Northern Rural Infrastructure Development Sector Project – Additional Financing

Environmental and Social Monitoring Report

5th Semi-Annual Environmental and Social Monitoring Report January - June 2020

December 2020

Lao PDR: Northern Rural Infrastructure Development Sector Project – Additional Financing

Prepared by the National Project Management Office of Ministry of Agriculture and Forestry for the Government of Lao PDR and the Asian Development Bank.

NOTE (i) In this report, "$" refers to US dollars.

This environmental and social monitoring report 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.

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.

GRANT No. 0534-LAO LAO PDR

Safeguards Monitoring Report

5th Semi-Annual Safeguards Monitoring Report January – June 2020

Lao Peoples Democratic Republic: Northern Rural Infrastructure Development Sector Project Additional Financing

Prepared by the National Project Management Office (NPMO)/ Grant Implementation Consultants (GIC), Department of Planning and Finance, Ministry of Agriculture and Forestry for the Government of Lao PDR and the Asian Development Bank.

NOTE

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

This safeguards monitoring report is a document of the grant recipient. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

Location Map of Phase I Subproject

Location Map of Phase II Subproject

Location Map of Phase III Subproject

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Location Map of Phase IV Subproject

Northern Rural Infrastructure Development Sector Project Additional Financing

5th Semi-Annual Safeguards Monitoring Report January – June 2020

Table of Contents

I. Project Overview, General Safeguard Matters ...... 1

1. Project Overview ...... 1 2. Project Progress ...... 1 3. Safeguard Plans Implementation Arrangements...... 2 4. Safeguard Requirements in the Project Contractual Arrangements and the Status of the Safeguard Reports ...... 3 4.1. Incorporation of Safeguards Requirements into Contractual Arrangements ...... 3 4.2. Progress of the Environmental Safeguard Reports ...... 4 4.3. Progress of the Involuntary Resettlement Safeguard Reports ...... 4 4.4. Progress of the Ethnic Group Development Plans (EGDPs) ...... 9 II. Environmental Performance Monitoring ...... 9

1. Phase I Subprojects ...... 9 1.1. Implementation Status of the EMP (Mitigation Measures) ...... 9 1.2. Impacts from Operation ...... 9 2. Phase II Subprojects ...... 10 2.1. Implementation Status of the EMP (Mitigation Measures) ...... 10 2.2. Phase II Pre-construction Phase ...... 12 3. Environmental Performance Monitoring ...... 12 4. Monitoring Activities during the Reporting Period ...... 13 III. Involuntary Resettlement Performance Monitoring ...... 15

1. Phase I Subprojects ...... 15 2. Phase II Subprojects ...... 16 2.1. Land Requirements and Impacts ...... 16 2.2. Change of Compensation Approach ...... 18 2.3. In-kind compensation...... 18 2.4. Compliance ...... 19 3. Phase III Subprojects ...... 21 IV. Indigenous People Performance Monitoring ...... 24

V. Compliance With Safeguards Related Project Covenants ...... 27

VI. Public Consultation, Information Disclosure, Capacity Building ...... 31

VII. Grievance Redress Mechanism ...... 35

VIII. Conclusion ...... 36

1. Main Achievements ...... 36 1.1. Environment ...... 36 1.2. Involuntary Resettlement ...... 36 1.3. Others...... 37 2. Key Activities Planned for the Next Reporting Period ...... 37 2.1. Environment ...... 37 2.2. Involuntary Resettlement ...... 37 2.3. Others...... 37 ATTACHMENT: INVOLUNTARY RESETTLEMENT PERFORMANCE MONITORING ...... 38

Tables

Table 1: List of Subprojects by Phase and Status ...... 1 Table 2: Project Overview, Snapshot of Project Progress ...... 2 Table 3: Dates of ECC Acquisition for Phase III Subprojects ...... 4 Table 4: Status of the IEE/EMP and Land Acquisition and Compensation Documents of the Phase I, II and III Subprojects ...... 6 Table 5: Compliance with EMP Requirements for Phase I subprojects...... 9 Table 6: Issues for Further Action for Phase I subprojects ...... 9 Table 7: Compliance with EMP Requirements for Phase II subprojects...... 10 Table 8: Issues for Further Action for Phase II subprojects ...... 12 Table 9: Environmental Monitoring Plan ...... 13 Table 10: Water Quality Analysis Results of Phase II Subprojects ...... 14 Table 11: Updated Final DED based LAC Requirements of Phase II Subprojects ...... 16 Table 12: Summary of Compliance with LACR and Report Requirements Phase II ...... 20 Table 13: Issues for Further Action Phase II ...... 21 Table 14: Updated DED based LAC Requirements of Phase III Subprojects ...... 22 Table 15: Summary of Compliance with LACP and LACDDR Requirements Phase III ...... 23 Table 16: Issues for Further Action Phase III ...... 24 Table 17: Summary of Compliance with IP Requirements ...... 25 Table 18: Issues for Further Action...... 25 Table 19: Summary of the 1st and 2nd Batch FEES Activities ...... 26 Table 20: Safeguards Related Project Covenants ...... 27 Table 21: Consultation, Participation and Disclosure for Safeguard Plans for Phase II Subprojects ...... 31 Table 22: Consultation, Participation and Disclosure for Safeguard Plans for Phase III Subprojects ...... 33 Table 23: Consultation, Participation and Disclosure for Safeguard Plans for Phase IV Subprojects ...... 34 Table 24: NRI-AF Main Steps of Grievance Redress Mechanism (GRM) ...... 35

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Selected Acronyms

ADB Asian Development Bank AH Affected Household AP Affected Person BOD Biochemical Oxygen Demand BOQ Bill of Quantities CAP Corrective Action Plan COD Chemical Oxygen Demand DAFO District Agriculture and Forestry Office DCO District Coordination Office DED Detailed Engineering Design DMS Detailed Measurement Survey DO Dissolved Oxygen Demand DOI Department of Irrigation, MAF DONRE District Office of Natural Resources and Environment DOPF Department of Planning and Finance, MAF EA Executing Agency FHH Female Headed Household ECC Environmental Compliance Certificate EGDP Ethnic Group Development Plan EMP Environmental Management Plan EMR Environmental Monitoring Report ESM External Safeguard Monitor FES Faculty of Environmental Science, NUOL FFES Female-focused Extension Services FPG Farmers Production Group FS Feasibility Study GAP Gender Action Plan GIC Grant Implementation Consultants GOL Government of Lao PDR GRM Grievance Redress Mechanism HH Households HSE Health, Safety and Environment IA Implementing Agency IEE Initial Environmental Examination IP Indigenous People IR Involuntary Resettlement Lao PDR Lao People's Democratic Republic LAC Land Acquisition and Compensation LACDDR Land Acquisition and Compensation Due Diligence Report LACP Land Acquisition and Compensation Plan LAMDDR Land Acquisition and Mitigation Due Diligence Report LAK Laos Kip LARC Land Acquisition, Resettlement and Compensation LFNC Lao Front for National Construction LWU Lao Women’s Union MAF Ministry of Agriculture and Forestry

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Selected Acronyms

MC Main Canal M&E Monitoring and Evaluation MONRE Ministry of Natural Resources and Environment MPN Most Probable Number NCB National Competitive Bidding NOUL National University of Laos NPMO National Project Management Office NRI Northern Rural Infrastructure Development Sector Project NRI-AF Northern Rural Infrastructure Development Sector Project Additional Financing NSC National Steering Committee O&M Operation and Maintenance PAFO Provincial Agriculture and Forestry Office PAM Project Administration Manual PBME Project Benefit Monitoring and Evaluation pH Hydrogen Potential PIU Project Implementation Unit PONRE Provincial Department of National Resources and Environment PPE Personal Protective Equipment PPO Provincial Project Office PPTA Project Preparatory Technical Assistance PRI Productive Rural Infrastructure RF Resettlement Framework RMC Road Maintenance Committee RP Resettlement Plan QPR Quarterly Progress Report SC Secondary Canal SES Socio-Economic Survey SESAH Socio-Economic Survey of Affected Households SIA Social Impact Assessment SPS Safeguard Policy Statement TA Technical Assistance TDS Total Dissolved Solids TOR Terms of Reference WUA Water Users Association WUG Water Users Group

I. PROJECT OVERVIEW, GENERAL SAFEGUARD MATTERS

1. Project Overview

1. The Northern Rural Infrastructure Development Sector Project Additional Financing (NRI-AF) aims at improving rural household incomes in the four northern provinces of Phongsaly, Luang Namtha, Bokeo and Oudomxay. The outcome is increased agricultural productivity in the four project provinces. There are four outputs (i) productive rural infrastructure (PRI) constructed and rehabilitated; (ii) productivity and impact enhancing initiatives adopted; (iii) capacity of natural, provincial, and district agencies strengthened to enable a sector development approach; and (iv) efficient and effective delivery of subprojects and project management. The overall project (refers to the current project with additional financing) will be carried out in 11 districts of the same 4 project provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly. List of 22 subprojects of NRI-AF is shown in Table 1. Table 1: List of Subprojects by Phase and Status Province District Phase I Phase II Phase III Phase IV Phongsaly Nhot Ou Nam Tong Dong Nouark Bountai Nam Ngene 2 Houay Lap bounneua Nam Hoy – Nam Nam Ngay – Nam Lou Boun Oudomxay Beng Nam Beng Nam Hao Houn Nam Oun Nam Ngaad Luang Luang Nam Lue – Nam Chang Nam Tha Namtha Namtha Sing Nam Gna 2 Nam Gna 1 & 3 Long Nam Sa Nam Ma Bokeo Houayxay Nam Satone Nam Tin 2 Phaktha Houay Xo 2 Houay Sat 2 Pha Oudom Houay Bong Nam Kha Number of Subprojects 2 7 7 6 Civil works Preparatory work for Detailed Feasibility Study 100% construction Engineering Design Status completed completed Bid document under preparation

2. The Government of Lao People's Democratic Republic is the grant recipient. The Executing Agency (EA) is the Ministry of Agriculture and Forestry (MAF), which fulfils its responsibilities through its Department of Planning and Finance, which has established a National Project Management Office (NPMO) in Vientiane. The Implementation Agencies (IAs) are the Provincial Department of Agriculture and Forestry (PAFO) in Phongsaly, Luang Namtha, Bokeo and Oudomxay. Each of these PAFOs has established a Provincial Project Office (PPO), which oversees the day-to-day implementation of the subprojects with support from the District Coordination Office (DCO) within the District Agriculture and Forestry Office (DAFO) in each of the participating districts. 1.1 Project Safeguards 3. The Project’s safeguards cover both environmental and social aspects, and the latter is further divided into land acquisition and compensation, ethnic group development, and gender. Gender is covered separately in the Gender Action Plan (GAP) monitoring report that is issued as an appendix of the Quarterly Progress Report (QPR). 2. Project Progress

4. As of 30 June 2020, overall physical progress is estimated at 46.2% against 35 months (or 62.5%) of project period of time has elapsed since the Project Grant effectiveness on 26 July 2017 (Project period: 56 months from Aug. 2017 to Mar. 2022). To

date, a total of 8,794 ha of command area of all 22 PRI subprojects of Phase I, II, III and IV was identified, among which, 806 ha is of 2 PRI subprojects of Phase I, 2,641 ha is of 7 PRI subprojects of Phase II, 2,799 ha is of 7 PRI subprojects of Phase III, and 2,548 ha is of 6 PRI subprojects of Phase IV respectively. 5. For the 2 subprojects of Phase I, both subprojects have been completed. The 7 subprojects of Phase II are at the stage of procurement of contractors and signing of contract. Detailed Engineering Design are underway for the 7 subprojects of Phase III. Concerning Phase IV, Feasibility Studies are ongoing during the reporting period. 6. Table 2 shows the details of civil works contract awards and implementation progress as of 30 June 2020. Table 2: Project Overview, Snapshot of Project Progress Project Number and 0534- Northern Rural Infrastructure Development Sector Project Additional Title: Financing Environment B Safeguards Indigenous Peoples B Category Involuntary Resettlement B

Reporting period: 1st January – 30th June 2020

Last report date: 3rd February 2020 • Contract NRI-AF-NCB-003/NPMO: Nam Hao Irrigation Rehabilitation in Beng District, Oudomxay Province; Phinthong Irrigation Arch – Road & Bridge Construction Co., Ltd.; 14th November 2019 • Contract NRI-AF-NCB-004/NPMO: Nam Tong Irrigation Rehabilitation in Nyot Ou District, Phongsaly Province; Sisaketh Construction Co., Ltd.; 14th November 2019 • Contract NRI-AF-NCB-005/NPMO: Nam Ngene2 Irrigation Rehabilitation in Bounthai District, Phongsaly Province; Sisaketh Construction Co., Ltd.; 14th November 2019 • Contract NRI-AF-NCB-006/NPMO: Houay Xo2 Irrigation Rehabilitation in Paktha District, Bokeo Province; Xayya Construction Key sub-project and Renovation Sole Co., Ltd.; 17th December 2019 activities since last • Contract NRI-AF-NCB-007/NPMO: Houay Bong Irrigation report: Rehabilitation in PhaOudom District, Bokeo Province; Xayya Construction and Renovation Sole Co., Ltd.; 14th November 2019 • Contract NRI-AF-NCB-008/NPMO: The contract was terminated in April 2020 as the contractor could not prepare necessary document as stipulated in the contract. Re-bid is ongoing and bid open will be in July 2020. • Contract NRI-AF-NCB-009/NPMO: The contract was terminated in April 2020 as the contractor could not prepare necessary document as stipulated in the contract. Re-bid is ongoing and bid open will be in July 2020. • Preparation for construction works have commenced in December 2019 • NRI-AF National Project Management Office in association with the Report prepared by: GIC

3. Safeguard Plans Implementation Arrangements

7. In August 2017, the NPMO recruited international and national resettlement, environment, and gender/ ethnic group safeguards consultants to work with the safeguards officer from the NPMO and the staffs from the PPO/DCO for preparation of Land Acquisition

and Compensation Report (LACR), Land Acquisition and Compensation Due Diligence Report (LACDDR), Initial Environmental Examination (IEE), Gender Action Plan (GAP) and Ethnic Group Development Plan (EGDP). 8. The overall responsibility for implementing the EMP rests with PAFO, which during the design and construction phase will be supported by the PPO, and during operation phase will involve cooperation with the scheme’s users, the farmers. 9. The EMP forms part of the works contract documentation so that the contractor in each case incorporates the cost of mitigation into the biding price, including the provision of staff and equipment when necessary to fully carry out all mitigation tasks. The contractor for each of the subprojects prepares a contractor’s site-specific environmental management plan and submits this to the EA/IA through PPO/DCO for approval before the commencement of the contracted construction works. 10. The contractor for each of the subprojects needs to prepare a monthly environmental monitoring report (EMR) based on the approved site-specific EMP and then submits this to the EA/IA through PPO/DCO. The EA/IA will submit a semi-annual EMR to ADB describing the progress of EMP’s implementation and corrective actions taken if any. 11. PAFO has the overall responsibility for activities related to land acquisition and compensation of affected households (AHs). PAFO works in close collaboration with the project steering committees at the provincial and district levels as well as village mediation committees. 12. Temporary land requirements for access and site installations will be designed by the contractor and approved during the construction phase by the resident site engineer, and should follow the principles as set out in LACR. 13. During implementation and operation phase, the internal and external Monitoring and Evaluation (M&E) on safeguards has to be performed to elaborate on the performance and impacts of the subproject’s activities. The internal M&E has to be performed by the PPO and DCO with support from GIC on a quarterly basis through the Project Benefit Monitoring & Evaluation (PBME) component and needs to be reported to EA and ADB. As input of the international environmental consultant is relatively limited for supporting PPO and DCO in environmental monitoring and reporting, the national environmental consultant is required to strongly support them at field level. 14. The external M&E has to be carried out by an independent reviewer on a semi- annual basis which is then reported to EA who will forward these reports to ADB. The contract for the External Safeguards Monitoring Entity was awarded to the Faculty of Environmental Sciences / the National University of Laos (NUOL), and the contract was signed on 16 May 2018. 4. Safeguard Requirements in the Project Contractual Arrangements and the Status of the Safeguard Reports

4.1. Incorporation of Safeguards Requirements into Contractual Arrangements

15. The safeguards requirements of the IEE including the EMP, and the related sections of the LACR and GAP are detailed in Section 4 (Particular Conditions of Contract) and Section 6 (Specifications) of the contract. The EMP and a template for Contractors’ Environmental Monitoring Report are attached to the contract.

4.2. Progress of the Environmental Safeguard Reports

16. Phase II: On 25 June 2019, the Project submitted an official letter to ADB in order to confirm that no IEEs of the Phase II subprojects are needed to update based on the completed Detailed Engineering Designs (DEDs).

17. Phase III: All 4 IEEs were translated into Lao and the national environmental specialist of GIC directly visited to the relevant PONREs of the 4 target provinces to explain and submit the translated IEE from 12 to 18 December 2019. Dates of Environmental Compliance Certificates (ECC) acquisition for Phase III subprojects are summarized in the Table 3.

Table 3: Dates of ECC Acquisition for Phase III Subprojects Province Subproject Date of EEC Acquisition Luang Namtha Nam Gna 2 25 Dec 2019 Nam Ma Bokeo Nam Kha 13 Jan 2020 Nam Satone 15 Jan 2020 Oudomxay Nam Ngaad 24 Jan 2020 Phongsaly Dong Nouark 17 Jul 2020 Nam Hoy – Nam Lou

18. Phase IV: The first village consultation was conducted at the beneficiary villages of Phase IV subprojects from 8 July to 6 August 2019. The national environmental specialist explained project’s environmental protection and monitoring flamework as well as facilitated focus group discussions participated by ethnic groups, women and WUGs respectively. SIA survey for Phase IV subproject was implemented by the national consultant firm from 12 February to 18 March 2020. Rapid Environment Assessment (REA) was approved by ADB on 7 May 2020.

19. Table 4 shows that submission as well as ADB’s review and approval of the IEE (including the EMP) for Phase I, II and III subprojects.

4.3. Progress of the Involuntary Resettlement Safeguard Reports

20. Concerning Phase I nothing to report, as the subprojects are in operational stage. 21. Concerning Phase II, LACRs and LACDDRs for all 7 subprojects F/S were approved by ADB on 27 February 2019. The preparation of Updated LACRs/LACDDRs took place throughout 2019. Complementary field work was carried out in Aug./Sept. 2019 leading to Updated LACRs. A sequence of ADB comments and two further revision took place until April 2020, now including the in-kind compensation agreed for phase II. However, for IR safeguard compliance reason, Land Acquisition and Mitigation DDRs will be required, as the in-kind compensation is already under implementation. 22. The LACRs and LACDDRs for all 7 subprojects of Phase III were submitted as part of the FS to ADB on 18 June 2019. Comments from ADB safeguard officer were obtained as well as safeguard requirements agreed by ADB Review Mission and MAF-DoI in December 2019. The revision of these LACRs/LACDDRs was completed in March 2020. 23. For phase IV nothing to report on LAC topic for the monitoring period.

24. Table 4 shows status and dates of submissions, reviews and approvals for the land acquisition and compensation documents for the subprojects of phases I to IV at their construction, detailed design and feasibility study stages respectively.

Table 4: Status of the IEE/EMP and Land Acquisition and Compensation Documents of the Phase I, II and III Subprojects

Subproject IEE / EMP LAMDDR (phase II) / LACP and LACDDR (phases III and IV) Phase (SP) Submission ADB Approval Submissions & Reviews ADB Approval I Nam Beng 15 12 • Nothing new to report for previous and current monitoring period. Nam Oun January September • The rehabilitated irrigation schemes are under operation. 2018 2016 II Nam Hao • Draft as Nam Hao Feasibility Study Stage (Oudomxay) Nam Tong separate Previous reporting periods: Nam Ngene 2 safeguard 29 Aug 2018 reports of FS: • Separate safeguard reports of FS: 23 Jan 2018. LACRs and Houay Xo 2 23 Jan 2018 • Resubmission as Draft Appendices of Draft FS: 11 Jun 2018. LACDDRs for all Houay Bong Nam Tong& • Resubmission • GIC reminder for comments by ADB review on 02 Jul 2018. 7 subprojects Nam Ngene 2 F/S Nam Sa as Appendices • ADB comments for all 7 drafts on 06 Jul 2018. (Phongsaly) Nam Lue – of FS: 11 Jun • Resubmission as Final Appendices of Final FS: 30 Oct 2018. 27 Nam Chang 08 Oct 2018 2018 • ADB comments on 20 Nov 2018 for Final LACR of SP 01 to be applied for all 7 SPs. February

Final IEE: 16 • Resubmission of LACRs and LACDDRs as Revised Final Appendices of FS: 20 Dec 2018. 2019 Sep 2018 to Houay Xo 2 • ADB approval for LACPs (Annex-9 of Feasibility Study) dated 27 February 2019. 12 Oct 2018 Houay Bong Current reporting period: • Official letter (Bokeo) submitted to 14 Sep 2018 • Nothing new to report ADB to Detailed Design Stage confirm that no IEEs of the Nam Sa Previous reporting periods, now completed for 4th quarter 2019 (last two bullets): Phase II Nam Lue- Nam • Q2-3 2019: Based on LAC field work in Q1 2019 preparation of updated LACRs. subprojects Chang (Luang • 14 Aug. 2019: Meeting by ADB, NPMO, ESM and GIC about monitoring results, safeguard are needed to Namtha) requirements, and donation in LRM leading to complementary LAC field work in Aug./Sept. update based 25 Sep 2018 • 30 Sept. 2019: Finalizing and submission of updated LACPs. on the completed • 20 Nov. 2019: Comments from ADB for Updated LACPs requesting “(i) to review all DEDs: 25 Jun submitted resettlement plans and check against the conditions for voluntary land donation 2019 as indicated in the Resettlement Framework; in particular land used for productive purposes are excluded from donation, and (ii) ensure that compensation payments have been made. Should there be a need to change the financing allocation to cover resettlement cost, please submit a request to ADB.” Current reporting period: • Nothing new to report

Subproject IEE / EMP LAMDDR (phase II) / LACP and LACDDR (phases III and IV) Phase (SP) Submission ADB Approval Submissions & Reviews ADB Approval

II Detailed Design Stage Previous reporting periods: • The issues are discussed during the Review Mission in December 2019. Para 22 of the Aide Memoire stated that “the Mission and Project further discussed ways to prepare for subproject implementation while safeguard issues are being revolved. This includes allowing the contractor to mobilize materials and equipment; however construction cannot commence in areas where compensation has not been provided to affected households. The Project and the Mission discussed that the Project support to AHs including agriculture extension activities, land titling and land price increase resulted from issuance of land registration will be considered as a part of compensation. The Project will elaborate a strategy to prepare for construction so that upon resolution of safeguard compensation, work can commence immediately.” Current reporting period: • 16 Jan. and 27 Feb. 2020: ADB LRM and NPMO/GIC special meetings to confirm safeguard issues in particularly sustainable in-kind compensation as agreed during ADB Review Mission in December 2019. The participants have reconfirmed and agreed to the approach. • Jan. / Feb.: Additional LAC fieldwork conducted by PPOs/DCOs and GIC. • Jan. to June: Planning, preparing and implementing in-kind compensations for 162 AHs. • 13 March 2020: Submission of Revised Updated LACPs by NPMO/GIC. • 01 April 2020: ADB's comments on Revised updated LACPs. • 15 April: Submission of Final Revised Updated LACPs by NPMO/GIC. • 27 April: ADB's comments on Final Revised Updated LACRs. • 03, 09 and 23 June: technical conferences between ADB, LRM and GIC about Phase II subprojects and their current LAC status leading to the decision that DDRs will be required as in-kind compensation is already under implementation so that subproject will be put back to SR 2 compliance of ADB. • 17 June: Preparation of 1st LAC Work Planning Note No. 1 on LAC. Next reporting period: • Q3 2020: Preparation of 7 Land Acquisition and Mitigation Due Diligence Reports. • Q4 2020: Review and approval of 7 Final LAMDDRs.

Subproject IEE / EMP LAMDDR (phase II) / LACP and LACDDR (phases III and IV) Phase (SP) Submission ADB Approval Submissions & Reviews ADB Approval

III Nam Ngaad • Draft as 28 Oct. 2019 for Feasibility Study all 7 subprojects Dong Nouak separate Previous reporting periods: Nam Houy – safeguard • 18 June 2019: Draft as separate safeguard reports of FS. Nam Lou reports of FS: 18 June 2019 • 20 Nov 2019: ADB comments making references to RF and requesting revision and Nam Gna 2 • resubmission of LACPs and LACDDRs. Nam Ma ADB comments for • 24 Dec. 2019: ADB Review Mission Aide Memoire reviewing the approach for land Nam Satone all 4 drafts on compensation. Nam Kha 9 Aug 2019 Current reporting period: • Revised IEEs • End March: Submission of revised LACPs and LACDDRs based on ADB comments on the submitted to draft version received in Nov. 2019. ADB on 13 Sept 2019 Next reporting period: • ADB approved • Updating LACDDRs and LACPs. all 4 revised • Applied compensation approach: cash for land. IEEs on 28 Detailed Design Oct 2019 • Nothing to report yet. • Translated IEEs submitted to Construction Stage PONREs from • Nothing to report yet. 12 to 18 Dec 2019 IV Houay Lap Feasibility Study Nam Ngay – • Nothing to report on LAC. Nam Boun Detailed Design Nam Tha Current reporting period: Nam Gna 1 & 3 Nam Tin 2 • Nothing to report on LAC. Houay Sat 2 Next reporting period: • Preparation of LACDDRs and LACPs directly for the DED of the 6 subprojects.

4.4. Progress of the Ethnic Group Development Plans (EGDPs)

25. For the Phase II, Ethnic Group Development Plans (EGDPs) for all 7 subprojects were submitted to ADB on 23 January 2018. On 25 June 2019, the Project submitted an official confirmation letter to ADB that no updates of the EGDPs based on the completed DED are needed. 26. Concerning the Phase III, EGDPs for all 7 subprojects were submitted to ADB on 18 June 2019. II. ENVIRONMENTAL PERFORMANCE MONITORING

1. Phase I Subprojects

1.1. Implementation Status of the EMP (Mitigation Measures)

27. During the reporting period, all 2 subprojects of Phase I are at operation stage. 28. Table 5 summarizes compliance with the EMP requirements while issues for further action to address partial or non-compliance are summarized in Table 6. Table 5: Compliance with EMP Requirements for Phase I subprojects

Compliance Comment or Reasons for Non- Issues for EMP Requirement Status Compliance Further Action

Impacts from Operation

14. Effects of intensified Yes Effects of intensified agricultural agricultural production production have not been observed yet.

15. Obstruction of water flows in Yes O&M activities such as cleaning and the canals from sediment or repairs were properly conducted by the other deposits newly established WUG before the 2020 wet season cropping. 16. Competition for use of Yes Not observed irrigation water and with other water uses

17. Collapse of canals Yes Not observed 18. Leaching of nutrients Yes Not observed

19. Occurrence of water related Yes Occurrence of water related diseases diseases has not been reported. Note: EMP requirements at pre-construction and construction stages (No.1 – 13) are excluded from the table as the constructions of Phase I subprojects were completed in February 2019.

Table 6: Issues for Further Action for Phase I subprojects

Responsibility and Issue Required Action Resolution Timing

No issues have been observed or reported during the reporting period.

1.2. Impacts from Operation

29. Nam Beng and Nam Oun subprojects of Phase I in Oudomxay started full use from the rainy season of 2019. The O&M activities of both subprojects are properly conducted by the newly established WUGs and no negative effects from the operations observed or reported.

2. Phase II Subprojects

2.1. Implementation Status of the EMP (Mitigation Measures)

30. Contracts of the 7 Phase II subprojects were signed in the middle of November 2020. 31. EMP requirement during the pre-construction period includes development of the site-specific Contractors Environmental Management Plan (CEMP), appointment of an Environmental Safeguards Officer (ESO), training on safety hazards to workers and local people and the impacts of temporary works on the local communities, effects on homes and property and the establishment of temporary access routes to civil works sites. 32. In early December 2019, the GIC delivered a construction supervision training to staffs of the contractors as well as PPOs and DCOs. The training includes a guidance on health and safety, and environmental requirements including EMP and CEMP. 33. The contractors started pre-construction works after the construction supervision training provided by the GIC and involves a number of activities including preparation of the CEMP and recruitment of ESOs. 34. Table 7 summarizes compliance with the EMP requirements while issues for further action to address partial or non-compliance are summarized in Table 8. Table 7: Compliance with EMP Requirements for Phase II subprojects

EMP Requirement Compliance Comment or Reasons for Non- Issues for Further Status Compliance Action

Pre-Construction Stage 1. Safety hazards to workers Partial All contractors of Phase II Contractors to and local people, and effects subprojects have submitted update their CEMPs of temporary worker CEMPs including safety and with COVID-19 risk populations in the area health plan. But the CEMPs need management and to include COVID-19 risk mitigation measures management and mitigation measures according to the ADB’s instruction dated on 20 May 2020. 2. Effects on homes and Ongoing See Chapter III (Involuntary Resettlement Performance property Monitoring)

3. Effects of the construction of Yes PPOs and DCOs selected the a temporary vehicle access alignment of the access track to track minimize extent of necessary earthworks. 4. Possible social conflicts, Partial Some of the camps are located on Contractors to noise and air pollution due to the riverbanks, but there is no improve the site selection for work camps. alternative place for the camps in operation and the relevant beneficiary villages. management of the camps to avoid direct impact on the rivers 5. Environmental problems Yes All contractors of Phase II associated with subprojects have submitted CEMPs including site location/selection and management plan. abandonment of quarry sites, such as erosion, landslides, sedimentation, soil contamination, damage or loss of habitats and biodiversity.

6. Environmental compliance Yes GIC environmental specialists prepared IEE reports including 10

EMP Requirement Compliance Comment or Reasons for Non- Issues for Further Status Compliance Action

with Lao PDR’s Decree on environmental management plan Environmental Impact and environmental monitoring Assessment plan. Translated IEE reports were submitted and explained to PONRE as well as to the beneficiary villages. 7. Information dissemination Yes (i) PPO and DCO with support of and education program on GIC organized information education program for farmers on environmental management handling of agrochemicals and including waste disposal, wastes. handling of agrochemicals (ii) PPO with support of GIC organized training for contractors of Phase II subprojects on EMP implementation Impacts from Construction

8. Effects associated with the NYD No construction works during the extraction of materials reporting period. 9. Release of silt NYD

10. Temporary closure of the NYD irrigation system

11. Dust generation and noise NYD nuisance

12. Use of land for storage and NYD as works depots

13. Effects of construction of NYD temporary vehicle access track 14. Effects of temporary worker NYD populations

15. Safety hazards to workers NYD and local people

Impacts from Operation

16. Effects of intensified NYD agricultural production

17. Obstruction of water flows in NYD the canals from sediment or other deposits 18. Competition for use of NYD irrigation water and with other water uses

19. Collapse of canals NYD 20. Leaching of nutrients NYD

21. Occurrence of water related NYD diseases

Table 8: Issues for Further Action for Phase II subprojects

Issue Required Action Responsibility and Timing Resolution

Old Issues from the Previous Report Some of the camps are Contractors instructed Responsibility: Contractors Contractors to improve located on the riverbanks, to improve the Timing: Q3 2020 the operation and but there is no alternative operation and management of the place for the camps in the management of the camps to avoid direct relevant beneficiary camps to avoid direct impact on the rivers villages. impact on the rivers

New Issues from the This Report

All contractors of Phase II Contractors instructed Responsibility: Contractors Contractors to submit subprojects have to update their CEMPs Timing: Q3 2020 their updated CEMPs submitted CEMPs with COVID-19 risk with COVID-19 risk including safety and management and management and health plan. But the mitigation measures mitigation measures CEMPs need further update to include COVID- 19 risk management and mitigation measures according to the ADB’s instruction dated on 20 May 2020.

2.2. Phase II Pre-construction Phase

22. Compliance issues presented in the 3rd External Safeguard Monitoring Report submitted to ADB LRM by the External Safeguard Monitoring team of National University of Laos (NUOL) were reported in the previous Semi-annual Safeguard Monitoring Report. Most of them have been corrected or significantly improved. However, the camps which are located beside rivers could not be relocated since there was no alternative place for the camps in the relevant beneficiary villages. Therefore, the project instructed the contractors to significantly improve the operation and management of their camps to avoid direct impact on rivers. 23. CEMPs for all seven (7) Phase II subprojects have been submitted to NPMO by the five (5) contractors by the end of February 2020. However, these CEMPs were weak in terms of both structure and contents. The project instructed the contractors to revise the CEMPs to meet requirements of the EMPs. 24. During the reporting period, COVID-19 pandemic occurred globally and since March 2020 the Government of Laos also has been taking measures to prevent spread of the virus. On 20th May 2020, ADB issued a new instruction that the CEMPs needed to include COVID- 19 risk management and mitigation measures. The project immediately instructed the contractors to update the CEMPs to meet the new requirement.

3. Environmental Performance Monitoring

35. The Environmental Monitoring Plan for the Phase II subprojects covers (i) compliance monitoring, to ensure that mitigation specified in the EMP is carried out to an adequate standard, (ii) community feedback to obtain views and information on the relevant environmental parameters and (iii) water quality testing.

36. Water quality testing is necessary to detect any deterioration of water quality and in view of the fact that local residents use the water from the scheme as a supplementary source for their domestic water supply, to ensure that it is not dangerous for that purpose. Testing against drinking water quality standards is therefore not warranted. In order to determine the safety of the water, it will be tested for levels of the temperature, conductivity, pH, coliform bacteria, chemical and biological oxygen demand by quarterly during the construction period. Samples should be taken prior to, during and after construction, from appropriate sampling points and taken to an appropriate laboratory for analysis. 37. EA/IA appoints an environmental specialist/officer to monitor and supervise the implementation of the EMP of each subproject on behalf of the EA/IA during subproject construction. The contractor for each subproject needs to prepare monthly Environmental Monitoring Report (EMR) based on the EMP, and submits to the EA/IA through PPO/DCO for approval after the construction activities started. Table 9 provides an overview of impact and parameters to be monitored as well as institutional responsibility. Table 9: Environmental Monitoring Plan

Impact to be Monitored Parameters Responsibilities

Design and Preconstruction Phase Level of pathogens in water for Temperature, Conductivity, pH, Faecalis PPO/DCO irrigation / domestic use Coliforms, BOD (20°C) and COD

Health and safety and welfare of Compliance with EMP PPO/DCO workers and the public

Construction Phase Prevention of accumulation of Changes as perceived by irrigation scheme users PPO/ DCO excessive pathogens in water for Temperature, Conductivity, pH, Faecalis PPO/DCO irrigation / domestic use Coliforms, BOD (20°C) and COD

Adequacy of and effectiveness of the Opinions of users PPO/DCO scheme: quantity of water; increases in crop yields; occurrence of disputes

Implementation of construction Compliance PPO/DCO mitigation measures detailed above

Operation Phase Prevention of accumulation of Changes as perceived by irrigation scheme users PPO/DCO excessive pathogens in water for Temperature, Conductivity, pH, Faecalis PPO /DCO/WUG irrigation / domestic use Coliforms, BOD (20°C) and COD

Adequacy of and effectiveness of the Opinions of users PPO/DCO scheme: quantity of water; increases Water flow monitoring PPO/DCO in crop yields; occurrence of disputes

4. Monitoring Activities during the Reporting Period

38. Field survey for the 3rd External Safeguards Monitoring Report covering all 7 Phase II subprojects was conducted by the FES/NUOL team from 7 to 26 December 2019, with the participation of the local government agencies such as the Provincial Agriculture and Forestry Office (PAFO), Provincial Office of Natural Resources and Environment (PONRE), District Agriculture and Forestry Office (DAFO) and District Office of Natural Resources and Environment (DONRE).

39. For Phase II subprojects, water samples were collected at 23 sites in the 7 Phase II subprojects during the field activities to get baseline data in line with the Aide Memoir of ADB grant review mission in December 20191. Two parameter such as pH and water temperature were tested on site with while other 3 parameters were analyzed in the Laboratory. The results of the analysis are summarized in Table 10.

Table 10: Water Quality Analysis Results of Phase II Subprojects

Water Sampling Point Sampling Parameters Dat Faecal pH Temp BOD COD

Village/ e Coliforms

Sub-scheme Coordinate District MPN °C mg/L mg/L /100mL Nam Ngene 2 Longnai Ngai/ 21° 13’ 9.14” N 9 -11 Dec. 8.5 17.0 4.28 11.0 490 (upstream) Nhot Ou 101° 54’ 10.99” E 2019

Nam Ngene 2 Longnay Kao/ 21° 15’ 45.21” N 9 -11 Dec. 7.9 16.3 1.36 6.14 1,700 (downstream) Nhot Ou 101° 55’ 51.36” E 2019

Nam Ou Hat/ 22° 7’ 5.29” N 9 -11 Dec. 8.2 13.4 <1.00 <4.00 240 (upstream) Nhot Ou 101° 47’ 43.04” E 2019

Nam Ou Hat/ 22° 8’ 31.24” N 9 -11 Dec. 8.6 14.6 <1.00 ND 220 (downstream) Nhot Ou 101° 48’ 45.40” E 2019

Nam Tong Somxay/ 22° 6’ 28.86” N 9 -11 Dec. 8.2 14.3 <1.00 4.92 4.5 (upstream) Nyot Ou 101° 48’ 37.56” E 2019

Nam Hang Phoukham/ 20° 16’ 18.52” N 12 Dec 8.2 18.9 <1.00 ND 33 (upstream) Beng 101° 34’ 44.21” E 2019

Nam Hang Phoukham/ 20° 15’ 49.15” N 12 Dec 8.2 20.2 <1.00 <4.00 22 (downstream) Beng 101° 35’ 3.26” E 2019

Nam Hao Nahouay/ 20° 18’ 17.72” N 12 Dec 8.4 19.9 <1.00 <4.00 17 (upstream) Beng 101° 49’ 9.68” E 2019

Nam Hao Benglouang/ 20° 18’ 22.33” N 12 Dec 8.1 21.0 1.35 <4.00 490 (downstream) Beng 101° 38’ 9.75” E 2019

Nam Sa Sa Mai/ 21° 0’ 40.04” N 15-16 Dec 7.9 15.5 <1.00 ND 790 (upstream) Long 100° 36’ 44.30” E 2019

Nam Sa Sa Kao/ 21° 1’ 15.07” N 15-16 Dec 8.0 18.8 <1.00 ND 3,300 (downstream) Long 100° 36’ 26.21” E 2019

Nam On Somphan Tai/ 20° 54’ 10.51” N 15-16 Dec 8.0 21.0 1.60 ND 2,400 (upstream) Long 100° 36’ 44.30” E 2019

Nam On Xiengkok/ 20° 55’ 0.55” N 15-16 Dec 8.3 21.9 1.10 4.92 2,400 (downstream) Long 100° 42’ 4.84” E 2019

Nam Chang Nam Chang/ 21° 0’ 5.81” N 15-16 Dec 7.5 15.0 1.00 6.14 330 (upstream) Luang Namtha 101° 23’ 37.60” E 2019 Nam Chang Nam Chang/ 20° 59’ 39.51” N 15-16 7.4 16.3 2.45 17.2 3,300

1 For Phase II subprojects, the ADB Grand Review Mission requested the EA to carry out collecting baseline data on water quality prior to commencement of construction works (Aide Memoire, ADB Grant Review Mission, 9-24 December 2019, para. 26).

Water Sampling Point Sampling Parameters Dat Faecal pH Temp BOD COD

Village/ e Coliforms Sub-scheme Coordinate District MPN °C mg/L mg/L /100mL (downstream) Luang Namtha 101° 23’ 46.87” E Dec 2019

Nam Lue Phonxaisavang/ 20° 54’ 36.37” N 15-16 Luang Namtha Dec 8.0 15.4 1.75 ND 490 (upstream) 101° 23’ 38.86” E 2019

Nam Lue Nalu/ 20° 55’ 51.75” N 15-16 Luang Namtha Dec 8.0 16.4 <1.00 6.14 2,400 (downstream) 101° 24’ 48.12” E 2019

Houay Xo 2 Dong/ 19° 48’ 10.91” N 16- 18 Dec 7.7 23.5 <1.00 ND 79 (upstream) Paktha 100° 29’ 25.60” E 2019

Houay Xo 2 Pakxo/ 19° 48’ 56.14” N 16- 18 Dec 8.1 20.9 <1.00 6.76 23 (downstream) Paktha 100° 34’ 52.29” E 2019

Houay Kod Kontun/ 19° 49’ 40.41” N 16- 18 Dec 7.5 23.4 <1.00 6.76 1,300 (upstream) Paktha 100° 33’ 3.78” E 2019

Houay Kod Kontun/ 19° 49’ 17.67” N 16- 18 Dec 7.7 23.4 <1.00 ND 21 (downstream) Paktha 100° 29’ 25.60” E 2019

Houay Khong Homsouk/ 20° 4’ 12.96” N 16- 18 Dec 7.1 19.4 1.00 5.3 230 (upstream) Pha Oudom 100° 47’ 2.40” E 2019

Houay Khong Pangthong/ 20° 6’ 55.71” N 16- 18 Dec 7.6 21.0 <1.00 <4.00 33 (downstream) Pha Oudom 100° 47’ 29.69” E 2019 Notes: pH=Hydrogen Potential BOD=Biochemical Oxygen Demand COD=Chemical Oxygen Demand MPN=Most Probable Number

40. In most of the sites, water quality is acceptable with low values in terms of Biochemical Oxygen Demand (BOD), Chemical Oxygen Demand (COD) and Faecal Coliforms. BOD levels are quite low at all 23 sites. COD levels were recorded higher than the standard at 17.2 ml/L at downstream of Nam Chang River (Nam Lue – Nam Chang subproject, Luang Namtha Dist., Luang Namtha Prov.) and at 11.0 ml/L at upstream of Nam Ngene River (Nam Ngene 2 subproject, Bountai Dist., Phongsaly Prov.). Faecal Coliform Bacteria levels were relatively high at 3,300 MPN/100mL at downstream of Nam Sa River (Nam Sa subproject, Long Dist., Luang Namtha Prov.) and at downstream of Nam Chang River (Nam Lue – Nam Chang subproject, Luang Namtha Dist., Luang Namtha Prov.) but the figures are still within the Lao National Environmental Standard (No.0832 dated on 3rd March 2017) of 20,000 MPN/100mL.

III. INVOLUNTARY RESETTLEMENT PERFORMANCE MONITORING

1. Phase I Subprojects 41. As this phase has completed the construction and the irrigation schemes are under operation since 2019, there is nothing to report about LAC aspects.

2. Phase II Subprojects 2.1. Land Requirements and Impacts

42. Fieldwork undertaken in relation with the in-kind compensation in January/February 2020 included final verification of the land requirements and impacts. They are summarized in Table 11 under Final DED related LAC requirements of Phase II subprojects. Table 11: Updated Final DED based LAC Requirements of Phase II Subprojects Status As this SMR has been prepared by end of Q3 2020, the shown status Subproject Summary situation refers to 25 September 2020 Provision of LAMDDR Compensation Preparation 1. • FS Stage: Affected 2,200 sqm private • Land Titling: • In Aug. 2020 Nam Hao productive land owned by 7 AHs with 33 APs - Not yet prepared as (including 4 vulnerable AHs with 16 APs), for completed. master DDR. which this represent a loss of 1.2% of their - Completion • Submitted by total 18.3 ha, which individual ranges rescheduled for NPMO/GIC between 0.5% and 4%. No cases have been Oct. 2020. (20 Aug. 2020) noticed concerning affected governmental • Agr. Support and reviewed land privately used. - Two support by ADB (20 • Final DED Stage: This concerns 17,016 sqm measures Aug. 2020). private productive land owned by 32 AHs. (green house, • Submitted 25 The loss of private productive land ranges SRI) have Sep. 2020, as between 0.4% and 4.3% of the owners’ total been agreed in Aide productive land with an average of 2% for all completed Memoire of AHs. Individual ranges are 4 AHs with <1% - The third one ADB Virtual loss of land; 24 AHs between 1% and <4%; (goats) to be Review 4 AHs between 4% and <5%. provided in Oct. Mission in 2020. Aug. 2020. 2. • FS Stage: Expected 6 AHs with expected • Land Titling: • Submitted 25 Nam Tong loss of agricultural land. However, - Not yet started. Sep. 2020, as requirements for private land could finally not - Completion agreed in Aide be identified. No cases have been noticed rescheduled for memoire of concerning affected governmental land Oct. 2020. ADB Virtual privately used. Review • Agr. Support Mission in • Final DED Stage: This concerns 1,496 sqm - None private productive land owned by 8 AHs. The Aug. 2020 loss of private productive land ranges between 0.2% and 3.1% of the owners’ total productive land with an average of 0.7% for all AHs. Individual ranges are 3 AHs with <1% loss of land, 5 AHs between 1% and <4%. 3. • FS Stage: No AHs and no requirements of • Land Titling: • Submitted 25 Nam Ngene private land expected. No cases have been - Not yet started. Sep. 2020, as 2 noticed concerning affected governmental - Completion agreed in Aide land privately used. rescheduled for memoire of • Final DED Stage: This concerns 10,012 sqm Oct. 2020. ADB Virtual Review private productive land owned by 40 AHs. • Agr. Support The loss of private productive land ranges Mission in - The only Aug. 2020 between 0.1% and 4.0% of the owners’ total support productive land with an average of 0.8% for measure all AHs. Individual ranges are 20 AHs with (goats) still to <1% loss of land, 20 AHs between 1% and be provided <4%. - Rescheduled for Oct. 2020. 4. • FS Stage: No AHs and no requirements of • Land Titling: • Submitted 25 Houay Xo 2 private land expected. No cases have been - Completed in Sep. 2020, as noticed concerning affected governmental Q3 2020. agreed in Aide land privately used. memoire of 16

Status As this SMR has been prepared by end of Q3 2020, the shown status Subproject Summary situation refers to 25 September 2020 Provision of LAMDDR Compensation Preparation • Final DED Stage: This concerns 1,028 sqm • Agr. Support ADB Virtual private productive land owned by 4 AHs. The - None. Review loss of private productive land ranges Mission in between 0.7% and 3.4% of the owners’ total Aug. 2020 productive land with an average of 1.6% for all AHs. Individual ranges are 2 AHs with <1% loss of land; 1 AH between 1% and <2%; and 1 AH between 3% and <4%. 5. • FS Stage: AHs with loss of agricultural land • Land Titling: • Submitted 25 Houay Bong expected. However requirements for private - Completed in Sep. 2020, as land could finally not be identified. No cases Q3 2020. agreed in Aide have been noticed concerning affected memoire of • Agr. Support governmental land privately used. ADB Virtual - None. • Final DED Stage: This concerns 2,592 sqm Review private productive land owned by 6 AHs. The Mission in loss of private productive land ranges Aug. 2020 between 1.7% and 2.9% of the owners’ total productive land with an average of 2.1% for all AHs. Individual ranges are 3 AHs between 2% and <3%; and 3 AHs between 3% and <4%. 6. • FS Stage: AHs with loss of agricultural land • Land Titling: • Submitted 30 Nam Sa expected. However requirements for private - Completed in Sep. 2020, land could finally not be identified. No cases Q3 2020. with used date have been noticed concerning affected proposed in • Agr. Support governmental land privately used. relation with - Support Aide Memoire • Final DED Stage: This concerns 7,198 sqm measure of ADB Virtual private productive land owned by 16 AHs. through Review The loss of private productive land ranges livestock has Mission in between 0.1% and 4.2% of the owners’ total been Aug. 2020. productive land with an average of 2.2% for completed in all AHs. Individual ranges are 1 AH <1%, 10 reporting period AHs between 2% and <4%; 1 AH between 4% and <5%. 7. • FS Stage: Loss of 1,836 sqm governmental • Land Titling: • Submitted 30 Nam Lue – land, which the Province Luang Namtha will - Completed in Sep. 2020, Nam Chang contribute to the PRI subproject. Loss of Q3 2020. with used date 10,794 sqm private productive land owned proposed in • Agr. Support by 36 AHs with 228 APs with individual relation with - Support ranges between 0.1% and 9.4%. Loss of 60 Aide Memoire measures sqm private residential land owned by 1 AH of ADB Virtual through with 4 APs, for whom this represents a loss Review livestock and of 0.1% of his total 4.5 ha. Loss of 148 Mission in trees have been private trees owned by 10 AHs with 56 APs Aug. 2020. completed in with individual ranges between 0.6% and reporting period 100% loss of trees. In total there 5.5% affected trees of the AHs’ total 2,694 trees. • Final DED Stage: This concerns 19,092 sqm private productive land owned by 56 AHs. The loss of private productive land ranges between 0.1% and 4.6% of the owners’ total productive land with an average of 1.3% for all AHs. Individual ranges are 18 AHs <1%; 35 AHs between 2% and <4%; 3 AHs between 4% and <5%.

2.2. Change of Compensation Approach

43. Since the start of LAC work in Q 2017 for phase II and in parallel with the LAC reports’ preparation and reviews, there has been a continuous discussion between ADB, Department of Irrigation (DoI), National Project Management Office (NPMO) and Grant Implementation Consultants (GIC) about the types of land acquisitions and related safeguards aspects. With regard to land acquisition and compensation, this led to: (i) Land requirements and compensation was generally discussed during FS stage. During DED stage, land contribution was discussed with affected households (AHs). Land contribution was agreed with all affected landowners in August 2019. On request of ADB it was also re-confirmed during this fieldwork that the Compensation Entitlement Forms (CEFs) were applied correctly. This approach on land contribution for productive land was agreed in a meeting on 16 November 2017 by ADB (NRIAF safeguard officer), NMPO and GIC and has been based on ADB's explanation about the difference between land donation and land contribution.

(ii) However, ADB did then not accept the principle of land contribution (20 November 2019) and asked for compensation payment instead. ADB also offered that should there be a need to change the financing allocation to cover resettlement costs, then NPMO should submit a request to ADB. Meanwhile the use of grant funds has been confirmed to finance resettlement expenditures, however with priority for phase III and IV.

(iii) Based on the proposal made by the ADB Review Mission in December 2019 for a in- kind compensation containing both land titling and agricultural compensations, the NPMO and GIC elaborated on this approach as requested in the Aide Memoire (24 Dec. 2019). This was presented to ADB in LRM on 16 January 2020 leading to the agreed understanding by NPMO and GIC with ADB that this in-kind compensation can be applied. In addition, there was no objection from the bank in this matter.

2.3. In-kind compensation

44. Therefore, the in-kind compensation has been planned and prepared, AHs consulted between early January and mid-April 2020 by implementing and executing agencies. Provision of compensation through land titling and agricultural support started in April 2020 with varying completion depending on different subprojects’ conditions. The compensation status varies between first completion during Q2 2020 and expected finalization in October 2020. 45. Value of lost land will be compensated through compensation, firstly through the land titling component. If the related compensation amount is smaller than the lost value of affected land, then secondly, AHs selected options offered through the agricultural compensation component. The approach within phase II was adjusted, as the already completed voluntary contribution has not been accepted by ADB on 20 Nov. 2019, and an in-kind compensation has been proposed by ADB with implementation throughout the reporting period. 46. In general, this compensation component contains 10 options through livestock (6), crops (2), fruit trees (1) and greenhouse (1). Concerning this set of support measures NRIAF has gained experience in phase I subprojects as well as in NRI. In general, the components are based on (i) need assessments as part of the 1st village consultation conducted by an interdisciplinary team of NPMO and GIC, (ii) feedback from farmers at individual level, or (iii) through discussions with FPG and WUGs. The subproject’s performance of agriculture support measures and the related compensation implementation and delivery mechanism will be described in the LAMDDRs.

47. With AHs these options were discussed during the planning of compensation measures. The set of mitigation support can be provided and implemented in a satisfactory way within the given Project conditions and available means. In this way it can be ensured that AHs will have options selected which will improve their income situation and “pays better off than a cash compensation”. The AHs have chosen these options based on their own preferences and reasons, such as using an occasion they “normally” would not have, or looking for additional income, but also taking non-monetary aspects into consideration. An overview about the in-kind compensation has been included in Attachment IR-1 and 2 indicating that: (i) Land titling:

Subproject 01 Nam Hao, 02 Nam Tong and 03 Nam Ngene 2 still have to complete this compensation component, for which the provincial project offices (PPOs) and district coordination offices (DCOs) have scheduled Oct. 2020, taking into consideration that the related technical work has been completed and it remains a coordination between district authorities before handing over issued land titles

The other four subprojects, namely 04 Houa Xo 2, 05 Houy Bong, 06 Nam Beng and 07 Nam Lue-Nam Change have competed this compensation component.

(ii) Agriculture support

Applies for 4 subprojects, as for the other three the land titling compensation covers the value of the lost affected land of the AHs.

The subproject 01 Nam Hao and 03 Nam Ngene 2 still have to complete this component. The livestock as chosen by AHs can be delivered, but the PPOs and DCOs prefer a combined and completing compensation in parallel handing over land titles. This has been scheduled for Oct. 2020.

The two subprojects 06 Nam Beng and 07 Nam Lue-Nam Change have competed this compensation component.

2.4. Compliance

48. Because of complementary compensation requirements proposed by ADB and agreed with MAF (DoI) in Dec. 2019, a series of 3 updated LACPs has been prepared between November 2019 and April 2020 by NPMO/GIC and reviewed by ADB. The new compensation approach was discussed with AHs in January and February 2020. 49. As the implementation of the in-kind compensation started before ADB's approval of the revised and final updated LACPs, Land Acquisition and Mitigation Due Diligence Reports (LAMDDRs) are required. Main reasons for these 7 LAMDDRs are: (i) to update the status of the latest Revised Final Updated LACPs; (ii) to elaborate on safeguards aspects, including verifying the progress of compensation and mitigation measures, and; (iii) to make recommendations and draw conclusions, so that these DDRs can be approved a.s.a.p. and construction work start quickly. A Corrective Action Plan (CAP) has been proposed containing some required actions. A CAP can be implemented in parallel with construction work. 50. The compliance status is presented in Table 12. The issues that require further actions are presented in Table 13.

Table 12: Summary of Compliance with LACR and Report Requirements Phase II Compliance Comment or Reasons for Compliance, Partial RP Requirements status Issues for Further Action Schedule Compliance/Non-Compliance Yes/No/Partial 1. Establishment of personnel Yes Nothing new to report as this has been completed in 2018. in EA and IAs 2. Public consultation and Yes This is a continuous activity with sequences of LAC consultation meetings. socialization process 3. Land area to be acquired is Yes Final verification during LAC fieldwork for the in-kind identified and finalized compensation confirming requirements for private land acquisition 4. RP(s) updated after detailed Yes No further preparation of LACPs and LACDDRs. Instead 7 Land Preparation of 7 LAMDDRs for 7 Q3 2020 design Acquisition and Mitigation Due Diligence Reports (LAMDDRs) subprojects. 5. Land acquisition completed No See item 7 6. Establishment of n.a. No cases to report. Resettlement Site(s) 7. Compensation payments for Partial Subprojects nos. 1, 2 and 3 are at different completion stages. Finalization issuing and/or of handing over Q3 2020 affected assets is completed land titles to AHs. and/or early Completing the planning and provision of Q4 2020 livestock and trees to AHs Documenting compensation completion through PPOs/DCOs and in next SSMR. Subprojects 4, 5, 6 and 7 completed the compensation to AHs. 8. Transport assistance for n.a. Related to item 6. relocating AHs 9. Additional assistance to No The rehabilitation of irrigation sub-schemes do not cause any Technical discussion Started in vulnerable AH new cases of severely affected AHs or vulnerable AHs. There is June 2020 no need to bridge a gap covering period of vulnerability to manage livelihood. Therefore, the entitlement conditions of the RF are not triggered and therefore no special assistance to existing socially or economically vulnerable households would be required. 10. Income Support Measures No No loss of income is expected through the subprojects during their construction phase 11. Income Restoration n.a Related to item 6. Program 12. Temporary impacts have No Construction supervision will have to monitor any deviation from detailed design and resulting resettlement impacts during been addressed (affected construction. properties restored to at least pre-project conditions) 13. Capacity building activities No Continuous on the job training for PPO and DCO staff through technical meetings, LAC surveys and consultation, and preparation of LAC documents for reporting purpose.

Table 13: Issues for Further Action Phase II

Issues for further Actions Required Action Responsibility, Timing and Resolution

Old Issues from previous report/s 4 Preparation of revised . Additional LAC field Responsibility: and compensation work. PPO and DCO in cooperation with GIC. including LACRs . Preparation and submission of Revised Timing: Updated LACRs. 1st quarter 2020 . Approval by ADB. . Planning by PPO, DCO  Completed: carried out in January / February in cooperation with GIC 2020 7 Finalization of handing . Additional field work. Responsibility: over land titles to AHs . Carrying out land and PPO and DCO in cooperation with GIC. Completing the agricultural components. Timing: planning for agr. . PPO/DCO (supported by 2nd quarter 2020 components (green the GIC Agriculture house, provision of Extension (AE) and  Completed: Planning and preparation took livestock, cardamom Community Develop- place between January and Aril 2020. production, SRI seed ment (CD) Team)  Ongoing: Implementing during Q2 2020 and production) . Prepared documentation until October 2020 Documenting  Compensation completion reporting through compensation SSMRs. completion through PPOs/DCOs and in next SSMR 9 Performance Internal & External Responsibility: & monitoring and Monitoring & Evaluation PPO, DCO, ESM and GIC 10 documentation of Internal M&E: completion regarding  Monthly provision of  Ongoing and documented in this SMR compensation to AHs. External M&E: half-yearly  Will be clarified and performed in Q4 New Issues from this report 4 Preparation of 7 . Additional LAC field Responsibility: LAMDDRs for 7 work. PPO and DCO in cooperation with GIC. subprojects. . Preparation and submission of Timing: LAMDDRs. Q3 2020 . Approval by ADB. . NPMO/GIC 7 Finalization issuing . Additional field work. Responsibility: and/or of handing over . Carrying out land and PPO and DCO. land titles to AHs. agricultural components. Completing the . Prepared documentation Timing: planning and provision Q3 2020 of livestock and trees to AHs 9 Technical discussion . Technical clarification Responsibility: ADB, NPMO/GIC Timing: Q3 2020

3. Phase III Subprojects 51. The Annexes 9 (land acquisition and compensation) for all 7 subprojects of Phase III were submitted to ADB on 18 June 2019. At draft feasibility stage 4 subprojects were classified as Category C and 3 as category B. In March 2020 the final feasibility study related LACPs and LACDDRs were submitted with unchanged requirements as indicated at draft stage already.

52. This status will be subject of DED related review in 2nd half 2020. For 4 subprojects this DED related review has been planned for Q3 2020, for the remaining 3 subprojects it scheduled for Q4 2020. 53. A summarizing overview of LAC status of the subprojects is prepared in Table 14. Table 14: Updated DED based LAC Requirements of Phase III Subprojects Subproject DED related Summary situation No change of the below documented status during the reporting period. 1. Nam • Draft FS Stage: Loss of private agricultural land preliminary estimated for potential 24 Ngaad AHs. However, requirements for private land could only be in general indicated, but not yet specifically identified. Consultation and surveys completed in reporting period. For major components, such as canals, O&M road, existing corridors have been taken into consideration, so that no additional land acquisition would be required., however this could not yet been identified at Feasibility Study (FS) staged. No cases have been noticed concerning affected governmental land privately used. • Final DED Stage: Planned LAC fieldwork – expecting cases of land acquisition based on verification of final DED. 2. Dong • FS Stage: No AHs and no requirements of private land expected. No cases have been Nouark noticed concerning affected governmental land privately used. • Final DED Stage: Planned LAC fieldwork – expecting no requirements for acquisition of private land 3. Nam Hoy - • Loss of private agricultural land, preliminary estimated with 0,935 ha, owned by potential Nam Lou 57 AHs. In addition, for widening canal related corridors another estimated 83 AHs have been considered. No cases have been noticed concerning affected governmental land privately used. • Final DED Stage: Planned LAC fieldwork – expecting cases of land acquisition based on verification of final DED. 4. Nam Gna 2 • FS Stage: No AHs and no requirements of private land expected. • Final DED Stage: LAC fieldwork confirmed no requirements for acquisition of private land. 5. Nam Ma • FS Stage: No AHs and no requirements of private land expected. • Final DED Stage: LAC fieldwork confirmed no requirements for acquisition of private land. 6. Nam • FS Stage: No AHs and no requirements of private land expected. Satone • Final DED Stage: LAC fieldwork confirmed no requirements for acquisition of private land. 7. Nam Kha • Loss of private agricultural land, preliminary measured with 0.02 ha (212 sqm), owned by one (1) AH. There are cases of affected government land, but they are not privately used • Final DED Stage: LAC fieldwork confirmed no requirements for acquisition of private land. For all 7 • FS Stage: 2nd half 2019 subprojects • DED Stage related Draft Updated LACR: 2nd half 2020. All land acquisition aspects are subject of review through surveys and transect walks

54. This compliance status is presented in Table 15. The issues that required further actions are presented Table 16.

Table 15: Summary of Compliance with LACP and LACDDR Requirements Phase III

Compliance Issues for RP Requirements status Comment or Reasons for Compliance, Partial Compliance/Non-Compliance Further Schedule Yes/No/Partial Action 1. Establishment of personnel Yes Nothing to report. in EA and IAs 2. Public consultation and Yes This is a continuous activity with sequences of LAC consultation meetings. socialization process 3. Land area to be acquired is Partial Based on DEDs 5 subprojects will have no private land requirements, whereas 2 subprojects Preparation of 2nd half 2020 identified and finalized require acquisition of private land. DED based LACPs and LACDDRs 4. RPs updated after detailed No Nothing to report yet, as these reports are currently under preparation. design 5. Land acquisition completed No See item 7 DMS and 2nd half 2020 SESAH to be carried out. 6. Establishment of n.a. No cases to report. Resettlement Site(s) 7. Compensation payments for No. In-cash compensation will be applied. Preparation by 2nd half 2020 affected assets is Mechanisms are required for these payments NPMO, PPO, completed GIC 8. Transport assistance for n.a. Related to item 6. relocating affected households 9. Additional assistance to No The rehabilitation of irrigation sub-schemes do not cause any new cases of severely affected Technical Started in vulnerable affected AHs or vulnerable AHs. There is no need to bridge a gap covering period of vulnerability to discussion June 2020 household manage livelihood. Therefore, the entitlement conditions of the RF are not triggered and therefore no special assistance to existing socially or economically vulnerable households would be required. 10. Income Support Measures No No loss of income is expected through the subprojects during their construction phase 11. Income Restoration n.a Related to item 6. Program 12. Temporary impacts have No Construction supervision will have to monitor any deviation from detailed design and resulting resettlement impacts during been addressed (affected construction. properties restored to at least pre-project conditions) 13. Capacity building activities No Continuous on the job training for PPO and DCO staff through technical meetings, LAC surveys and consultation, and preparation of LAC documents for reporting purpose.

Table 16: Issues for Further Action Phase III

Issues for further Actions Required Action Responsibility, Timing and Resolution a. Responsibility: Old Issues from previous report GIC in cooperation with PPO and DCO 3 to 5 Preparation of revised . DED related LAC field Timing: FS related LACPs work (consultation, Preparation and submission mid-2020. and LACDDRS. surveys, etc. Review and approval procedures 2nd half Carrying LAC field . Analyzing and filing 2020 work during detailed collected data of DMS b. This has been transferred into Q4 2020 (i) design stage. and SESAH, as well as based on ADB/ NPMO agreement in Preparation of consultation. different compensation approach by cash, Updated LACPs and . Agreeing on in-kind and (ii) priority on completion of phase II LACDDRs compensations with AHs first. Preparing LACDDRs first, followed by LACPs New Issues from current report aiming at two planning scenarios for LAC 5 ED based updating of . DED related LAC field report approvals and construction start for LACPs and work (consultation, subproject without and with land acquisition. LACDDRs surveys, etc.) . Analyzing and filing collected data. . Applying in-cash compensation 7 Compensation . In-cash compensation Responsibility: payments for affected will be applied. NPMO/GIC assets is completed Scheduled for Q4 2020 9 Technical discussion . Technical clarification Responsibility: ADB, NPMO/GIC Timing: Q3 2020

IV. INDIGENOUS PEOPLE PERFORMANCE MONITORING

55. Both of Phase I subprojects are categorized as Category B based on the IP Screening Checklist. The Ethnic Group Development Plan (EGDP) for each of Phase I subprojects was approved by ADB as a part of the Feasibility Study (F/S) on 12 September 2016.

56. For Phase II subprojects, all subprojects except Houay Xo 2 (Paktha District, Bokeo Province) are categorized as Category B based on the IP Screening Checklist. Houay Xo 2 is categorized as Category C. The EGDPs of all seven (7) Phase II subprojects were submitted to ADB on 23 January 2018. The official letter confirming that revise under Detailed Engineering Designs (DEDs) are needed for the 7 Phase II subprojects was submitted to ADB on 25 June 2019. 57. All seven (7) subprojects of Phase III are categorized as Category B based on the IP Screening Checklist. The EGDPs of all seven (7) Phase III subprojects were submitted to ADB on 18 June 2019. 58. Public consultations provided full information on the entitlement for the ethnic minority Affected Households (AHs) according to the resettlement framework and Ethnic Group Development Framework. The public meetings were conducted in an open and transparent manner. Where applicable or necessary, the public meetings were held in the local language as well as in the official Lao language.

59. For all the 22 subprojects of Phase I, II, III and IV, all the requirements of EGDP were complied with during the period from January to June 2020.

Table 17: Summary of Compliance with IP Requirements

Compliance Issues for Comment or Reasons for Compliance, IP Requirements status Further Partial Compliance/Non-Compliance Yes/No/Partial Action Yes Social safeguard officer at each level has Establishment of personnel been established in NPMO/ PPO/ DCO

Yes Six (6) Subprojects of Phase IV: Feb-Mar 2020 Public consultation and Socio-Economic Survey for SIA and socialization process generating information for the formulation of EGDP

Yes Official confirmation letter, which confirms that no EDGP (IP plan) updated is needed IP plan(s) updated after for 7 Phase II subprojects, has been detailed design submitted to ADB.

Yes The executive committees of the established WUG and FPG for Phase I and II subprojects have a representative of each ethnic group.

For the established WUGs of the phase I and II subprojects, participants from all the ethnic groups had received the following training: (i) administration and management of their organization; (ii) irrigation system management or operation, repair and maintenance; and (iii) financial management in relation to the collection of IP plan implementation water fees. specifics

Female-focused Extension Services (FFESs) activities are designed for and delivered to ethnic groups and women, particularly poor households at 16 pilot villages composed of 5 ethnic groups, which have been selected through full consultation with PPO/DCO and candidate villages from the Phase I, II and III subprojects. During the reporting period, the FFESs activities are under implementation.

Yes TOTs have been provided for CD/EG/gender officers at provincial and Capacity building activities district levels (PPO/DCO) of 4 target provinces.

Table 18: Issues for Further Action Responsibility and Issue Required Action Resolution Timing New Issues from This Report There is no issue to be reported during the period from January to June 2020.

60. In NRI-AF Project, the Female-focused Extension Services (FEESs) are conducted in the selected beneficiary villages with poor ethnic groups. Thus, the activities contribute not

only to women (including FHHs) but also to poor ethnic groups. During the reporting period, the Project implemented the 1st batch of the FFES activities at 9 poor ethnic group villages in 5 districts of 4 provinces. 61. From 7 May to 2 June 2018, the Director of DAW/MAF as well as NPMO gender assistant and GIC CD/Gender/Ethnic Group specialist visited the FFES Batch1 target villages in order to provide on-the-job (OJT) training on the implementation of FFES activities. For the training to PPO and DCO, the DAW/MAF and NPMO/GIC team developed and used a booklet, which is composed of a FFES concept note (purpose, procedure, etc.) and templates of various documents to be prepared by PPO and DCO. Total number of participants in the OJT are 55 persons including 26 females (47%).

Director of DAW/MAF, NPMO gender assistant, Director of DAW/MAF, NPMO gender assistant, GIC CD/gender/EG specialist, and participants GIC CD/gender/EG specialist, and participants from PPO/DCO in Luang Namtha Province. from PPO/DCO in Bokeo Province.

62. Plan of the 2nd batch of the FFES was approved by Director General (DG) of Department of Irrigation (DOI) on 21 October 2019. On 6 December 2019, NPMO sent notification of approval of FFES batch 2 activities to PPO and DCO. Following the notification, PPO and DCO staffs started implementation of the activities by preparation of village consultations, establishment of committee of the activities, and conducting baseline survey at the FFES Batch2 target villages. The target villages and activities for the 1st and 2nd batches of FFES are summarized in Table 19.

Table 19: Summary of the 1st and 2nd Batch FEES Activities Ethnic Prov. Dist. Subproject Village Activities Group FFES 1st batch activities Phongsaly Bountai Nam Ngen2 Bohaad Khmu Goat raising (Phase II) Akha Oudomxay Beng Nam Hao Houay Luck Khmu Cardamom cultivation, (Phase II) Goat raising Luang Long Nam Ma Houa Khmu Cucumber cultivation, onion/garlic Namtha (Phase III) Khoua 1&2 Lue cultivation, organic vegetables, dry paddy production, frog/cricket Nam An Lanten raising (Lao Houay)

Bokeo Pha Houay Bong Van Pom Lamet Cardamom cultivation Oudom (Phase II) Lue Goat raising

Paktha Houay Xo2 Ban Dong Lue Revolving fund for promotion of (Phase II) Pangsa commercial crop production Pakso Khonteun FFES 2nd batch activities Oudomxay Beng Nam Beng Namet Lue Onion and garlic (29HHs) (Phase I) Xienglae Yo Pangdeua Houn Nam Ngaad Somxay Khmu Organic vegetable production with (Phase III) Na Lue green house (24HHs)

V. COMPLIANCE WITH SAFEGUARDS RELATED PROJECT COVENANTS

Table 20: Safeguards Related Project Covenants Schedule Para No. Particular Covenant Status of Compliance

Schedule 3 Para 6 The Recipient shall not award any Works contract Being complied. for a Subproject which involves environmental Phase I (2 subprojects): impacts until MAF has: (a) obtained the final approval of the IEE from the Recipient's Ministry (a) The IEE for 2 subprojects for of Natural Resources and Environment; and (b) Phase I was approved on 16-Jan- incorporated the relevant provisions from the ‘18 by PONRE Oudomxay SEMP into the Works contract. province. The kick-off meetings for the 2 subprojects (NCB-001 and 002) were held on 24-Jan-’18 for NCB- 001, and on 25-Jan-’18 for NCB- 002, respectively. (b) The works contract incorporated the relevant provisions from the SEMP. Phase II (7 subprojects): (a) The IEE for 7 subprojects for Phase II was approved on 23 Dec’18 by LNT PONRE, 11 Jan.’19 by Bokeo PONRE, 08 Feb’19 by PSL PONRE and 11 Feb’19 by ODX PONRE, respectively. (b) The civil works contract is anticipation to award in end October 2019, and kivk off meeting in early Nov. 19.

Schedule 3 Para 7 The Recipient shall not award any Works contract Being complied: involving involuntary resettlement impacts for a Subproject until the Recipient has prepared and Phase I (2 subprojects). submitted to ADB the final RP for such Subproject •Updated resettlement documents Based on the Subproject's detailed design, and for Subprojects Nam Oun and obtained ADB's clearance of such RP. Nam Beng in Oudomxay province were approved by ADB on 15- Jan-‘18. • The kick-off meetings for NCB- 001 and 002 were held on 24-Jan- ’18 for NCB-001, and on 25-Jan- ’18 for NCB-002, respectively. Phase II (7 subproject). • LACPs of FS stage for 7

Schedule Para No. Particular Covenant Status of Compliance subprojects were approved by ADB on 27 Feb 2019. • Updated LACPs for 7 subprojects based on DD submitted to ADB by 30 September 2019 for getting approval before commencement of construction at the beginning of March 2020.

Schedule 4 Para 2 The Recipient shall ensure or cause the Project Being complied. provinces to ensure that the preparation, design, construction, implementation, operation and All the necessary implementation decommissioning of each Subproject and all processes and documents Project facilities comply with (a) all applicable regarding the environment have laws and regulations of the Recipient relating to so far been strictly complied with environment, health, and safety; (b) the following ADB and the government’s guideline. Environment Safeguards; (c) the EARF; and (d) all measures and requirements set forth in the respective IEE and SEMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.

Schedule 4 Para 3 The Recipient shall ensure that no Subproject Being complied. which meets the ADB's Category A environmental criteria as defined under the Safeguard Policy No subprojects for Phase I, II and Statement, is included in the list of Eligible III are fall under ADB’s Category A Subprojects, and that no Subproject with environmental criteria. Category A environmental criteria is financed under the Project.

Schedule 4 Para 4 The Recipient shall ensure or cause the Project Being complied. provinces to ensure that all land and all rights-of- way required for each Subproject and all Project All land acquisition and facilities are made available to the Works compensation activities related to contractor in accordance with the schedule the project’s implementation are in agreed under the related Works contract and all the process of being in land acquisition and resettlement activities are compliance with all applicable implemented in compliance with (a) all applicable laws, regulations, and related laws and regulations of the Recipient relating to requirements of the government and ADB. land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; (c) the RF; and (d) all measures and requirements set forth in the respective RP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report. Being complied. Schedule 4 Para 5 The Recipient shall ensure that no Subproject which meets the Involuntary Resettlement None of the subprojects for Phase Category A, is included in the List of Eligible I, II and III are included in the Subprojects, and that no Subproject with the Involuntary Resettlement Involuntary Resettlement Category A is financed Category A. under the Project.

Schedule 4 Para 6 Without limiting the application of the Involuntary Being complied. Resettlement Safeguards, the RF or the RP, the Recipient shall ensure or cause the Project The Project ensures that no provinces to ensure that no physical or economic physical or economic displacement takes place in displacement takes place in connection with the Subprojects until: connection with the subprojects related to affected people. (a) compensation and other entitlements have been provided to affected people in accordance with the RP; and

Schedule Para No. Particular Covenant Status of Compliance (b) a comprehensive income and livelihood restoration program has been established in accordance with the RP.

Schedule 4 Para 7 The Recipient shall also ensure that a grievance Being complied. mechanism acceptable to ADB is established for affected people in the districts where the The Project ensures that a resettlement activities under the Project are grievance mechanism acceptable carried out. to ADB is established for affected people in the district.

Schedule 4 Para 8 The Recipient shall ensure that Subprojects do Being complied. not adversely affect ethnic groups, households headed by women, disabled, elderly or other • Phase I: FS reports including similarly vulnerable groups, and that rights and Ethnic Group Development Plan needs of ethnic groups are fully addressed in for Subprojects Nam Oun and accordance with ADB's Policy on Gender and Nam Beng in Oudomxay province Development (1998) and Safeguard Policy were approved by ADB on 12- Sep-‘16. Statement. In particular, the Project shall be carried out in accordance with the Indigenous • Phase II: 1st draft of Ethnic Peoples Planning Framework. Group Development Plans for 7 PRI subprojects for Phase II were submitted to ADB on 23-Jan-’18. • Phase III: 1st draft of Ethnic Group Development Plans for 7 PRI subprojects for Phase III were submitted to ADB on 18-Jun-’19.

Schedule 4 Para 9 The Recipient shall ensure that no Subprojects Being complied. which have significant impacts on ethnic groups, is included in the List of Eligible Subprojects, and • Phase I: FS reports including that no Subproject with such impacts is financed Ethnic Group Development Plan under the Project. For Subprojects in which ethnic for Subprojects Nam Oun and groups are present and affected, an indigenous Nam Beng in Oudomxay province peoples plan shall be prepared in accordance with were approved by ADB on 12- the Indigenous Peoples Planning Framework. Sep-‘16. • Phase II: 1st draft of Ethnic Group Development Plans for 7 PRI subprojects for Phase II were submitted to ADB on 23-Jan-’18. • Phase III: 1st draft of Ethnic Group Development Plans for 7 PRI subprojects for Phase III were submitted to ADB on 18-Jun-’19.

Schedule 4 Para 10 The Recipient shall ensure that, (a) measures to Being complied. improve the welfare of ethnic groups are built into the overall Subproject design where the ethnic • Phase I: FS reports including group population exceeds 60%; and (b) no Ethnic Group Development Plan for Subprojects Nam Oun and negative impact on such ethnic groups is expected. Nam Beng in Oudomxay province were approved by ADB on 12- Sep-‘16. • Phase II: 1st draft of Ethnic Group Development Plans for 7 PRI subprojects for Phase II were submitted to ADB on 23-Jan-’18. • Phase III: 1st draft of Ethnic Group Development Plans for 7 PRI subprojects for Phase III were submitted to ADB on 18-Jun-’19.

Schedule Para No. Particular Covenant Status of Compliance

Schedule 4 Para 11 The Recipient shall ensure or cause the Project Being complied. provinces to ensure that all bidding documents and contracts for Works contain provisions that Phase I (2 subprojects): require contractors to: completed • General Conditions of Contract (a) comply with the measures and requirements relevant to the contractor set forth in the IEE, the for NCB-001 and 002 include SEMP, and the RP (to the extent they concern Clause 63. 1 (a) The Contractor impacts on affected people during construction), shall comply with all applicable and any corrective or preventative actions set out national, provincial, and local in a Safeguards Monitoring Report and the environmental laws and Corrective Action Plan (CAP); regulation; and 63.1 (b) The Contractor shall (i) establish an (b) make available a budget for all such operational system for managing environmental and social measures; and environmental impacts, (ii) carry out all of the monitoring mitigation (c) provide the Recipient with a written notice of measures set forth in the any unanticipated environmental, resettlement or Environmental Management Plan indigenous peoples risks or impacts that arise attached hereto. during construction, implementation or operation of the Project that were not considered in the IEE, • Particular Condition of Contract the SEMP or the RP. includes Clause 63.1 (b) The Contractor shall assign environment supervising/monitoring staff. The Contractor shall prepare the contractor’s (site-specific) environmental management plan (SSEMP) and submit to the EA/IA through DCO/PPO for approval before commencement of the contracted construction works. • The Contractor shall submit the monthly environmental monitoring report (EMR) to the EA/IA attached hereto.

Phase II (7 subprojects): • NCB-003, 004, 005 & 007 Contract signing on 14 November 2019 • NCB-008 & 009 Contract signing on 15 November 2019 • The contracts should include the same Clauses on environmental issues regarding EMP in General and Particular Conditions as those contracts for Phase I subprojects.

Schedule 4 Para 12 The Recipient shall do the following or shall cause Being complied. the Project provinces to do the following: • 31 Jul. 2018: 1st Semi-annual (a) submit semi-annual Safeguards Monitoring Safeguard Monitoring Report was Reports to ADB and disclose relevant information submitted to ADB. from such reports to affected persons promptly upon submission; • 17 Oct. 2018: Revised 1st Semi- annual Safeguard Monitoring (b) if any unanticipated environmental and/or Report was submitted to ADB social risks and impacts arise during construction, implementation or operation of the Project that • 31 Jan. 2019: 2nd SSMR was submitted to ADB. were not considered in the IEE, the SEMP or the RP, promptly inform ADB of the occurrence of • 2 Aug. 2019: 3rd SSMR was

Schedule Para No. Particular Covenant Status of Compliance such risks or impacts, with detailed description of submitted to ADB. the event and proposed corrective action plan; and (c) report any actual or potential breach of compliance with the measures and requirements set forth in the SEMP or the RP promptly after becoming aware of the breach.

Schedule 4 Para 20 In case that a candidate subproject does not meet Being complied. the criteria provided in paragraph 19 above, it shall be replaced by the next priority candidate The Project will follow the subproject for the respective Project province requirements of criteria provided in paragraph 19. under the List of Eligible Subprojects. If candidate subprojects not listed in the List of Eligible Subprojects are to be considered for financing under the Project, they shall be examined and screened by MAF with the support from an independent consultant acceptable to both ADB and the Recipient, and submitted to ADB for approval.

VI. PUBLIC CONSULTATION, INFORMATION DISCLOSURE, CAPACITY BUILDING

63. This chapter includes a selective overview of some of the consultation activities which were undertaken before and during the 5th reporting period.

1. Preparation of Phase I Subproject Safeguard Plans 64. Several consultations and information disclosure sessions were conducted at the target villages in the two subprojects of Phase I starting with the small PPTA in February and March 2015. 65. During the reporting period, additional public consultation took place in connection with the complementary field work for the preparation for the LACCAP. Three public village meetings were hold attended by more than 50 participants in order to discuss and agree on corrective measures on land acquisition and complementary measures.

2. Preparation of Phase II Subproject Safeguard Plans 66. A series of consultations and information disclosures have been conducted at the Phase II subprojects in 7 districts of 4 provinces since April 2017, and those implemented during the reporting period are as presented in Table 21 below. Table 21: Consultation, Participation and Disclosure for Safeguard Plans for Phase II Subprojects Subproject Focus and Description of Consultation Disclosure Stage and Participation In-kind Specific meetings were held with AHs in the In Q1 2020, The PPO, DCO and GIC compensation 7 subproject areas to (i) explain the new performed the fieldwork for the planning and compensation approach, (ii) detail preparation of the compensation jointly. compensation amount through the components land titling and agriculture, (iii) For the implementing stage PPO and DCO to facilitate AHs decision about type of continued in Q2 and Q3 2020. agricultural support if required, and (iv) others.

3. Preparation of Phase III Subproject Safeguard Plans 67. Project Orientation meetings for PAFO/PPO and DAFO/DCO staffs were implemented in April and May 2018. Following the Project Orientation meetings, the 1st Public Village Consultation meetings were held from 14 June 2018 to 15 July 2018 involved by NPMO, PPO, DCO and village ethnic groups, men, women, LWU, WUGs and village authorities of the beneficiary villages of Phase III subprojects in 7 districts of 4 provinces. 68. A series of consultations and information disclosures have been conducted at the Phase III subprojects since April 2018 as summarized in Table 22.

Table 22: Consultation, Participation and Disclosure for Safeguard Plans for Phase III Subprojects

Focus and Description of Subproject Consultation and Disclosure Stage Participation Feasibility Project Orientation from April to Discussed during the Project Orientation: Project Objectives; Study May 2018 of PAFO/PPO and Project Components; and Tentative Subproject preparation DAFO/DCO staffs and implementation schedule.

Feasibility 1st Public Village Consultation Topics discussed: NRI Project and proposed additional Study meetings were conducted from financing; project tentative schedule; Project Process and 14 June 2018 to 15 July 2018 requirements such as: IEE/EMP, LAC, SIA, EGDP, GAP, involving NPMO, PPO, DCO WUG, RMC, FPG; and separate focus group discussions with: and village ethnic groups, men, village authority; ethnic groups; women; and WUG to discuss women, LWU, WUGs, village current problems, causes and solutions; and support of the authorities. groups to the implementation of the subproject.

Women composed of 30.1% of the 1,477 participants.

Results of the discussions show: 1) irrigation is priority problem for the villages; 2) low rice yield due to inefficient and insufficient irrigation and low crop production technology; and 3) female issues (income source, work hard, disadvantaged). Regarding the subproject, they expressed: willingness to support the implementation of the subproject by: 1) agreeing to contribute labor; 2) commit to pay irrigation fees as source of O&M funds; 3) participate in monitoring the environment; and 4) contribute portions of their lands for the construction/rehabilitation of irrigation infrastructure (Note this has been formalized through signed compensation and entitlement sheets as a corrective action).

Feasibility Socio-Economic Survey in Study October 2018 involving The SIA confirmed the results of the village consultations that interview of village authorities, the villagers agree to support the implementation of the sample HHs and Focus Group subproject, besides, generating information for the formulation Discussions with men, women of the GAP and EGDP of the Subproject and data for the and ethnic groups, intended for economic evaluation of the subproject. the SIA of the subproject. This was done to gather data and information for the preparation of the Social Impact Assessment.

Detailed 23 LAC public village meetings Covering topics are status of subproject, asset measurements Engineering for phase III were held from 28 surveys (PMS/DMS), socio-economic surveys of affected Design February to 31 March 2019. households (SESAHs), joint field transect walks, entitlement, compensation, grievance redress mechanism, construction/rehabilitation work.

69. A series of consultations and information disclosures have been conducted at the Phase IV subprojects since May 2019 as summarized in Table 23.

Table 23: Consultation, Participation and Disclosure for Safeguard Plans for Phase IV Subprojects

Focus and Description of Subproject Consultation and Disclosure Stage Participation Feasibility Project Orientation from May to Discussed during the Project Orientation: Project Objectives; Study June 2019 for PAFO/PPO and Project Components; and Tentative Subproject preparation DAFO/DCO staffs and implementation schedule.

Feasibility 1st Public Village Consultation The main objectives of the 1st Villages Consultation meetings Study meetings were conducted from for Phase IV subprojects are; 8 July to 6 August 2019 involving NPMO, PPO, DCO (1) Background of Project; and village ethnic groups, men, (2) Scope of rehabilitation/construction of irrigation women, LWU, WUGs, village infrastructure; authorities. (3) Briefing on Project’s associated initiatives; (4) Introducing social and environmental safeguards aspects (ADB regulations, Lao laws, project-wide GAP, RF, EMP, EGDF); (5) Benefit of Monitoring & Evaluation; (6) Grievance Redress Mechanism of the Project.

1,212 participants including 419 females (35%) attended 23 meetings at beneficiary villages in 6 Phase IV subprojects.

The national environmental specialist presented and disclosed on steps/procedures for environmental safeguard based on ADB requirements including IEE procedure for obtaining the ECC from PONRE and explained on the potential of environmental impacts that might be occurred during construction phase and operation phase based on the examples of previous similar NRI Project from other subproject sites. However, the EMP has introduced briefly to villagers for their acknowledgement. Collected data are; 1) protected areas (protection and conservation forests); 2) river users in upstream and downstream; 3) rights on river water, communal land, etc.; 4) fishery (fish type, fishing type, fishing location, amount of caught fish). 5) UXO; 6) water conflict; 7) dry season crops.

LAC topics presented and discussed are; 1) Phase of the Project, stage of the PRI subproject, and status of irrigation sub-schemes; 2) Introduction into social and environmental safeguards; 3) Briefing into ADB and Lao regulations and laws; 4) Explaining Acquisition and Compensation; 5) Explaining type of ownership (title, certificates, tax payments); 6) Presenting GRM; 7) Presenting EMP aspects; 8) Discussion about dry season cultivation; 9) Open round for clarification and questions & answers; 10) Other.

The national community development specialist presented and disclosed are; 1) WUA Development Process: Establishment of WUG, development from WUG to WUA, WUG capacity building, O&M (methodology and concept, implementation procedure, schedule) 2) Framework for Ethnic Group Development (Ensure using of local labour, poor and ethnic should participate in project

planning, Implementation and Monitoring of Construction work 3) Capacity building for ethnic groups 4) Associated activities specialized for poor ethnic groups (female-focused extension service) 5) Grievance Redress Mechanism of the project and setting up of Village Mediation Communities 6) Framework for Gender Development and Gender Action Plan Feasibility Socio-Economic Survey was The SIA confirmed the results of the village consultations that Study conducted from 12 February to the villagers agree to support the implementation of the 18 March 2020, which included subproject, besides, generating information for the formulation interview of village authorities, of the GAP and EGDP of the Subproject and data for the sample HHs and Focus Group economic evaluation of the subproject. Discussions with men, women and ethnic groups, intended for SIA of each subproject.

VII. GRIEVANCE REDRESS MECHANISM

70. Grievance redress mechanism (GRM) have been established in the two (2) subprojects of Phase I in Oudomxay Province and in the seven (7) subprojects of Phase II in Phongsaly, Luang Namtha and Bokeo Provinces. For Phase I and II subprojects, no grievances have been received during the reporting period. 71. In terms of grievance redress, the villagers were briefed about their rights to grievance and the procedures during feasibility study. This has put some focus on safeguard topics. This shall be repeated combined with further consultation at the start of construction work. Villagers may present their complaints to the concerned local administrative officials and/or committees. The complaint can be filed first at the village level and can be elevated to the highest or provincial level if the complainants are not satisfied with the decisions made by the village and district levels/committees. 72. The main steps outlined below serve as an orientation for the grievance procedure. For each step the details shall be described, agreed and explained to both resettlement responsible committees and the residents of the affected villages.

Table 24: NRI-AF Main Steps of Grievance Redress Mechanism (GRM) Serial No. Procedural Steps 1 In each village existing mediation committees would be the first contact for complainants to address their concerns. It is recommended that in agreement with villages either this committee would be responsible for LARC issues or the village would establish a project related LARC committee. The village shall decide about its community internal approach. ▼ 2 Complainants would address their complaints to committee/s that would have to react within a defined time (5 days to be defined by village) after submission of the complaint. ▼ 3 In case provided responses are not satisfying to affected people the grievance applications would be forwarded to the district council for resolution within a defined time (5 days) from the date of filing the complaint with this court. ▼ 4 In case complainants are still not satisfied next steps could involve provincial authorities that would have to issue a final decision within a defined time (10 days). ▼ 5 If subproject complainants are still not satisfied with the response given or decisions made, the complaint can be elevated at national level either to the national court, if legal decision at provincial level will require this, or to the NPMO which is to be established by the DOP through which the MAF will be responsible for the overall project management for final clarification in this matter within 15 days.

VIII. CONCLUSION

1. Main Achievements

1.1. Environment

73. On 7th February 2020, the 3rd External Safeguards Monitoring Report covering all 7 Phase II subprojects were submitted by the FES/NUOL team. The report includes result of the baseline water quality study with a total of 23 samples in line with the Aide Memoir of ADB grant review mission in December 20192. 74. Regarding IEE of Phase III subprojects, the Environmental Compliance Certificates (ECCs) were issued for Nam Gna 2 and Nam Ma subprojects of Luang Namtha Province on 25 December 2019, for Nam Kha and Nam Satone subprojects of Bokeo Province on 13 and 15 January 2020 respectively, Nam Ngaad subproject of Oudomxay Province on 24 January 2020, and Dong Nouak and Nam Hoy-Nam Lou subprojects of Phongsaly Province on 17 July 2020.

1.2. Involuntary Resettlement

75. Concerning IR safeguards, the following main achievements were made:

• Phase I under operation since 2019. Therefore, nothing to report for the monitoring period

• Phase II under delayed construction phase: Civil Works: - With regard to contractual situation of phase II rehabilitation works, 5 contracts were signed with civil contractors in February and March 2020. Four of them completed the setting-out of their work. For two subprojects retendering is required and scheduled for Q3 2020. LAC reports: - Three rounds of preparing updated LACPs (NRMO/GIC) and related review/comments (ADB) took place between Nov. 2019 and April 2020. - To bring the NRI-AF back into line with ADB IR safeguards compliance LAMDDRs have to be prepared. This is scheduled for Q3 2020. In-kind compensation: - The ADB Review Mission in Dec. 2019 initiated with NRMO a modified approach towards “compensation through land titling and agricultural project components”. This will be applied for the phase II subprojects. Therefore, planning and approval has been completed between January and April 2020, followed by implementation between May and October 2020. - By June 2020, Bokeo Province the subprojects had competed their compensation to AHs, and in Luang Namtha Province same was to be expected.

2 For Phase II subprojects, the ADB Grand Review Mission requested the EA to carry out collecting baseline data on water quality prior to commencement of construction works (Aide Memoir, ADB Grant Review Mission, 9-24 December 2019, para. 26).

For Oudomxay and Phongsaly provinces some compensation were completed for the subprojects others to be prepared and/or implemented during Q3 2020. • Phase III: LAC reports: - In March 2020 the final feasibility study related LACPs and LACDDRs were submitted with unchanged requirements as indicated at draft stage already

1.3. Others

76. Regarding Phase IV subprojects, the socio-economic survey for SIA reports was conducted from 12 February to 18 March 2020 by the national consultant firm.

2. Key Activities Planned for the Next Reporting Period

2.1. Environment

77. Construction work of 7 Phase II subprojects will be expected to commence in Q3 2020 after the rainy season. CEMPs for all 7 subprojects need to be resubmitted and approved by the GIC Environmental Specialist before commencement of the construction.

2.2. Involuntary Resettlement

78. Phase II: - Preparation and submission of LAMDDRs in Q3 2020. - Start of implementation of approved LACDDRs. - Completion of pending compensation measures as part of a CAP. 79. Phase III: - Preparation of in-cash compensation procedures. - Carrying out LAC field work for the preparation of updated LACDDRS and LACPs - Preparation and submission of DED related LACPs and LACDDRs. 80. Phase IV: - Planning FS-DED joint LAC fieldwork. - Preparing directly final LACPS and LACDDRs. - Preparation and submission of DED related LACPs and LACDDRs.

2.3. Others

81. Concerning external Monitoring & Evaluation, field survey for the 4th External Safeguards Monitoring Report is scheduled to conduct in December 2020. 82. Phase IV related SIA reports and EGDPs of all 6 subprojects will be finalized and submitted to ADB.

ATTACHMENT: INVOLUNTARY RESETTLEMENT PERFORMANCE MONITORING

ATTACHMENT IR-1: Phase II - In-kind compensation: Status

. Showing the contract engineering status as well as the indicated construction periods. Construction . This is subject of review after finalizations and approvals or the 7 LAMDDRs in Q42020. . For this component, the issuing and handing over of land titles to AHs is of importance. . The technical approach is embedded in the overall land titling project component, but with priority for remaining Land AHs for their completion first in order to achieve completion of compensation independent from the overall Complementary Titling achievements for all landowners of teg irrigation sub-schemes. This concerns the subproject 01 to 3 with shown Descriptions Compensation status of 24% and 0% of handing over to AHs. Components . Re-scheduled completion is October 2020 instead of Q3 2020. . Shown are the sequenced steps required and the current completion status. Agricultural . The subproject 01 and 03 remain to provide the agricultural support measures as agreed with the AHs. support . Re-scheduled completion is October 2020 instead of Q3 2020.

ATTACHMENT: INVOLUNTARY RESETTLEMENT PERFORMANCE MONITORING ATTACHMENT IR-2: Phase II - In-kind compensation: Composition

1 As this SMR has been prepared by end of Q3 2020, the shown status refers to 25 September 2020. 2 For phase II, there are in 7 subprojects a total of 162 affected households (AHs), of which all receive land titling as the first in-kind compensation, and 74 AHs additional agricultural support as second in-kind compensation. Complementary 3 The total compensation for al 7 subprojects splits into 61% for land titling and 39% for agricultural support. Descriptions 4 Example Subproject Nam Lue-Nam Chang: There are 52 AHs, all receive land titles and 39 AHs additional agricultural support a compensation measures. The compensation amount through land titling calculates to 52% (114.052.800 Kip) and 48% (105.000.000 Kip) adding to a total of 219.052.800 Kip.