

5. Pictures of public consultation-Krong Nang District (11 September 2011)

Vice chairman of Krong Nang DPC openning Group discussion public consultation

Group discussion Presentation of group work

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6. Some pictures of public consultation-Buon Don District Town (13 September 2011)

Group discussion Presentation of group works

Group discussion Presentation of group works

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Annex 4: List of Participants Public Consultation No. 1 at Buon Ma Thuot City (7 September 2011)

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Public Consultation No. 2 at Buon Ma Thuot City (10 September 2011)

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Public Consultation at Ea Kar District Town (9 September 2011)

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Public Consultation at Buon Trap - Krong Ana District (9 September 2011)

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Public Consultation at Buon Don District Town (13 September 2011)

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