Sustainable Rural Infrastructure and Watershed Management Project

Land Acquisition and Resettlement Plan

Document Stage: Draft Project number: 50236-002 June 2019

Lao PDR: Sustainable Rural Infrastructure and Watershed Management Project

Nam Poua Subproject Viengxai District, Huaphan Province

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

CURRENCY EQUIVALENTS (as of 1 June 2019) Currency unit = kip (KN) KN1.00 = $0.000116 $1.00 = KN 8,644

ABBREVIATIONS and ACRONYMS

ADB – Asian Development Bank AHH – Affected Household AP – Affected Persons COI – Corridor of Impact DAFO – District Agricultural and Forestry and Office DCO – District Coordination Office DMS – Detailed Measurement Survey DRSC – District Resettlement Committee EA – Executing Agency EGS – Environmental Group Survey EG – Ethnic Group EGP - Ethnic Group Plan EGDF – Ethnic Group Development Framework EGDP – Ethnic Group Development Plan EGF – Ethnic Group Farm work EIRR – Economic Internal Rate of Return EM – Entitlement Matrix EMA – External Monitoring Agency GAP – Gender Action Plan GRM – Grievance Redress Mechanism GMS - Greater Mekong Sub region GRU - Grievance and Redress Units HPN – Houaphan HVC High Value Crops IA – Implementing Agency IOL – Inventory of Losses IPP – Indigenous Peoples Plan LARP – Land Acquisition and Resettlement Plan LECS - Lao Economic and Consumption Survey LFNC Lao Farm work National Consultant LNFC – Lao Front for National Construction LPB – Luang Prabang LRM – Lao Resident Mission LSIS – Lao Social Indicator Survey LWU – Lao Women’s Union MAF – Ministry of Agriculture and Forestry MCH – Mother and Child MONRE – Ministry of Natural Resources and Environment NCAW – National Committee for the Advancement of Women

NESDP – National Economic and Social Development Plan NGO – Non-government organization NPC – National Project Coordinator NTFP – Non-Timber Forest Products PAFO – Provincial Agriculture and Forestry Office PIB – Project Information Booklet PGT – Project Governance Team, DoI PPIT – Provincial Project Implementation Team , PAFO PPTA – Project Preparatory Technical Assistance PRC – Provincial Resettlement Committee PRI – Productive Rural Infrastructure PRSC – Provincial Resettlement Committee RCS - Replacement cost Survey REGDF - Resettlement Ethnic Group Development Framework RF – Resettlement Framework RP – Resettlement Plan RSP – Representative Subproject SESAH - Social Economic Survey of Affected Households SIA – Social Impact Assessment SPS – ADB Safeguard Policy Statement (2009) SP – Sub Project SRIWSM - Sustainable Rural Infrastructure and Watershed Management Project VC Value Chain WGS – Water Group Survey WREA – Water Resources and Environmental Agency WUA – Water User Association WUG – Water User Group XBY – Xayaboury XK – Xiengkhouang

WEIGHTS AND MEASURES

ha – hectares km – kilometers km2 – square kilometers m – meters m2 – square meters m3 – cubic meters

NOTE

In this report, "$" refers to US dollars.

This land acquistion and resettlement 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.

Contents Table of Tables ...... 2 Table of Figures ...... 2 EXECUTIVE SUMMARY ...... 1 The Project ...... 1 Nam Poua subproject ...... 1 Scope of Land Acquisition and Mitigation Requirements ...... 3 Consultation, Participation and Grievance Mechanisms ...... 3 Legal and Policy Framework ...... 4 Planning, Implementation and Monitoring ...... 4 Conclusion ...... 4 Project Description ...... 5 SRIWSM ...... 5 Nam Poua Sub-project description ...... 7 SCOPE OF LAND ACQUISITION AND RESETTLEMENT ...... 13 Affected Assets ...... 13 1. Affected Households ...... 13 2. Affected land, houses and structures...... 14 3. Temporary Affected Land ...... 15 4. Affected businesses ...... 16 5. Vulnerable households ...... 16 Socio Economic survey of affected households ...... 16 Ethnicity of Communities ...... 17 Household survey...... 18 INFORMATION DISCLOSURE AND PUBLIC CONSULTATIONS ...... 24 GRIEVANCE REDRESS AND LEGAL FRAMEWORK ...... 26 Legal framework ...... 27 ADB policies ...... 27 Lao Policies, Laws and Regulations ...... 30 Resettlement policy gaps between ADB and GoL ...... 30 Entitlements, assistance and benefits ...... 34 Land donation ...... 35 INCOME RESTORATION AND ETHNIC GROUP DEVELOPMENT ...... 44 Resettlement Budget ...... 45 Institutional arrangements ...... 46 Ministry of Agriculture and Forestry ...... 46 Provincial Department of Agriculture and Forestry Office ...... 46 Provincial Resettlement Committee ...... 47 Implementation schedule ...... 47 Monitoring and reporting ...... 48 Internal Monitoring ...... 48 External Monitoring ...... 49

Annex 1 Eligibility for Community Participation Framework ...... 50 Annex 1 B Calculation of compensation ...... 51 Annex 2: Maps of parcels in project area ...... 52 Annex 3: Initial public consultations ...... 54 Annex 4: Attendees to village meetings ...... 66 2

Annex 5: Summary of all SESAH village meetings ...... 69 Annex 6 Dissemination of updated compensation policy ...... 80 Annex 7 Project Information Booklet ...... 99

List of Tables Table 1. Irrigation Data by Village ...... 10 Table 2. Key Details of Nam Poua Irrigation Scheme ...... 12 Table 3. Nam Poua – affected households ...... 14 Table 4. Nam Poua – affected land parcels ...... 14 Table 5: Population and Ethnicity ...... 17 Table 6: Irrigation Use by Ethnicity ...... 18 Table 7 Ethnic Breakdown by HH...... 18 Table 8. Nam Poua – affected households ...... 19 Table 9. Nam Poua - Basic population data ...... 19 Table 10. Nam Poua demographics – details ...... 20 Table 11. Livestock assets ...... 21 Table 12. Nam Poua Average household income ...... 22 Table 13. Primary and secondary occupations ...... 22 Table 14. Support for the project ...... 23 Table 15. Decision making in the household ...... 24 Table 16. Women’s participation in decision making ...... 24 Table 17: Women in Community Decision Making ...... 24 Table 18: Number of AP responding to the indicative choice survey in Houaphan ...... 25 Table 19: Results of indicative choice survey of Households affected by less than 9% of their land plot ...... 26 Table 20: Results of indicative choice survey of Households affected by 9% or more of their land plot ...... 26 Table 21: Grievance Redress Mechanism Procedure ...... 27 Table 22: Reconciliation of ADB and GoL LAR Policy Gaps...... 31 Table 23: Criteria and Guidance Notes on Land Donation ...... 36 Table 24: Entitlement Matrix ...... 39 Table 25. Land Acquisition and Compensation Cost for lost assets ...... 45 Table 26. Summary of Subproject’s Land Acquisition and Compensation Budget ...... 45 Table 27. Schedule of RP Implementation ...... 48

Table of Figures

Figure 1: Location Map of the Subproject ...... 2 Figure 2: Map of Project Area ...... 8 Figure 3: Nam Poua Command Area ...... 9 Figure 4: Detailed Alignment 1 ...... 15 Figure 5: Detailed alignment 2 ...... 16 Figure 6: Flowchart on compensation options ...... 38

DEFINITIONS OF LAND ACQUISITION, RESETTLEMENT AND COMPENSATION RELATED TERMS Affected An affected person indicates any juridical person being as it may an Person (AP) individual, a household, a firm or a private or public institution who, on account of the execution of the Program and its subprojects or parts thereof would have their: (i) Right, title or interest in any house, land (including residential, agricultural and grazing land), water resources or any other fixed or moveable asset acquired, possessed, restricted or otherwise adversely affected in full or in part, permanently or temporarily; and/or (ii) Business, occupation, place of work or residence or habitat adversely affected, with or without physical displacement; or, (iii) Standard of living adversely affected. Cut-off date This refers to the date that establishes the eligibility of affected persons. To be consistent with previous projects under the Ministry of Agriculture and Forestry, the cut-off date for this project coincides with the completion of the census of affected persons after the Provincial Coordination Unit officially informs the public about the Project and its locations. Anyone who occupies or encroaches into the defined boundaries of the Project area after the cut- off date will not be compensated for affected assets and incomes. Compensation Payment made in cash or in kind to APs at replacement cost for assets, resources and/or sources of livelihood and income acquired or adversely affected by the project. Graduation or Families that graduated from poverty are those families who meet the families from criteria for graduation from poverty established through decree 348/GOL poverty signed by the Prime Minister on 16 November 2017. Indigenous A distinct, vulnerable, social and cultural group possessing the following Peoples characteristics 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. For the Lao context, the term Ethnic Group is used rather than IP. Involuntary The SPS (2009) considers resettlement involuntary when the displaced Resettlement persons have no right to refuse the land acquisition by the state that result in their displacement. This occurs when land is acquired through (i) expropriation by invoking the eminent domain power of the state, or (ii) land is acquired through negotiated settlement when the pricing is negotiated in a process where expropriation will be the consequence of a failure in the negotiation.1 Land The process whereby an individual, household, firm or private institution is Acquisition compelled to alienate all or part of the land s/he/it owns or is in the process of getting ownership of in favor of the government for the Project in return for compensation at replacement cost.

1 Involuntary Resettlement Safeguards A Planning and Implementation Good Practice Sourcebook – Draft Working Document, ADB, Nov 2012.

Rehabilitation The process to restore income earning capacity, production levels and living standards in a longer term. Rehabilitation measures are provided in the entitlement matrix as an integral part of the entitlements. Relocation The physical displacement of an AP from her/his pre-project place of residence and/or business. Replacement The amount in cash or in kind needed to replace lost assets at the time of Cost payment of compensation, including cost of transactions. If land, it means the cost of buying a replacement land near the lost land with equal productive potential and same or better legal status, including transaction costs. If structures, the replacement cost is the current fair market price of building materials and required labor cost without depreciation or deductions for salvaged building material or other transaction cost. Market prices will be used for crops, trees and other commodities. Resettlement Resettlement Plans (RPs) are time-bound action plans with budget setting Plans out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation. Resettlement Refers to all physical and socioeconomic displacements and various measures provided to DPs or AHHs to mitigate all adverse impacts of the project, including compensation, relocation, and rehabilitation as needed. Residential land Land on which the primary residence of the household is built or land classified as such in the land title. Severely This refers to AHHs adversely impacted by the project, who will (i) lose 10% Affected or more of their total productive assets (generating income); and/or (ii) have Households to relocate.

Voluntary Land Voluntary Land Donation refers to households voluntarily giving part of their Donation land for the use of the project which has community benefits. Vulnerable Vulnerable Groups: a group of people classified by one or more of the Groups characteristics below. A household with one of these characteristics is not necessarily considered a vulnerable household. Additional screening of each of the households belonging to this group is required to determine if the actual household is considered vulnerable and might suffer disproportionately or face the risk of being further marginalized due to the project. Vulnerable groups as per ADB SPS are: (i) female-headed households with dependents; (ii) household heads with disabilities; (iii) households falling under the national poverty line; (iv) elderly headed households who have no other means of support; (v) landless and (vi) ethnic groups.

Vulnerable A household belonging to the vulnerable groups who is determined, following Household screening by the project, as a household who might suffer disproportionately or face the risk of being further marginalized due to the project either at implementation or operations stages.

For a vulnerable household to be eligible for special project assistance as per entitlement Matrix a household needs to be Sociable Vulnerable or Economically Vulnerable. 5

Socially Vulnerable: Vulnerable household is unable to participate fully in project activities. This can be a result of (i) difficulties in understanding the project communications, (ii) difficulties to attend project meetings and consultations, (iii) difficulties to express concerns and suggestions for consideration for inclusion into project design or (iv) difficulties to have their interests represented in committees.

Economically Vulnerable: Vulnerable household who is (i) unable to conduct the additional dry-season farming due to disabilities, lack of labor or other reasons or (ii) those who will face economic stresses due to the loss of land or (iii) a household not yet graduated from poverty.

EXECUTIVE SUMMARY

The Project

The project seeks to address sustainable rural economic growth and watershed management in the four provinces of Luang Prabang (LPB), Xayaboury (XBY), Xiengkhouang (XK) and Houaphan (HPN), in the northern Lao PDR. These provinces feature mountainous and upland topography, ethnic groups and poor households (average of around 33%), with associated food insecurity. The population of the four provinces is predominantly rural. Impacts of improved infrastructure, including enhanced rural connectivity and improved agricultural production, are expected to have substantial benefits to population of the proposed subproject areas.

Nam Poua subproject

The Nam Poua subproject is located on the recently upgraded national Road No. 6A, extending from km 15 to km 24, Viengxay district, Houaphan Province. From the subproject area road 6A extends Et District including the branch to the recently established border crossing into Son La Province Vietnam. It is an existing irrigation scheme constructed under the ADB funded Community Managed Irrigation (CMI) project in 2000. The scheme is relatively simple with a single weir headworks and one main canal with gravity fed field to field flow that supports a wet season rice crop.

The lower command area (western end of the main canal) experiences water shortages during the dry season due to conveyance inefficiencies and the uncontrolled water use at the head of the command area. Currently the irrigated command area in the wet season is 52 ha of rice and 32ha of dry season cropping under plastic mulch furrow irrigation with an overall cropping intensity of 1.23. With the project the full 69ha command area will be irrigated during the wet season, along with dry season cropping for all 69ha. As such the feasibility study is based on an expected cropping intensity of 2.0, however it is likely that this will be increased further with multiple crops of short season vegetables increasingly produced in the dry season.

The proposed subproject comprises of an existing headworks (Keng Ay weir) located 1km upstream of Ban Namao on highway 6a. The headworks was constructed in 2000 under the ADB CMI project is assessed to be good. There is one main canal offtake on the true right bank at an elevation of 630m asl that extends for (9100m) at a design gradient of 0.001. The main canal apart from a 700m section is unlined with a bed width of 0.9m and a depth of 1.0m designed to deliver a peak flow of 456l/s. The canal condition is assessed to be adequate with some sections needing upgrading to reduce leakage and other sections require cleaning.

The irrigation command area is within 6 administrative villages with a total population of 1462 in 253 households (average 5.9 persons). The population is ethnically diverse however the Ethnic Groups are fully integrated within the local social groups and the cash economy having access to irrigated land, upland cropping land as well as members of social groups. Within the command area of the project there are 175 households irrigating on average 0.4 ha of command area.

The LARP has been prepared on the basis of the design for the Nam Poua subproject, and its likely land acquisition and resettlement (LAR), social and ethnic minority impact. It defines the scope of anticipated LAR impacts, measures required to mitigate them, the responsibilities for doing so and the responsibility for monitoring that they have been undertaken effectively at the 2

right time. The LARP also details the public consultation, information dissemination and social impact assessment used during the LARP process.

Figure 1: Location Map of the Subproject

Scope of Land Acquisition and Mitigation Requirements

A total of 22 households have 24 land plots impacted. Of these 24 plots affected, 17 are eligible for compensation through the Community Participation Frameworks and 7 are eligible for compensation through the Resettlement Framework No houses or permanent structures are affected therefore there is no need for any relocation. Also, the subproject will not have any impact on cultural or historical site. The exact location of the bridges has been confirmed and, the approaches to the bridges will connect to the existing roads via communal land which is reserved for this purpose already. Validation of the land ownership will be undertaken. The AHH have no land papers. However, as per Decree 84, article 8, item 32, they are deemed to hold traditional land use rights. A total of 4,071 m2 of agricultural land will be impacted by the sub-project.

According to socio-economic survey (SES) Nam Poua is a farming community with average monthly income per person of 665,500 LAK. There is no vulnerable household affected by the project. The rehabilitation of the irrigation system is of high interest to the commune and HHs. This is demonstrated by 100% of HHs supporting the project as planned, and 100% thinking its benefits will be significantly greater than any losses.

In the project area, Hmong live in villages of Homphan (22%), whereas lu Mien live in villages of Homphan (19%) and Nangern (100%). Nangern village is not part of the project, whereas Homphan village is benefiting from the irrigation. 67% of Hmong are beneficiaries of irrigation during wet season. Cultural integration between Lao and Hmong/Iu-Mien is well developed. The ethnic groups in the project area are now considered to be fully integrated within the Lao-Tai social, political administrative systems, the cash economy and the commercial marketing of produce. The project is classified as Category B for IP safeguards purposes. Elements of an EGDP have been included in this combined EGDP/LARP and as such it does not require a separate Indigenous Peoples Development Plan. Ethnic groups in the project area are considered to be fully integrated within the Lao-Tai social, political administrative systems, the cash economy and the commercial marketing of produce.

Consultation, Participation and Grievance Mechanisms

Consultations, public meetings and village discussions with the AHs and the local governments were conducted prior to the conduct of detailed measurement survey (DMS) as well as socio-economic survey of affected people (SESAH). Public consultation meetings were held in all affected villages. Public consultations will continue during Land Acquisition and resettlement Plan (LARP) implementation, consistent with the subproject’s participatory approach.

The community was advised officially from the District Governor’s Office to participate in facilitating asset registration. However, there is no record available of officially announcing the cut-off-date to affected households. This is to be done as soon as possible by PAFO after signature of the Loan agreement. GoL Decree 84, “Decree on Compensation and Resettlement Management in Development Projects”, dated 5 April 2016 (which replaces the National Resettlement Policy Decree No 192/PM dated 7 July, 2005), Article 8, Item 12 states: ”in case the compensation committee of the provincial or capital level finds out that the compensation

2 Decree 84, article 8, item 3 states: “ In case the affected person possesses the traditional land use right, the project owner has to compensate for the loss as defined in points 1 and 2 of this article, provided that the affected person has possessed the land use rights for a long period of time and he/she has protected, developed and used the land peacefully without invasion into protected forest areas or restricted areas with land use certificate issues by local authorities and relevant state agencies.”

4 plans are not implemented within twelve months as from the date of registration of the eligibility of the affected people there must be a new round of evaluation to identify the amount of works that have not been implemented and the new proposal must be submitted for re-consideration” This Article 8 identifies a time limit on the validity of 12 months of data collected. Therefore, the Cut-Off Date will be formally issued and announced after the loan agreement is signed. The Inventory of Loss listed in this LARP will then be updated to be in line with GoL Decree 84 and ADB’s SPS and the compensation rate officially revised and updated using the prescribed methodology to determine current market value.

The Project information booklet (PIB) was disseminated in beginning of October 2018 and an update of the booklet distributed in May 2019.

A grievance redress mechanism (GRM) has been designed to ensure that the concerns and complaints of the AHs are addressed at the village level in a timely and satisfactory manner. The AHs will be made fully aware of their rights through verbal and written means during resettlement planning, updating, and implementation. This mechanism will be free to access and have numerous entry points including contractors’ camps and village offices.

Legal and Policy Framework

This LARP has been prepared to address land acquisition and resettlement (LAR) for the subproject in Nam Seng. It is consistent with the laws of the Government of Lao PDR and ADB’s 2009 Safeguard Policy Statement (SPS). Provisions and principles adopted in the project resettlement policy will supplement the provisions of relevant decrees currently in force in Lao PDR wherever a gap exists.

As outlined in the REGDF, the project assessed the impacts on the affected households for SRIWSM, and applied to the SRIWSM subprojects the policy of compensation through either the Community Participation Framework or Resettlement Framework.

Planning, Implementation and Monitoring

The Ministry of Agriculture and Forests (MAF) is the Executing Agency (EA), and the four Provincial Agriculture and Forestry Offices (PAFO) in HPN, LPB, XK, and SBY, will be the implementing agencies (IA), responsible for LARP (and project) implementation. The Provincial Project Implementation Team (PPIT) under PAFO will implement and monitor the LARP with support from the social safeguards international and national consultants from the Program Governance Team (PGT) based in the Department of Irrigation (DoI) at the central level. The Project will contract service providers for carrying out the DMS in each subproject during implementation.

Monitoring and reporting of land and assets compensation payments, including compensation in-kind, will be included in the Project monitoring and evaluation (M&E) system and reported to Government and ADB through the quarterly Design Monitoring Framework (DMF).

Conclusion

The subproject has been assessed as Category B for Involuntary Resettlement.

The estimated resettlement budget is 5,81 million LAK (683 USD), not including in-kind compensation works agreed through negotiated settlement or compensation in-kind. Households 5

seeking minor in-kind construction works to be implemented to either improve the productive capacity of their affected land or other land plots. Examples of such works include installation of an additional drain culvert, provision of water through a pipe, to levelling of a non-affected land plot. Such construction works will be mutually agreed and put in writing during consultation meetings and thereafter be included in the contract with the construction company. The cost of these construction works is not included in the resettlement budget but in construction budgets.

Project Description

SRIWSM

The rural population depends on agriculture as the basis for development with the irrigation command areas playing a significantly important role in household food security through the wet season rice crop. For these irrigation schemes, upstream watershed health is critical for sustaining agricultural production. Livelihood practices by people living upstream of PRIs are often directly or indirectly linked to the irrigation command areas with the downstream consequences of land use on the future irrigation scheme sustainability being increasingly important. More secure land ownership rights for farmers is an essential input for better land stewardship both within the farmed irrigated areas and the wider watershed.

Sustainable watershed management is needed to facilitate; (i) reduced pressure on watersheds; (ii) improved economic opportunities; and (iii) to mitigate hydrological extreme events. The project will complement ongoing projects by supporting more resilient productive rural infrastructure (PRI), strengthening sustainability of operation and maintenance through local water user groups, establishing land registration for land ownership, supporting the development of more efficient and more environmental friendly agricultural practices for commodity with competitive market linkages. Irrigation systems efficiency will be improved, with particular focus on operation and maintenance through strengthening of water user groups including setting up operation and maintenance plans, improved irrigation service planning, as well as innovations for increasing agricultural commercialization and water productivity.

The project will have the following outputs:

Output 1: Market Oriented Production Increased. The project will improve market value chains and diversity of production by addressing: (i) connectivity of markets to producers through Value Chain actors including the possible use of mobile phone-based app that provides market information, allows producers to signal available outputs and provides agents and traders access to increase the efficiency of logistics; and (ii) investment into new technologies and extension for dry season irrigated cash crops, upland crops, and livestock.

Output 2: Watershed Ecological Services Protected. The output will enhance watershed management in Xiengkhouang Province. The project will support the updating or completion of participatory land use plans in the catchments and their actual implementation.

Implementation will target the voluntary movement of land from low productive slash and burn practice into high productive perennial vegetation land uses and or protected forests. A representative subproject within the Nam Tong, Xiengkhouang subproject catchment has identified 5 investments in the catchment based on the PLUP and will require community agreements in advance of investment and will provide land titles to income generation linked to irrigation, tea production and fodder land.

The Participatory Land Use Plan of the community (23 households) includes focusing on high productive agriculture in specific locations and thereby releasing 841 ha of land from it’s current low productive use to protection forest. Currently, there is 286 ha of land allocated for Rotational Upland Annual Cropping. Current use is limited to only 5 households that currently have inadequate rainfed rice to enable food security. The SRIWSM seeks to work with the village and these five households to provide alternative food security. These 5 households hold have land in the area were the 21 ha. riparian-based irrigation schemes. The project will provide support for will allow their land to be converted to irrigated paddy fields to offset the retirement of rotation annual upland cropping as well as participate in the forest tea development. Each of the 5 households will get a fair share of the 45 ha of forest tea development to enhance their cash incomes (actual land plots will be allocated during the PLUP Process with land titles provided). The highest prices for forest tea can be obtained in the beginning of the dry season, after wet season rice harvest, during the “spring flush”, when high quality young leaves are sold at a premium price. Both the irrigated paddy fields and the tea plantation land plots will be titled. The 286 ha of land assigned for rotational upland annual cropping will be turned into conservation forest or village protection forest categories to improve the water shed quality.

555 ha of village forest land is currently used for free ranging cattle grazing which will be turned into conservation forest or village protection forest categories by developing a total of 260 ha of grazing fodder land. The positive effect of improved fodder land for cattle raising is already demonstrated by the village chief who raises his cattle using the “cattle fattening” approach. Lessons learned from pasture development and fencing from the NZ AID Beef Sector Support project and the Department of Livestock, MAF northern livestock support project funded by ADB will also be used to expose and demonstrate cattle owners to new technologies and their use.

In addition, the output 2 will construct check dams and associated productive agroforestry, and an upgraded access road link linking the community to with road adjacent to the Nam Tong CMI head works Command area to reduce travel times to schools, markets and administrative services.

Output 3: Command area reliably irrigated increased. Direct investment in irrigation schemes and command areas through improvement of headworks, main and secondary canals, distribution systems and access to fields. Notable positive impacts include the impact on household income for both irrigators (targeting a 2 to 3 - fold increase) and other community households through the significant increase in wage earning employment arising from dry season cropping. The operation and maintenance of the irrigation schemes will be assigned to water user groups (WUG) that will be formed and linked through water user associations that will be assisted with capacity and equipment to operate their schemes.

Output 4: Nutrition Awareness and Facilities improved. The project will support up to 104 villages under the wider government nutrition support program to address stunting and wasting rates. The support will upscale recently piloted programs in Xieng Khuoang and Houaphan Provinces and will develop district nutrition committees, village nutrition schools and 7

provide capacity to institutionalize nutritional knowledge at Provincial, District, and village levels. The project will also implement WASH infrastructure in PRI communities, Schools and Markets.

Of the four outputs, the upgrading of PRI (Output 3) will entail land and asset acquisition. This loss will be mitigated by access to improved irrigation through the ability to produce irrigated high value crops during the dry season with complementary increases in the wet season rice crop yields (15 to 22% yield increases), transitional allowances and by compensation for any losses in line with the entitlement matrix. A community participation framework is imbedded in the Resettlement and Ethnic Group Development Framework (REGDF) as a guide for land acquisition with minimal impacts (equal to or less than 9% of land plot affected) with the option of donation, negotiated settlement or realignment of canals. The resettlement and ethnic group development framework applies to land that has impacts of over 9% of the land plot wherein AHs are provided compensation according to the entitlement matrix. Compensation for non-land assets and allowances are provided to all eligible AHs for both frameworks. The project will be financed by two donors being ADB and the EU through blended co-financing. ADB financing will mostly support output 3 for irrigation infrastructure. In addition, ADB will support investment in output 1 – market linkages for the four representative subprojects, output 3 water user group strengthening for all four representative subprojects prepared by the TRTA consultants, and the WASH infrastructure under output 4. Output 2 will be financed by ADB in only Xiengkhoang province with the remaining provinces being financed under a proposed GIZ project (using Green Climate Funds) that will finance the climate change mitigation activities in the upper watersheds as part of the wider World Bank Emission Reduction (except Xiengkhoang Province).

The proposed IFAD project will finance the expected soft investments relating to water user groups, farmer capacity development, market linked dry season irrigated agriculture and upland crop production adaptation using conservation agriculture techniques to develop more resilient livelihoods. IFADs funding will support all additional subprojects in addition to ongoing farm technology development in both the catchments and command areas under output 1, 2 and 3. The following framework applies to ADB and EU managed funds whereas the proposed GIZ and IFAD projects will be approved under their own safeguard documentation. It is recommended that the Executing Agency (EA) is common to all three projects to ensure that safeguards requirements are consistent across funding sources.

Four representative subprojects were identified and taken to feasibility study during project preparation; Nam Poua in Huaphan, Nam Seng in Louangprabang, Nam Tong in Xiengkhouang and Nam Moun in Sayabouli provinces, and a combined Resettlement Ethnic Group Development Framework (REGDF) prepared based upon scoping the likely impacts on land and assets. It is expected that each province will select an additional 4 subprojects (per province) during implementation, and as indicated in the REGDF only subprojects assessed as Category B or C (insignificant or no impact) for the resettlement safeguard area will be accepted for implementation.

Nam Poua Subproject description

The Nam Poua subproject is located on the recently upgraded national Road No. 6A, extending from km 15 to km 24, Viengxay district, Huaphan Province. From the subproject area road 6A extends Et District including the branch to the recently established border crossing into Son La Province Vietnam. It is an existing irrigation scheme constructed under the ADB funded Community Managed Irrigation (CMI) project in 2000. The scheme is relatively simple with a single weir headworks and one main canal with gravity fed field to field flow that supports a wet season rice crop.

Figure 2: Map of Project Area

Figure 3: Nam Poua Command Area

During the dry season, there is limited high value irrigated dry season crop grown, that for the past 5 seasons has been grown under plastic mulch with furrow based flood irrigation using field to field flow. The resultant dry season productivity is significant but constrained due to the inability to control and manage water delivery in terms of frequency and amount. As a consequence, water is over delivered on a 30-day watering cycle that is too long so that crops experience moisture stress prior to the next watering cycle. The watering cycle is due to the CMI scheme being designed for wet season rice with a field to field distribution system.

The proposed subproject comprises of an existing headworks (Keng Ay weir) located 1km upstream of Ban Namao on highway 6a. The headworks was constructed in 2000 under the ADB CMI project is assessed to be good. There is one main canal offtake on the true right bank at an elevation of 630m asl that extends for (9,100m) at a design gradient of 0.001. The main canal apart from a 700m section is unlined with a bed width of 0.9m and a depth of 1.0m designed to deliver a peak flow of 456l/s. The canal condition is assessed to be adequate with some sections needing upgrading to reduce leakage and other sections require cleaning.

The irrigation command area is within 6 administrative villages with a total population of 1462 in 253 households (average 5.9 persons). The population is ethnically diverse however the

ethnic groups are fully integrated within the local social groups and the cash economy having access to irrigated land, upland cropping land as well as members of social groups.

The command area for the current wet season is 81.8 ha with the dry season command area being limited to 37 ha due to the inability to deliver water to the lower end of the canal. The command area is located on both side of the Poua river with field to field flow from the canal for wet season paddy, and through piped river crossing to the left true bank and riparian zone again with field to field flows.

The irrigation system has 128 user HHs (126 HHs are resident, 2HHs are from Samneua District) from six villages (Table 1). 3 villages have land access sharing systems (either user HH rotation by time or by location – see details in section 3).

Table 1. Irrigation Data by Village3 Village/Total HHs Wet Season 2017 WS Area planted to rice User HHs (% HH) (ha) 1 Namao (total 30HHs) 11 37% 3.5 2 MeuangPoua (total 83HHs) 33 40% 27 3 Homphan (total 64HHs) 22 34% 5 4 Nasa (total 30HHs) 30 100% 15.5 Samneua people 2 5 Poung (Poua) (total 36HHs) 12 33% 2.5 6 Phonthong (Nangeun Hamlet) 18 82% 2.5 (total 22HHs) 128 54.7

Water use is based on wet season rice production with reported yields ranging from 4t/ha at the head of the main canal falling to 2-3 t/ha at the tail end due to reduced water availability and dry seasons intensive cropping using plastic mulch within the paddy parcels and retaining the filed to field flow through furrow based irrigation. Glutinous Rice is the main crop planted in the low land irrigated wet season areas of Nam Poua irrigation Scheme. Dry season crops including cucumbers (up to 10-12t/ha), melon (12-15t/ha/, beans receive water on a 30-day rotational basis leading to over and under watering, whilst the furrow based delivery in each parcel leads to wide row spacing.

The subproject also provides access from Road 6A to the command area and the upland orange orchards for movement of people and goods in and out of the command area. These bridges will remove a significant barrier for female involvement in high value crops and reduce product losses and spoilage during periods of high river flow.

Village boundary demarcation, allocation of Production Forest (134ha) and Conservation Forest (942ha) have been applied for 5 villages (not Homphan Village). Land Use Certificates have yet to be applied the in villages for both residential and agriculture lands).

The Water Users Group of the Nam Poua Irrigation System was founded in 2002 under the CMI Sector Project/ Houaphanh PAFO (Irrigation Section)/ Viengxai DAFO (Irrigation Unit).

3 Note that this data differs from the SES data, which shows 156HH users with 81.8ha. The LSR re-confirmed the numbers in the table with DAFO once the disparity was identified. 11

The Management of Keng Ay Weir/Nam Poua Irrigation System was transferred to the WUG in 2004. The WUG Committee has been reformed in 2014, with 6 representatives elected by the WUG.

The subproject rationale is to provide the infrastructure and scheme operational input to provide reliable, controllable water throughout the entire command area for the dry season. This will involve providing additional water control through buried secondary distribution pipes and offtake points for piped, hand held hoses or sprinkler applications. The improved water use efficiency along with increased water control will enable dry season water to be delivered for a 12-hour irrigation day on a 5-day rotation. Limited upgrading will be provided to the main canal to reduce the losses and damaged sections to increase water delivery through the lower reaches of the command area adjacent to the canal end. This will increase reliability of wet season irrigation and remove the yield losses to the wet season rice crop in dry years. Further the area will be serviced during the dry season for high value crop use. In summar,y the subproject is expected to: (i) Reduce the yield losses of wet season rice due to limited conveyance of wet season water (ii) Increase dry season command area that receives reliable water (iii) Deliver dry season water using pipes throughout the command area where individual farmers can connect into using hose pipes, leaky pipes or sprinkler systems (iv) Intensification of dry season production through reduced inter-row spacing as a result of moving from furrow to hose or pipe based irrigation systems (v) Controlled dry season water through scheduling a 12-hour irrigation window delivering water every 5 days to match crop water needs more efficiently (vi) Increase the cropping intensity from less than 1.5 to at least 2.0

The output of the subproject will include – a total of 69 ha with reliable wet and dry season irrigation with sufficient infrastructure for the control and management of water during the dry season on a 5-day watering rotation throughout the total command area. Baseline (2018) level are 52 ha irrigated wet season and 32 ha dry season of irrigated command area with an expected incremental gain of 17 ha wet season and 37 ha dry season. ‘Crop productivity gains are expected for 17 ha of wet irrigated season rice production and for the entire dry season command area due to more accurate watering, increased intensity of crop sowing (ie reduced inter-row spacing) over 32 ha and total incremental gain for the 32 ha of additional crop command area.

The subproject will also construct two bridges that enable people and goods via small truck to access into and out of the command area from road 6a. The removal of the need to swim the river increases the participation of females in the economic activity related to the irrigation command area and the adjacent upland orchard areas. Further it reduces crop losses and spoilage during periods of high river flow.

The physical modernization of the Nam Poua irrigation scheme involves (details in Table 2): (i) Securing the canal from damage during large floods. (ii) Installing a gate at the start of canal and channels for stop logs downstream of offtakes in the canal to facilitate water management. (iii) Increasing the masonry lining for 5.1km from km 0.7 km to km 5.8 in selected sections along the 9.1 km canal to reduce leakage losses. (iv) Covering the canal in unstable bank sections to prevent land slide debris blocking canal.

(v) Installing improved canal crossings / super passages for watercourses to secure canal and prevent water ingression. (vi) Reducing the number of existing canal offtakes and installing 16 pipelines and hydrants to serve the command area, thereby utilizing the available elevation difference between canal and fields. (vii) Improving water use efficiency through facilitating use of controlled flows, hoses and / or low pressure sprinklers for in field distribution. (viii) Improving access along canal to facilitate operation and maintenance. (ix) Constructing two concrete road access bridges across the Nam Poua.

Table 2: Key Details of Nam Poua Irrigation Scheme Item Detail Headwork Catchment area 196.5 km 2 Type of structure Concrete – fixed crest with small sediment gate Width, crest height, weir length W=12.5 m, H=1.2 m, L=19.50 m Design flood flow (P1)% 342 m3/s Canal - RMC Flow capacity. slope, length 456 l/s, 1:1000, L= 4.750m Intake channel 0.8m x0.8m rect. concrete l = 70m lined section - existing 700m (rect. masonry 0.9x 0.9m) lined section - proposed Additional 2036m (rect. masonry 0.8x0.8m) Unlined section – with project 2,014 m earth / rock channel, 0.8m bed width Canal - SCR Flow capacity. slope, length 250 l/s, 1:1000, L=4, 377m lined section - proposed 2,031m (rect. masonry 0.6x 0.7m) Unlined section 2,346m earth / rock channel, 0.6m bed width Distribution Command area 69 ha in 21 land parcels – 53.2 ha served by pipes Secondary pipelines 16 no. (6 cross Nap Poua River) Total pipeline length 3,505m Pipelines diameters varies 63 – 160 mm Pipeline pressures Varies 3 – 5 m at hydrants (operating) No. of hydrants 40 Design flow rate 5 – 8 l/s per hydrant Irrigation schedule – dry season All pipelines operating simultaneously, 5 day rotation within each block (pipeline), 12hrs/day Irrigation schedule – wet All pipelines operating simultaneously, season 24hrs/day Bridges Bridge no 1 – Ban Muangpoua L=40.10m, W=2.80m, H=7.5m Bridge no. 2- Ban Homphan L=31.08 m, W=2.80 m, H=7.00 m

SCOPE OF LAND ACQUISITION AND RESETTLEMENT

Impact on land and assets was minimized during project detailed designed by the following methods: a) Where possible by topography, locating the canal alignment between parcels of AHHs rather than splitting the land into separate parcel; b) Place alignment of secondary canals along existing access roads to minimize impact on private land; c) Including in the design cross-field access structures for fields which are split due to canal construction to enable continuous effective farming on both parcels, and to increase sustainability of the canal structures by avoiding damage from livestock crossing the canal.

Affected Assets

1. Affected Households

24 land plots belonging4 to 22 AHHs are affected in the subproject area. Of the 24 plots affected, 17 are eligible for compensation through the Community Participation Frameworks and 7 are eligible for compensation through the Resettlement Framework.

4 According to traditional land use rights as per Decree 84, Article 8, Item 3

Table 3: Nam Poua – affected households Number of Land Number of Land Plots eligible for Plots eligible for Directly compensation Affected compensation No. Village name affected through HHs through parcels Community Resettlement Participation Framework Framework 1 Namao 1 2 1 1 2 Meuang Poua 11 12 8 4 3 Homphan 6 6 5 1 4 Nasa 4 4 3 1 Total 22 24 17 7

2. Affected land, houses and structures

Within the 24 parcels of the existing irrigation in 4 villages (Table 4), it can be seen that 16 are used as garden land and 8 as paddy fields. One garden in Houaphan has 25 small orange trees on it. The total area of the parcels in the existing irrigation system is 73,050m2, but this was not registered at the time of the construction.

Table 4:. Nam Poua – affected land parcels

Affected Impacted parcel type Parcel details Av Av % of Affected Affected Garden Total Av Impacted Village Paddy Land impacted impacted HHs parcels land area area area area parcel 1 Namao 1 2 0 2 5,600 2,800 314.6 157.3 5.6% 2 Meuang Poua 11 12 9 3 26,550 2,212.5 1,271.5 106.0 4.8% 3 Homphan 6 6 6 32,900 5,483.3 1,684.5 280.8 5.1% 4 Nasa 4 4 1 3 8,000 2,000 800.6 200.1 10.0%

22 24 16 8 73,050 3,043.8 4,071.2 169.6 5.6%

The headworks (HW) will not be increased, so there is no submersion or increased flooding of surrounding land, or upstream areas. No houses or permanent structures are affected, and there is no need for any physical relocation. Also, the subproject will not have any impact on any cultural or historical sites.

The location of the bridges has been approved. The approaches to the bridges to connect to the existing tracks within the command area are located on communal land and have been reserved for this purpose in both locations. Therefore no land acquisition is required for the bridge installation. Access to the bridge in one area may require the reallocation of a small parcel of land but during consultations it was agreed that this will be managed within the reallocation of land once the new scheme is operations.

25 small orange trees are registered in the DMS as being impacted. These trees are still small and are not yet bearing fruit.

3. Temporary Affected Land

The full extent of temporary land acquisition cannot be determined at this stage; however, it is expected that contractor/s would have a need for temporary site installation, camps, storage and temporary access road. The contractor would have to propose for the acquisition of this land in a “Site Installation and Access Plan”, and obtain approval on this plan. Where possible, public and/or government land would be used for temporary land use. Through a transparent and contractual approach, the PGT will provide the contractor with the project’s land acquisition and compensation principles to ensure that (i) replacement cost rates are applied, (ii) reinstatement of affected assets is contractually defined, (iii) consultation taking place, (iv) grievance mechanism followed, (v) Environmental Management Plan (EMP) is applied, (vi) and other items specified, in compliance with the Project REGDF.

Figure 4: Detailed Alignment 1

Figure 5: Detailed alignment 2

4. Affected businesses

There are no affected businesses along the existing and affected irrigation canals and access road.

5. Vulnerable households

Based on the DMS and SES there are no vulnerable households with impacts on their land. However, the Socio-Economic status of households may change over time. This can in some cases lead to a change in the vulnerability status of a household. Households previously not vulnerable, can become so through for example divorce, death of a head of household, extended health issues leading to high medical expenses and loss of income pushing a household into poverty. At the same time, households listed as female headed and poor could, through marriage or financial stability, become no longer vulnerable. Therefore, following signing of the loan agreement, and the start of the implementation of the project, the list of vulnerable households needs to be reviewed and updated prior to project impacts and compensation.

Socio Economic survey of affected households

Social impact assessment was completed in May 2018 (report dated 29.5.2018) followed by a socio-economic survey of the AHs (SESAH) in 12-14 October 2018. The consultations during both surveys covered provincial, district and village authorities, WUGs, village development committees and households. Women and ethnic minorities were interviewed separately. 17

For the SESAH, an app which generates random numbers was used to support random selection of interviewees for the Household Socio-Economic Survey from numbered village household lists. Interviewees were informed of their selection during the village meetings to ensure their availability. A total sample of 22 households were interviewed.

Ethnicity of Communities

The population in Nam Poua includes four ethnic groups. Within the Lao-Tai ethni- linguistic group some 37% (108 hhs) are Lao, 33% (97hhs) are Tai-Daeng, 12% (34hhs) are Hmong, and 18% (52hhs) are Iu Mien. The Lao-Tai in Meuang Poua comprise Lao and Tai Daeng, both lowland rice growers. The Hmong – Iu Mien groups are historically highland dwellers, and arrived locally about 45 years ago. As shown in Table 4, 6.43% of all households in Meuang Poua are Lao, 23% are Tai Daeng, 21% are Iu-Mien and 13% are Hmong.

Table 5: Population and Ethnicity

Population Ethnic Group

Lao-Tai Hmong Iu-Mien

Lao ethnic Tai Daeng ethnic Hmong ethnic Iu Mien ethnic

SP Village % Female No. of Family No. of female (pers.) Total population No. of household No. of household No. of HH No. of HH No. of HH No. of HH Total Pop. Total Pop. Total Pop. Total Pop. No. of female No. of female No. of female No. of female Namao 30 32 160 75 47 30 160 75

Meuang 78 83 362 168 46 78 362 168 Poua Homphan 64 93 468 230 49 34 252 120 30 216 106

Nasa 27 36 143 63 44 27 43 63

Poung 32 38 194 102 53 32 194 102

Nangern 22 28 135 48 36 22 135 48 Total 253 310 1,462 686 47 108 522 243 59 337 165 34 252 120 52 351 154

ETHNIC 43 23 13 21 GROUPS % of Popln Source: TRTA social survey

Table 5 indicates the current sharing of the irrigation facilities between villages and ethnic groups. The Lao-Tai group represent the original residents of the Meuang Poua valley area, with the Hmong and Iu Mien households arriving at different times over the past 45 years. The original residents were allocated the use of the better or more convenient land often with the easiest access to water. Later arrivals only had the option to take up remaining land, as such there is less irrigated land available. Currently only two individuals from ethnic groups are part of the 14 WUG committee members. The level of representation was not identified as an issue and the ethnic groups do not consider this inappropriate.

Table 6: Irrigation Use by Ethnicity

Wet Season Supplementary Irrigation Dry-Season Irrigation

Lao-Tai Ethno-Linguistic Hmong-Iu Mien Ethno- Lao-Tai Ethno- Hmong-Iu Mien Ethno- No. Group Linguistic Group Linguistic Group Linguistic Group Subproject HH Village Lao Tai Daeng Hmong Iu Mien Lao Tai Daeng Hmong Iu Mien Hh Hh % Hh % Hh % Hh % Hh % Hh % Hh % Hh % Namao 30 11 100 17 100 M.Poua 78 78 100 43 100 Homphan 64 16 67 8 33 6 86 1 14 Nasa 27 5 100 4 100 Samneua N.A 2 people Poung 32 18 100 15 100

Nangeun 22 18 100 2 100 Total 253 89 25 16 26 60 19 6 3 Total HH with 156 88 Irrigation % of users by 57 16 10 17 68 22 3 ETHNIC GROUPS Source: TRTA Social Survey

Ethnic breakdown of the affected households of the project are shown in Table 7. Only 4 AHH of Hmong and 1 AHH of Yao are within the project affected areas.

Table 7: Ethnic Breakdown by HH

Lao Village Hmong Yao Total Loum 1 Homphan 2 3 1 6 2 Meuang Poua 1 10 11 3 Namao 1 1 4 Nasa 1 3 4 Total 4 17 1 22 Source: TRTA Social Survey.

Household survey

22 households (24 land parcels) with a total of 112 household members were identified as being affected by the project (Table 8). The majority of the households are Lao Loum, with 5 Hmong and 1 Yao households also affected.

Table 8: Nam Poua – affected households Affected Affected Lao Hmong Village Yao HH members HHs parcels HH HH 1 Namao 1 2 1 0 0 3 2 MeuangPoua 11 12 10 0 0 53 3 Homphan 6 6 3 2 1 28 4 Nasa 4 4 3 1 0 28 Samneua people 0 5 Poung (Poua) 0 6 Phonthong 0 Total 22 24 17 4 1 112 Average 5.1 Source: TRTA Social Survey

Out of the 22 affected households, 112 people are considered to be resident (with 133 people considered part of the household, even if they have moved away in the long term). Of the 112 residents, 61 are male, 51 are female. The population pyramid shows the distribution of the population by age group (Table 9). It can be seen that the population is highest within the 15-25 age ranges, and there is a significant decrease for lower age groups suggesting stabilization in the population. Within this sample, there is a higher population of males than females, particularly within the young adult age range.

Table 9: Nam Poua - Basic population data

Nam Nam Poua Affected Households Population Pyramid Seng Popn Male female 0-4 4 1 3 84-89+ 80-84 4-9 10 6 4 75-79 10-14 8 4 4 70-74 15-19 17 8 9 65-69 20-24 20 14 6 60-64 55-59 25-29 8 6 2 50-54 30-34 4 2 2 45-49 35-39 6 1 5 40-44 40-44 8 3 5 35-39 45-49 8 4 4 30-34 25-29 8 5 3 50-54 20-24 55-59 7 5 2 15-19 60-64 1 1 0 10-14 65-69 0 0 0 4-9 70-74 2 0 2 0-4 75-79 0 0 0 -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% female Male 80-84 1 1 0 84-89+ 0 0 0 Total 112 61 51 Source: TRTA Social Survey

Table 10 considers the family members (in relation to the household head), their number, education and occupation type. It can be seen that the children of the household head/spouse are the dominant group (61 persons) and that they have significantly higher attendance at university and upper secondary school in comparison to their parents, with all six university attendants coming from the ‘child’ group.

Farming/ gardening is the dominant primary occupation amongst household members. This is followed by study, which accounts for nearly 50% of the child group. Where there is a secondary occupation, farming, and rearing livestock are the key options.

Table 10: Nam Poua demographics – details Nam Seng (603 Child/ Father/ Other. G-father/ Bro/ Sis Head Spouse G-child Total resident HHM) step mother rel. G-mother Demographics Total 1 61 22 22 1 2 2 1 112 Male 1 37 22 1 61 Female 0 24 22 1 1 2 1 51 Education Primary 15 10 11 1 37 Lower Sec 12 8 5 1 26 Upper Sec 1 24 1 1 1 28 University 6 6 Associates 0 Never studied 3 5 1 1 10 No info 4 1 5 Employment Primary Occupation Farming/ gardening 1 5 16 17 1 1 41 study 26 1 27 Government staff 2 3 5 weaving 2 1 3 odd job 1 1 2 Livestock 1 1 2 No job 1 1 Shop 1 1 Employee private HH 1 1 rental 1 1 Remittance 1 1 Aquaculture 1 1 No info 25 1 26 Secondary occupation livestock 1 5 9 1 16 21

Farming/ gardening 1 8 4 13 No job 6 1 1 1 9 NTFP 1 3 4 1 9 aquaculture 2 2 4 Odd job 1 2 3 Seasonal labor 1 1 2 Weaving 1 1 2 Shop 1 1 No info 51 2 53 Source: TRTA Social Survey

Table 11 shows livestock assets (livestock being the dominant secondary occupation and noted above) of AHHs. It can be seen that the majority of households keep poultry, with significant numbers of households raising pigs and cattle. Some household have significant numbers of cattle (40,16,14,12 head of cattle); the average poultry per household is 29 which shows a certain level of enterprise; the average pigs/household is less than 5, suggesting 1-2 are kept penned near the house for regular cycles of breeding.

Table 11: Livestock assets Livestock HH with livestock % of HH with Livestock Total in 22 HHs Buffalo 6 27% 21 Cows 15 68% 134 Goats 1 5% 19 Pigs 16 73% 71 Poultry 20 91% 575 Source: TRTA Social Survey

In terms of utilities all 22 affected households have access to piped water, 77% also use this for drinking whilst other by bottled water (filtered in 20 litre plastic bottles). All households have a water seal toilet. All households use electricity, but wood stoves remain the primary cooking method.

Affected household income was assessed by considering total annual income for both primary and secondary sources of income (Table 12). It can be seen that the average income is approximately 36,000,000LAK (which for many will include sales of surplus production but not include the value of food that has been produced for household subsistence). The average does not vary significantly across the 4 villages (noting that in Namao there is only 1 sample HH). The income levels on average are much higher than the national poverty line5.

5 Prime Minister Decree No. 285/ PO on Poverty and Development Standard dated 13 October 2009, Sect 2: A standard to measure the poverty at individual level: 1): at country level 192,000 kip per person per month; 2) In rural area: 180,000 kip per person per month and 3): In urban area: 240,000 kip per person per month.

Table 12: Nam Poua Average household income Ave. per person Village Affected HHs Av HH Income per month 1 Homphan 1 38,550,000 533,000 2 MeuangPoua 11 36,136,000 551,500 3 Namao 6 46,500,000 646,000 4 Nasa 4 139,675,000 1,181,500 Total 22 Average 56,091,000 665,500 Source: TRTA Social Survey

The income types of primary and secondary occupations of the household that the interviewee identified as bringing in income (for all of the HH, therefore, the count is lower than for the full household member occupation table as, for example, 1HH will have 1 farming income, but 5 household members will consider their occupation as farming) is shown in Table 13. It can be seen that farming/gardening is the dominant work-type, with livestock raising as the most common additional source of income, and working as government staff providing relatively higher levels of income (as second highest total income, more than livestock, but with only 4 households with a member with the occupation). Table 13: Primary and secondary occupations

Primary occupation No. HH Av. Income/HH Total Income Farming Gardening 20 11,913,250 238,265,000 Government staff 4 29,650,000 118,600,000 Weaving/ handicraft 3 8,933,333 26,800,000 Livestock 2 5,600,000 11,200,000 Odd jobs 2 32,000,000 64,000,000 Aquaculture 1 5,000,000 5,000,000 Employee private business 1 24,000,000 24,000,000 Remittances 1 4,000,000 4,000,000 Rental 1 15,000,000 15,000,000 Shop 1 14,000,000 14,000,000 Total annual income 1 22HH (36 tasks) 23,675,682 520,865,000 Secondary occupation No. HH Av. Income/HH Total Income Livestock 11 8,245,455 90,700,000 Farming/ Gardening 10 6,840,000 68,400,000 NTFP 5 7,500,000 37,500,000 Aquaculture 3 7,633,333 22,900,000 Odd jobs 3 7,200,033 21,600,098 Seasonal labourer 2 2,800,000 5,600,000 Weaving handicraft 2 2,150,000 4,300,000 Shop 1 14,000,000 14,000,000 Total annual income 2 22 HH (37 tasks) 12,045,459 265,000,098 23

Total annual income 1 &2 22 35,721,141 785,865,098 Source: TRTA Social Survey

It can be seen from the responses in Table 14 that there is anticipated benefit from new and increase dry season cropping as a result of the irrigation for all households. 82% considered that their land value/rental value would increase. Only one household identified a negative impact for their livelihood (which is farming and raising goats). However, 100% of AHHs supported the project and did not see negative impacts being significantly greater than the benefits.

Table 14: Support for the project No % Don't Project expected impact Yes % No % % com know ment New Dry Season Cropping 22 100% Increased Dry Season Cropping 22 100% Direct water supply 22 100% Improved distribution 21 95% 1 5% Improved access 22 100% Increased land value 18 82% 4 18% Increased rental value 18 82% 4 18% Expected increased yields 22 100% Expected decreased maintenance 16 73% 6 27% Do you think the benefits are significantly greater than the value of the land and or 22 100% assets you will lose? Will the loss of assets negatively impact 1 5% 21 95% your livelihood significantly? Do you support the project as planned? 22 100% Do you think ethnic group HHs have special needs in order to participate equally as 4 18% others? If you foresee negative impacts from the 22 100% project, what are they exactly? would you requite compensation payment 4 18% 18 82% to cover for the negative impacts? Source: TRTA Social Survey

Decision-making at the household level was reviewed (Table 15 and 16). It can be seen that for the majority, decisions are made jointly between men and women, and that all households considered women to be active in decision making. Meanwhile, for between 14-18% of the time decision making is mostly taking place by men. This largely relates to three households where they reported that men dominate decision making, two of which are Lao Loum, one is Lao-Hmong.

Table 15: Decision making in the household (Mostly) Female (Mostly) Male (Mostly) Decision making F% M% B% Total Decision Decision Both M/F Responsibility animals 0 0% 4 18% 18 82% 22 Expenditure Production 0 0% 3 14% 19 86% 22 House repair 0 0% 3 14% 19 86% 22 Expenditure HH items 0 0% 4 18% 19 86% 22 Expenditure Education 1 4% 3 14% 19 86% 22 Expenditure health 0 0% 3 14% 19 86% 22 Expenditure social 0 0% 3 14% 19 86% 22 Source: TRTA Social Survey

Table 16: Women’s participation in decision making Describe women’s participation in Decision making No. HHs % Active 22 100 Passive 0 0 Total 11 100 Source: TRTA Social Survey

Women represent 47% of the total population with three HHs being headed by females. Up to 45% of females are either below school age or currently attending school (from primary up to tertiary levels). Women’s representation on village committees is only in 2 out of 6 villages (Table 17). Women are better represented in the Elders’ Committee which acts as an advisory group to the village committee, and each village has a representative of the Lao Women’s Union. The Water User Association was originally established in 2002, then revamped in 2014. It is comprised of 6 water user groups (one per village), but there are no female committee members.

Table 17: Women in Community Decision Making

Village Committee members Elders and Other Key Persons Subproject Village No. M No. F % F No. M No. F % F 1. Namao 3 0 0 28 6 17.6% 2. MeuangPoua 4 1 20% 36 12 25% 3. Homphan 4 0 0 19 4 17.4% 4. Nasa 3 0 0 26 6 18.75% 5. Poung (Poua) 3 0 0 32 7 17.95% 6. Nangern 3 1 25% 38 9 19.15% Source: TRTA Social Survey

INFORMATION DISCLOSURE AND PUBLIC CONSULTATIONS

Meaningful consultation is a process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive; (v) enables the incorporation of all relevant views of affected people and other stakeholders into 25

subproject design and implementation; and (vi) ensures the participation of AHs in planning, implementation, and monitoring and evaluation of resettlement programs.

To ensure that the views and concerns of the AHs are considered in project preparation and implementation and to reduce or offset negative impacts and enhance benefits from the Project, the following consultative activities have been conducted under the project:

In the design phase, public consultation was organized with WUGs and farmers on 4-6 August 2018 (165 total attendees, 85 women) on key aspects of the project design and potential impacts/benefits, GRM, community support and land acquisition modalities (Annex 2). This was followed by consultations during the SIA to verify support of the households for the project, discussions on the design process, land acquisition and resettlement policies.

Consultation meeting in 14-15 June 2018 (Annex 3) were conducted introducing feasibility study results and rehabilitation of Nam Poua Irrigation system, the resettlement aspects, the unit rate, GRM, and the related to PONRE of the endorsement of Entitlement matrix (64 total attendees, 11 women).

During socio-economic survey, prior to commencing actual data collection, a village meeting to be convened explaining the project, purpose, goals, main activities, basic policy towards land acquisition, Grievance Resolution Mechanism and compensation policy. Village meetings were arranged in all affected villages in 12-14 October 2018 (total 24 attendants, 10 women, Annex 4) to scope the priorities and views of the villagers regarding the subproject.

Project Information Booklet was distributed in mid-October 2018 by PAFO/DAFO to all affected households as well as PAFO, DAFO, Lao Women's Union, village halls and meeting places and WUG offices.

Dissemination of updated compensation policy and PIB including the compensation flow chart was conducted in May 2019. Following the consultation, households were invited to fill in the preliminary household survey, gaging the opinion of households regarding their compensation options through the Community Participation Framework or Resettlement Framework. A total of 14 households participated in this indicative survey (Error! Reference source not found.). The r esults of the survey are presented in Table 19 and Table 20 below.

Table 18: Number of AP responding to the indicative choice survey in Houaphan Village name Number of AHH Number of AP responded to in the village the indicative choice survey6 Meungpua 11 8 Nasa 4 4 Namao 1 1 Homephan 6 1 Total 22 14 Source: TRTA indicative household questionnaire

6 Participation in the survey is voluntary.

Table 19: Results of indicative choice survey of Households affected by less than 9% of their land plot Number of AP affected by Village less than 9% of their land AP choosing donation AP choosing Negotiated Settlement name plot who responded to the approach survey1 % of AP consulted % of AP % of AP consulted who Number Number who are less Number of participating in are less than 9%of their of AP7 of AP than 9% of AP the survey land plot affected their land plot affected Meungpua 8 100 % 7 88% 1 12% Nasa 2 50 % 2 100% 0 0% Namao 0 0 % 0 0% 0 0% Homephan 1 100 % 1 100% 0 0% Total 11 79 % 10 91% 1 9% Source: TRTA indicative household questionnaire

Table 20: Results of indicative choice survey of Households affected by 9% or more of their land plot Village Number of AP affected name by 9% or more of their AP choosing AP choosing Land for AP choosing Cash land plot who Compensation Land Compensation responded to the in- kind survey1 % of AP % of AP % of AP consulted % of AP consulted who consulted who Number Number affected by Number who are Number affected by 2 participating are affected by are of AP of AP 9% or more of of AP of AP 9% or more of in the survey 9% or more of their land plot their land plot their land plot Meungpua 0 0% 0 0% 0 0% 0 0% Nasa 2 50% 0 0% 2 100% 0 0% Namao 1 100% 0 0% 1 100% 0 0% Homephan 0 0% 0 0% 0 0% 0 0% Total 3 21% 0 0% 3 100% 0 0% Source: TRTA indicative household questionnaire

All AP were informed that their final decision for compensation will be required to be made by each household during actual project implementation and prior to any construction works starting.

GRIEVANCE REDRESS AND LEGAL FRAMEWORK

The Grievance Redress Mechanism (GRM) used under the Project was explained on each occasion public consultations took place. The 5-step process was explained to community meetings and also AHH meetings. AHHs grievances will be received and solutions for AHH concerns and grievances on land acquisition and implementation addressed as per the grievance procedure provided in the approved REDGF. AHHs complaints can be made verbally or in written form. In the case of verbal reports, the person receiving the complaint must prepare a written record of the issue.

7 Some AHH have 2 or more plots impacted. These households filled in one form for each plot affected, as per REGDF. Therefore, the total respondents of Table 2 and 3 is larger than the number of AHH listed in table 1. 27

In cases where AHHs do not have the writing skills or are unable to express their grievances verbally, AHHs are allowed to seek assistance from any recognized local NGO or other family members, village heads or community chiefs to have their complaints or grievances written for them. AHHs will be allowed to have access to the DMS or contract document to ensure that all the details have been recorded accurately enabling all parties to be treated fairly. Throughout the grievance redress process, the responsible committee will ensure that the concerned AHHs are provided with copies of complaints and decisions or resolutions reached.

Grievances or complaints from affected persons will be solved in a timely and satisfactory manner. The affected persons can submit their grievances to GRUs either in verbal or written form, and the process is at no cost to them. The procedural steps for filing and resolution of grievance and complaints are based upon the requirements set out in Decree 84 (2016) and are described in Table 20 below.

Table 21: Grievance Redress Mechanism Procedure Stages Activities/Procedures At the village level, AP files a complaint/grievance verbally or in writing to the Stage 1 Village Committee to seek faster resolution at village level. If unwritten the VC will record details of the complaint and provide consideration based on their traditional method of conciliation and mediation. Resolution is within 5 days after the complaint/grievance was received. If no solution or understanding is reached within 5 days, the AP can bring the Stage 2 complaint at the district level. The GRU at the district level will meet the AP, and resolve within 10 days after receiving the complaint. If the AP is an EG and requires assistance, representatives from the District LNF shall be appointed to assist by the DRC. Stage 3 If the AP is still unsatisfied or has not received any decision from the GRU at the district level, he/she can seek redress at provincial GRU (within the PRC) that should decide the issue in 10 days. If the AP is an EG and requests assistance, a representative from the provincial LNF will be appointed by the PRC. If still unsatisfied with the decision of GRU at the provincial level, the AP may lodge Stage 4 an appeal with MoNRE and the PGT will monitor to ensure each complaint is resolved within 10 days after receiving the appeal. Stage 5 As a last resort, the AP may request the case be heard by either the National Assembly or the local Court of Law.

Advice provided APs verbally and also the PIB, included two alternative grievance reporting systems for those AHH unwilling to register a complaint at village or district level. AHH were provided contact details of the Project Coordinator in Dept of Irrigation Vientiane, as well as contact details of the ADB Lao Resident Mission. No complaints were received up to the time of this LARP preparation.

Legal framework

ADB policies

The ADB Safeguard Policy Statement (2009) consolidates three existing safeguard policies: involuntary resettlement, indigenous peoples, and environment. The objectives of the involuntary resettlement safeguards are: (i) to avoid involuntary resettlement wherever possible; (ii) to minimize involuntary resettlement by exploring project and design alternatives; (iii) to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to

pre-project levels; and, (iv) to improve the standards of living of the displaced poor and other vulnerable groups.

Involuntary resettlement covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of: (i) involuntary acquisition of land; or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas regardless of whether such losses and involuntary restrictions are full or partial, permanent or temporary.

Projects financed and/or administered by ADB are expected to observe the following policy principles: (i) Screen early to identify involuntary resettlement impacts and risks and determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

(ii) Carry out meaningful consultations with displaced persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options and ensure their participation in various stages of the project especially vulnerable and poor groups. Establish a grievance redress mechanism to receive and facilitate resolution of the displaced persons’ concerns. Support the social and cultural institutions of displaced persons and their host population.

(iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation, assistance at replacement value for land when the loss of land does not undermine livelihoods; (ii) prompt replacement of assets with access to assets of equal or higher value; (iii) prompt compensation, assistance at full replacement cost for assets that cannot be restored; and (iv) additional revenues and services through benefit sharing schemes where possible.

(iv) Provide displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to replacement land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required.

(v) Improve the standards of living of the displaced poor and other vulnerable groups, including women headed households, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing.

(vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter 29

negotiated settlements will maintain the same or better income and livelihood status.

(vii) Ensure that affected people (APs) without title to land, or any recognizable legal rights to land, (when the project is assessed to cause adverse impacts8), are eligible for resettlement assistance and compensation for loss of non-land assets.

(viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

(ix) Disclose both the draft and final resettlement plan in a form and language understandable to displaced persons and other stakeholders.

(x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

(xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation.

(xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by considering the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

ADB’s Policy on Gender and Development (2003) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate in project design, planning, decision making and benefit sharing, and that their needs are explicitly addressed in the project decision-making process. A gender analysis was as part of the social economic data collection process of the TRTA, and a Gender Action Plan (GAP) formulated for each of the 4 representative subprojects. These will provide the basis for further gender action plans developed following feasibility studies of the remaining subprojects.

1. Other Relevant ADB Policies

Other policies of ADB that have a bearing on resettlement planning and implementation are: (i) Public Communications Policy (2011) and the Operations Manual Section L3/BP (2012); and (ii) Accountability Mechanism (Operations Manual Section L1/BP, dated 29 October, 2012). Following these requirements, the Program Governance Team (PGT) Provincial Program Implementation Team (PPIT) are required to share and disclose project information with stakeholders and the public at large. APs should have easy access to project information. The Executing Agency (EA) is also required to provide access for people adversely affected by the proposed Project to voice and seek solutions to their problems during and after resettlement. The Grievance Redress Mechanism (GRM), therefore, must be included in the LARPs and disclosed to the APs.

8 Clarification added by the Project

Lao Policies, Laws and Regulations

Preparation of the REGDF and this LARP has included reference to the laws of the Govt. of Laos including the Constitution (1991 and amended in 2015), the Road Law (1999), the Land Law (2003) relating to resettlement and land acquisition, and in particular, Decree 84, “Decree on Compensation and Resettlement Management in Development Projects”, dated 5 April 2016 (which replaces the National Resettlement Policy Decree No 192/PM dated 7 July, 2005). The new decree maintains general alignment with the ADB SPS. Provisions contained in earlier regulations, such as the Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Projects (No.2432/STEA, dated 11 November 2005), and Decree No 699/PMO - Water Resources and Environmental Agency (WREA) dated 12 March 2010, on Compensation and Resettlement of the Development Project (Improved), that contradict the new Decree 84 are repealed.

In general, the main principles of the government policies on land acquisition, compensation, assistance and resettlement reflect those set out in ADB’s SPS (2009), apart from those indicated in the Policy Gap table - below. The most significant difference being the definition of severely affected households who are adversely affected. The new Decree 84 does not specify the extent of loss, whereas Decree 192 specified a loss of 20% or more of productive assets as the trigger. The ADB provides 10% or more of productive assets (income generating) as the definition of significant impact.

Furthermore, in ADB SPS "the involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas". Gov. of Lao Land law (Article 63) gives the right to terminate rights to use land in case of voluntary forfeiture. Therefore, the project policy will be of no compensation for land or assets (e.g. trees) for households with no adverse impact and voluntarily releasing their land and assets for the use of the project in exchange for the irrigation water and direct benefits that it provides. In the project the households not adversely affected and voluntarily releasing their land and assets are not regarded as displaced persons or households.

Resettlement policy gaps between ADB and GoL

There are some relatively minor differences between the ADB and the Government of Laos’ Policies on land compensation, assistance and resettlement, although the spirit within each entity’s policy are reasonably well aligned. Where policy gaps exist between ADB and GoL relating to LAR the ADB’s SPS (2009) shall prevail.

Both Lao PDR law and ADB policies entitle adversely Affected Persons (APs) to compensation for affected land and non-land assets at replacement market cost. However, Government and ADB policy differ in the definition of severely affected APs. The ADB (Operational Manual Section F2 para. 5) definition sets a threshold of losing 10% or more of productive assets, while the Lao Government Decree 84 (replacing Decree 192) does not define any threshold (the previous decree indicated a 20% level of loss). Using a 10% threshold would however, be in accordance with Decree 84/PM which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the proposed Project. Hence, the REGDF will apply a trigger based on 10%, where the project is assessed to result in adverse impacts on the HH income and wellbeing of the affected household living outside the command area and not directly benefiting from the irrigation water. This is in line with ADB SPS to avoid, minimize, or 31

mitigate adverse environmental and social impacts, including protecting the rights of those likely to be affected or marginalized by the development process.

Both GoL and ADB policies entitle APs to compensation for affected assets at new replacement market cost and other assistance so that they are not made worse off due to the proposed Project. New provisions under Decree 84 (2016), no longer provide compensation for loss of land to APs who do not have proof of land-use rights and who have no other land in other places. Decree 84 stipulates APs found to be non-titled (as defined in the Decree), they are not entitled to receive any compensation for loss of such land, but will receive compensation for loss of constructed facilities, trees and crops at replacement cost, and relocation allowances. However, in keeping with the overarching goal of both ADB and GoL policies, APs who lose non- titled residential or productive land and do not have sufficient land remaining at the impacted parcel, or alternative lands, will be assisted to find other land to use. Decree 84 also clearly states that the PRC must provide an estimate of compensation value and approve compensation packages.

Table 22: Reconciliation of ADB and GoL LAR Policy Gaps Items with ADB Policy National Policy and Agreed Measures to Different Identified Gaps Close Gaps Policies Compensation Involuntary resettlement Irrigation Management for public / requirement applies for Transfer (IMT) is in place. When communal land is communal land involuntary restriction on land Decree 1150 on used on rotation basis as use or on access to legally Establishment and Operation agricultural land of AHs designated parks or protected of WUAs (2000) details that compensation for the lost areas. irrigation schemes ownership income for remaining is transferred to the WUG / period of turn for the AHHs Compensation for loss of community after construction. farming the land and income or livelihoods documented identification regardless of whether or not Also, based on Decree on the of replacement area to AHHs are physically Full Transfer of Irrigation compensation for location displaced for lost assets at full System to the Water Users for communal use. replacement cost (but not for Associations (No.1149/AF in land). 2000) the irrigation system constructed by the Government is transferred to WUA, WUG, Collective Enterprise and any other appropriate organization to manage and use it. MAF Decrees provides that WUA owns the system as a property as well as manage it. However, it can’t sell or lease the system and change the purpose of water use without permission from Financial Office/PAFO. Severely Being physically displaced Whereas Decree 192 Severely affected - Being Affected from housing; or losing 10% indicated a threshold losing physically displaced from Households or more of productive assets 20% or more of productive housing; and/or losing 10% (income generating) income generating assets or more of productive (loss of agricultural, industrial assets (income generating)

Items with ADB Policy National Policy and Agreed Measures to Different Identified Gaps Close Gaps Policies or commercial land) and means of livelihood, employment or business, and access to community resources, replacement Decree 84 (2016) does not indicate a threshold. Vulnerable Individuals and groups who Whereas Decree 192 defined Vulnerable households are Households may be differentially or Vulnerable households to a household belonging to disproportionately affected by include (i) divorced or the vulnerable groups who a project because of their widowed female headed is determined, following disadvantaged or vulnerable households with dependents screening by the project, as status. Vulnerable groups and low income; (ii) a household who might generally include those below households with disabled or suffer disproportionately or the poverty line, the landless, invalid persons; (iii) poor or face the risk of being further female headed households landless households; (iv) marginalized due to the with dependents and elderly households with no project. members of ethnic groups means of support, For a vulnerable household replacement Decree 84 to be eligible for special (2016) prima facie defines project assistance as per Vulnerable people as: ”Those the entitlement Matrix a who cannot help themselves household needs to be including disabled, amputees, Socially or Economically elderly, children, divorcees Vulnerable. and widows who have Socially Vulnerable: dependents”. The Decree Vulnerable household also states that special unable to participate fully in attention must be given to the project activities. This can needs of vulnerable groups. be a result of (i) difficulties of understanding of the project communications, (ii) difficulties to attend project meetings and consultations, (iii) difficulties to express concerns and suggestions for consideration for inclusion into project design or (iv) difficulties to have their interests represented in committees. Economically Vulnerable: Vulnerable household who is (i) unable to conduct the additional dry-season farming due to disabilities, lack of labor or other reasons or (ii) those who will face economic stresses due to the loss of land or (iii) a household not yet graduated from poverty.

Items with ADB Policy National Policy and Agreed Measures to Different Identified Gaps Close Gaps Policies

Absentee land owner households, who are verifiably not reliant of the productive land lost to the project, are not regarded as vulnerable households but are eligible for lost land compensation / cost of land.

Compensation ADB policy recognizes Decree 84, Article 8, Item 3 Traditional land use will for those traditional land use rights as recognizes traditional land be recognized as a form without legal a form of ownership. use rights under specific of ownership title on land conditions. Encroachers are not encroacher will not compensated for affected Decree 84, Article 8, Item 4 receive compensation for land, but are eligible for recognizes that encroachers affected land but shall compensation of non-land receive compensation for asset and other assistances indicates that APs living in non-land assets and will not be compensated for other assistances. their lost e land. They will However, if they have no receive compensation for other residential land on the loss of constructed which to reside, they will facilities, trees and crops. be provided assistance to secure an alternative plot.

Non-legal APs will not receive compensation for affected land but are entitled to compensation for crops. However, if they have no other agricultural land on which to cultivate, they will be provided assistance to secure an alternative plot allowing for re- establishment of previous income generation and productivity

For severely affected APs livelihood restoration assistance will be provided in addition to the support provided above. They will receive replacement value compensation for the loss of structures and trees

Items with ADB Policy National Policy and Agreed Measures to Different Identified Gaps Close Gaps Policies and crops on affected land.

Value of Improve, or at least restore, Compensation shall be in AHs will be given the Compensation the livelihoods of all the form of land, material or choice to nominate displaced persons through money for the land, whether they prefer to (i) land-based resettlement agricultural products, take land for land; strategies when affected livestock and incomes that compensation in-kind or livelihoods are land based are affected by cash for land. Land for where possible or cash development projects based land offers must be compensation at on the replacement value. acceptable to the AP. replacement value for land Replacement value is Land offered should be when the loss of land does established after documented to be of the not undermine livelihoods, consideration of market same productive land (ii) prompt replacement of prices, average prices and value and relative assets with access to assets middle prices applied by the distance from the of equal or higher value, State (regulated by household residence as (iii) prompt compensation at MoNRE). Final the previous land before full replacement cost for compensation rates must be being offered to the AP. assets that cannot be approved by the PRC. In restored, and (iv) additional case of loss of In order to establish a fair revenues and services infrastructures and facilities compensation value a through benefit sharing of local communities, the review will be made of schemes where possible project owner must be current market responsible for rehabilitation replacement cost/value, and repair to make the average values, and the infrastructures and facilities middle price applied by in their original forms. The the State. Where there project owner has to pay are significant more attention in the differences, the final rate rehabilitation efforts if there will be negotiated with are losses of cultures, MoNRE/PoNRE but will religions and traditions of not be below full local people replacement cost.

All compensation rates are to be published and values of exact entitlements are to be presented to the APs during discussion and must be agreed to by the AP.

Entitlements, assistance and benefits

This LARP follows the compensation principles outlined in this REGDF. Where compensation for land, structures or assets is required, compensation will be based upon full replacement cost and current market prices. The calculation of full replacement cost will be based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments, if any. Where market 35

conditions are absent or in a formative stage, the borrower/client will consult with the displaced persons and host populations to obtain adequate information about recent land transactions, land value by types, land titles, land use, cropping patterns and crop production, availability of land in the project area and region, and other related information.

Where land is compensated for, the EA and IA’s will ensure that existing titles involving such land will be surveyed and adjusted accordingly at no cost to the AH.

This LARP recognizes the consultation processes, policies, and laws of Govt. of Laos that are applicable to land acquisition and compensation transactions and ADB SPS (2009) requirements such as asset value calculation basis, third party validation, proper record keeping, and overall transparency.

A. Land donation Farmer equity and community readiness in irrigation investment is to be encouraged as the main drivers in the demand for and successful maintenance of irrigation facilities9. Productive land contributed for irrigation canals and channels (particularly tertiary and lower channels) is not lost, it continues to be productive, delivering water or growing crops. If it is a rehabilitated canal, it continues to operate and provide the same (although improved) function as before the project often at lower cost or increased efficiency. If it is a newly constructed tertiary or lower channel, the impacted land may change its productive function. Non-productive land may be transformed and used for water delivery, or, land that was not productive in the dry season may now be productive with the availability of dry season water.

Potential benefits to households include: (i) Securing the wet season crop by providing supplementary irrigation when needed10 (ii) Significant financial returns from dry season cropping not previously available to the HH without the newly constructed, extended or rehabilitated distribution canals. (iii) First access to water with offtakes installed on all impacted plots abutting the constructed canal channels (iv) If canals are concrete, reduced labor and maintenance needs and in some instances a slight increase in crop area (v) Better water supply management and improved water distribution providing better yields (vi) Increased plot value due to irrigation access (vii) In the case of roads, improved access, more convenience evacuating harvested crops and reductions in travel times and travel difficulties.

The project and the related supporting projects financed by GIZ, IFAD, and KfW, will together also increase the likelihood of transitioning into higher value agricultural systems by reducing the technical, managerial and market risk of not obtaining the production benefits.

9 Without farmer commitment to O&M sustainability, schemes require rehabilitation every 10 years (CES: National Irrigation Diagnostic Study, Laos (1986). 10 The subprojects currently mainly provide supplementary wet season irrigation. The onset of the wet season is usually marked by start-up rains, followed by a drought period of a couple of weeks and in a bad year this can stretch to a drought period of up to a month or more. This has a disastrous effect on newly planted rice causing crops to fail. Wet season supplementary irrigation is used to secure the wet season crop.

Within the project policy, beneficiary households can waive their rights to compensation and voluntarily donate (limited to 9% of the land plot11 affected by the project) areas of either productive or non-productive land, in exchange for significant, demonstrable and tangible benefits. In essence the loss of revenue from the land will be less than the additional benefits that will arise from the remainder of their land in a with-project scenario. Comprehensive consultation with the community is required regarding the project, its benefits, their concerns and entitlements along with the establishment of an effective grievance redress mechanism.

Table 23: Criteria and Guidance Notes on Land Donation Criteria Guidance Notes The AHs are aware of • Affected Households are advised of the ADB and GoL policies compensation entitlements for for resettlement and land acquisition in regards to involuntary land acquisition and compensation, and land donation on a voluntary basis. GRM • Consultation are undertaken with AHs on estimated compensation amounts based on DMS and current published provincial compensation rates for the land to be donated. Once full replacement cost is identified, the AH is again consulted with the use of the updated rates and estimated compensation amounts based on the DMS. • Communities are made aware of the GRM and how it is accessed. The households making • The project benefits outweigh the lost land or assets. voluntary land donations are • Both positive and negative impacts of the project on the direct beneficiaries of the project affected household are considered and consulted with the AHs. • The affected household can identify the project’s direct benefits to them. The rotational basis and scheduling of water delivery during operations is clearly explained and understood. • Assets (trees / crops / structures) will be compensated for and cannot be donated. • Vulnerable households are not eligible for donation. Impacts do not result in • Only secondary structures are affected; there is no physical displacement of households or relocation of household due to the project or the land donation. cause significant loss of • Cumulative impacts are not permitted and AHHs can only household’s incomes and donate land from one land plot with a maximum of 9% impact livelihood on the land plot. If a second or subsequent land plot (in addition to the area affected already calculated as part of the donation agreement is affected, this will nullify the donation agreement and the land will be compensated through this resettlement framework. • For the avoidance of doubt, donations will not be accepted for any AH who have 9% or more of their land plot affected by the project. Land donated is free from any • The affected household has recognized legal tenure. dispute on ownership or any • The land is not being occupied and/or used by any other other encumbrances party. • The land is not in dispute for its ownership.

11 OM F1/OP States that significant impacts are when HHs lose 10% or more of their productive assets (income generating). For the purposes of this project, as agreed upon with DoI and ADB, productive assets (income generating) is identified as the affected plot of land. 37

Criteria Guidance Notes Consultations with the affected • Use of pictures for universality of key messages, including the households is conducted in a use of the compensation flowchart. free and transparent manner • The affected households are informed that they have the right to accept compensation for land acquired by the project. • The affected household receives clear and adequate information on their entitlements (specifically stating the value of such) and participates in the project planning. • For households who are illiterate or for those who have limited reading skills, forms requiring signature by households are read out to the household during consultations, prior to signing. Land transactions are supported • Official land ownership document of the remaining unaffected by transfer of titles land is updated free-of-charge to the household in the name of both husband and wife. Proper documentation of • Agreement is properly documented with signatures of affected consultation meetings person, PAFO and witnesses (Land donation form). (household and community • Consultation meetings, grievances and actions taken to level), donation agreements, address such grievances are properly recorded. grievances and actions taken to • External monitor present for at least 10% of donation signing address such grievances is events. maintained • External monitor to conduct due diligence on 100% of donations. Vulnerable households are not • Ensure vulnerable households are identified and are aware disadvantaged through exclusion that they are not eligible to donate land regardless of their from project benefits (ie. not willingness to do so. providing access and/or rights to • Vulnerable households identified with no access or rights to the the irrigation water or livelihood water from the canals will trigger safeguards as per ADB SPS. restoration initiatives). • Vulnerable HHs in the command area are provided additional training, preference in technology demonstrations, and seeds and materials for first dry season cropping free-of-charge Criteria for Use of Voluntary Land Donation (i) The subproject site is selected in full consultation with landowners inclusive of any non-titled affected people (ii) Voluntary land donation will result in significant demonstrable direct benefits for the AHHs (iii) Voluntary land donation does not have an adverse impact on the living standards of affected people and will be limited to 9% of the affected land plot. (iv) The voluntary land donation forms are written in Lao language, signed by both spouses from the AHH, PAFO and witnessed, must be appended to the subproject’s LARP (v) All voluntary land donations will be confirmed through written record, subject to Due Diligence and verified by an independent third party such as the external monitoring agent (vi) There is an adequate grievance resolution process which has been acknowledged by the APs (vii) The voluntary land donation will not cause any physical relocation of formal or informal land users, squatters or encroachers of the land (viii) Any AHH contributing land from one land plot will be fully compensated for any further land plot(s) impacted by the project (ix) Vulnerable households are not disadvantaged by exclusion from the project, and provided with additional training and materials (x) Voluntary donation is accepted when the loss of land does not equal or exceeds 9% of the land plot

Figure 6: Flowchart on compensation options

Entitlements for each type of affected person are based on the types and levels of losses. An Entitlement Matrix (EM) for the proposed Project is shown in Table 21. The EM is based upon the REGDF, ADB SPS (2009), and relevant Govt. of Lao laws and regulations. The PRC publish and periodically update compensation rates for lost assets such as land, structures, tree and standing crops, as well as additional allowances, and these rates vary from province to province. As required under Decree 84, each participating PRC is requested to review and update the compensation rates prior to preparation of the LARP and revised rates will be evaluated based on values of assets as applied by: (i) the market; (ii) local authorities; (iii) other/similar cases; and (iv) expectations from affected persons, and (v) a replacement cost survey. Determining the costs requires information to be collected from respective provincial, district, and village authorities and where possible, recent and relevant free market transactions and replacement cost survey (RCS) in the project area. If there is a delay of more than 12 months as from the date of registration of the eligibility of the affected people there must be a new round of evaluation to identify the amount of works that have not been implemented and then new proposals must be submitted for re- consideration. The purpose is to estimate a fair market replacement value for the asset, or productive capacity of the asset, being lost. Final compensation unit rates have to be agreed with affected person prior to finalizing the LARP.

The PRC in Houaphan provided compensation rates from a previous Nam Xam 3 Hydropower Project from 27 June, 2017, which are used for the preparation of this LARP for estimating the compensation amounts for each AHH and overall resettlement budget. The compensation rates will need to be updated after the loan agreement is made and an updated RCS conducted and prior to compensation payments being made.

Table 24: Entitlement Matrix Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures I. LOSS OF LAND A. Legal owners or No compensation for land. Temporarily legalizable/recognized Cash compensation for loss Compensation for land for Affected right; and those of income until restoration is temporary use including net Agricultural, covered by customary completed, standing crops income from standing crops Residential rights. and trees, and the cost of soil and trees until maturity at Or restoration and damaged replacement cost; and land is Commercial infrastructure during the time returned to legal owner/user Land of disturbance (during to pre-project condition, and construction). in time for next cropping Users without No compensation for land. cycle. formalized rights They are entitled to cash compensation for non-land If temporary disturbance is assets (standing crops, trees, more than 1 year, the APs structures) at replacement have the option to sell the cost. land to the proposed Project at replacement cost which will be assessed during resettlement plan preparation or continue to get compensation for net income from standing crops and trees lost until maturity. B. Legal owners or a) As a priority, compensation AHH will be compensated at Permanently legalizable/recognized will be through “land for land replacement value for the

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures Affected rights; and those arrangements” satisfactory to land. AHHs may opt for cash Agricultural covered by customary APs (for agricultural land – compensation for the affected Land rights.. equal size, quality and land equivalent to productive capacity; for replacement cost if alternative residential land - equivalent or suitable land is not size, quality and accessibility; available. AHH must and for commercial land - document how the cash equal size and accessibility to compensation will be used to customers). restore their livelihood.

b) Cash compensation for Voluntary donation is allowed affected structures at to a threshold of 9% of the land replacement cost without plot to be affected by the deduction for depreciation or project. Households who can salvageable materials. Cash also choose to enter into compensation for crops and negotiated settlements or the trees project can realign the canal to avoid impact. Vulnerable households and severely affected households are not eligible to donate land. AHH can choose to receive compensation in-kind, such as for example the development of unaffected land belonging to the households to increase its productive potential on the condition that this is comparable to the cost of compensation due to the AHH (or more).

Compensation costs will be assessed during resettlement plan preparation. Cash compensation for standing crops, trees and other assets/improvements.

C. Legal owners or Compensation for land at Compensation for residential Permanently legalizable/recognized replacement cost. land at replacement cost. Affected rights; and those Residential covered by customary Cash compensation for Compensation costs will be Or rights. affected houses and assessed during resettlement Commercial structures at replacement plan preparation. Cash Land cost without deduction for compensation for standing depreciation or salvageable crops, trees and other materials. Cash assets/improvements. compensation for trees at current market values. II. LOSS OF HOUSES & OTHER STRUCTURES 41

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures Affected Owners identified a) For permanent houses and If a house is affected, re- Houses and during the census. structures, cash alignment of the irrigation Structures Tenants renting compensation equivalent to canal is required houses/shops/ replacement cost without structures depreciation of salvageable A lump sum shall be paid as materials. shifting allowance to a relocated household, b) For toilets, latrine toilets including amounts for build based on national damages and reconstruction. design specifications of The allowance will vary Ministry of Health (under according to house size. The project Output 4). allowance rates are regulated by the PRC. These will be c) For temporary or moveable reviewed by the consultants structures, APs will receive an and discussed with the AP. If allowance for damages and deemed inadequate to defray reconstruction as updated actual costs, the rate will be and approved by the PRC. renegotiated with the PRC.

d) Tenants renting structures All relocating affected are entitled to three months’ household with permanent rent at prevailing market rate houses/structures are entitled in the area and assistance to to a shifting allowance. identify alternative accommodation and transport Households agreeing on allowance and transition voluntary land donations are allowance as updated and still entitled for compensation advised by the PRC. of structures at replacement cost III. LOSS OF CROPS AND TREES Crops and Owner or person with Cash compensation for loss . Trees customary land usage of non-irrigated crops rights. (including any unharvested Compensation will be based crops that are near or ready on the type and age and to harvest at the time of land productivity for trees while acquisition) at current market non-irrigated crops will be price. The PRC will provide based on the anticipated an updated compensation harvest at market value .. regulation covering crops and trees to be included in the LARP. APs will be provided in writing two months’ notice that the Affected trees of AHHs will be land on which their crops are compensated. planted will be acquired. APs are allowed to harvest their crops and trees prior to construction. This notice should be provided as a district directive and published at the village hall.

IV. LOSS OF COMMON PROPERTY RESOURCES

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures Common Affected communities If income loss is expected on No cash compensation for Property or concerned use of common resources by land loss. Land allocation for Resources government agencies. AHHs (e.g. irrigation, affected community to community forest, community continue rotation of original grazing land), the AHH is land use to be determined entitled to compensation for and agreed upon. the total production loss for the period of their turn to use Compensation for income the resources or access to loss for the period of lost turn new areas for grazing. of use of resources to the AHH in question.

The entitlement will be reviewed against any updated regulations issued by the respective PRC, ad discussed with the affected Village Committee. V. INCOME RESTORATION A. Materials For relocating APs that The Project owner must either Applies to all APs with Transport are required to move ensure that all AP materials, permanent houses/structures Allowance back or relocate to equipment and belongings The PRC will either direct the other areas are transported to the new project owner to provide all location in entirety, or transportation, or, calculate guarantee sufficient cash the amount for the transport payment to the AP to cover all of household effects, transportation costs. salvaged and new building B. Housing For relocating APs that The PRC will revise and materials to new sites.. Transition are required to move update the per capita Allowance back or relocate to “disturbance allowance” Temporary structures are to other areas. be relocated during construction by the contractor and return to their original location after completion of works. Any damage to the temporary structures needs to compensated by the contractor. C. Business For owners of Businessa) Lump sum will be paid to The PRC will revise and Transition identified during census compensate for loss of update compensation rates Allowance business and restoration of for business transition and income. loss of income. The PGT b) For employees, cash consultants will review the compensation for lost salary / updated rates in conjunction wages for each day they with tax and accounting cannot work while business is records of the affected reorganizing at new site. In business to ensure adequacy the case where the business and where insufficient, will cannot resume following renegotiate with the PRC. relocation, allowance provided for 6 months. All payments will be made through transfers to the bank 43

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures account of the AHH (name of husband and wife).

D. Special APs belonging to a) Vulnerable households in Identification of vulnerable Assistance vulnerable groups the command area are AHHs will be done in for Socially including (i) female eligible for first dry season cooperation with village or headed households with crop seeds and materials authorities. Vulnerable Economically dependents; (ii) disabled free-of-charge in conjunction households , are not eligible Vulnerable household heads; (iii) with training and preference for donation of land. Special Households poor households; (iv) in technology demonstrations. assistance is provided to APs dependent on elderly households who who would face economic the affected have no other means of b) Vulnerable households will stresses due to the loss of productive support; (v) landless be entitled to a special land. Members of ethnic land households. allowance plus additional groups are not eligible unless cash and other assistance they qualify for special . based on identified needs and assistance as being socially priorities. HHs with more or economically vulnerable as than one factor of vulnerability defined within item D. (e.g.: old age, poverty, disability) being entitled to an a) Contracted company/NGO allowance for each factor. to provide extension services Eligible for livelihood and and training for dry season income restoration program. cropping.

b) PRC revised and updated rates will be reviewed for adequacy and discussed with the AP for adequacy. Eligible for livelihood and income restoration program.

In addition, APs will receive any necessary support to obtain replacement land and resettlement.

Absentee land owner households, who are verifiably not reliant of the productive land lost to the project, are not regarded as vulnerable households. E. Livelihood Severely affected and Severely affected and Severely affected and restoration vulnerable households vulnerable HH will be vulnerable HHs to be consulted as to livelihood identified during DMS/SESAH preferences and possible and prioritized thereafter. options. Provision of land and creation of new livelihood Contracted company/NGO to options and vocations, provide extension services identification of new income and training for livelihood generation activities and restoration program with a relevant skills training to clear restoration plan / upgrade livelihood levels to at

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures least pre-project levels. Any business plan with milestones additional allowances will be to reach pre project levels. regulated by the PRC. Livelihood restoration plans must be agreed to in writing by the AHHs and approved by the PRC, prior to construction commencement

Special attention must be provided to address additional needs of any vulnerable AHHs.

INCOME RESTORATION AND ETHNIC GROUP DEVELOPMENT

Affected households belong to 3 ethnic groups, see Table 7. All AHH are integrated in the Lao-Tai social, political administrative systems, the cash economy and the commercial marketing of produce. The special measures included in this subproject LARP is to ensure literacy is not a barrier for equitable participation for the AHHs. The special measures include:

• Translation of communication messages into local language where necessary during discussion and/or the use of pictures for universality of key messages. • Proportional representation of ethnic minority groups and women on all subproject management committees and in community decision making bodies. • Capacity building for ethnic minority groups (men and women) to enable participation in subproject and community decision-making delivered in local language and using appropriate communication methodologies. • Proportional representation of ethnic minority groups (men and women) in project study tours, trainings and related programs. • Extension services designed for and delivered to ethnic minority groups and women using local translators for those who are not fluent in Lao. • Implementing agencies will ensure any land use certificates or titles issued under the Project are updated in both spouses' names • Clearly reading out and explaining asset registration and compensation agreements documents to both heads of household prior to requesting for their acceptance and signature. The household questionnaire conducted during consultation meetings conducted in May 2019 found out that not only EG households benefit from clearly reading out and explaining documents prior to requesting for their answers, but also those from Lao Thai households who are not fluently in reading documents. The use of visual materials, such as the lao version of Figure 6, helps when explaining the compensation options.

During consultation meetings, the community informed that local beliefs require a ceremony to be organized by the contractor prior to start of construction. This will be facilitated by the project. 45

Resettlement Budget

Preliminary compensation plan has been developed from DMS and 2017 compensation rates for the province. An overall cost estimate has been prepared based on compensation plans leading to a total of LAK 5.81 million including a 10% contingency (Table 23 and 24). The budget consists of two major elements; the compensation for land and Trees.

This estimate does not include indirect costs for resources related to safeguard implementing (safeguards team in PGT) and monitoring and evaluation (M&E) at national, provincial, and district levels as they are provided under project management funds. Also, all safeguards related surveys and EMO costs are included in project management funds. Land acquisition, resettlement and compensation (LARC) related costs would be financed by the ADB loan from the unallocated budget line.

Table 25: Land Acquisition and Compensation Cost for lost assets Compensation Compensation Value Item Amount Unit Rate (LAK) (LAK) 2,714,745 Garden land 1357 m2 2,000

2,437,806 Paddy land 203 m2 12,000

Trees 25 tree 5,000 125,000

Grand Total 5,277,552 Source: TRTA DMS and compensation Unite Rate

Table 26. Summary of Subproject’s Land Acquisition and Compensation Budget Item Description Cost (LAK) Loss of land Garden Land and Paddy fields 5,152,551 Loss of secondary structures Loss of crops - Loss of trees 25 trees 125,000 Loss of common property - resources Income restoration - Special support - Allowance support for the vulnerable AHHs Planned Sub-Total 1: Mitigation 5,277,552 Contingencies (10% of subtotals 1 and 2) 527,755 Preliminary Budget Estimated [LAK] 5,805,307

Institutional arrangements

The implementation of the resettlement plans will involve various levels of government and project contractors including the Ministry of Agriculture and Forestry (MAF), Provincial Department of Agriculture and Forestry Office (PAFO), provincial and district resettlement committees, the PGT along with village authorities and the loan implementation consultants (LIC).

Ministry of Agriculture and Forestry

MAF, through the PGT (DoI), will continue to oversee the LARP activities of the concerned PAFO and DAFO and provide technical assistance if necessary.

The preparation of LARPs will be overseen by the LIC and will work with the PGT service provider for surveys such as SESAH, DMS, IOL. The requirements for these are detailed in this REGDF, and it is expected that each PAFO will assign a staff member as a focal point to work with the resettlement teams and to monitor the day to day implementation of each LARP. The PGT will contract an external monitor for resettlement and the LARP implementation.

The PGT will appoint a qualified social safeguards officer to supervise and co-ordinate implementation of social safeguard requirements with support of the LIC International and National Social Safeguard Specialists. The PGT Social Safeguards Officer will be responsible for submitting social safeguard reports to ADB for clearance and disclosure. They will also carry out regular monitoring during implementation and prepare a summary of progress of the LARP and GRM implementation for the quarterly project progress reports. They will participate in ADB loan review missions, ensure that semi-annual environmental and social safeguards monitoring reports are submitted to ADB on time and follow-up on agreed actions.

PGT to, if necessary, contract a company/NGO to provide extension services and training for livelihood restoration program for the severely AHHs and vulnerable HHs. The company/NGO is to work closely with each PAFO/DAFO in the project Provinces for the provision of the services

Provincial Department of Agriculture and Forestry Office

Each PPIT within PAFO is headed by a Provincial Project Director who is responsible for all implementing components of the subprojects including the LARP.

PAFOs, with the assistance of the respective DAFOs, will continue to be responsible for overall planning, implementation and coordination of the Project including LARP. The PGT will continue to: (i) review and approve all subproject LARPs submitted by the provinces; (ii) approve subproject LARPs after obtaining concurrence from ADB; (iii) allocate necessary LARP budget; (iv) periodically supervise LARP implementation progress; (v) coordinate with other relevant central government agencies; and (vi) report these directly to ADB.

The PAFO will be required to designate one Resettlement Officer from within PAFO, and one will be designated from each DAFO, who together will ensure that all resettlement–related and EGDP element activities are properly planned, implemented and monitored. The Resettlement Officer designated will continue to be responsible for organizing the affected districts and villages to carry out the activities designated in this REGDF.

PAFOs will continue to be responsible for providing inputs in the preparation of subproject LARPs, and DAFOs at district level will be responsible for implementing and monitoring day-to- 47

day activities including coordination with civil works schedule and financial management. Activities of PAFOs are, but not limited to the following: (i) consultation with APs; (ii) interact with the service provider that will carry out the census, inventories of assets, socio-economic surveys; (iii) coordination with implementers, including contractors where they are used, on civil works schedule; (iv) coordination with various departments at the district and village levels; (v) assist APs in finding new replacement land; (vi) prepare rehabilitation assistance to APs at village levels; and (vii) schedule resettlement activities and reporting regularly to the PGT and PRSC on progress and outstanding issues. To ensure that the preparation of subproject LARPs are transparent and conducted in a participatory manner, PAFOs and DAFOs will work closely with the APs, concerned local administrative authorities and local-based organizations (women, ethnic groups etc.).

Provincial Resettlement Committee

PRCs have been established already under previous programs and can be reactivated and will continue to be headed by the Governor or Vice Governor of the participating Province. Members of the PRC are, but not limited to the following: concerned district governors or deputies, Department of Finance (Land Property Office), PAFO, DAFO and other relevant departments and mass organizations (LWU). The resettlement committees will also act as an advisor and will assess and monitor the LARP activities. They will also act as grievance officers.

Capacity building will be provided in resettlement planning for the newly established implementing stakeholders who will be involved and responsible for the final preparation and implementation of resettlement plans. Costs for capacity building in respect of social safeguards have been incorporated into this REGDF. It is recommended to organize safeguard related training immediately on project start-up and before any REGDF activities commence, and ensure the following topics are covered: (i) Latest policies, decrees and technical guidelines. (ii) Grievance Resolution (iii) Basic principles of resettlement planning and the conceptual approach on entitlements for losses. (iv) Restoration and rehabilitation of livelihoods. (v) Institutional requirements. (vi) Staff and training requirements. (vii) EG sensitivity and EGF elements.

IMPLEMENTATION SCHEDULE

A detailed implementation schedule of the various activities to be undertaken is shown in table 25. This schedule will be updated following finalization of the compensation rates and payments. The schedule for all resettlement activities must be agreed and settled by all stakeholders before resettlement activities begin.

Satisfactory payment of compensation and provision of other rehabilitation entitlements and relocation, if required under the LARP, will be completed before a ‘no objection’ can be provided by ADB within 20 working day prior to commencing civil works construction under each subproject.

Table 27: Schedule of RP Implementation Activities Schedule PAFO approval of LARP June 2019 ADB approval of LARP June 2019 Disclose LARP on ADB website July 2019 Public disclosure of approved LARP to AHHs July 2019 Implementation of approved and updated March 2020 to March 2022 LARP Update compensation rates and prepare January 2020 compensation plans. Consult with HHs Confirm and update DMS information where January 2020 required12. Consult with HHs Confirm and update Vulnerable household January 2020 list. Consult with HHs Approve compensation plans and update Prior to March 2020 LARP Disbursement of compensation payments to Prior to August 2020 APs Internal monitoring March 2020 to March 2022 (end of first DSI) External monitoring March 2020 to March 2022 (end of first DSI) Civil works construction Construction season 2020/2021 (Annually October through April)

MONITORING AND REPORTING

Internal Monitoring

The objective of internal monitoring is to (i) measure and report on the progress in the preparation and implementation of the updated LARP; (ii) identify problems and risks, if any, and the measures to mitigate them; and (iii) assess if the compensation and rehabilitation assistance provided are in accordance with the provisions of the approved LARP.

PAFOs, in collaboration with DAFOs and resettlement committees, are responsible for internal monitoring of LARP implementation. PAFOs, with DAFO assistance, will supervise the resettlement activities and provide quarterly reports to the NPC for inclusion in the Quarterly Progress Report, which is circulated to ADB and members of the Project Steering Committee. The NPC will ensure that the loan implementation consultants include in their progress reports the status of the LARPs, and information on location and numbers of people relocated, compensation amounts paid by item, and assistance provided to APs. All reports will be submitted in English. ADB will also monitor these activities in its regular supervision missions during the period of project implementation.

Internal monitoring indicators will include: (i) Compensation and entitlements are computed at rates and procedures as provided in the approved LARP.

12 Decree 84, Article 8 Item 12 states: ”in case the compensation committee of the provincial or capital level finds out that the compensation plans are not implemented within twelve months as from the date of registration of the eligibility of the affected people there must be a new round of evaluation to identify the amount of works that have not been implemented and the new proposal must be submitted for re-consideration 49

(ii) Payment of compensation to APs in accordance with the REGDF and as agreed with project authorities. (iii) Coordination and completion of land acquisition, compensation, assistance and relocation as required prior to the commencement of civil works (iv) Adherence to public information dissemination and consultation procedures. (v) Adherence to grievance redress procedures. (vi) The transition between resettlement and civil works is smooth. (vii) Others.

External Monitoring

An External Monitoring Agency (EMA) contractor will be engaged by the PGT to undertake independent monitoring. This organization will carry out implementation monitoring, with focus on assessing voluntary land donation procedures and post-resettlement impact evaluation to assess whether impacts of the proposed project have been mitigated adequately and the pre-project standard of living of APs have been restored as a result of resettlement and project activities.

The external monitoring contractor will (i) work closely with the land acquisition and resettlement implementation teams to ensure that the integrity of work and the adoption of a best practice approach is established early in the project, and (ii) will validate the completeness of the LARP implementation to ensure all cases are appropriately addressed. The EMA will produce Land Donation Due Diligence Reports . The EMA is also assigned the responsibility to monitor implementation of any EGP elements that are incorporated whilst the LARP is being implemented. The external monitoring contractor will report directly to the PGT, EA and ADB simultaneously on all findings.

Social Safeguard External Monitoring contractor will be awarded prior to the procurement of the first works contract and will operate for the duration of the project. It is expected that the firm would mobilize a minimum of two person one of which will need to be an international safeguards expert.

Annex 1: Eligibility for Community Participation Framework

Area of land Eligible for Community AHH ID Vulnerable % of land plot Village name Land plot ID Land type13 plot impacted Participation Code HH impacted (m2) Framework

Homphan HPN002 No 48 Garden land 450.98 4.51% Yes Homphan HPN006 No 7 Garden land 100.63 7.74% Yes Homphan HPN008 No 8 Garden land 129.08 2.15% Yes Homphan HPN009 No 9 Garden land 96.76 1.79% Yes Homphan HPN011 No 11 Garden land 423.68 14.12% No Homphan HPN012 No 12 Garden land 483.40 6.71% Yes Meuang Poua MEP001 No 24 Paddy land 71.84 23.95% No Meuang Poua MEP002 No 26 Garden land 229.11 16.37% No Meuang Poua MEP005 No 29 Paddy land 102.96 6.06% Yes Meuang Poua MEP006 No 57 Paddy land 87.96 3.66% Yes Meuang Poua MEP008-1 No 60 Garden land 3.33 0.08% Yes Meuang Poua MEP008-2 No 64 Garden land 222.47 5.30% Yes Meuang Poua MEP010 No 61 Garden land 33.73 0.61% Yes Meuang Poua MEP011 No 34 Garden land 51.71 3.98% Yes Meuang Poua MEP016 No 36 Garden land 250.46 7.16% Yes Meuang Poua MEP017 No 38 Garden land 124.19 13.80% No Meuang Poua MEP020 No 66 Garden land 45.00 12.86% No Meuang Poua MEP022 No 40 Garden land 48.72 6.09% Yes Nasa NAA001 No 1 Garden land 535.39 24.34% No

13 The Land type has been adjusted from the DMS to match with land types classified in the compensation Unit Rate 51

Nasa NAA002 No 3 Paddy land 130.71 7.26% Yes Nasa NAA003 No 4 Paddy land 90.05 2.73% Yes Nasa NAA004 No 2 Paddy land 44.43 6.35% Yes Namao NAO001-1 No 30 Paddy land 183.32 3.59% Yes Namao NAO001-2 No 56 Paddy land 131.31 26.26% No Source: TRTA DMS and Compensation Unite Rate

Annex 1B: Calculation of compensation

Resettlement Framework

AHH ID Vulnerable Land Village name Land type18 Code HH plot ID Unit rate Land Structures Trees Support Total (LAK/M2) Compensation

0 0 125,000 125,000 Homphan HPN002 No 48 Garden land 2,000 847,353 0 0 847,353 Homphan HPN011 No 11 Garden land 12,000 862,076 0 0 862,076 Meuang Poua MEP001 No 24 Paddy land 2,000 458,223 0 0 458,223 Meuang Poua MEP002 No 26 Garden land 2,000 248,383 0 0 248,383 Meuang Poua MEP017 No 38 Garden land 2,000 89,998 0 0 89,998 Meuang Poua MEP020 No 66 Garden land 2,000 1,070,789 0 0 1,070,789 Nasa NAA001 No 1 Garden land 12,000 1,575,731 0 0 1,575,731 Namao NAO001-2 No 56 Paddy land Total (LAK) 5,152,552 0.00 125,000 0.00 5,277,552

Source: TRTA DMS and Compensation Unite Rate

Annex 2: Maps of parcels in project area

Annex 3: Initial public consultations

Muang Poua, HPN 4 April 2018 (15 men, 2 women); explanation of project concept, likely impacts and benefits. Feasibility process, community support, GRM.

B. Muang Poua 5 April: Meeting to explain Project, feasibility process, focal group and HH data collection process, land acquisition modalities, GRM.

Ban Namao, 5 April 2018

Ban Hompanh 6 April

Ban Nasa 6 April 61

Phontong 7 April

Poua 7 April 63

Annex 4: Attendees to village meetings

Annex 5: Summary of all SESAH village meetings

Meeting 1: Participants 10: (8m/2f): 12 Oct 2018 • Mr. Bounkham Sydavong, Head of DAFO • Mr. Vilaychit Soukchalearn, dep. head of irrigation division PAFO 15:30-14:30 • Mr. Sysouk Thepphavong, head of irrigation design unit • Mr. Lianthong Bounsavai head of irrigation technical unit • Mr. Sangkhone Keobounphaphasert, technical staff of DAFO of Viengxai district • Ms. Lattanaphone Thatanavong • Mr. Lithdavanh Silisack • Ms. Chian Thammavong • Mr. Phachith Syphouthone • Ms. Sothida Onnamvong Discussion/ comments: • Self-Introduction • Presentation of the objective of the mission • Present the work plan and procedure for data collection • Discussion with Irrigation division staff of PAFO to accompany the team in the field • Affected HHs report gathering for 4 target villages (Individual and community land) • Explain about clarifications forms and initial agreement in principle of release land and others assets needed to be signed by AHHs head and their spouses. • Give comments about some of the issues that may arise during the field work for Socio-Economic survey

Meeting 2: Participants 8 officials (3f) + 18 villagers (13 M 5 F). 13 Oct 2018 • Mr. Sysouk Thepphavong, head of irrigation design unit AHHs Information Meeting • Mr. Lianthong Bounsavai head of irrigation technical unit and list AHHs to engage in • Mr. Sangkhone Keobounphaphasert, technical staff of Social economic interview DAFO of Viengxai district for 4 villages. • Ms. Lattanaphone Thatanavong Venue: Meaungpua village • Mr. Lithdavanh Silisack hall • Ms. Chian THammavong • Mr. Phachith Syphouthone • Ms. Sothida Onnamvong

• Village representatives Contact details

Muangpua (11HHs+Community land). Mr. Nouliane Khamthongxai, phone 02097999594 Nasa village has 4 HHs phone 0209827940 Homphanh village has 6 HHs + Community land, Phone0304902356 Namao village has 1 HHs+ community land, Phone 02054124794

Discussion/ comments: • The head of the irrigation design unit of PAFO presented the objective of the mission. • Noting that the project started a long time ago, and has now reached the AHH information stage. He requested that all AHHs should agree with, and accept, project construction and implementation in the coming year

• Mr. Sysouk made opening remarks and introduced the objective fof the AHHs data collection, and read the list of all AHHs in 4 villages. • The villagers registered. A project brief worksheet was disseminated to all villagers • There are 18 villagers participated (1 female). • It was explained that clarifications forms and initial agreement in principle of release of land and others assets need to be signed by AHHs head and their spouse • After meeting, the floor was open for villagers sharing their opinion and ask questions. • The villagers agreed with project construction, with no objection • It was noted that in the project area, the agriculture land does not have a land tittle yet, they just land use certificates

Meeting 3: Participants 8: (5m/3f): 8 participants, male 5, female 3

14Oct 2018 • Mr. Sysouk Thepphavong, head of irrigation design unit • Mr. Lianthong Bounsavai head of irrigation technical unit • Mr. Sangkhone Keobounphaphasert, technical staff of DAFO of Viengxai district • Ms. Lattanaphone Thatanavong • Mr. Lithdavanh Silisack • Ms. Chian THammavong • Mr. Phachith Syphouthone • Ms. Sothida Onnamvong Discussion/ comments: • Completed social economic data collection of AHHs • Verbal field report to head of PAFO • Wait for clarifications forms and initial agreement in principle of release land and other assets documents signature from head of PAFO • Verbal report to Viengxai DAFO • Distributes the clarifications forms and initial agreement in principle of release land and others assets all signed by all AHHs (one HH each retaining one copy; and one copy to be returned to Vientiane)

Meeting 1 Meeting 2 Meeting 3 12 Oct 2018; PAFO 15:30-14:30 13 Oct 2018 14Oct 2018 AHHs Information Meeting (SES of AHH) Meaungpua village hall

Annex 6 Dissemination of updated compensation policy

Lao People Democratic Republic Peace Independence Democracy Unity Prosperity ******* Houaphan Province Provincial of Agriculture and Forestry Office Irrigation Sector

Minutes of Meeting

The Consultation Meeting on the Preparation of the Consultation on the Compensation Policy of the Sustainable Rural Infrastructure and Watershed Management Project (Nam Pua Irrigation Project).

- According to the schedule for village consultation on the dissemination of the compensation policy at the village level of the Sustainable Rural Infrastructure and Watershed Management Project (Nam Tong Irrigation Project), that agreed by the loaner (Asia Development Bank) and the Government of Laos. In order to meet the requirements of both the GOL and ADB regarding consultation on the mitigation of project impacts.

The meeting was conducted on 27 May 2019 starting at 10:15 AM, at the Deputy Chief office room of Provincial of Agriculture and Forestry Office (PAFO) of Houaphan Province. This meeting is to discuss on the plan and scope of work on the dissemination of the option and compensation policy to the affected household of Nam Pua Irrigation Project to have a better understanding of the overall the compensation process. The meeting was chaired by Mr. Kim Thoummala (Deputy Chief of PAFO of Phouaphan Province) by the participation of the representatives from the irrigation sector, Project provincial coordinator, Technical officer of PPTA, Project coordinator from Department of Irrigation. The total participants are 4 peoples (See list of participants is attached).

The participants were informed by Mr. Sisouk Thepphavong (head of unit of Irrigation survey of irrigation sector) regarding the project implementation including the survey on the system design and the information collection on the land impact along the irrigation. In additions, the meeting was discussed on the benifits of the project. After that Mr. Misa Phouthilath (Technical officer of PPTA) proposed the main purpose of and the significance of this consultation meeting in order to meet the need and comply 81 with the standard of the Social Safeguard Policy (Agreed by the Goverment of Laos and ADB), then introduced the compensation policy according to the project guideline revised in May 2019.

Then the meeting attendees have a straight forward opinion and the discussion have following the steps and altogether have agreed as follows:

1. Agreed on the plan of PPTA and ADB which will be conduct the dissemination in villages.

2. The provincial coordinator will cooperate and coordinate with the concerned agencies in order to implement the activity accordant with the agenda. 3. Agreed on provincial and district relevant offices must be resolved to the land issue that have contracted for the banana planting, which means that before the irrigation project is constructed, all these lands must be completely cleaned the banana out to avoid any overlap issue. 4. Agreed not to disclose/inform on each unit price of any compensation type 5. In case there is any problem or difficulty, the team can be discussed with the coordinator or PAFO.

The meeting was closed at 11:00 am, the same morning by the agreement among the participants. Therefore, these minutes of the meeting was made between technical officer of PPTA and the PAFO- irrigation sector of Houaphan Province as the reference for the further implementation.

At PAFO of Houaphan Province, Date on 27/05/2019

Acknowledge by Project coordinator Note Taker Project coordinator at provincial level from Department of Irrigation

Figure 1. List of participants at provincial meetings(PAFO) to discuss on filed work for village consultation (Total 4 participants)

Figure 2. List of participants the meeting with DAFO-Irrigation Unit to discuss and preparation the implementation for village consultation in 4 villages (Total 6 83

participants)

Figure 3. The meeting with PAFO to discuss on filed work for village consultation on compensation policy for NamPua irrigation sub-project

Figure 4. The meeting with Viengxay district authority to discuss and inform about filed work for village consultation on compensation policy for (NamPua irrigation subproject) 85

Figure 5. The meeting with DAFO-Irrigation Unit to discuss and preparation the implementation for village consultation on compensation policy for (Nam Pua irrigation sub-project)

Figure 6. Field visit to Observation the location at status of Nam Pua Irrigation sub- Project

Figure 7. Debrifing and reporting to Head of Houaphan Irrigation sector about the achievements of conducting the dissemination on compensation policy for Nam Pua Irrigation Project Date 29 May 2019 at 9:30 AM

Lao People Democratic Republic Peace Independence Democracy Unity Prosperity

******** Houaphan Province Viengxay District Ban Meuangpua, Nasao Namao, Homephan Village No:_33_/_ນບ__

Ban.Meuangpua, Date on 28 May 2019 Sustainable Rural Infrastructure and Watershed Management Project

Minute of Meeting

The village consultation meeting on compensation policy for the impact of the Rural Infrastructure Development and Sustainable Watershed Management Project (Nam Pua Irrigation sub-project).

- The Sustainable Rural Infrastructure and Watershed Management Project will improve the Nam Pua Irrigation Project. In order to meet the requirements of both the GOL and ADB regarding consultation on the mitigation of project impacts. The consultation meeting at village level was organized in for the 4 villages located in the Nam Pua Irrigation System Project. - According to the schedule for village consultation on the dissemination of the compensation policy at the village level of the Sustainable Rural Infrastructure and Watershed Management Project (Nam Pua Irrigation Project).

The meeting was conducted on 28 May 2019 starting at 8:19 at the meeting hall of Meuangpua village offices, the consultation with the affected households was chaired by Mr. Amphai Phounmanorath (Deputy Chief of DAFO of Viengxay district), 4 Villages authority of Ban. Meuangpua, Nasao, Namao and Homephan village, Representative of irrigation unit from PAFO and DAFO, affective household (AH), the Technical officer of PPTA, the total participants are 30 peoples which of 7 are women (See list of participants is attached).

The participants were informed from Mr. Amphai Phounmanorath regarding the project implementation including the survey on the system design and the information

collection on the land impact along the irrigation. In additions, the meeting was discussed on the benifits of the project. After that Mr. Misa Phouthilath (PPTA) proposed the main purpose of and the significance of this consultation meeting in order to meet the need and comply with the standard of the Social Safeguard Policy (Agreed by the Goverment of Laos and ADB). In addition, the PPTA team introduced the compensation policy according to the project guideline revised in May 2019.

After the presentation on the compensation policy, the villagers were invited to ask question and share their comments as below: No. Proposal Proposed Family Remarks

1 Question Based on the project document about assessment of Mrs. Nisone land impact, which land plot that I have to give back to Mrs. the project? Phetsamone (Meungpua) Answer Only the affected area will be returned to the project, not Mr. Sisouk the total area of land plot (PAFO) And Village head 2 Question In case of and excavator or truck have to pass through Mr. Vongchanh our paddy land, will the project repair it back to the (Meungpua) original state?

Answer Of course, the project will ensure that before starting Mr. Sisouk repair the project will be discussed with the owner of the (PAFO) land plot and we will try to repair back as the same.

3 Question In case, if there is another property of the villagers along Mr. Sisouwath the irrigation cannel, the project will be compensated or (Meungpua) not?

Answer All affected property/assets should be compensated as Mr. Misa the compensation policy for more understanding you can (PPTA) read in the project implement booklet

4 Question Why we have to divide the compensation type for the Mr. Somphong poor household should have a compensation? (Meungpua)

Answer The compensation policy is equally acceptable, as Mr. Misa mention in the follow chart poor or venerable household (PPTA) should be the first consider for the compensated. For those people who are less impact and not the poor household, you can still have the right to choose a compensation policy as I have explained in the beginning, and you can read more from the PIB that revised in April 2019.

After that, Mr. Misa Phouthilath was introduced on the households questionairs to ensure that the understanding of the villagers on the compensation policy. The households questionairs is summarized as below: 91

For Ban. Meungpua: 1. Affected land plot less than 9% of their land plot have 8 HH including: • The number of HH who need to donate is 7 HH. • The number of HH who need the negotiation is 1 HH. (Compensation in-kind)

2. Affected household equivalent or more than 9% of their land plot have 0 HH including: • The number of HH who need compensate land for land is 0 HH • The number of HH who need the negotiation compensate in-kind is 0 HH. • The number of HH who need to compensate by cash is 0 HH.

For Ban. Nasa: 1. Affected land plot less than 9% of their land plot have 2 HH including: • The number of HH who need to donate is 2 HH. • The number of HH who need the negotiation is 0 HH. (Compensation in-kind)

2. Affected household equivalent or more than 9% of their land plot have 2 HH including: • The number of HH who need compensate land for land is 0 HH • The number of HH who need the negotiation compensate in-kind is 2 HH. • The number of HH who need to compensate by cash is 0 HH.

For Ban. NaMao: 1. Affected land plot less than 9% of their land plot have 2 HH including: • The number of HH who need to donate is 2 HH. (For community land/fill by village head) • The number of HH who need the negotiation is 0 HH.

For Ban. Homephan: 1. Affected land plot less than 9% of their land plot have 1 HH including: • The number of HH who need to donate is 1 HH. • The number of HH who need the negotiation is 0 HH.

The resolution on the proposal and impact is that after the approval of project in various level, the project will be established in order to coordinate on the resolution of proposal or information disclosure to the villagers on the project.

The meeting was closed at 12:00 by the agreement among the participants. Therefore, these minutes of the meeting was made by the authority of Ban MeungPua and DAFO of Viengxay District as the reference for the further implementation.

At Village meeting hall of Ban. Meungpua, Date on 28/05/2019

Chairman Village authority of Note Taker Deputy chief of DAFO Ban Meungpua… Ban Nasa… Ban Namao… Ban Homephan…

Figure 7. Photo of Participents registration 93

Figure 1. Photo of Participents registration

Figure 2. Presentation of the cCompensation option flow chart and explaination of the questionnaire then break in groups and discuss HH by HH indicative HH questionnaire

Figure 3. Photo of Question and Answer Through Group discussion

Question by Mr. Misa (PPTA) ask the question to villager and village chief that: What kind of land along the irrigation cannel and Did villagers have a rotation land every 3 years or not?

Answer by the chief of village Ban Meungpua (Mrs. Oui): Almost the land plot surrounding of irrigation cannel is belong to Government land not community land or private, no land use certificate or land title it’s mean that the villagers no need to pay for fee of using land, villager can use and cultivation on farm, which has been used many year since the completed construction of irrigation schemes in 2009 and some land plot just have been produced for two to three years and people didn't ever rotate of land.

Figure 4. Photos of Fill-out forms of villagers, and represent the compensation policy to poor household then hand-out the Project Implementation Booklet (PIB) revised April 2019 for everyone participants

Annex 7 Project Information Booklet

ANSWER: The Project will help identify . QUESTION: What is the Sustainable markets for dry season crops and connect Rural Infrastructure and Watershed farmers to buyers within these markets to Management Project? improve the prices received by improving ANSWER: The proposed Sustainable Rural quality and reducing losses (output 1). To Infrastructure and Watershed Management provide reliable dry season water in the Project (SRIWMP) will support the future the ADB and another Project will work government of Lao People’s Democratic with upper catchment farmers to protect the Republic (PDR) in improving the productivity soil and water within the catchment such that and sustainability of rural infrastructure, and floods are spread over a longer period and contribute to the sustainable management of dry season flow rates are maintained (output watersheds in 4 selected provinces; 2). Dry season irrigation requires water on a Houaphan, Luang Prabang, Xiengkhouang reliable and timely basis so that water is not and Xayaboury. The Project will provide wasted and crops yields are improved. Water improved irrigation water supply including will be delivered on a planned basis so during the dry season for the production of farmers know when, how much and how high value crops. The project will work with often water will be provided to their fields. two other projects that will support the This will be supported through extended and protection of upper catchments linked to the improved canals and water control structures irrigation and for supporting the water users as well as training water user groups in the to manage and profit from irrigation water. In operation of the irrigation schemes to Xiangkhouang ADB will finance the support manage water (output 3). Additional access improved land use practices in the upper and supporting or linking assets such as fish catchments of irrigation command areas. ponds will be connected to the irrigation systems. 2. QUESTION: Who is responsible for the Project? 4. QUESTION: What will the works ANSWER: The Ministry of Agriculture and involve: Forestry has overall responsibility for the Huaphan Project, and the Department of Irrigation, and the Provincial Government represented by the Provincial Agriculture and Forestry Office The physical modernization of the Nam Poua (PAFO), will be responsible implementation. irrigation scheme involves: PAFO will manage the implementation of the (x) Improve the main canal Land Acquisition and Resettlement Plan including covering some (LARP). A Program Governance Team sections from rock fall and (PGT) will be established at the Dept. of debris Irrigation to support and supervise a (xi) Installing a gate at the start of Provincial Program Implementation Team canal and channels for stop (PPIT) at each PAFO, to manage and logs entering canal monitor project implementation and ensure (xii) Lining of canal for 5.1 km to the Project is implemented as agreed with minimize water loss the Government of Lao PDR (GoL), ADB and (xiii) Installing improved canal the affected community. crossings (xiv) Installing outlets and 16 pipelines and hydrants to serve the command area during the 3. QUESTION: What are the dry season proposed project outputs?

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(xv) Improving water use efficiency • Constructing SC1 canal (new) to through facilitating use of serve a 265ha extension of the controlled flows, hoses and / or command area for both wet and dry low pressure sprinklers for in sason crop production field distribution • Constructing 4 tertiary canals and 2 (xvi) Improving existing access road sub-tertiary canals (TCs) to Improve along canal to facilitate water distribution and use efficiency operation and maintenance by • Link irrigators to a soyabean market re-surfacing that provides returns far higher than (xvii) Constructing two concrete irrigated dry season rice road access bridges across the Nam Poua to connect road 6a to the command area. Land is Access partially communal and • Improving field access in the SC1 partially owned by farmers. command area by incorporating feeder road access along SC1 and TCs to facilitate production, irrigation Luang Prabang operation and maintenance

The physical works involved in the extension and modernization of the Nam Seng irrigation Other scheme involves: • Installation of staff gauges to facilitate water management in all canals and Headworks distribution points • Installing a sediment gate in the Nam Seng headworks weir crest to permit flushing in the wet season and Xiengkhouang • Repairing the concrete on the downstream apron and local scour The physical works for the modernization of issue the Nam Tong irrigation subproject include:

Headworks Distribution canal • Ban Xouan – provision of materials • Securing the main canal (MC) from (i.e. gabion baskets, cement, pipes) damage during large floods. This for the construction of simple river involves ensuring the canal front and diversions side walls at the first control gate are • HeadWorks 2 (Nalam and Mieng above design flood level. Hamlet) – construct replacement rock • Repairing the MC canal road for 8 km masonry weir 1m high as above, from downstream of the tunnel to the located 30m downstream from outlet to Houay La catchment. damaged weir. Install a new intake • Repairing and installing additional pipe connecting to existing LMC canal masonry lining in 15 sections in and install a fish passage. canals MC and MC1 (total 2,340 m), • Headworks 3 (Khangvieng Village) – to reduce leakage losses extend existing headworks with rock • Covering the canal in unstable bank masonry weir as above with new sections to prevent land slide debris canal intakes for LMC and RMC. Fill blocking canals MC and MC1 (total large downstream scour hole with of 865 m) large placed rock covered with • Installing improved canal crossings mortared rock masonry layer and at 12 places along MC and MC1 install a fish passage 101

Distribution canals main access road to headworks 1 and Canals are to be constructed or upgraded to adjacent to Nalam Village will be resurfaced facilitate operation and to ensure dry season to reduce dust and transport time. water management by the farmers. Xayaboury • Ban Xouan – earth canals to be constructed by farmers. Mortared The physical works as designed at the rock masonry to be used for lining preliminary stage of the modernization of the some sections as necessary Nam Phieng (1 & 2) irrigation subproject • Head Works 2 include: o LMC - cleaning canal / reconstructing embankments Headworks over full length of 1.86km and The Project will repair downstream erosion at installing 450m of masonry the headworks and strengthen the lining from station 0+450 to downstream structure to minimize future 0+550 and station 1+200 to damage headworks. 1+550 with several structures including culverts, drops and Distribution canal offtakes along with gates for • Cleaning, re-shaping and re- water control construction the main canal (MC) • Headwork 3 along 3000m, with concrete lining for o RMC - cleaning canal / short sections – totaling about 20m reconstructing embankments • Repair of division structures (8 units with lining installed in sections for Phieng 2) from station 0+000 to 0+800. • Brick lining of 2833m for Phieng 1 and 0+900 to 1+213, and 1+220 to 2980m for Phieng 2 1+580 with several structures o LMC - installing 60m of masonry lining from station 0+00 to 0+060 Access For Phieng 1 the existing embankment road o LMC-R - cleaning canal / along MC1 will have its surface re-shaped for reconstructing embankments drainage and surfaced to reduce erosion and and lining over full length of siltation of the main canal and extending the 1.17km life of the road and embankment. o LMC-L – construction of 150m of flume on soil embankment 5. QUESTION: How will the Project benefit me?

Access ANSWER: The subprojects are designed An upgraded road is proposed from specifically to provide managed and reliable headworks 1 to Ban Xuoan, a distance of 2.0 water for dry season irrigation. As such dry km. Its preliminary design has been season crops (cucumber, melon, and green completed and referred to the PPWD for vegetable for Houaphan, garlic, green checking compliance with Lao standards and vegetable and animal fodder for Nam Tong providing design approval. (XiengKhouang), and contract grown soybean for Xayabouri and Luang Prabang. PAFO report that there is no problem with Compared to dry season rice the Luang access to the fields for farming operations and Prabang and Xayabouri crop returns are 2.5 no additional access is required to be included time higher, whilst in XiengKhouang dry in the command areas. A 640m section of the season returns will be double the returns of

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the existing wet season rice and in Houaphan households (SESAH) and a Detailed we expect there to be yield and output Measurement Survey (DMS) will be increases from more accurate water supply conducted to determine the extent of on a weekly rather than monthly schedule. potentially affected land, the affected households, persons and the severity of 6. QUESTION: What is the policy of the impacts on their livelihoods. SESAH will Project on adverse impacts? record total number of plots in the command area to scope whether the subproject has ANSWER: As per ADB Safeguards Policy adverse impacts. SESAH will through Statement (SPS, 2009) the Project is to interview also confirm that the vulnerable HH avoid involuntary resettlement (physical have access and rights to the irrigation water relocation or economic displacement) on the same basis as non-vulnerable wherever possible; to minimize involuntary households. On finalization of the detailed resettlement by exploring project and design design, if there are significant changes, the alternatives; to enhance, or at least restore, DMS will be updated and the list of affected the livelihoods of all displaced persons in households confirmed. real terms relative to pre-project levels; and to improve the standards of living of the 8. QUESTION: What if my land will be displaced poor and other vulnerable groups. affected by the subproject component? The Project key principle is to safeguard affected households from adverse impacts, ANSWER: As per ADB SPS farmers assets while the Project will improve or restore will be replaced with access to assets of livelihoods where the subproject activities equal or higher value, and additional result in adverse impacts on affected revenues and services through benefit households. sharing schemes, which in this case is provided by the Project as dry season The subproject improved canals provide irrigation water. reliable and managed water through the dry Hence, the farmers can decide to give part of season, such that total output will increase their land for the Project in exchange for by the dry season crop area for the farmers. improved dry season access to water through irrigation 7: QUESTION: Will we be affected by the For land affected by the project and involving subproject components? 9% or more of the land plot, will be ANSWER: The Project is expected to compensated through the acquisition improve incomes to beneficiary farmers program. Housing land can not be donated. through direct benefit of providing dry season Vulnerable households cannot donate their irrigation for high valued crops. Also, as land as this would impact their living much as possible, the existing alignments for standards. canals and access roads are to be followed Where the subproject will construct fish by the Project to limit any impact. However, ponds with the land owner as direct minor land acquisition will occur due to beneficiaries no adverse impact is seen as canals or roads being extended, widened or long as the land owner request for the fish newly constructed. pond construction. For vulnerable households, it is important for Compensation unit rates at replacement cost the Project not to disadvantage them through are decided by the Provincial Authorities and not providing access and/or rights to the based on replacement cost survey, and they irrigation water. Therefore, vulnerable are updated and published prior to households identified with no access or commencement of the compensation rights to the water from the canals will trigger payments. Updates to land titles will be ADB SPS and compensation. made at no cost to all affected households. A socio-economic survey of affected 103

9. QUESTION: Does compensation apply Is your land required for the project? No Are assets other than land affected to my affected house or structure?

ANSWER: Yes. Although the SRIWMP will No Negative impacts from avoid any impact on houses, it is possible Yes the project are expected that some structures may be affected. Yes According to GoL and ADB policy, any houses and structures that will be affected by Is your land residential land? Yes the Project shall be compensated at replacement cost without deduction for No depreciation or salvageable materials. Partially affected houses will be compensated for the lost affected portion as What percentage of you land plot is impacted? 9% or more well as repair costs. Other structures (e.g. fences, wells, pavement) will also be compensated at replacement cost. Less than 9%

• Household is vulnerable and poor 10. QUESTION: What about crops and What is the situation of your • Household is not yet graduated household? from poverty trees? • Household is significantly impacted

ANSWER: For annual crops, affected Household is graduated from poverty1 persons will be given advance notice that the Choice between: Community Participation Framework OR land on which their crops are planted will be Resettlement Framework used by the Project and that they must harvest their crops in time. If standing crops Resettlement Framework Community Participation are ripening and cannot be harvested, Framework Compensation Policy • Land for Land eligible affected persons can be • Donation approach • Compensation in-kind compensated for the loss of the unharvested • Negotiated settlement • Cash Compensation crops at the current market value. For perennial crops, affected persons will be Households graduating from poverty according to Lao government Decree No. 348/G, dated 16 November 2017 on Poverty compensated for the loss of fruit and timber Graduation and Development Standards trees at a replacement value determined by the Provincial Authorities and after replacement cost survey taking into account the age of the trees, annual maintenance costs, and lost potential income. Affected 11. QUESTION: What about public persons will be compensated the property resources? replacement cost of any lost crops/fruit where the plants are near or ready to ANSWER: The public property, or communal harvest. Trees removed will be the property land, is not lost. The function alters with the of the affected household following removal. net overall affects arising from the change Farmers using state or communal lands for being strongly positive for the community production will be entitled to assistance only and especially the irrigation water users’ for the loss of unharvested crops on that community. As such no adverse impact is land, and not compensated for the land itself. seen. However, where affects are considered to create adverse impacts the SPS safeguards will be triggered. Figure 8: Flowchart on compensation options For example, in cases where bridges are on communal land and provide substantial

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benefits will not trigger the SPS safeguards households. as improved access provided by the bridges provide benefits from connectivity and In addition, the Project will seek to maximize wellbeing due to reduced risks of crossing project job opportunities to adults in the rivers in flood, reduced dust etc. affected local communities (both men and women) during the implementation phase in 12. QUESTION: If there will be relocation the construction works. Such opportunities of houses or your businesses, how can will be announced in the local areas. the Project help me rebuild my house during relocation? 14. QUESTION: What is the detailed measurement survey (DMS)) and when it ANSWER: The SRIWMP Project does not will be conducted? finance a subproject that requires physical relocation or dismantling of houses. If you ANSWER: The DMS is a detailed survey of have been told that relocation is needed then 100% of adversely impacted households to contact immediately the grievance redress document and measure all affected assets committee to raise your concern. including land, houses, shops, other structures, crops and trees. It establishes the 13. QUESTION: If our livelihoods are “Cut Off Date” and the official list of affected adversely affected, how can the Project persons who are eligible for compensation help me restore my livelihood and living and other assistance. Any new structures standards? built after announcement of the Cut-Off Date are not recognized in regards to the DMS ANSWER: The Government and ADB policy and calculation of compensation. The activity is that the SESAH and DMS will take note of will only be carried out in the presence of the the livelihoods of affected persons and any adversely affected persons and the head of adverse impacts the Project may have. the affected household is asked to sign the Where there is adverse impact, the Project resulting summary of the DMS. The must provide various forms of assistance to adversely affected persons and the local enable affected people to restore their authorities will be informed prior to the livelihoods and living conditions to at least activity. The Cut-Off Date will be announced pre-project level. For impacted vulnerable and disseminated by the local authorities to households, the Project will seek to restore the AHs. or improve living standards to a level higher than prior to the Project. Such forms of 15. QUESTION: How will the Project assistance will include: (i) one time consult me and provide information? assistance allowance to households losing more than 10% of the productive assets or ANSWER: The Project will keep local being required to relocate their houses or communities informed of significant activities shops outside the corridor of impact via meetings, brochures and depending of the type and severity of impact; announcements. Regular information will be (ii) for those losing use of productive land, provided to the village administration. The cash assistance for loss of land use; (iii) village will maintain a public notice board cash assistance to cover transportation where significant information and schedules costs; (iv) cash grant for temporary will be posted. In addition to this, affected disruption to business income for affected households will be consulted directly through shops/stalls; (v) potentially other forms of public consultation meetings on significant income restoration measures to be matters affecting them. Such public determined during updating of the LARP in consultation meetings will take place (i) prior consultation with those affected; and (vi) to the conduct of the DMS (to advise survey additional special assistance to vulnerable schedules and procedures), (ii) following the 105

DMS (to advise of DMS results and encouraged to seek assistance from the proposed mitigation measures), (iii) during subproject and/or nominated local non- preparation of the LARP for adversely governmental organizations and/or other impacted households (to identify appropriate family members, or village heads for (i) to livelihood restoration measures, advise of have their grievances recorded in writing, (ii) compensation rates and details of to have access to the LARP documentation, allowances and assistance measures as well and any survey or valuation of assets, and (iii) as details of resettlement arrangements); to ensure that where disputes do occur all the and (iv) on-going through implementation of details have been recorded accurately the LARP. In addition, the Project will provide enabling all parties to be treated fairly. In the a translated version of a Public Information case of verbal complaints, a written record of Brochure to each village administration. It is the complaint will be made during the first also uploaded on ADB’s website. meeting with the complainant.

16. QUESTION: If I disagree or problems All complaints and resolutions will be arise during project implementation such properly documented and be available for (a) as compensation, technical, and other the public and (b) review for monitoring project-related issues, do I have the right purposes. At each stage of the grievance to voice my complaint? redress, careful written records will be maintained. The VC will submit reports to the ANSWER: Yes. If the affected person is not Provincial Resettlement Committee (PRC) clear about or not satisfied with the via the DG PAFO, documenting (i) the compensation package offered or, if for any complaints received; (ii) the names and other reason, the compensation does not pertinent information about complainants; (iii) materialize according to the agreed the dates of the original complaint, meetings schedule, the affected person has the right to and any other actions; and (iv) the outcomes lodge a complaint. and/or resolution.

The subproject’s Grievance and Redress If an affected person wants to lodge a Units (GRUs) will be composed of the complaint but does not wish to do so at the members of the existing resettlement village level, the affected person may call the committees. The complaint should be initially Project Governance Team or Asian referred to the Village Committee (VC). The Development Bank (ADB). Please see VC is responsible for settling disputes contact details below. between villagers through conciliation and negotiation. The complaint can be filed first at 17. QUESTION: How will you know if the village level and can be elevated via GRU these undertakings are kept and the and district level to the provincial and national objectives of this Project are met? (MoNRE) level if the APs are not satisfied with the decisions made in the previous level ANSWER: All of the Project activities will be committees. As a last resort, the AP may monitored by the Project Program request the case be heard by either the Governance Team in the Department of National Assembly or the local Court of Law. Irrigation of the Ministry of Agriculture and APs will be exempted from all administrative Forestry, as well as by the Project Loan and legal fees associated with their claims Implementation Consultants. and grievance redress process. The Project will have internal and external Complaints can be made verbally or in written monitoring which will be reported in Quarterly form. It is recognized that members of AHs and Semi-Annual Reports and submitted to might not have writing skills or ability to ADB. If necessary a post-resettlement articulate their grievances verbally. AHs are impact evaluation will also be undertaken to

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assess whether impacts of the Project have Or, been mitigated adequately and the pre- project standard of living of affected persons (iii) ADB Accountability Mechanism have been restored as a result of the resettlement and project. ADB will also Asian Development Bank monitor these activities in its regular 6 ADB Avenue, Mandaluyong City supervision missions during project 1550Metro Manila, Philippines implementation. Tel +632 632 4444 ext 70309 Fax +632 636 2086 18. QUESTION: Are there any other https://www.adb.org/site/accountability- documents available to know more about mechanism/contacts the Project and resettlement issues?

ANSWER: The Land Acquisition and Resettlement Plan (LARP) will be prepared during the feasibility studies for the Project can be obtained from the village committee, district and provincial PAFO office, or the Provincial Resettlement Committee. Following the final detailed engineering design, if there are any significant changes to the DMS or alignment, then the LARP will also be updated and the final version will be available from these same offices again.

If you have further queries and suggestions, please contact us at:

(i) Program Governance Team, Mr Soulivanh, SRIWMP Project Coordinator, Deputy Head of International Cooperation Section, Division of Planning and Finance, Dept. of Irrigation (DoI), Vientiane, Tel 020- 58343436, or Dr Somphone Thanasack, Deputy Director, DoI, Tel 56542614 or, the Provincial Resettlement Committee representative from PAFO in the respective province.

Or,

(ii) Asian Development Bank Resident Mission - Vientiane

Corner of Lanexang Av. and Samsenthai Rd., P.O. Box 9724, Vientiane, Lao PDR Office hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday) Tel +856 21 250444 Fax +856 21 250333 E-mail www.adb.org/lao-pdr