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Power Transmission Investment Program - Tranche 3 500 Kv Duc Hoa Substation

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Power Transmission Investment Program - Tranche 3 500 Kv Duc Hoa Substation Resettlement Due Diligence Report -Corrective Action Plan Project No. 42039-036 Loan No. 3374 April 2019 VIE: Power Transmission Investment Program - Tranche 3 500 kV Duc Hoa Substation Prepared by the Southern Vietnam Power Project Management Board (SPMB) for Asian Development Bank (ADB). CURRENCY EQUIVALENTS (as of April 2019) USD $ 1 = VND 23,160 ELECTRICAL TERMINOLOGY kV (kilovolt) 1,000 volts MW (Megawatt) 1,000 kW MVA (Megavolt-ampere) 1,000 kVA Transmission System 500 kV, 220 kV, 110 kV lines Medium Voltage Distribution (MV) 35 kV, 22 kV or 10 kV lines supplying distribution substations Low Voltage Distribution (LV) 400/230 V distribution and service lines Load Factor Ratio of average power demand to maximum power demand Electrical Losses Difference between energy delivered and energy sent out REMARKS In this report, "$" refers to US dollars. This due diligence report-corrective action plan is a document of the Borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Definition of Terms” section of this document. 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 ADB does not intend to make any judgments as to the legal or other status of any territory or area. ii A. Background of the Project and Subproject A.1. Background of the Project 1. Recognizing the need to overcome current constraints in the power sector to ensure that the rapidly growing electricity demand could be met in an economically and environmentally sustainable manner, the Government of Viet Nam (GOV) approved in 2011 the National Power Sector Development Master Plan VII (PDMP VII). Under PDMP VII, the government approved multiple power generation and transmission projects to be implemented during 2011-2020. 2. The Asian Development Bank (ADB) on 16 December 2011 approved a multi-tranche financing facility (MFF) in the amount of $730 million for the Power Transmission Investment Program (PTIP). The Executing Agency (EA) is the National Power Transmission Corporation (NPT), Vietnam’s state-owned electricity transmission company that is responsible for the planning and nationwide distribution of electricity. The Southern Power Project Management Board (SPMB), responsible for the operation of the power system in southern Vietnam, is the Implementing Agency (IA). PTIP is consistent with PDMP VII’s objective of addressing the growing electricity demand of industrial, commercial, and residential consumers throughout Viet Nam, in addition to improving the operational effectiveness and efficiency of NPT. One component of the investment program is to expand Viet Nam's power transmission network by financing the construction of 500 kV and 220 kV transmission lines and associated substations. PTIP is anticipated to consist of four financing tranches. ADB approved Tranche 1 in December 2011 and Tranche 2 in November 2012. Tranche 3 has been approved in December 2015 and become effective in December 2016. A.2. Subproject Description 3. The construction of the 500 kV Duc Hoa SS and connection lines aims to (i) strengthen the power supply for loads in Long An Province (Duc Hoa, Duc Hue, Ben Luc districts and Tan An town) and Ho Chi Minh City (the area of Binh Chanh and District 12); (ii) serve power consumption generated by Long Phu Power Center, Kien Luong Power Center, and Song Hau Power Center; and (iii) improve the system reliability, increase the 220 kV and 110 kV power supply capacity, and meet the needs of socio-economic development for the region. 4. The 500 kV Duc Hoa SS is located in Binh Loi Hamlet, Hoa Khanh Dong Commune, Duc Hoa District, Long An Province. The SS is bordered to the South by Huu Thanh Commune, Duc Hoa District, to the North by Duc Lap Thuong Commune of Duc Hoa District, to the East by Duc Hoa Thuong Commune and to the west by Hoa Khanh Nam Commune of Duc Hoa District. 5. The SS is located in the thinly-populated area and accessible to both road and waterway. The location of the SS is to the right of the road N2 from Duc Hoa to Thanh Hoa, and about 400m from Kenh Ranh bridge. In terms of waterway, the SS is about 400m from Ranh Canal with the width of about 50m. The canal can be used to transport sand for the substation construction. 6. The 500 kV Duc Hoa SS has an initial capacity 1 x 900 MVA (3 x 300 MVA single phase autotransformers) with provision for a future second 900 MVA transformer bank. The 500 kV switchyard design will be a breaker-and-a-half scheme to allow flexible operation and ensure optimum reliability (major equipment can be maintained without load interruption). It will comprise of dual 500 kV bus-bars, with design for a total of 16x500 kV feeders, including 14- iii line feeders and 2 transformer feeders; of these, 4-line feeders and 1 transformer feeder will be installed under this Tranche 3 subproject. 7. The 220 kV switchyard design is double plus transfer bus-bar, with a total of 21 x 220 kV bays, including 14 line feeders, 4 transformer feeders, 1 bus-coupler feeder, 1 connected feeder and 1 by-pass circuit breaker feeder; of these, 4 line feeders, 1 transformer feeder, 1 connected feeder, and 1 ring circuit breaker feeder will be installed under this Tranche 3 subproject. Figure 1. Layout of 500 kV Duc Hoa Substation B. Summary of Subproject Land Acquisition and Resettlement Impacts 8. Impacts on land. The 500 kV substation will acquire 142,369.1 m2 of land located in Hoa Khanh Dong Commune, affecting a total of 31 households (186 affected persons) and Hoa Khanh Dong CPC. By land classification, 135,931.10 m2 (95.5%) of the permanently acquired land are planted to rice and other annual crops; 1,829.2 m2, accounting for 1.3% are rural residential land; 2,743.2 m2, equivalent to 1.9%, are garden land; and 60.2 m2, or 0.04% are perennial cropland. The total affected land area belongs to households is 140,563.70 m2. The remaining 1,805.40 m2, making 1.26% of the total acquired land area, are public land used for irrigational and road purposes under the management of Hoa Khanh Dong CPC. 9. Only one AH is affected by the loss of rural residential land to make way for the 500 kV Duc Hoa SS and thus have to relocate. This household also loses 2,743.2 m2 of garden land. 31 households lose annual cropland while only one household loses perennial cropland. All of the 31 affected households have land use rights certificates (LURCs) over their affected land area, except for one household who has LURC for 11,838.70 m2 of her agricultural land but the remaining area of 2,066 m2 are under dispute and do not have LURC for such area1. 1 The dispute over 2,066 m2 of rice growing land of the AH is being reviewed and verified by the Duc Hoa District Construction and Investment Project Management Unit (previously Duc Hoa District Land Fund Development Center). The compensation amount for this disputed land area is now being held in an escrow account and will be provided to the verified land user when the dispute is solved. This issue will be monitored closely during the implementation. iv 10. By severity of land loss, 26 of the 31 AHs will lose 10% or more of their productive landholdings. In which, 5 AHs (30 APs) shall lose between 10% and 30% of their productive landholdings, 12 AHs (71 APs) shall lose 30% to 70% of their productive landholdings while 9 AHs (60 APs) will lose more than 70% to 100% of their total land areas. Except 1 AH who lose 99.65% of the total land holding, for 25 remaining households, their remaining land is still economically viable2. 11. Impacts on trees and crops. Trees and crops in the project area will be affected by land acquisition for the substation. The DMS records show that a total 135,931.10 m2 of annual crops (mainly rice) are permanently affected. In addition, a total 6,631 trees of different types belonging to 12 households, including custard apple trees, yellow accacia, ochna integerrima (so called yellow “mai” trees), are also affected on the acquired area. 12. Impacts on houses and structures. Only one household with 6 APs is affected on rural residential land with house built thereon. By construction classification, the wholly affected house is classified as Grade 4 (i.e., made of brick walls and tile roofs) and they have an aggregate floor area of 66.04 m2. The AH affected by the loss of their dwelling has opted to self-relocation (i.e., no need for a relocation site) because they have enough remaining unaffected land on which to rebuild. 13. The construction of the 500 kV Duc Hoa SS will affect 17.28 m2 of kitchen, 2.88 m2 of bathroom, 5.64 m2 of built pond, one electric meter and four wells of four AHs. 14. There is no impact on business household as all of the AHs of the 500 kV Duc Hoa SS are engaged in agricultural activities and the location of the SS is mainly on agricultural land. No public structures and monuments are affected by the subproject. 15. The socioeconomic data of 31 AHs shows that there is no AH belonging to vulnerable group per the project policies3.
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